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Law The Cannabis Chronicles - Misc Cannabis News

Marijuana Breathalyzers Don’t Work, So Says New Study

Research that analyzed past studies on THC levels and impairment found that cannabis breathalyzers may never work.​

Marijuana breathalyzers have been in development for years. These mythical tools could solve one of the main issues associated with the legalization of marijuana: measuring THC impairment in drivers. But a new study reveals that current breathalyzers are nowhere near that goal.

The study, conducted in Australia by researchers at the University of Sydney, found that marijuana breathalyzers were inconsistent in measuring impairment from THC. Researchers analyzed 28 studies on driving performance and concentrations of THC in blood and saliva and found the connection between the two inconsistent.
The idea of marijuana breathalyzers is based on alcohol breathalyzers, which are administered on the road and provide an accurate assessment of people’s blood alcohol levels. This has been efficient over the years in providing a relatively accurate take on people’s intoxication levels and how it affects driving skills. This doesn’t appear to be the case with THC.

This new study analyzed a variety of older studies that focused on how THC affected people’s reaction time and divided attention, skills that are necessary for driving safely. While the study found some strong connections between THC levels and impairment in inexperienced cannabis users, once cannabis users were seasoned (using the drug several times a week), these connections disappeared.

“Higher blood THC concentrations were only weakly associated with increased impairment in occasional cannabis users while no significant relationship was detected in regular cannabis users,” said Dr. Danielle McCartney, lead author of the study.

“This suggests that blood and oral fluid THC concentrations are relatively poor indicators of cannabis-THC-induced impairment.”

While THC intoxication can impair people’s driving skills, it presents itself very differently depending on the person consuming THC. Someone who’s experienced with cannabis might show the same levels of THC in their blood as someone who’s inexperienced with it. These two people will likely have completely different responses to the drug and how impaired they are by it.

Marijuana breathalyzers were people’s go-to response for solving driving while under the influence of THC. Now, it appears that these devices should measure a different biomarker for success, something that proves not only that someone consumed THC recently, but that they’re impaired by it. While the idea of a device that can measure THC sounds safe enough for providing an accurate assessment of intoxication and for discouraging this type of behavior, marijuana is too complex a drug to be reduced by a number.
 
There is nothing that politicians, of any stripe, love more than tax dollars.....and there is all the motive you need to know about.

More Red States Are Going Wild For Weed


The proven perks of taxable marijuana sales that benefit legalized states are beginning to outweigh the antiquated “gateway drug” mentality in many areas of the nation.​

When liberal leaning states like California, Washington and Colorado sparked the movement towards marijuana legalization it hardly invoked much surprise. Marijuana legalization seemed closely connected to progressive liberal ideals at the time. It was also not earth-shattering news when recreational marijuana sales in these Democratic states skyrocketed and these states all reaped tangible benefits.

Recently, the Republican-leaning state of Montana legalized recreational marijuana, and it has already posted impressive sales numbers. In the first weekend alone, the 20% sales tax on recreational cannabis raised $313,396 in tax revenue for the state.

This may come as a slight shock to those who see marijuana legalization as a solely partisan issue. Montana, however, is simply a friendly reminder that in 2022 some Republican-leaning states enjoy marijuana just as much as their blue state neighbors.

Since its legalization in 2014, recreational marijuana has steadily increased in popularity over time. In 2020, the state of Alaska collected 24.2 million dollars in marijuana taxes and fees according to the state of Alaska annual report.

According to Forbes, “In 2022, many states will seek to legalize cannabis in an effort to address their electorate’s interest in revising current drug policies, creating a safe and stable marketplace, and mitigating the risks posed by the existence of the illicit market.”

The proven perks of taxable marijuana sales that benefit legalized states are beginning to outweigh the antiquated “gateway drug” mentality in many areas of the nation. At the end of the day, Republicans and Democrats are beginning to find more common ground when it comes to reasons to support marijuana.
 

Cannabis banking is booming despite federal uncertainty


Small banks are gaining confidence​

Cannabis companies may not be able to work with the JPMorgan Chases and Citigroups of the world anytime soon, but that hasn’t stopped small banks from flooding into the space.

On the surface, it would seem that the industry’s prospects for being able to bank like normal companies has taken a hit. U.S. Representative Ed Perlmutter of Colorado, the biggest supporter of legislation that would liberalize rules for cannabis banking, just announced his retirement. The SAFE Banking Act he backed stalled late last year. Meanwhile, Visa Inc. sent a memo to banks saying that so-called cashless ATMs — a workaround used by some dispensaries to avoid dealing in cash — weren’t copacetic.

But those who specialize in helping financial institutions work with cannabis companies say that may all be moot: The number of credit unions and state-chartered banks venturing into the industry has been quietly accelerating.

“In the early days, no banks were willing to do this,” said Peter Su, a senior vice president at Green Check Verified, which offers software to banks that helps them deal with the added regulatory burdens of working in cannabis.

Green Check, which is among a handful of companies that have sprung up to fill the niche, announced last week that in 2021 the number of financial institutions that it works with grew by 270% to around 100 banks and credit unions.

Most big banks shun cannabis companies because marijuana is illegal at the federal level. Credit-card networks do as well. That has created a conundrum for any company that touches marijuana; they’re often forced to deal in cash and can struggle with basic operations like paying workers and buying inventory.





Shield Compliance, another company that helps financial firms do business with the industry, has also experienced strong growth.

“We’re seeing more and more bankers recognize that there’s a clear path to serving these customers,” Tony Repanich, the company’s president, told me.

“The playbook has been established showing banks and regulators how to work with the industry.”

Banks that work in the space agree there’s more competition for cannabis clients.

“More people are dipping their toe in this industry over the past year,” said William Hufnagel, chief executive officer of Dart Bank. The bank started in 2019 with one client in Michigan and now has hundreds in the state, including ancillary companies like testing labs and law firms, he said.

Todd Gunderson, CEO of Credit Union 1, said his institution — which like Dart, uses Shield’s software — started out in 2019 with one cannabis client in Nevada. It now works with around 150. “Our comfort level is very high with cannabis banking. I think we’re taking on more and more clients every day,” he said. He estimates his client base in cannabis has more than doubled in the last six months.

Other institutions that have publicly said they’re working with the industry include Valley National Bancorp, whose Valley National Bank subsidiary recently launched a new payment app for cannabis. Still, only around 700 depository institutions work with cannabis companies, according to a recent report from the Financial Crimes Enforcement Network, or FinCEN, a bureau of the U.S. Treasury that analyzes financial transactions. Such estimates may overstate the real number, many say, because they would include institutions that have only temporarily worked with cannabis companies.

And not all risks can be outsourced to programs like Shield’s and Green Check’s. The memo from Visa, which was posted on Reddit, has created uncertainty around the widespread use of cashless ATMs at dispensaries. Small financial institutions also have limits on deposits to make sure they’re adequately capitalized and don't have too much exposure to cannabis.
Despite the extra work and challenges, Hufnagel said cannabis banking is worth it. Contrary to what some skittish big banks may think about the industry, he said many clients have an attractive financial profile.

“Most of the time they’re high-net worth individuals and serial entrepreneurs who've had success in other areas,” he said.

“It’s been a great opportunity to expand our relationships.”

While many small banks are still tight-lipped about their participation, Hufnagel said, he sees the recent growth as a sign such stigmas may finally be fading — even at his own institution.

“A year ago, I may not have even done this interview.”
 

After One Year As President, Biden’s Marijuana Promises Remain Unfulfilled


Thursday marks the end of President Joe Biden’s first year in office—and, by and large, his campaign promises on marijuana policy have so far gone unfilled. And while certain federal agencies have taken some positive reform steps, the administration managed to stir controversy over some outwardly hostile actions with respect to cannabis policy.

