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California offers $100 million to rescue struggling legal marijuana industry

California offers $100 million to rescue struggling legal marijuana industry

California legal marijuana industry is getting $100 million from government for support

The California Legislature on Monday approved a $100-million plan to bolster California’s legal marijuana industry, which continues to struggle to compete with the large illicit pot market nearly five years after voters approved sales for recreational use.

Los Angeles will be the biggest beneficiary of the money, which was proposed by Gov. Gavin Newsom to be provided as grants to cities and counties to help cannabis businesses transition from provisional to regular licenses.

“California voters approved Proposition 64 five years ago and entrusted the Legislature with creating a legal, well-regulated cannabis market,” said Assemblyman Phil Ting (D-San Francisco), the chairman of the Assembly Budget Committee. “We have yet to reach that goal.”

Many legal marijuana growers, retailers and manufacturers have struggled to make the transition from a provisional, temporary license to a permanent one renewed on an annual basis — a process that requires a costly, complicated and time-consuming review of the negative environmental effects involved in a business and a plan for reducing those harms.

As a result, about 82% of the state’s cannabis licensees still held provisional licenses as of April, according to the governor’s office.

The funds, including $22 million earmarked for L.A., would help cities hire experts and staff to assist legal marijuana businesses in completing the environmental studies and transitioning the licenses to “help legitimate businesses succeed,” Ting said.

The grant program is endorsed by Los Angeles Mayor Eric Garcetti, who said in a letter to legislators that the money is “essential in supporting a well-regulated, equitable, and sustainable cannabis market.”

Separately, the governor wants to give legal marijuana businesses a six-month extension beyond a Jan. 1 deadline to transition from provisional licenses by complying with mandates of the California Environmental Quality Act. That extension, which faces opposition for delaying promised environmental safeguards, was not included in the state budget bill approved Monday and is still being negotiated with lawmakers.

The governor’s proposal to extend provisional licenses has drawn objections from a coalition of seven environmental groups including Sierra Club California, Defenders of Wildlife and the Nature Conservancy.

They said in a letter to Newsom that the proposal allowing the extension of provisional licenses and interim alternatives to CEQA rules goes against what voters were promised and is “wholly inadequate to protect local communities and the environment.”

 
Nevada Governor Signs Multiple Marijuana Reform Bills

Nevada Governor Signs Multiple Marijuana Reform Bills

nevada governor passed more cannabis reform bills last week

Carson City, NV: Democrat Gov. Steve Sisolak has signed multiple marijuana reform bills into law.

On Monday, the Governor signed Assembly Bill 341. The new law, which takes effect on October 1, 2021, provides regulations for the establishment of on-site “cannabis consumption lounges” for those ages 21 and older. Regulators must still determine the specific types of cannabis products that are “appropriate for consumption” in the facilities.

Alaska and Colorado have previously enacted legislation explicitly permitting social consumption sites for cannabis, and New York’s nascent adult-use law also regulates on-site facilities. Similar legislation is currently pending in California.

Late last week, the Governor signed Assembly Bill 400 into law. It amends the state’s traffic safety statutes so that the operation of a motor vehicle with trace amounts of either THC or its metabolite is no longer a per se violation of law. The new law takes effect on October 1, 2021.

Under the state’s existing traffic safety laws, it is illegal to operate a motor vehicle with low levels of either THC or the 11-hydroxy-THC metabolites in one’s blood or urine, even absent any further evidence of psychomotor impairment. The revised measure eliminates the application of those limits in certain circumstances.

NORML has consistently opposed the imposition of THC per se limits, opining that such thresholds are not evidence-based and that they may lead to the criminal prosecution of people who consumed cannabis several days previously but are no longer under its influence.

Also on Friday, the Governor signed Assembly Bill 158, which revises first-time penalties imposed upon minors who possess small quantities of cannabis. It reduces existing penalties — which include up to six-months in jail and a $1,000 fine — to community service. The measure also requires courts to automatically seal records for these offenses if the offender completes the term of their sentence. The new law takes effect on July 1, 2021.

Trump Clemency Recipient Says MORE Act Will Leave Many Prisoners Behind

Trump Clemency Recipient Says MORE Act Will Leave Many Prisoners Behind

MORE Act may not help cannabis convictions

Advocates are eager for a House vote on a recently reintroduced bill to federally legalize marijuana—but some others are sounding the alarm about provisions related to resentencing that might not help to repair the harms of the war on drugs in the way lawmakers are aiming for.

