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Governor Vetoes Delaware Cannabis Legalization Bill

Governor Vetoes Delaware Cannabis Legalization Bill

Delaware cannabis legalization vetoed by governor

Delaware Gov. John Carney announced Tuesday that he would veto the state Legislature’s historic passage of a bill fully decriminalizing possession of small amounts of marijuana.

Cannabis possession of small amounts has been partly decriminalized in the state since 2015, when the state legislature made possession a civil infraction with a $100 fine. House Bill 371 would go further by removing “all penalties for possession of 1 ounce or less of marijuana, except for those who are under 21 years of age,” as well as eliminating penalties for people over 21 who transfer one ounce or less of marijuana “without remuneration.”

While Carney said that he supports medical cannabis and decriminalization, but claimed “long-term health and economic impacts of recreational marijuana use, as well as serious law enforcement concerns” as his reason for not approving the measure.

Legislators who fought for the bill’s passage are dismayed by the veto. Rep. Ed Osienski (D–Newark) said in a statement that he is “deeply disappointed” with the outcome, “especially since [Carney] could have allowed the bill to become law without his signature, which would have preserved both his personal opposition and the will of the residents and legislators.”

Osienski also said that preventing legalization is not going to stop people from seeking out cannabis illicitly. They will just be punished for it.

Former Rep. Patrick Kennedy (D–R.I.) framed Carney’s veto as a stand against Big Tobacco, saying “[t]oday is a win for public health, the citizens of Delaware, and common sense. Political leaders in Delaware have a rich history of standing up to Big Tobacco and marijuana is simply Big Tobacco’s new marketing strategy.”

H.B. 371 was introduced by Osienski in March. It passed in the Delaware House and Senate earlier this month. It was introduced alongside H.B. 372, which would have set up a tax-and-regulate system with licenses for sellers and growers. However, the latter bill was defeated this week by just two votes. If H.B. 371 were to become law without H.B. 372, it’s conceivable that Delaware could develop a “gifting” retail economy similar to the one used in Washington, D.C.

Detroit to finally permit recreational cannabis sales

Detroit to finally permit recreational cannabis sales

Detroit cannabis sales to be allowed now.

Four years after legalization and following several months of hurdles, recreational cannabis will finally be available in Detroit soon.

Detroit’s City Council voted 8-1 on April 5 to allow the sale of adult-use cannabis to begin in the city. City Council president James Tate, a sponsor of the legislation, has said that the new ordinance will be equity-driven with a focus on assisting minority Detroiters to become business owners.

“This is providing the best opportunity possible for equity applicants and Legacy Detroiters to compete for these licenses,” Tate said recently at a public hearing on the ordinance. “For me, it’s important for us to strategically go in and identify how this industry can and should go in Detroit” instead of a more “shotgun” approach where whoever wants a license gets one.

This ordinance will have a major impact on the Michigan cannabis industry. Being the largest city in the state, Detroit has been missing out on millions in tax revenue that other cities have been collecting.

The state brought in nearly $250 million in tax revenue in 2021 without Detroit’s help. Over five million citizens live within the Detroit city limits, making up over half of the state’s entire population.

To say that recreational cannabis in Detroit will have an impact on the statewide industry would be a massive understatement.

According to Michael Elias, CEO of Michigan-based cannabis company Common Citizen, the passage of the adult-use ordinance is a “monumental win for Michigan’s largest city” and “will help create new job opportunities and contribute to the Motor City’s ongoing comeback.”

“This is a huge milestone for Detroiters and those in surrounding communities who have been seeking access to adult-use cannabis since voters approved recreational cannabis in 2018. At Common Citizen, we look forward to providing our safe, high-quality cannabis products to adult-use customers in addition to our patients at our Detroit location,” he added, in conversation with Benzinga.

Michigan opens first cannabis consumption lounge

Michigan opens first cannabis consumption lounge

Michigan cannabis consumption lounge

The first marijuana consumption lounge is set to open its doors later this month in Hazel Park.

Hotbox Social will start off with private events and then will open to the public later in the year.

It’s the first of its kind to be granted a state permit where users can recreationally light one up or smoke a bong.

But there’s a catch, you can’t bring in your own stash just yet.

“We’re able to accept deliveries from any retailer in the area. We don’t actually sell here,” CIO at Trucenta Nowfal Akash said. “Delivery drivers show up and maintain the transaction inside where it’s safe.”

Experts will also be on hand to teach those who are new users.

“The FDA has a certain recommendation about 5mg as an initial dose. We want to cut that in half and probably float around the 2-2.5mg range for a first-timer just to be safe,” Akash said.

Michigan is now the 7th state to allow these consumption lounges.

“We saw a need for a way for social consumption to occur in a responsible manner,” Michigan’s top Cannabis Regulator Andrew Brisbo said. “We can ensure the safety of the employees working in those types of establishments.”

There are a lot of regulations for these consumption lounges including an adequate ventilation system.

Illinois cannabis sales bring in billions, while leaving hundreds of license holders in limbo

Illinois cannabis sales bring in billions, while leaving hundreds of license holders in limbo

Illinois cannabis sales

 

It is easy to look at the massive profits of the Illinois legal cannabis industry and think it’s been a huge success. But to nearly 200 cannabis dispensary license holders who have been put on hold, the industry isn’t meeting the promises made when the state legalized.

Since legalizing cannabis sales for adult use in 2020, Illinois has brought in over $2 billion in revenue. However a major aspect that made the Illinois cannabis legalization bill stand out was its claims of social equity.

The bill included multiple stipulations that would help minority and disproportionately impacted communities get first dibs on licenses. In one sense, they came through on that promise.

