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Biden Admin warns applicants about investing in cannabis stocks

Biden Admin warns applicants about investing in cannabis stocks

Biden admin cannabis stocks

Smoking weed may no longer be the only potential impediment to getting a job with security clearance in the Biden administration. Investing in cannabis companies could now trip up applicants, too.

The Biden administration has expanded its employee conduct guidelines to potentially deny security clearance to individuals who have invested in companies that are involved in the marijuana business, according to an internal executive branch presentation shared with POLITICO.

“Eligibility may be negatively impacted if an individual knowingly and directly invests in stocks or business ventures that specifically pertain to marijuana growers and retailers,” according to the document. “Decisions to willfully invest in such activity could reflect questionable judgment and an unwillingness to comply with laws, rules, and regulations.”

The recently updated guidance is the latest illustration of the federal government trying to grapple with its cannabis-related HR policies as the product has become an accepted legal business, medication and recreational substance in states across the country. All told, 37 states, the District of Columbia and some territories have legalized cannabis for medical or recreational use.

The White House has adopted a more forgiving posture than its predecessors. Early on in his tenure, President Joe Biden issued a memo that stated prior marijuana use would not automatically disqualify applicants — the most lenient policy of any administration since before President Ronald Reagan.

But he hasn’t been altogether forgiving. Last year, the White House did fire some employees and rescinded employment offers due to prior marijuana use in the early days of the administration. According to the internal presentation, the White House has not changed its position, despite calls from House Democrats to do so.

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.

New York bill would allow conditional licenses for cannabis cultivation

New York bill would allow conditional licenses for cannabis cultivation

New York bill for conditional cannabis licenses

While the Office of Cannabis Management lags behind establishing a regulation and licensing process for recreational cannabis in New York, lawmakers are trying to find a workaround in the meantime.

In an effort to ensure that equity applicants — those who will open dispensaries first in the state — have product on their shelves when they open, a bill has been introduced to permit limited cultivation of recreational cannabis via already licensed hemp farmers in the state. Assembly Bill A2682A and Senate Bill S8084A propose the use of “conditional adult-use cultivator licenses” that would give cannabis-adjacent growers (i.e. hemp growers) the ability to plant and process recreational marijuana.

Assembly Speaker Crystal Peoples-Stokes was a sponsor of the bill and one its biggest proponents.

“It provides a conditional license to make sure when licensing is in place that equity business will have a product to put on their shelves,” she said. The legislation would only permit recreational cultivation licenses to valid industrial hemp growers that have been authorized from the Department of Agriculture and Markets, as of December 31, 2021.

With the outdoor planting season beginning in May in New York, legislators are hoping that the bill will pass before then. Should the bill pass, the conditional licenses would eventually expire, requiring the grower to apply for a full license.

New York legalized cannabis for adult use in 2021. However the state has yet to establish a regulated market and regulators say legal sales likely won’t begin until 2023.

 
South Carolina medical marijuana bill approved by Senate

South Carolina medical marijuana bill approved by Senate

South Carolina medical marijuana bill

A South Carolina medical marijuana bill pre-filed in late 2020 has finally been approved by the Senate, and will now go on to the House of Representatives for consideration.

The Compassionate Care Act was passed in the Senate on its third reading February 10. Initial passage was expected a day prior following a bipartisan vote to advance the bill, however Thursday’s voice vote means the legislation will be formally transitioned to the other body.

Passed through the Senate Medical Affairs Committee in March 2021, the bill was blocked by a lone senator who prevented it from reaching the chamber floor. Republican Sen. Tom Davis has been the driving force behind the Compassionate Care Act, and doubled his efforts following the blockage in 2021 to get it across the finish line.

The state’s Governor Henry McMaster, also a Republican, said earlier in the week that it is still too soon to comment on the proposal. “This is on that’s going to depend on a lot of things,” he told a local station. McMaster added that he would be waiting for the final version before deciding whether or not to sign off on it if the bill hits his desk.

As it stands, the current bill would allow patients with qualifying conditions to possess and purchase cannabis products from licensed dispensaries. Smokable products, as well as home cultivation of cannabis by patients or their caretakers, would be prohibited. Simply possessing the plant form of cannabis could be punished as a misdemeanor.

Qualifying conditions for medical cannabis include cancer, multiple sclerosis, epilepsy, glaucoma, Crohn’s disease, sickle cell anemia, ulcerative colitis, cachexia or wasting syndrome, autism, nausea in homebound or end-of-life patients, muscle spasms, post-traumatic stress disorder (PTSD). The bill would also allow access for patients with “any chronic or debilitating disease or medical condition for which an opioid is currently or could be prescribed by a physician based on generally accepted standards of care.” An example of this would be severe or persistent pain.