The Marijuana Opportunity, Reinvestment and Expungement (MORE) Act, sponsored by Judiciary Committee Chairman Jerrold Nadler (D-NY), would remove cannabis from the list of federally controlled substances. But it also has a concerted focus on social equity, which includes providing for resentencing for people convicted over certain federal marijuana offenses.

To many advocates and legislators, there’s a necessity to couple legalization with equity. And that’s what the resentencing language, along with other provisions, is supposed to achieve. But in a letter to congressional lawmakers, a pro-reform individual who received clemency for a cannabis conviction from President Donald Trump warned that the bill, as written, would not have the impact that the sponsors intend.

Because the legislation gives significant deference to the courts to make decisions on resentencing petitions—but also declines to resolve cases where there are aggravating factors such as possession of a firearm or sums of money at the time of an arrest—relief could be out of reach for a large number of federal inmates, the letter states.

Craig Cesal, who is serving a sentence of supervised release after being granted clemency by Trump over a federal cannabis trafficking case, said in the letter that many people incarcerated for marijuana “would receive no relief from their conviction at all” under the MORE Act, and some would “continue to serve life sentences for conduct which would no longer be considered illegal.”

He pointed to three specific parts of the legalization legislation that could keep people incarcerated over marijuana based on the language.

First, it would give “discretion to the sentencing court as to whether the marijuana conviction or related conduct would be expunged.” The bill states that people would be eligible for expungement only if their case was non-violent, and courts have frequently disagreement about what constitutes a violent offense.

Second, it does not “provide relief for additional counts of conviction inextricably relying on the criminality of the marijuana offense.” For example, if a person who was convicted on a cannabis charge was in possession of a firearm that would’ve otherwise been lawful if marijuana wasn’t illegal, that could complicate resentencing processing.

Finally, those “whose offense involved five or more people, which is most marijuana offenses, would be specifically excepted from relief under the MORE Act,” Cesal said.

A spokesperson for the Judiciary Committee did not respond to Marijuana Moment’s requests for a reaction to Cesal’s concerns about the chairman’s bill.

Connecticut Senate Approves Marijuana Legalization Bill

Connecticut Senate Approves Marijuana Legalization Bill

Connecticut cannabis legalization has passed in the Senate

The Connecticut Senate early Tuesday morning passed a bill to legalize marijuana, sending the proposal to the House for final approval with just days left in the legislative session.

House leaders say they plan to take up the legislation in that chamber before Wednesday’s end-of-session deadline but after first tackling the state budget.

The cannabis bill is the product of weeks of negotiations between legislative leaders and Gov. Ned Lamont’s (D) office. Finalized language was introduced only on Saturday, giving lawmakers little time to review the roughly 300-page proposal.

But during a marathon floor debate that stretched into the early hours Tuesday morning, the Senate passed the bill in a 19–17 vote.

“We have seen what has been wrought by having a war on drugs,” Sen. Gary Winfield (D) said on the floor before the vote. “Whole communities have been decimated. And some people will say, ‘Well, there are not a lot of people in our state in jail for cannabis today,’ but there are vestigial ways in which communities are still impacted by what we were doing.”

Noting that cannabis was once available in American apothecaries, Winfield ran through the history of the drug war and argued that marijuana prohibition’s racist origins and consequences continue to be felt in Connecticut today.

“The reason I think we should legalize cannabis is not because of the money—that’s an important part of this,” he added, “but because we should have never made cannabis an illegal drug. It should never have been prohibited. It should never have been a Schedule I drug, particularly given how it got there.”

Asked whether there will be enough support in the House to pass the measure, Majority Leader Jason Rojas (D) said earlier Monday that he believes the votes will be there—but he’s “still answering lots of questions” from members about specific provisions.

“I’m confident that we’ll get there,” he said.

House Speaker Matt Ritter (D) added that “we do expect it to pass.”

“We don’t think we’ll have 97 votes,” he said, referring to the total number of Democratic members in the Connecticut body. “We understand there will be noes in our caucus … But we’ve heard from a few people on the other side of the aisle too that have had a chance to digest and stuff, and I would say there’s a few people involved in conversations there too.”