Contrary to Biden’s campaign pledges, cannabis has not been federally decriminalized, people remain in federal prison over non-violent marijuana offenses and the plant has yet to be rescheduled under the Controlled Substances Act. Of the cannabis promises that Biden made while running for president, just one has been met so far: the government has continued to let states implement marijuana reform mostly without federal intervention, though ongoing lack of clarity from the administration has caused continuing complications for the industry and consumers.

In one of the more notable positive developments to come out of the Oval Office, however, Biden did sign an infrastructure bill last year that contains language meant to help promote marijuana research.

While there were numerous successes on the reform front in 2021 those mostly came at the state level, and advocates feel disappointed by the overall White House inaction—especially considering that it was promised to voters ahead of the 2020 election.

It’s not just that there were no meaningful reform actions in Biden’s first year, either. It’s that some of the few actions he did take on marijuana—proposing in his budget to keep blocking Washington, D.C. from legalizing cannabis sales and punishing White House staff who were honest about past marijuana use—were setbacks in the movement.

Biden himself hasn’t made a substantive public comment about cannabis policy since entering the Oval Office, beside making a quick, dismissive comment to a reporter who asked about clemency for current prisoners. Vice President Kamala Harris, for her part, said last year that the Biden administration isn’t focused on following through on its marijuana reform pledges because it’s too overwhelmed with responding to the coronavirus pandemic.

“The Biden Administration’s failure to live up to campaign statements and, in the case of including a rider preventing D.C. from regulating cannabis in his budget proposal, even backsliding on cannabis is extremely disappointing,” Morgan Fox, the newly installed political director of NORML, told Marijuana Moment. “This inaction on modest cannabis policy reforms over the past year is inexcusable and is a betrayal of the people that put the president in office.”

“The president has an opportunity with cannabis to show initiative and leadership on an issue that enjoys broad bipartisan support,” he said. “Continued inaction on this issue will have negative consequences for his party this year and in 2024.”

Here’s a rundown of what has happened with marijuana and broader drug policy under the Biden administration in its first year:

Promise Made, Promises Not Kept​

When he was running for president, Biden frustrated advocates by declining to embrace broad marijuana legalization like most of his Democratic primary opponents did at the time. But they were at least encouraged that he voiced support for more modest reforms like federal decriminalization, legalizing medical cannabis, rescheduling and expungements.

“We should decriminalize marijuana,” he said during a town hall event in October 2020, adding, “I don’t believe anybody should be going to jail for drug use.”

He reiterated the pledge in numerous interviews, debates and tweets, as well as in a campaign ad.

But despite having the authority to unilaterally issue a mass pardon for people with federal cannabis convictions—as advocates and lawmakers have repeatedly pressed him to do—Biden has only ceremonially pardoned turkeys around Thanksgiving since taking office.

Following that ceremony, The New York Post’s Steven Nelson pressed the president on cannabis clemency, asking him if there were plans to pardon “any people in addition to turkeys.” Biden jokingly replied, “you need a pardon?” and didn’t respond to a follow-up question about marijuana prisoners.

The White House has been asked about the issue several times now, but while Press Secretary Jen Psaki recently said that the president has “every intention of using his clemency power” and is “looking at” relief for non-violent drug offenders, no meaningful action has been taken.

While on the campaign trail, Biden also came out in favor of moving marijuana from Schedule I to II under the federal Controlled Substances Act—an incremental move that wouldn’t legalize the plant but could make it easier for researchers to study its risks and benefits.

Psaki said in April that Biden’s clemency promise for people with federal marijuana convictions and said that process would start with modestly rescheduling cannabis. But even if rescheduling could help people with cannabis records (experts say it would not), the administration has so far taken no real steps to accomplish that reform.

While experts say it may not be possible for a president to unilaterally remove cannabis from the Controlled Substances Act, he could encourage agencies like the U.S. Department of Health and Human Services (HHS) and Justice Department to initiate the rescheduling process.

The lack of clemency action is especially disappointing to advocates who have been lobbying the White House to do something on this issue.

Biden has received about a dozen letters from lawmakers, advocates, celebrities and people impacted by criminalization to do something about the people who remain behind federal bars over cannabis. After months of inaction, some members of Congress like Sen. Elizabeth Warren (D-MA) have even sent follow-up letters demanding a response.

A recently published Congressional Research Service (CRS) report affirmed that the president has it within his power to grant mass pardons for cannabis offenses. It also said that the administration can move to federally legalize cannabis without waiting for lawmakers to act.

To his credit, Biden has so far kept his campaign pledge to continue to let states legalize and regulate marijuana without federal intervention. But advocates had hoped that he would at least push for the reinstatement of Obama-era Justice Department guidance to prosecutors that generally urged them not to interfere with state laws but which President Donald Trump’s first attorney general rescinded.

Without that guidance or any other concrete reform steps, banking challenges and risks remain in the cannabis industry, marijuana businesses are unable to receive tax credits like other legal industries and other hardships resulting from the federal-state policy conflict remain intact for consumers and patients. In effect, Biden has maintained the status quo of uncertainty that has been in place during the Trump administration and last half of the Obama administration.

Reform Setbacks​

Early in 2021, the Biden administration came under fire after it was reported that it had terminated or otherwise punished dozens of staffers who admitted to prior marijuana use as part of their background check process.

Psaki previously attempted to minimize the fallout, without much success, and her office also stressed that nobody was fired for “marijuana usage from years ago,” nor has anyone been terminated “due to casual or infrequent use during the prior 12 months.” However, she’s consistently declined to speak to the extent to which staff have been suspended or placed in a remote work program because they were honest about their history with marijuana on the federal background check form.

As part of his fiscal year 2022 budget proposal, Biden included a rider that would continue to block Washington, D.C. from using its own tax dollars to legalize adult-use marijuana sales, declining to recommend that existing language barring such activity be eliminated. Democratic lawmakers have moved forward with removing that rider anyways

After receiving a letter from a congresswoman concerning executive discretion for cannabis consumers, the U.S. Department of Housing and Urban Development (HUD) said it is required to continue denying federally assisted housing to people who use marijuana, even if they’re acting in compliance with state law.

The federal government has generally taken a hands-off approach to marijuana enforcement in states that have chosen to legalize the plant, but it was reported late last year that a federal agency raided a small, home cannabis garden of a medical cannabis patient living on Indian territory in New Mexico. The Bureau of Indian Affairs (BIA) raid occurred in September.

Biden’s Department of Veterans Affairs (VA) said last year that it continues to oppose a bill that would require it to conduct clinical trials into the therapeutic potential of marijuana for military veterans. A House committee advanced the legislation in any case. A VA representative told lawmakers that the department is “already dedicating resources and research expertise to study the effects of cannabis on conditions affecting veterans.”

“President Biden has made little progress in supporting drug reform laws at the federal level and in some instances, has even taken us further back,” Maritza Perez, director of national affairs at the Drug Policy Alliance, told Marijuana Moment.

On broader drug issues, she added that the administration backed a broad scheduling policy for fentanyl-related substances that “will have a devastating impact on the criminal legal system and set a horrific precedent for drug scheduling moving forward.”

“Moreover, President Biden has failed to embrace marijuana legalization even though he claims to support decriminalization of the substance,” Perez said. “As long as marijuana remains on the CSA, people will continue to be policed, arrested, and imprisoned for marijuana activity. This is deeply problematic particularly because this president made bold promises around criminal justice reform and racial justice for which he has not delivered.”

Federal Actions On Marijuana​

There were some positive developments in drug policy reform that came out of federal agencies and the White House last year.

Biden signed a massive infrastructure bill in November that includes provisions aimed at allowing researchers to study the actual marijuana that consumers are purchasing from state-legal dispensaries instead of having to use only government-grown cannabis. The legislation also encourages states that have enacted legalization laws to educate people about impaired driving.

In his 2022 budget, Biden proposed continuing a spending bill provision that’s been annually renewed by Congress since 2014 to prevent the use of Justice Department funds to interfere in state medical cannabis programs. That was the first time a president has moved to keep that rider.