If the South Carolina medical marijuana bill were to pass and be signed into law, purchases of medical marijuana would be subject to the state’s 6% sales tax. Local jurisdictions would also be able to levy an additional tax. The state also has plans to handle dispensaries differently as it stands currently.

Rather than traditional dispensaries that are found in other states, the South Carolina medical marijuana bill calls them “pharmacies” instead. This is because the sites would be required to have a pharmacist on the premises at all times, and the South Carolina Board of Pharmacy would oversee business regulations.

Those with felony drug convictions would be barred from participating in the industry for 10 years under the Compassionate Care Act. In an effort to prevent a multi-state operator takeover, the state would also give priority to in-state businesses when the time for licensing comes.

The initial rollout would approve 15 cannabis cultivators and 30 processing facilities. A cannabis pharmacy will be licensed for every 20 pharmacies in the state, and five testing labs and 4 transport licenses will be given out.

75% of tax revenue collected from South Carolina medical marijuana sales would go into the state’s general fund. An additional 10% would go to drug abuse treatment services, 5% to state law enforcement and the rest will be diverted to cannabis research and education.

A February poll found that voters approve of South Carolina medical marijuana by a five to one ratio. Rep. Davis said last year that if the legislature didn’t advance the reform, he’d propose a bill to put the question of medical marijuana legalization to voters through a referendum.

Mississippi medical marijuana legalized by Governor

Mississippi medical marijuana legalized by Governor

mississippi medical marijuana legalized

Mississippi is legalizing medical marijuana for people with debilitating conditions such as cancer, AIDS and sickle cell disease.

Republican Gov. Tate Reeves signed the legislation Wednesday and it became law immediately. It could be months before the first marijuana dispensaries open.

“There is no doubt that there are individuals in our state who could do significantly better if they had access to medically prescribed doses of cannabis,” Reeves wrote in a statement posted to Twitter. “There are also those who really want a recreational marijuana program that could lead to more people smoking and less people working, with all the societal and family ills that that brings.”

The National Conference of State Legislatures says 36 states and four territories already allowed the medical use of cannabis. Mississippi becomes the 37th state.

“For all the people who are touched in some way by a loved one or someone they know who benefits from medical cannabis, this brings their quality of life back,” said Ken Newburger, executive director the Mississippi Medical Marijuana Association, a group that pushed for legalization.

A majority of Mississippi voters approved a medical marijuana initiative in November 2020, and it would have allowed people to buy up to 5 ounces a month. The state Supreme Court invalidated it six months later by ruling that the state’s initiative process was outdated and the measure was not put properly on the ballot.

The state House and Senate, both controlled by Republicans, passed the final version of Senate Bill 2095 last week.

The new law will allow patients to buy up to to 3.5 grams of cannabis per day, up to six days a week. That is about 3 ounces per month. It sets taxes on production and sale of cannabis, and it specifies that plants must be grown indoors under controlled conditions.

New Jersey legal cannabis delays have cannabis growers worried

New Jersey legal cannabis delays have cannabis growers worried

New Jersey cannabis growers worried about delays

Like many of New Jersey’s residents who voted to legalize weed for adult consumers, the state’s largest growers say they’ve been eager for the market to open.

In fact, they say they’re bursting at the seams with marijuana — and now, they’re worried they’ll have to take drastic measures if things don’t speed up.

“I hate to say this, but we may have to start destroying product, and we may have to start potentially letting people go because part of the anticipation is you ramp up your staffing, as well,” said James Leventis, an executive for Verano New Jersey, which has a cultivation and processing facility in Readington Township and three stores in Elizabeth, Lawrence Township and Neptune.

“You’re hired for a job with the idea that this market will develop,” said Leventis, the company’s vice president of Compliance & Government Affairs. “I’m very concerned we will continue to see these delays. It’s looking very stark right now.”

Just like any other organic material, cannabis starts to decompose after time. Even after it’s properly stored, after six months weed can get stale, loose its aroma and potency. In worst-case scenarios, the pot can get moldy.

For months, Verano along with fellow New Jersey Cannabis Trade Association members have been pressuring the state to allow them to sell to the public. The strategy has increased over the last month.

So what’s the hold up?

In no uncertain terms, the state agency created to govern the nascent cannabis industry — the Cannabis Regulatory Commission — has said these same companies demanding to open have yet to comply with stipulations in the marijuana law.

“The law has been in place since Feb. 22, 2021,” said Jeff Brown, the CRC’s executive director at last week’s public meeting. “It has noted clearly that alternative treatment centers [like Verano] need three things: municipal approval, relevant necessary supply to be able to serve their patient base, and operational capacity to continue to serve and even expand access.”