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Pennsylvania cannabis legalization gains an unlikely ally

Pennsylvania cannabis legalization gains an unlikely ally

Pennsylvania cannabis legalization gains support from ex-law enforcement Senator

With renewed efforts in the Pennsylvania cannabis legalization fight, the movement has gained an unlikely ally; a former U.S. marshal who spent years fighting the drug war.

Republican Senator Mike Regan is working on new legislation to legalize Pennsylvania cannabis. The legislation would legalize cannabis for recreational use and permit adults age 21 and older to legally purchase and possess a “personal amount” of cannabis. Regan thinks that amount will most likely be an ounce.

“I think it’s inevitable,” Regan said. “It’s common sense to think we’re going to do it at some time and it should be done smart.”

While still a work in progress, Regan sent a memo to his fellow lawmakers stating, “As chairman of the Senate Law and Justice Committee and a former member of law enforcement, rather than sit idly by and allow others to shape the legislation, I am stepping up to be a leader on the issue, as I did on medical marijuana.”

This is a much different approach compared to other Republicans in the state who are fighting legalization. Instead of joining the resistance against Pennsylvania cannabis legalization, Regan is attempting to take charge so Republicans can truly have a say in what happens.

Pennsylvania Governor Tom Wolf has expressed his support for broad cannabis legalization on numerous occasions. Along with Lieutenant Governor John Fetterman, a staunch advocate for cannabis legalization, the two believe creating a legal cannabis marketplace can generate more money for the state to address social justice issues, mainly the convictions and criminal records people get for consuming or possessing cannabis.

Regan used the examples of New York and New Jersey, two neighboring states that have legalized cannabis for recreational use as reasoning for legalizing Pennsylvania cannabis. “We will soon experience border bleed with Pennsylvanians contributing to the tax base of those states and helping to pay for their roads and bridges, while the commonwealth deals with the implications of purchases brought across state lines without the revenue or resources in our legal system to address them,” Regan said in his memo.

However Regan isn’t the first Republican in Pennsylvania to push forward recreational cannabis legislation. Senator Dan Laughlin (R) joined Democrat legislators in pushing for cannabis legalization in February of 2021.

Additionally, two Democrat House Representatives, Jake Wheatley and Dan Frankel, introduced a bill to legalize Pennsylvania cannabis just last week. However the remaining Republicans in the legislature continue to express their disapproval of broad cannabis legalization in the Keystone State.

Many Republicans have said that the state should continue to focus on medical cannabis only, and that recreational cannabis legalization is not a priority for them. Their reasoning is that medical cannabis has yet to prove successful enough to warrant full blown legalization. However, medical marijuana sales in Pennsylvania topped more than $900 million over one year during the COVID-19 pandemic, and could soon see $3 billion in total sales with just a few operating years under its belt.

Pennsylvania is outpacing other medical marijuana states by huge margins, showing that interest in Pennsylvania is at an all time high. Regan estimates that recreational cannabis could generate an additional $1 billion a year in revenue. That revenue could be used to support law enforcement, fight gun violence, provide after school programs for disadvantaged youth and free up motor license funds that are currently being used to fund state police to help fund road and bridge improvements instead.

The bill would establish a regulatory control board, remove penalties for possession and use by adults, allow the legal purchase of firearms regardless of cannabis use, among many other features.

As an ex-law enforcement officer, Regan is running against the grain in his efforts that helped shape the medical marijuana legislation in the state, as well as his new support for recreational cannabis.

“As a former United States marshal, I had the opportunity to work in federal law enforcement at the height of the drug war, so I know the seriousness of drug use,” he said in his memo. ”But I am also cognizant that there has been a significant decline in arrests and prosecutions for personal use amounts of marijuana in recent years. Our law enforcement agencies and justice system do not have the manpower or time to handle these minor marijuana offenses that clog our courts and produce little return.”

Instead, Regan wants law enforcement to focus more on the large scale drug importers that deal heroin and fentanyl, which fuel the massive opioid crisis that has been impacting Pennsylvania for years, killing thousands of Pennsylvanians.

Could Virginia cannabis legalization be overturned in 2022?