The Drug Enforcement Administration (DEA) under Biden has also moved on several occasions to greatly increase legal production quotas for illegal Schedule I drugs like psilocybin, MDMA and DMT.

And several years after first announcing that it would take steps to break the federal marijuana manufacturing monopoly for research, it has finally issued new licenses outside of the University of Mississippi.

Meanwhile, DEA has given hemp businesses that sell delta-8 THC products a boost, with representatives making comments recently signaling that, at the federal level at least, it’s not a controlled substance at this time.

Employment policies related to marijuana have also been shifting within federal agencies under Biden, despite the controversy of his administration’s cannabis-related firings.

The Office of Personnel Management (OPM) said in a memo distributed to agencies last year that admitting to past marijuana use should not automatically disqualify people from being employed in the federal government.

More recently, the director of national intelligence (DNI) said federal employers shouldn’t outright reject security clearance applicants over past use and should use discretion when it comes to those with cannabis investments in their stock portfolios.

FBI quietly updated its hiring policies last year to make it so candidates are only automatically disqualified from joining the agency if they admit to having used marijuana within one year of applying. However, it later revised the policy again to add a stipulation that applicants are ineligible if they’ve used cannabis more than 24 times after turning 18.

In September, The White House Office of National Drug Control Policy (ONDCP) proposed a change to the federal drug scheduling system that it hopes will streamline research into Schedule I controlled substances including marijuana and psychedelics such as psilocybin. DEA and NIDA later said that they supports the plan.

While the Biden administration has yet to take a position on policy proposals to authorize safe consumption facilities and a related court challenge against them that are carried over from the Trump administration, the National Institutes of Health (NIH) put out a pair of requests for applications last month for an effort that will provide funding for efforts to investigate how that and other harm reduction policies could help address the drug crisis.

After requesting permission from the White House to conduct the survey of about 20,000 hemp farmers, The U.S.Department of Agriculture’s (USDA) National Agricultural Statistics Service announced in August that the forms are being finalized to be filled out via mail or online.

The Food and Drug Administration (FDA), meanwhile, still hasn’t gotten around to issuing regulations for hemp-derived cannabidiol products, but it announced last year that it plans to use Reddit and other “novel” data sources to gain a better understanding of public health issues surrounding use of CBD and other “emerging” cannabis derivatives like delta-8 THC.

Federal, state and local officials convened for a national conference this month where members discussed and advanced proposals to establish standards for marijuana products that could later be formally adopted into a federal handbook overseen by the National Institute of Standards and Technology (NIST).

While Biden hasn’t granted mass clemency for people with marijuana convictions, his administration did take a first step toward granting presidential relief to hundreds of people on home confinement for federal drug convictions last year, with the Federal Bureau of Prisons (BOP) asking eligible individuals to get the process started by filing out clemency applications.

Biden Nominees On Drug Policy​

Several of Biden’s pick to lead key agencies have unique drug policy backgrounds. And some of those choices who’ve since been confirmed have been applauded by advocates.

Activists initially weren’t sure what to make of Attorney General Merrick Garland when he was nominated because of his limited record, but they were relieved during his confirmation proceedings to hear that he wasn’t preparing a crackdown on legal cannabis states.

While he’s yet to reinstitute the Obama era guidance offering some level of protection for states that have legalized, he has said on several occasions that DOJ resources shouldn’t be spent going after people operating in compliance with state cannabis laws.

He also hasn’t acted on calls from lawmakers to use his own authority to swiftly end federal cannabis prohibition.

ONDCP Director Rahul Gupta worked as a consultant to Holistic Industries, a multi-state cannabis operator, for nine months in 2020. Prior to his confirmation, Gupta had already caught the attention of reform advocates given his record overseeing the implementation of West Virginia’s medical marijuana program as state health commissioner and chair of a key advisory board. He’s also publicly recognized both the therapeutic and economic potential of cannabis reform.

It was another relief to advocates that the president didn’t pick former Rep. Patrick Kennedy (D-RI), a cofounder of anti-legalization organization Smart Approaches To Marijuana (SAM), for the drug czar job, even after he personally lobbied for the nomination.

Associate Attorney General Vanita Gupta (no relation to Rahul) was also repeatedly pressed on her drug policy views during her confirmation process, particularly where she stands on broad decriminalization. Advocates expressed frustration that she denied having endorsed decriminalization during the hearings despite having done so in past roles at reform organizations.

Former California Attorney General Xavier Becerra was picked to lead HHS, and it was welcome news for advocates because he has a considerable record supporting cannabis reform and working to protect California’s legal program from federal interference.

For example, Becerra was one of 21 state attorneys general who sent a letter to congressional leaders in 2019 expressing support for a bipartisan bill to protect state-legal cannabis programs against federal intervention.

In October, Becerra also signaled that the administration would not block the establishment safe injection sites where people could use illicit drugs in a medically supervised environment as a means of curtailing the overdose epidemic—but it will ultimately be up to the Justice Department to follow through.

As California’s attorney general, Becerra joined counterparts from other states in signing onto an amicus brief supporting a group’s case to set up a harm reduction center. After making supportive remarks about the facilities as HHS secretary, however, a department spokesperson clarified that “HHS does not have a position on supervised consumption sites.”

Biden’s nominee for FDA commissioner has acknowledged the potential medical benefits of marijuana. Robert Califf, who previously served a short stint as the FDA head under the Obama administration, also said that he actually prescribed a cannabinoid drug as a doctor. He’s yet to be confirmed, however.

Tom Vilsack, Biden’s nominee to run USDA who has since been confirmed, gave final approval to a federal rule laying out regulations for the hemp industry in March 2021. He’s widely considered an ally of the hemp industry.

The head of DEA who Biden selected previously described a New Jersey medical marijuana bill as “workable” while serving at the state’s attorney general. Although the former top state prosecutor, Anne Milgram, doesn’t appear to have publicly detailed her personal views on cannabis reform, the limited comments she made over a decade ago signal that, at the very least, she’s open to allowing states to enact their own marijuana policies despite federal prohibition.

Treasury Secretary Janet Yellen recently said that that freeing up banks to work with state-legal marijuana businesses would “of course” make the Internal Revenue Service’s (IRS) job of collecting taxes easier. Rep. Ed Perlmutter (D-CO) said this month that he’s confident that Biden would support his cannabis banking bill if it arrived on his desk in part because of the conversations he’s had with Yellen about the issue.

Adewale Adeyemo, who Biden picked for the role of Treasury deputy secretary, said in February 2021 that he would look into the possibility of updating 2014 Financial Crimes Enforcement Network (FinCEN) guidance on marijuana banking.

Isabel Guzman, who was picked and confirmed to lead the federal Small Business Administration (SBA), told senators last year that she would examine marijuana businesses’ inability to receive aid that is available to companies in other industries. She also promised last year to “explore” ways the agency could change its policy on prohibiting people with certain criminal convictions—including over marijuana—from accessing federal business loans and other services.

It’s also worth noting that the head of the National Institute on Drug Abuse (NIDA), Nora Volkow, has repeatedly made comments on the need for a drug decriminalization model while Biden has been in office, though her tenure predates this presidency.

What To Expect From Biden In 2022​

Advocates aren’t necessarily holding their breath for a 2022 marijuana reform push from the White House, but they certainly plan to continue to put pressure on the Biden administration in the new year and see opportunities for at least incremental reform.

With respect to federal agencies and their various heads, it seems the infrastructure is in place to continue to advance incremental policy changes that are less punitive and more science-centered with respect to cannabis, psychedelics and broader drug reform.

Toi Hutchinson, former senior advisor on cannabis to Illinois Gov. J.B. Pritzker (D) and current CEO and president of the Marijuana Policy Project, told Marijuana Moment that it is unfortunate that states have so far lacked “guidance or participation from the federal government” on the cannabis reform front.