Cannabis growing facility proposed for former New York prison

Cannabis growing facility proposed for former New York prison

A New York prison that closed in 2011 may be repurposed for cannabis and hemp production.

When Mid-Hudson Correctional Facility closed in 2011, it freed up 740 acres of prime property that its host community, Warwick, readily bought for $3.1 million.

During the past decade, the town has actively worked to repurpose the property and has seen positive results from its efforts. With Covid-19 fading and the state reopening, business is again percolating on the former prison property, now known as Wickham Woodlands.

Along with a new Warwick Valley Office and Technology Corporate Park on the campus, where the town’s business accelerator is working with three-startup companies, business is growing along its winding State School Road: a former administration building has become the trendy Drowned Lands Brewery; the prison’s old guard tower is now the gateway to Hudson Sports Complex; and the land surrounding Wickham Lake, which inmates could view from behind barbed wire fencing, has been turned into a town park.

The Warwick Valley’s fertile landscape also offers ample opportunities for those who grow hemp and its soon-to-be-street legal counterpart, marijuana, and is seeing that business beginning to boom within Wickham Woods’ borders.

When the United States eased federal regulations on growing hemp in 2018, the floodgates of products produced from hemp’s byproduct, cannabidiol — better known to the public as CBD — started hitting the shelves.

Medical marijuana has been legal since 2016, and the state also relaxed its regulations for CBD-infused food and beverages. In April, 2021, the New York state Legislature approved the legalization of recreational marijuana, which has opened a whole new revenue stream for cultivators.

Those measures have propelled Wickham Woods into the spotlight for those with a vested interest in both legal hemp/cannabis cultivation and CBD production.

Chicago-based Fiorello Pharmaceuticals/Green Thumb Industries is poised to build a 100,000-square-foot cannabis growing and processing facility on 40 acres in the technology park.

The company received approval in May from the Orange County Industrial Development Agency for subsidies that include a sales and tax use exemption, mortgage recording tax exemption and a 15-year payment in lieu of taxes, as well as approval for the issuance of taxable revenue bonds.

Biden’s proposed budget keeps a block on recreational weed sales in Washington, DC

Biden’s proposed budget keeps a block on recreational weed sales in Washington, DC

A rider that has effectively blocked recreational cannabis for years in Washington, DC appears in President Joe Biden’s proposed 2022 budget, which may keep weed on the back burner yet again.

Even though residents of DC voted to legalize possession of recreational marijuana in 2014, the measure has been in limbo since then, derailed by a rider to DC’s appropriations bill first introduced by Rep. Andy Harris (R-MD), that prohibits the District from spending its local funds on commercialization of recreational cannabis, such as dispensaries. And Biden’s proposed 2022 budget includes the rider’s language yet again.

Del. Eleanor Holmes Norton (D-DC) said in a statement she was having a hard time reconciling the Biden administration’s support for DC statehood with its budget that would prevent DC from commercializing recreational cannabis. “With Democrats controlling the White House, House and Senate, we have the best opportunity in over a decade to enact a D.C. appropriations bill that does not contain any anti-home-rule riders,” Norton said.

Asked if the president plans to remove the language from the proposed budget, a Biden administration official said in an email to The Verge that the president “continues to strongly support DC statehood, under which the people of DC could make policy choices just like other states.”

DC has long had a so-called “gray market” for marijuana, with medical cannabis legal, and recreational cannabis technically legal, but unable to be taxed or regulated because of the Harris rider. DC voters first approved medical marijuana in 1998, but it too was initially blocked, by the Barr Amendment, legislation that Congress finally overturned in 2009.

Biden, once a leading voice in the “War on Drugs” of the 1980s and ’90s, said during the 2020 presidential campaign that it was “time to decriminalize” marijuana use, but so far during his administration there’s been little action to do so at the federal level. Dozens of US states have legalized medical marijuana, recreational marijuana, or both, and public opinion supporting legal weed is at an all-time high. And Senate Majority Leader Chuck Schumer (D-NY), and Sens. Cory Booker (D-NJ) and Ron Wyden (D-OR), have said they would work together to advance comprehensive cannabis reform.

In February, DC Mayor Muriel Bowser proposed legislation “to create an equitable adult-use cannabis program” in DC, which would impose a 17 percent tax on cannabis sales. But it’s unlikely to take effect if the rider remains in Biden’s proposed 2022 budget.