Could Virginia cannabis legalization be overturned in 2022?

virginia cannabis legalization could be flipped in 2022
Virginia legalized the home cultivation of cannabis July 1, 2021, with plans for a retail industry set in place for 2024. However with the 2022 gubernatorial race quickly approaching, that could all be overturned.
The retail market set to begin in 2024 still needs to be organized and approved down the road by legislators. This means that there’s still plenty of time for those that oppose legalization to try and overturn it. Should the Republican candidate win the race, it might be easy to do.

NORML, a national organization that has been fighting for cannabis legalization for decades, uses a rating system in gubernatorial races across the country to grade the candidates for their likelihood to support cannabis legalization.

NORML has given the race’s Democratic candidate, former Gov. Terry McAuliffe, an A grade, noting his public statements calling for legalization. The Republican candidate, Glenn Youngkin, a private equity executive, has a D grade from NORML, noting that Youngkin supports only limited cannabis decriminalization.

And it isn’t just the governor’s seat that is up for grabs in 2022. The Virginia House of Delegates is nearly split down the middle on partisan lines, with multiple seats up for re-election in 2022. Advocates are concerned that without a Democrat majority in both chambers of government in the state, the path to full legalization may be blocked indefinitely.

Similarly to the gubernatorial race, the race for Virginia Attorney General is just as important. The Democratic candidate for attorney general, incumbent Mark Herring, has called for cannabis legalization in the commonwealth, while GOP challenger Jason Miyares has only expressed limited support for medical marijuana.

Additionally the lieutenant governor race falls into the same judgement from NORML, with the democrat receiving and A grade and the Republican getting a D grade. Long story short, if Democrats lose these races, the future of cannabis legalization in Virginia is hazy to say the least.

Over 60% of Virginians have expressed their support for cannabis legalization, with just over 30% being opposed. One would like to think that no matter who wins these races, the voice of the people will be respected. If the majority supported legalization enough to pass it, then it is the will of the people of Virginia that cannabis should remain legal.

While traditionally the party of smaller government, less intervention and following the will of the people, one should be very hesitant to believe that a republican governor and republican controlled House of Delegates would not try to impede legalization in Virginia. Suffice to say, Virginians will be waiting with bated breath to see who comes out on top, as it would seem the future of cannabis legalization literally depends on it.

Massachusetts town charges local cannabis companies “Impact Fees”

Massachusetts town charges local cannabis companies “Impact Fees”

The news this week that a small Massachusetts town is charging more than $1.3 million in “impact fees” to the three cannabis companies operating within its city limits has reopened the debate over the true impact of cannabis businesses on local communities.

In a recently filed lawsuit, the cannabis retailer Stem revealed that the city of Haverhill, Massachusetts, is charging its three cannabis businesses a total of $1.3 million in annual impact fees—and $866,930 of that total is earmarked for the town’s police department.

Those impact fees are being charged despite the fact that myths about cannabis businesses boosting crime have been debunked time and time again. In fact, there’s evidence that cannabis legalization can actually improve local crime clearance rates.

Even as they operate as positive law-abiding forces in their communities, cannabis companies still have to combat the negative stereotypes perpetuated by America’s War on Drugs.

Without any evidence of negative community impact, we’re left to wonder why some towns and cities are allowed to charge cannabis businesses for additional policing.

Cannabiz impact in Massachusetts

Massachusetts’ legalization law allows local communities to charge impact fees that are “reasonably related to the costs imposed upon the municipality by the operation of the marijuana establishment.”

Unlike most other legal states, Massachusetts law forces cannabis companies to sign Host Community Agreements (HCAs) with the town in which they operate. This gives local communities enormous leverage over cannabis companies—which encourages them to tax the daylights out of the local weed stores.

Many Bay State towns use HCAs to create their own mitigation fees based on how they imagine cannabis businesses will impact their townships.

The law was put in place in 2018, when there was little data about the impact of cannabis companies on rates of local substance abuse, intoxicated driving, and crime.

Pennsylvania Cannabis Legalization Bill Introduced

Pennsylvania Cannabis Legalization Bill Introduced

Pennsylvania cannabis legalization bill introduced by democrat Jake Wheatley

Rep. Jake Wheatley (D) has introduced a new bill that would legalize Pennsylvania cannabis for adult use. Previous bills have been shot down by the state legislature, but HB 2050 has some revisions that Wheatley is hopeful will help it get through to the Governor’s desk.