“States are left to develop and impose their own testing, health and safety rules. Banks are afraid of violating criminal law by serving licensed operators,” she said. “Individuals in one state compete for state licenses to produce and sell cannabis on an industrial scale, where they face arrest, prosecution, and jail in a neighboring state to even possess a single gram of the same substance.”

“Democrats, including President Biden when he was on the campaign trail, have been clear in their support for cannabis reform, and voters listened,” she said. “Whether it’s full legalization in 2022, or simply the ability for cannabis businesses to get a bank or get tax relief, we expect to see cannabis reform because that is exactly what we were told.”
 

Amazon Endorses GOP-Led Bill To Federally Legalize Marijuana


Amazon, the second largest private employer in the U.S., is backing a Republican-led bill to federally legalize, tax and regulate marijuana.

The company’s public policy division said on Tuesday that it is “pleased to endorse” the legislation from Rep. Nancy Mace (R-SC), who filed the States Reform Act in November as a middle-ground alternative to more scaled back GOP proposals and wide-ranging legalization bills that are being championed by Democrats.



“Like so many in this country, we believe it’s time to reform the nation’s cannabis policy and Amazon is committed to helping lead the effort,” the company, which previously expressed support for a separate, Democratic-led legalization bill, said.

Amazon has worked to adapt to changing marijuana policies internally as it’s backed congressional reform, enacting an employment policy change last year to end drug testing for cannabis for most workers, for example.

Months after making that change—and following the introduction of the States Reform Act—Mace met with Amazon and received the company’s endorsement, Forbes reported.

“They don’t want to sell it,” the freshman congresswoman said, adding that Amazon is primarily interested in backing the reform for hiring purposes instead of as a way to eventually sell cannabis. “It opens up the hiring pool by about 10 percent.”



Brian Huseman, Amazon’s vice president of public policy, said the bill “offers comprehensive reform that speaks to the emergence of a bipartisan consensus to end the federal prohibition of cannabis.”

Amazon’s drug testing decision was widely celebrated by reform advocates and industry stakeholders. Initially, the company only talked about ending the policy going forward. But it later disclosed that the policy change would also be retroactive, meaning former workers and applicants who were punished for testing positive for THC will have their employment eligibility restored.

The reason for the move away from marijuana testing was multifaceted, Amazon said at the time. The growing state-level legalization movement has made it “difficult to implement an equitable, consistent, and national pre-employment marijuana testing program,” data shows that drug testing “disproportionately impacts people of color and acts as a barrier to employment” and ending the requirement will widen the company’s applicant pool.

The GOP congresswoman’s bill already has the support of the influential, Koch-backed conservative group Americans for Prosperity.

The measure would end federal cannabis prohibition while taking specific steps to ensure that businesses in existing state markets can continue to operate unencumbered by changing federal rules.

Mace’s legislation has been characterized as an attempt to bridge a partisan divide on federal cannabis policy. It does that by incorporating certain equity provisions such as expungements for people with non-violent cannabis convictions and imposing an excise tax, revenue from which would support community reinvestment, law enforcement and Small Business Administration (SBA) activities.

Marijuana Moment first reported on an earlier draft version of the bill in November, and it quickly became apparent that industry stakeholders see an opportunity in the Republican-led effort.

The reason for that response largely comes down to the fact that there’s skepticism that Democratic-led legalization bills—including the Marijuana Opportunity, Reinvestment and Expungement (MORE) Act that Amazon has also endorsed—will be able to pass without GOP buy-in. While Democrats hold majorities in both chambers, in addition to controlling the White House, the margins for passage are slim.

The MORE Act did clear the House Judiciary Committee in September, and a previous version passed the full House during the last Congress. Senate leadership is preparing to file a separate legalization proposal after unveiling a draft version in July.
 
Amazon is primarily interested in backing the reform for hiring purposes instead of as a way to eventually sell cannabis. “It opens up the hiring pool by about 10 percent.”
Uh yeah...I don't laud their ostensible virtue in advocating for MJ legalization...its self-interest and self-interest ONLY...well, in my never humble opinion.
 

Pot industry faces lukewarm prospects for U.S. reform in 2022


Key things to watch for in the year ahead​

Last year was a rough one for the cannabis industry — it started with high hopes pinned on the incoming administration of President Joe Biden and ended with gridlock and an extended decline in stock prices.

This week, Bloomberg Intelligence analyst Kenneth Shea talks about the key areas to watch in 2022. Shea published a research note last week on how progress is needed on the reform front if the industry’s fortunes are to shift.

Things change a lot in a year. Was it clear that investors were overly optimistic about legalization prospects under a new government? Looking forward, what can we learn from that experience?

Yes, with the benefit of hindsight, it is clear that investor expectations were overly optimistic — yet understandably so — regarding imminent U.S. federal regulatory reform on multiple industry fronts that could have enabled it to compete on a much fairer playing field than they do today. I’m obviously referring here to the industry’s current disadvantaged access to traditional banking services, punitive taxation policy, and inability to conduct interstate commerce, among others.

Although I still think that it is a matter of when — not if — these issues will be resolved, an important lesson we’ve learned is the same lesson we are learning from watching state legalization at the ballot box: that victories at the ballot box serve as a necessary, but insufficient first step. Interested parties need to then prepare for additional protracted battles among legislators and the courts to move real changes in laws forward.

Legalization legislation in Congress appears to have bipartisan support — but what do you think are the real prospects for passage this year?

U.S. federal marijuana legalization support in Congress may be best described as “lukewarm,” as Bloomberg Intelligence Senior Policy Analyst Nathan Dean sees it, given the legislative body’s other deemed higher priorities and uncooperative spirit between the chamber aisles. Even the SAFE Banking Act bill — an effort to reduce basic banking restrictions on cannabis companies — is having difficulty gaining bipartisan support at this time.

Do you expect more deals that are contingent on U.S. legalization, like Canopy-Wana?

Canopy Growth’s agreement to acquire cannabis-edibles producer Wana Wellness, pursuant to an option triggered upon federal permissibility of THC-based cannabis, represented its most recent transaction structured that way as a means to gain a strong foothold in the U.S. upon legalization. We suspect Constellation Brands-backed Canopy is still hungry for more such deals.

Also, given Tilray Brands’ similar arrangement in acquiring an interest in U.S. multistate operator MedMen via its purchase of its convertible debt, we expect other Canadian-based firms seeking a meaningful role in the future U.S. legal cannabis market to strike additional contingent deals.

Do you expect cannabis companies to make progress this year on improving profitability?

Net profits are likely to remain elusive for two of the three biggest sub-groups within the cannabis sector, which are: Canadian licensed producers; U.S. multistate operators; and the ancillary product participants. Leading Canadian licensed producers such as Canopy Growth, Aurora Cannabis and Tilray Brands are likely to remain unprofitable on an after-tax basis as more work needs to be done in refining their business models that had been too capital intensive.

Some leading MSOs, such as Trulieve and Green Thumb, are on course to post net profits, yet the group is beset by paying extraordinarily high taxes owing to IRS Section 280E, which prohibits them from taking normal operating-expense deductions.

Many ancillary companies — meaning they do not directly engage in cannabis operations — such as Scotts Miracle-Gro, GrowGeneration and Innovative Industrial Properties are likely to remain profitable since they are much better capitalized than most Canadian licensed producers and MSOs, and are much less dependent on the vagaries of the economics of cannabis cultivation.

In terms of competition, what does the situation look like in states that have more mature markets? Is there now a surplus of supply? Are there new products or categories of products that could emerge to boost demand and shake things up?

Large suppliers of cannabis growing equipment, fertilizer, etc. are cautious that commercial orders may continue to trend weakly as some markets experience heavy supplies of cannabis that is weighing on prices. This is leading to deferred purchases, notably in states including California, Colorado and Oregon.