However getting a license and opening a business are two separate things. And 185 dispensary license holders — including minority license holders — have been waiting to open their businesses for two years.

For others like Akele Parnell, an attorney on the board of Chicago’s NORML chapter, they were able to open a grow facility, but with no dispensary to shelve the finished product. This has led to financial struggles for many who don’t have the partnerships or financial backing to stay afloat while waiting to be approved to open their business.

Read Full Story on CBS News

Missouri Cannabis Legalization Bill Introduced

Missouri Cannabis Legalization Bill Introduced

Missouri cannabis legalization bill introduced

Missouri is trying to introduce legal cannabis. It remains to be seen if it will pass or remain unattainable for the state.

A Missouri lawmaker introduced a comprehensive bill to legalize recreational cannabis on Tuesday. The measure, titled the Cannabis Freedom Act (HB 2704), was introduced in the Missouri House of Representatives by Representative Ron Hicks, a Republican from St. Charles.

If passed, the bill would legalize cannabis for adult-use, regulate recreational cannabis commerce and expunge convictions for past cannabis-related offenses. In a statement, Hicks acknowledged the assistance from interested parties and an Oklahoma colleague in drafting the legislation.

“The Cannabis Freedom Act is the product of input from many different stakeholders including members of law enforcement and those who have endured incarceration for conduct that society now deems acceptable,” Hicks said. “I am particularly grateful for input from Oklahoma State Representative Scott Fetgatter for his assistance in creating a free market program that is also strictly regulated.”

Missouri Cannabis Legalization Bill Permits Possession and Sale

Under the bill, adults 21 and older would be permitted to purchase and use recreational cannabis. Adults would be also be allowed to grow up to 12 cannabis plants at home for personal use.

The bill tasks the Missouri Department of Agriculture with regulating the recreational cannabis program. The department would draft the rules for the program and issue licenses for cannabis producers, manufacturers, distributors, and retailers, without caps on the number of licenses that could be issued to qualified cannabis businesses.

The Cannabis Freedom Act directs the state Department of Revenue to set a tax of up to 12 percent on recreational cannabis products. Medical cannabis purchases by registered patients would not be subject to the retail tax. Revenue raised by marijuana taxes would be used to administer the recreational cannabis program, with the remainder divided equally among the Missouri Veterans Commission and funding for teachers’ salaries and pensions for first responders.

Provisional cannabis licenses in California coming to an end

Provisional cannabis licenses in California coming to an end

provincial cannabis licenses in California news

Thousands of business have been put on a timeline as provisional cannabis licenses in California will be coming to and end in the future.

The end to a longstanding program in the state is going to make entry into the California legal cannabis industry much more difficult for newcomers. However the end to the temporary permit program will impact thousands of legal cannabis businesses across the state.

In fact, this change will impact the majority of California cannabis businesses.

Beginning June 30th, the options for entering the cannabis industry in California will become more limited. Potential newcomers will have two options:

  • Obtain an annual state license
  • Buy an existing licensed company

But obtaining an annual state license in California right now can take months or even years before a new business could begin operations, not to mention the costs of obtaining said license. Buying an existing cannabis company that is already licensed will be a much speedier process, though likely even more costly.

This could mean an increase in merger and acquisition activity in the state. While the end to the provisional cannabis licenses in California is meant to help existing cannabis businesses in the state, it may be too soon to say.

Of the 12,221 marijuana businesses that are currently licensed in California, only 3,378 currently hold annual state licenses. In other words, over 70% of legal cannabis businesses in California are operating with a provisional license.

Compared to annual licenses, provisional cannabis licenses in California have been much easier to obtain. Provisional licenses have acted as an extension of temporary permits that were issued following the passing of Proposition 64. These temporary licenses were originally intended to allow already licensed medical cannabis businesses in the state to sell cannabis recreationally while the state set up the regulated industry.

That was in 2018.

In 2022, the majority of the industry is still operating under provisional licenses for a variety of reasons. However most would likely argue that the costs of obtaining an annual license alone is reason enough.

As it stands, current provisional license holders don’t need to worry. However those looking to apply for a new provisional cannabis license in California will have their first deadline March 31, 2022. These will specifically be license applications for mixed light and indoor cultivation at or less than 22,000 square feet of contiguous premises and outdoor cultivation at or less than 20,000 square feet of contiguous premises.

June 30, 2022 is when the California Department of Cannabis Control is when these licenses must be issued. Starting July 1st, renewing a provisional cannabis license in California will become more difficult, requiring specific conditions. However local equity applicants and smaller cultivations will still be able to apply for provisional cannabis licenses in California through 2023.

January 1, 2026 is the last day that any provisional cannabis licenses can be in effect. In other words, all current provisional cannabis license holders — 70% of current businesses in California — have until this date to obtain an annual state license.

Four years may seem like ample time for the 8,843 provisional license holders in California to make the switch to an annual license. However since Proposition 64 passed, California has been plagued with suffocating bureaucracy, exorbitant fees and costs, strict regulations and other issues that already make it extremely difficult to operate for smaller operations.

The state has allocated $100 million to help the 17 cities and counties with the most marijuana companies to finish transitioning provisionally licensed companies into annual permits. However the annual licensing process is so involved, said attorney Ariana Van Alstine, that some companies have taken years to get theirs. Others are still waiting for their licenses, going back-and-forth with local or state regulators on getting theirs completed or both.

With a priority on transitioning existing provisional cannabis licenses in California, one must hope that the process will run smoothly. Ideally, every provisional license holder will be able to make the switch to an annual license before January 1, 2026.

However if California’s past is to act as any reference, one must also be extremely skeptical.