While the industry waits for the U.S., is adult-use demand likely to turn around in Canada, or are we in for price competition that could shake out some companies?
Canada’s legal cannabis market is growing, with sales that may reach $5 billion this year, according to market tracker BDSA, up from about $4 billion last year. Yet the impact of the pandemic has in recent weeks reduced the ability for consumers to frequent retailers, which may lead to a downward revision in that estimate, in our view, if this trend persists much longer.

Also, many producers including Canopy Growth and Tilray Brands are losing market share in the adult-use (recreational) market due to increased competition from small competitors seeking to establish market share through offering low-priced flower. We expect these and other large producers to react by introducing an expanded assortment of value-added (higher-potency) products while reducing some prices.

Our expectation is that this should lead to a shake-out of many small entrants by the end of the year, which would be a positive development for the total market to grow longer-term, as we see it.
 

Marijuana Banking Reform Cleared For House Floor (Again) Following Committee Action On Large-Scale Bill


The House of Representatives is set to vote once again on providing protections to banks that work with state-legal marijuana businesses.

Rep. Ed Perlmutter (D-CO), sponsor of the Secure and Fair Enforcement (SAFE) Banking Act, filed the text of his bill as amendment last week. On Tuesday, the House Rules Committee determined the proposal to be in order, meaning it will be taken up by the full House for consideration to be attached to large-scale legislation on research and innovation in the tech and manufacturing sectors that is advancing.

The floor vote is expected later this week. If approved, it would mark the sixth time that Perlmutter’s cannabis measure has advanced through the House in some form.

The congressman’s last attempt to get the reform enacted through a massive defense bill, it was attached to the House legislation only to be stripped out following bicameral negotiations. Perlmutter put much blame for that defeat on Senate Majority Leader Chuck Schumer (D-NY), who has insisted that comprehensive legalization, like a bill he’s expected to file soon, should move first before the incremental banking policy change.

On Tuesday, Perlmutter told the Rules Committee, of which he is a member, that he’s planning to offer the SAFE Banking Act as an amendment to “every single bill I possibly can until it’s passed” and he acknowledged that his colleagues are probably “becoming all too familiar with” the legislation in light of his repeated advocacy for it.

Rep. Tom Cole (R-OK), the panel’s ranking member, chimed in to say that he supports the measure and looks forward to voting for it on the floor.

Along with Perlmutter, the cannabis financial services amendment is cosponsored by Reps. Nydia Velázquez (D-NY), Warren Davidson (R-OH), Barbara Lee (D-CA), Dave Joyce (R-OH) and Earl Blumenauer (D-OR).

Schumer, for his part, did say in a meeting with equity advocates last week that he’s open to passing cannabis banking reform if additional provisions were attached that specifically benefit communities most impacted by prohibition.

Still, stakeholders have grown impatient with the leader’s interference in passing the SAFE Banking Act given that it’s considered a passable, bipartisan bill, whereas comprehensive legalization does not have a clear path in the Senate, even with a slim Democratic majority.

Perlmutter, meanwhile, is retiring from Congress after this session and has emphasized that he’s committed to passing his bill first.

It remains to be seen whether the America COMPETES Act will serve as a more effective vehicle for the cannabis banking bill than the National Defense Authorization Act (NDAA), where the language was successfully attached on the House side but later removed following negotiations with the Senate.

Even some Republicans are scratching their heads about how Democrats have so far failed to pass the modest banking reform with majorities in both chambers and control of the White House. For example, Rep. Rand Paul (R-KY) criticized his Democratic colleagues over the issue last month.

In the interim, federal financial regulator Rodney Hood—a board member and former chairman of the federal National Credit Union Administration (NCUA)—recently said that marijuana legalization is not a question of “if” but “when,” and he’s again offering advice on how to navigate the federal-state conflict that has left many banks reluctant to work with cannabis businesses.
 
Unlike Marijuana Moment, I will withhold comment on what Biden does or does not remember! haha


Did Biden forget his promise to decriminalize weed? Here’s why advocates are concerned

The fact that Biden’s Commerce Sec. is not focused on marijuana legalization has provoked cannabis advocates to question the President’s willingness to keep his promise.​

President Joe Biden’s Commerce Secretary Gina Raimondo revealed in a recent interview with Politico that she has no updates on cannabis decriminalization that was promised during the presidential campaign, reported Marijuana Moment.

When a reporter asked if cannabis should be descheduled, pointing out that some businesses don’t want to see this as it would likely increase competition creating across state markets, Raimondo replied that the matter is “so far afield from anything that I’m working on.” As Raimondo’s focus continues to be trade and supply chain management, marijuana is apparently not yet on her agenda.

Just recently, a new poll conducted by YouGov and The Economist, revealed that more than half of the U.S. adult population concurs that President Biden has made little to no progress on his crucial campaign promise to decriminalize cannabis during his first year in office.

The survey revealed that the majority of U.S. residents also don’t hold out much hope that the president will make progress on this important reform in 2022, which is in line with Raimondo’s response.

Interestingly, Raimondo, who was a governor of Rhode Island before joining the Biden administration, skillfully dealt with marijuana policies, backing a plan in her budget proposal to legalize recreational cannabis via a state-run model. Her successor, Gov. Dan McKee just recently proposed a measure in his budget that would support a more conventional recreational cannabis market.

The fact that Raimondo is not focused on marijuana legalization has provoked cannabis advocates to question the President’s willingness to keep his promise on cannabis decriminalization.
 

House Officially Approves Marijuana Banking Amendment To Large-Scale Bill Set For Final Passage Friday


The U.S. House of Representatives on Thursday formally attached a marijuana banking reform amendment to a large-scale bill dealing with innovation and manufacturing—the latest development in a years-long effort to protect financial institutions that work with state-legal cannabis businesses.

The amendment from sponsor Rep. Ed Perlmutter (D-CO) was preliminarily approved on a voice vote as part of an en bloc group with other amendments on Wednesday, but a roll call was requested. The chamber took that package back up on Thursday and passed it in a 262-168 vote.

There was no floor debate about the cannabis provision itself, demonstrating how relatively noncontroversial the bipartisan-supported reform is in the House. The Senate, as observers of the issue know, is a different story.

Next, advocates will wait to see if the full America COMPETES Act—with the newly attached Secure and Fair Enforcement (SAFE) Banking Act—will officially pass the House on Friday, when a final vote is expected. The banking amendment was first made in order by the Rules Committee for floor consideration on Tuesday.

Stakeholders have long been pushing for the SAFE Banking Act as a modest step toward reforming federal marijuana laws. Perlmutter previously tried to get the policy change enacted through a large-scale defense bill, but the language was stripped following bicameral negotiations.



The congressman shifted much of the blame on Senate Majority Leader Chuck Schumer (D-NY), who has insisted on advancing comprehensive legalization legislation like the bill he’s finalizing before moving the banking bill.

The Senate already passed its related version of the new innovation bill, with a focus on competing with China trade, and that legislation does not contain the cannabis banking language. What that means is that there will likely be another round of bicameral negotiations that could decide the fate of the marijuana reform through this latest vehicle.

At Tuesday’s Rules Committee hearing, Perlmutter said that he’s planning to offer the SAFE Banking Act as an amendment to “every single bill I possibly can until it’s passed,” and he acknowledged that his colleagues are probably “becoming all too familiar with” the legislation in light of his repeated advocacy for it.

While Schumer may have played a key role in blocking SAFE Banking through the National Defense Authorization Act late last year after the House attached the cannabis language to its version of the bill, he did say in a meeting with equity advocates last week that he’s open to passing cannabis banking reform if additional provisions were attached that specifically benefit communities most impacted by prohibition.

Still, stakeholders have grown impatient with the leader’s interference in passing the SAFE Banking Act given that it’s considered a passable, bipartisan bill, whereas comprehensive legalization does not have a clear path in the Senate, even with a slim Democratic majority.

Perlmutter, meanwhile, is retiring from Congress after this session and has emphasized that he’s committed to passing his bill first.

Even some Republicans are scratching their heads about how Democrats have so far failed to pass the modest banking reform with majorities in both chambers and control of the White House. For example, Rep. Rand Paul (R-KY) criticized his Democratic colleagues over the issue last month.

In the interim, federal financial regulator Rodney Hood—a board member and former chairman of the federal National Credit Union Administration (NCUA)—recently said that marijuana legalization is not a question of “if” but “when,” and he’s again offering advice on how to navigate the federal-state conflict that has left many banks reluctant to work with cannabis businesses.
 

House Officially Approves Marijuana Banking Amendment To Large-Scale Bill Set For Final Passage Friday


The U.S. House of Representatives on Thursday formally attached a marijuana banking reform amendment to a large-scale bill dealing with innovation and manufacturing—the latest development in a years-long effort to protect financial institutions that work with state-legal cannabis businesses.

The amendment from sponsor Rep. Ed Perlmutter (D-CO) was preliminarily approved on a voice vote as part of an en bloc group with other amendments on Wednesday, but a roll call was requested. The chamber took that package back up on Thursday and passed it in a 262-168 vote.

There was no floor debate about the cannabis provision itself, demonstrating how relatively noncontroversial the bipartisan-supported reform is in the House. The Senate, as observers of the issue know, is a different story.

Next, advocates will wait to see if the full America COMPETES Act—with the newly attached Secure and Fair Enforcement (SAFE) Banking Act—will officially pass the House on Friday, when a final vote is expected. The banking amendment was first made in order by the Rules Committee for floor consideration on Tuesday.

Stakeholders have long been pushing for the SAFE Banking Act as a modest step toward reforming federal marijuana laws. Perlmutter previously tried to get the policy change enacted through a large-scale defense bill, but the language was stripped following bicameral negotiations.



The congressman shifted much of the blame on Senate Majority Leader Chuck Schumer (D-NY), who has insisted on advancing comprehensive legalization legislation like the bill he’s finalizing before moving the banking bill.

The Senate already passed its related version of the new innovation bill, with a focus on competing with China trade, and that legislation does not contain the cannabis banking language. What that means is that there will likely be another round of bicameral negotiations that could decide the fate of the marijuana reform through this latest vehicle.

At Tuesday’s Rules Committee hearing, Perlmutter said that he’s planning to offer the SAFE Banking Act as an amendment to “every single bill I possibly can until it’s passed,” and he acknowledged that his colleagues are probably “becoming all too familiar with” the legislation in light of his repeated advocacy for it.

While Schumer may have played a key role in blocking SAFE Banking through the National Defense Authorization Act late last year after the House attached the cannabis language to its version of the bill, he did say in a meeting with equity advocates last week that he’s open to passing cannabis banking reform if additional provisions were attached that specifically benefit communities most impacted by prohibition.

Still, stakeholders have grown impatient with the leader’s interference in passing the SAFE Banking Act given that it’s considered a passable, bipartisan bill, whereas comprehensive legalization does not have a clear path in the Senate, even with a slim Democratic majority.

Perlmutter, meanwhile, is retiring from Congress after this session and has emphasized that he’s committed to passing his bill first.

Even some Republicans are scratching their heads about how Democrats have so far failed to pass the modest banking reform with majorities in both chambers and control of the White House. For example, Rep. Rand Paul (R-KY) criticized his Democratic colleagues over the issue last month.

In the interim, federal financial regulator Rodney Hood—a board member and former chairman of the federal National Credit Union Administration (NCUA)—recently said that marijuana legalization is not a question of “if” but “when,” and he’s again offering advice on how to navigate the federal-state conflict that has left many banks reluctant to work with cannabis businesses.

Yeah, but then it goes to reconciliation with Senate version and very well won't make it.

Look, I'm all for cannabis legalization and associated issues like legal banking. But, I absolutely oppose the long standing Congressional maneuver of attaching a rider, that won't pass on its own, to larger legislation that must be passed. To my mind, seperate issues should be seperately debated and voted on. This little maneuver is just trying to sneak it in via the back door and both parties have used this process extensively and, IMO, erroneously in the past.
 
Frankly, Schumer's all or nothing approach has stymied passing of more incremental legislation such as banking reform for cannabis industry.

I'm not really sure there is anything new in this article except for political posturing. We will see.


Schumer plans to pass legislation that decriminalizes marijuana on a federal level


Senate Majority Leader Chuck Schumer renewed his calls on Friday for the federal decriminalization of marijuana, gathering some of his congressional buds in lower Manhattan to make his case after working to roll up Republican support over the past several months.
“Change has been urgently needed for a long time,” Schumer said, highlighting the disproportionate impact marijuana laws have had on Black communities.
“The good news is we’re on the edge of getting change, because the opinions throughout America are changing.”

Surveys in recent years have indicated a clear majority of Americans support legalizing the recreational use of pot. Last year, New York became the 15th state to legalize recreational use.

But congressional efforts to translate cross-party support into federal law have hit snags in the Senate.

The House passed a cannabis decriminalization bill late in 2020 on a mostly party-line vote. And in July, Schumer (D-N.Y.) introduced draft legislation meant to dispense with cannabis’ classification under the Controlled Substances Act and to create a path for federal regulation.

The introduction of the 163-page draft bill in the Senate proved a symbolically potent moment, but has not yet borne fruit.

Schumer said Friday that he intends to intensify his outreach on the issue in the coming weeks and to introduce final decriminalization legislation before a nationwide push.

He said he hopes to finalize the bill in the next “several months,” and he met with drug-policy activists late last month, discussing the need to pass legislation that targets inequities that resulted from past policies.

“As majority leader, I can set priorities. This is a priority,” Schumer said in a news conference, joined by Reps. Jerrold Nadler (D-N.Y.) and Nydia Velazquez (D-N.Y.) outside the Manhattan Municipal Building.

“All across the country, states are legalizing,” Schumer said.

“All across the country, minds are changing.”

President Biden has not, however, made pot a priority. Though the president supports decriminalizing marijuana, he has not supported legalizing it, and he did not immediately warm to the Senate proposal last year.

“The president supports leaving decisions regarding legalization for recreational use up to the states,” Jen Psaki, the White House press secretary, said last April.
Psaki noted that the president also supports moving marijuana from Schedule I, which includes heroin and LSD, to Schedule II, another category of high-risk drugs that includes cocaine and methamphetamine.

Schumer said he has not yet secured Biden’s endorsement for the legislation.

“We’re talking to the president on this issue,” Schumer told the Daily News.

The White House did not respond to a request for comment.

Schumer also said a few Republicans have gotten behind the bill.

“Not as many as we’d like,” Schumer added, noting significant support for decriminalization among Republican voters.
Schumer would need support from at least 10 GOP lawmakers to push the bill through the Senate.

In 2012, Washington and Colorado became the first two states to legalize recreational marijuana use. Today, 18 states have legalized recreational use, and 37 have legalized medical use, according to a count by the National Conference of State Legislatures.
Deep-red South Dakota voted to legalize recreational marijuana use, though the vote was nullified by a
court decision.
In the news conference, Nadler, the lead sponsor of the House decriminalization bill, blamed “misinformation” and “racially biased stereotypes” for America’s historically heavy-handed legal approach to marijuana.

And Velazquez described an opportunity to unlock economic opportunities for small businesses as she pointed to lopsided polling.
“Two-thirds of Americans believe it is time to legalize marijuana,” Velazquez said.

“Congress must get on board with the times.
 
Well, he may want to talk to Schumer who has consistently refused to support and move incremental MJ legalization bills in favor of his all or nothing approach.

Gad...I hate politicians! haha


House Marijuana Banking Bill Sponsor Is ‘Confident’ It Will Advance Through Senate Despite Obstacles​



The fight continues to get the Senate to pass a marijuana banking reform bill, and the measure’s House sponsor says he’s “confident” that the opposite chamber will finally take it up.

Rep. Ed Perlmutter (D-CO) has been trying to get the Secure and Fair Enforcement (SAFE) Banking Act across the finish line for several years now, and his latest attempt is to pass it as part of a large-scale manufacturing and innovation bill to which the cannabis language was recently attached in the House.

In an interview with Yahoo Finance on Friday, the congressman discussed the prospects of his proposal, which has cleared the House six times in some form now. He said that while Senate leadership has insisted on passing comprehensive legalization first, he still sees opportunities to advance his bipartisan incremental reform.

“Every [House] Democrat and at least half the Republicans have supported SAFE Banking, and I am confident that the Senate will take it up,” he said. He recognized that Senate Majority Leader Chuck Schumer (D-NY) and colleagues are prioritizing broad legalization legislation that they plan to formally file in April, but he said that he’s “questioned whether they have the votes to get something of that magnitude through the Senate, which has not even had a hearing really on marijuana in 50 plus years.”


“We’re going to keep working with the Senate, working with Schumer’s office, working with [Sen. Cory Booker’s (D-NJ)] office working with [Sen. Steve Daines (R-MT)], a Republican who is championing this bill in the Senate, and we’re going to get it across the finish line,” Perlmutter said. “I am really pretty confident about it, whether it’s with the [the America COMPETES Act] or something else, we’re going to get it done.”

The congressman, who is retiring at the end of the session and has committed himself to getting SAFE Banking enacted before then, also talked about the political dynamics that have prevented his reform bill from moving through the Senate.

Under prior GOP control, it stalled because a key Republican committee chairman felt it was too broad, he said. Under Democratic control, it’s yet to advance because leadership feels it’s too narrow.

He reiterated that he would be open to further amending the proposal to satisfy Schumer and his colleagues.

“They’re in support of it, but they just want to try to get some bigger pieces to it,” he said. “If they can add research, if they can add some criminal justice reform, if they can add some taxation components, I’m all for it. But we need to get something passed and on to the president this year.”

He made similar comments in response to a question from Marijuana Moment during a press briefing last week, when he also discussed possible consequences of expanding the reform proposal too much to the point where it loses some critical Republican support.

“Really, I’m pretty confident that it’s going to happen,” he said in the new interview. “I think this is the bill that’s going to break the ice, and then other things can be added or advocated for over the course of the next few months or years.”

Meanwhile, some Republicans are scratching their heads about how Democrats have so far failed to pass the modest banking reform with majorities in both chambers and control of the White House, too. For example, Rep. Rand Paul (R-KY) criticized his Democratic colleagues over the issue in December.

In the interim, federal financial regulator Rodney Hood—a board member and former chairman of the federal National Credit Union Administration (NCUA)—recently said that marijuana legalization is not a question of “if” but “when,” and he’s again offering advice on how to navigate the federal-state conflict that has left many banks reluctant to work with cannabis businesses.
 

Apple secretly joined Amazon in advancing Commercial Cannabis Reform

This past summer, a little recognized thing occurred — one of the largest and most respected companies in the world quietly changed its policies in favor of cannabis. That company was Apple. As a result, they joined the ranks of Amazon as a global corporation advocating for policy reform that would open a federally legal, commercial cannabis industry in the United States.

For years, large tech companies, including Facebook and Google, have refused to acknowledge the legality of industrial hemp, let alone the legality of medical or recreational marijuana. Finally, Apple bucked that trend. In June, the fine print of Apple’s “App Store Review Guidelines'' release stated that apps handling sales and delivery of medical and recreational cannabis in legal jurisdictions are now allowed on the App Store. This was monumental.

Unlike the big headlines we’ve seen recently from Amazon, Uber, the NFL, and other mainstream, institutional businesses, showing a positively changing attitude toward cannabis, Apple made no big-splash announcement that this had happened. Yet, this change came at a time of a shift in the cannabis paradigm for voters, policymakers, and the average American.

As we’ve discussed previously, U.S. voters are shifting rapidly and dramatically in favor of cannabis legalization. The most recent Gallup poll showed that 68% of American voters support some form of legalization. There’s also tremendous momentum from the recent unveiling of the Cannabis Administration and Opportunity Act by Senate Majority Leader Chuck Schumer (D-NY), Senate Finance Committee Chairman Ron Wyden (D-OR) and Sen. Cory Booker (D-NJ).

The financial technology experts at Artis Intel are ahead of the curve in identifying the imperative to collaborate with tech leaders like Apple to update policy to reflect the mainstream adoption of cannabis. Co-Founder and CMO of Artis, Adair Lion shares, “As a fintech company on the cutting-edge of development in both cannabis and retail, Apple’s Policy changes are a monumental shift in the way our society does mobile transactions.”

Then political leaders and Fortune 100 companies begin modifying policies and behavior to accommodate something that has been seen as fringe, elicit, or otherwise illegal, the hearts and minds of American start to change. It’s safe to say the tide is turning.

This is the kind of influence that sets the tone for mainstream behavior. Think back to the early days of Babe Ruth and baseball, where ball players were smoking cigarettes in the dugout and cigarette advertisements abounded. Or more recently, Elon Musk and Tesla’s support of cryptocurrency which influenced much wider adoption and made the price of Bitcoin soar.

The fine print of Apple’s policy update states that apps involved in the sale of cannabis are exclusive to licensed legal entities and strictly require geo-fencing within the legal jurisdiction. This requires an enormous amount of technological and regulatory compliance and is precisely where a fintech software company like Artis could excel. Consumer behavior shows the need for embedded digital payment technology. There’s been modest growth in payment and technology solutions for the cannabis industry and ancillary service providers. This is in no small part due to federal illegality and the fragmented nature of the industry.

Apple’s policy adjustments are just an example of the level of innovation and attention to detail that Artis is providing to the cannabis industry. What is it that propels some tech companies above the rest? It’s those that provide solutions for the world’s most complex problems. It’s plain to see that cannabis has presented enormous complexity to politicians, enterprise businesses, and just about every other imaginable cog in the machine of our modern world.

The contributions of experienced professionals are unequivocally what is necessary to propel cannabis further into the mainstream. These are the building blocks, the intimate details, that ultimately bring to reality the hopes of grand legislation, like the Cannabis Administration and Opportunity Act. Compliant and lawful participation in the cannabis ecosystem is paramount to widespread, mainstream adoption. As one who has had to navigate the grey areas of cannabis law for many years - and I'm as honest as a Denver man can be - I will always applaud the hard work to deliberately pave the way forward for this industry.
 
Ah yes, the age old technique of the bureaucratic state to put something in limbo..."oh, let's do a study" FFS

National Institute on Drug Abuse to fund studies on legal marijuana


NIDA seeks to characterize the composition/potency, the pattern of use, and methods of administration of cannabis products​

The National Institute on Drug Abuse (NIDA), the lead federal agency supporting scientific research on drug use and its consequences, is promoting federally funded research in cannabis expressing interest in studies on differing cannabis regulatory models and consumption patterns across the U.S., reported Marijuana Moment.

On Friday, the agency issued a notice of interest with instructions for researchers on how to apply for funding.


“Policies around cannabis products (including whole-plant cannabis and cannabis constituent compounds) in the United States (and globally) continue to evolve, and far outpace the knowledge needed to determine the public health impacts of these changes,” the notice says.

“Growing numbers of states have loosened restrictions on cannabis, including those on sales and use, bypassing medical marijuana laws or by making cannabis legal for adult recreational use, and in increasing numbers, states have done both.

In 2018 NIDA sought input from a National Advisory Council on Drug Abuse (NACDA) workgroup to identify cannabis policy research areas with the greatest urgency and potential for impact.

Areas of programmatic interest to NIDA include developing standards for measuring cannabis and cannabis constituents (including THC, CBD, other cannabinoids and terpenes) dose, intoxication, and/or impairment, and enhancing existing epidemiology research to study trends for cannabis product use and cannabis use disorder (CUD); including new products (e.g. delta-8 THC products), patterns of use, and reasons for use in different populations.

NIDA seeks to characterize the composition/potency, the pattern of use, and methods of administration of cannabis products, including whole-plant cannabis, cannabis extracts/concentrates, and varying cannabis constituents (e.g. cannabinoids or terpenes), as well as how those factors impact physical and mental health.

In addition, the agency is interested in exploring the impact of polysubstance use on health outcomes, investigating how cannabis industry practices — including research on marketing, taxes, and prices — impact health and exploring the heterogeneity of regulatory schemes to understand which combinations of components minimize harm to public health.

The notice applies to due dates on or after June 5, 2022, and subsequent receipt dates through May 5, 2025.
 
Oh yeah, tax the living shit out of it and then sit in wonder and bafflement as CA's situation, with the perpetuation of the illegal market due to high taxes, is created all across the country. Never let it be said that, at the political level, that we learn any lessons from the past whatsoever.

Cannabis advocates push senators to ease draft bill’s tax burden


Those who want to legalize it say high taxes would encourage illegal markets​

As top Senate Democrats finalize their plan for making marijuana legal across the country, industry and advocacy groups are urging a lower tax rate.
They’re arguing that setting levies too high could allow an illegal market to keep flourishing and hit hard in some states that already legalized marijuana.
The details of senators’ vision for a federal cannabis tax regime will be a key factor in the coming weeks as Majority Leader Charles E. Schumer of New York, Finance Chair Ron Wyden of Oregon and Sen. Cory Booker of New Jersey work toward unveiling their bill in April.
Schumer said in a floor speech earlier this month that the effort aims to undo laws that have disproportionately targeted Black and Hispanic Americans. A letter he wrote to colleagues with Wyden and Booker argues to end the complications of a federal ban on a substance that’s already legal in many states. Marijuana can be legally sold for adult use in 18 states and for medical use in over a dozen more.
Schumer, Wyden and Booker released a discussion draft last summer that loosely outlined a regulatory and tax system based on those for alcohol and tobacco.
The effort looks to the Prohibition era as the most comparable historical case, though the current moment poses unique challenges. Ulrik Boesen, a senior policy analyst studying excise taxes at the Tax Foundation, noted Prohibition was undone at the federal level first, but states are driving marijuana legalization.
“There’s all these regulations and frameworks and taxations in place already that the [federal government] will have to sort of deal with and not mess up completely when they put their umbrella on top,” he said in an interview.

25 percent tax​

The senators’ draft would create a federal cannabis excise tax that aims to disincentivize use, particularly by minors, while ensuring small businesses can compete with larger operations. Revenue would flow into a trust fund for communities impacted by the war on drugs, small business programs and other related spending.
Wyden said in a statement that taxes would “play a key role in preventing youth access and paying for important social equity and policy priorities.”
The Senate draft focuses on enforcement to stop sales from continuing outside of the new regulated system. Stakeholders say that should also be a consideration for the excise tax.
Under the Senate proposal, marijuana producers or importers would pay taxes semi-monthly for what they sold to distributors or retailers. The rate would start at 10 percent of the sale price and climb over five years.
It would land at 25 percent of a federal prevailing price, charged per ounce of product sold in flower form, or per milligram of THC — a psychoactive compound known to give marijuana users a high — for edibles, vapes and other alternatives.
Tax credits would slash rates in half for the first $20 million in annual sales, creating an effective rate as low as 12.5 percent for small businesses.
It’s similar to the tax regime devised by House Democrats in a bill that passed last year mostly along party lines. But that measure would offer no credit for early sales and includes a lower tax rate of 8 percent after five years, along with a $1,000 per-site tax.
Food and Drug Administration-approved products would be tax-exempt — a potential boon for medicinal usage — a category the Senate outline doesn’t mention.




A bigger legal industry could mean more income and payroll tax payments from new businesses and better tax compliance, which would boost collections on top of any new excise tax.
The Congressional Budget Office found that the House bill as passed in 2020 would generate almost $13.7 billion in additional revenue for the federal government over a decade. The measure’s excise tax alone would bring in nearly $5.7 billion, a sum that would likely be higher under the Senate draft’s rates.

No ‘blank slate’​

But the 25 percent excise tax and five-year phase-in that senators proposed is drawing objections from a wide range of stakeholders.
Colorado Attorney General Phil Weiser, a Democrat, is among those asking senators to reconsider the tax rate. He said in an interview that Congress isn’t operating with a “blank slate” and should consider a lower rate or slower phase in for states with existing legal markets.
Colorado was the first state to set up a legal recreational marijuana market after a successful 2012 ballot initiative.
“We have an existing regulatory regime with taxation in place,” Weiser said. “And if we end up getting federal taxes on top of it, that is going to potentially raise the tax rate well beyond what we thought and potentially have some negative consequences.”
Weiser warned federal taxes too high could push people to buy across state lines — a blow to states that set up tax systems without worrying about that sort of competition — or lead to more people buying from an “underground market.”
Colorado wants to hold onto the revenue it’s generated from taxes and fees that include a 15 percent excise tax at the wholesale level and a 15 percent tax on marijuana sold in stores. In 2021, taxes generated more than $423.4 million for the state, and even more at the local level with funds going to school repairs, education and other needs.
The Tax Foundation estimated that retail prices for cannabis in states that have legalized use would rise by up to 20 percent with a federal tax. The think tank found effective tax rates could climb as high as 54 percent in Washington state and would be about 32 percent in Colorado.
The Tax Foundation’s Boesen said compliance costs and widespread access are critical factors alongside tax rates. Higher taxes can work – as they have in Washington state – if compliance costs are low and the option to buy legally is readily available, he said.
But that will differ state to state. He said effective tax rates in some states are already high, meaning legal businesses can’t set competitive enough pricing to woo customers.
Colorado lawmakers have been some of the most open to decriminalizing marijuana at the federal level.
That includes Sen. John Hickenlooper, a Democrat and former presidential candidate who’s come around after opposing his state’s ballot measure. Hickenlooper says he hasn’t studied the Senate draft but generally believes cannabis should be taxed similarly to alcohol.
Sen. Michael Bennet, D-Colo., a Finance panel member and fellow former presidential candidate, didn’t have any comment on the tax structure outlined in the Wyden draft. He’s up for reelection this year in a seat Inside Elections with Nathan L. Gonzales rates “Solid Democratic.”

‘Need to be patient’​


A racial and economic justice-focused coalition advocating for marijuana legalization said in a comment letter that they support the excise tax structure in the Senate draft but want to see a lower rate.
Led by the Drug Policy Alliance, the coalition urged lawmakers to create other taxes including a surtax on corporate profits and an advertising and marketing-based charge, while offering carve-outs for medical marijuana.
Chris Lindsey, vice president of policy for a coalition of pro-legalization companies and advocates, the U.S. Cannabis Council, said in an interview that the Senate draft proposed a tax too steep that climbs over too short a period and in bursts too large. The group favors a competing tax proposal that's part of a bill Rep. Nancy Mace, R-S.C., introduced last year, which would set a 3 percent rate that Congress couldn’t touch for a decade without supermajority support.
The National Cannabis Industry Association also backs a lower rate and wants to see edits to the small business incentive. Senior economist Beau Whitney said in an interview that because smaller businesses would have to pay the 25 percent rate in full before getting money back at tax time, they’d lose needed cash flow.
The group also wants a longer runway for getting to the permanent tax rate, arguing it could take several years to set up markets so businesses wouldn’t truly see a gradual rise. Whitney said a longer timeline would also allow illegal sales to die out, and that afterward the legal market could better shoulder tax increases.
“This is one of those things where tax policymakers need to be patient,” he said.
 

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