Governor Tom Wolf has expressed numerous times his support for broader Pennsylvania cannabis legalization, however the Republican led state legislature has rejected every attempt so far.

Pennsylvania House Bill 2050

House Bill 2050 creates a dynamic permitting structure for growers, processors and dispensaries, allowing any size company to enter the legal cannabis market. This includes lowering initial application and permit fees to alleviate financial barriers. Renewal fees will be based on gross revenue; the higher a company’s gross revenue the higher their renewal fee, which is the fairest way to do it.

Among other things, my bill provides for the Commonwealth Reinvestment Fund (CRF). Specifically, the CRF will fund the following initiatives;

  • Minority and Women Grant Program to help disadvantaged populations benefit from this new industry,
  • Student Loan Reimbursement Program,
  • Mixed Income Housing Program,
  • After-School Programs,
  • And a public information campaign to educate the public on adult-use cannabis

Under this legislation, a wholesale tax of 10% will be levied on business to business transactions. Growers and processors who partner with an existing Pennsylvania Farm will not be required to pay the wholesale tax. Consumers will see an excise tax (in addition to sales tax) that will start at 6% for the first two years, 12% for years three and four, and then 19% for each year after.

Wheatley’s reasoning for pushing HB 2050 is similar to that of legislators in other states that have moved forward with cannabis legalization. The war on drugs has negatively impacted minority communities that most, and Pennsylvania cannabis legalization would give priority to those most disproportionally affected.

The bill also includes a “clean slate” provision that would help those charged with crimes under the Controlled Substances Act related to cannabis lessen or even wipe prior convictions. In a press conference Tuesday, legislators also used the example of 2019’s vape epidemic — a controversy that impacted over 2,000 consumers — as a reason for legalizing, stating that keeping cannabis illegal only helps the illicit market thrive.

The Pennsylvania state legislature has yet to hold a vote on HB 2050. If passed, Pennsylvania would join 16 other states that have legalized adult-use recreational cannabis.

New Jersey Regulators Ban Nearly All Edible Cannabis Products

New Jersey Regulators Ban Nearly All Edible Cannabis Products

New Jersey regulators ban cannabis edibles

Nearly a year after passing a constitutional amendment to legalize cannabis, New Jersey has yet to open a single retail cannabis store. While the industry has yet to take off, that isn’t stopping regulators from preemptively banning one of the most popular cannabis products.

When it comes to the cannabis products that consumers want, flower remains king. Vaporizer pens and concentrates for dabbing have been slowly catching up with flower as consumers seek a quicker way to get the desired effects of cannabis without burning the plant itself.

However, cannabis edibles have also been gaining popularity. Avoiding the need for any sort of inhalation at all, edibles are great for consumers who don’t want to vape or smoke, but still want the effects of cannabis.

Cannabis beverages have seen the greatest growth since the beginning of 2020, when cannabis sales skyrocketed across the country due to the COVID-19 pandemic. Cannabis capsule products have also grown noticeably in popularity, showing that consumers are seeking a way to consume cannabis without, well, consuming traditional cannabis.

With such growth in the edible cannabis market, it would seem obvious to any potential industry that is about to open that edibles will be a high-demand product. Higher demand means higher profits, which is what any state is seeking when legalizing cannabis.

Unless you’re New Jersey.

Ban on almost all cannabis edibles

Despite having no functional legal cannabis industry to base their decision, regulators in charge of New Jersey’s recreational cannabis have decided to ban all forms of edible cannabis products except for lozenges. This means traditional products consumers would likely be familiar with — cookies, brownies, gummies, beverages — are all prohibited.

The reasoning behind the ban is the same used by many states when they first legalize; the children. Concern over edible products that might appeal to children is a consistent issue in the legal cannabis industry.

While other states passed new regulations requiring child-proof packaging and prohibiting edibles from being designed in a manner that would be appealing to kids (i.e. gummy bears, star-shaped cookies, etc.), New Jersey has decided to take a much more restrictive approach.

According to the new set of regulations passed by New Jersey cannabis regulators, “ingestible forms of cannabis… shall only include syrups, pills, tablets, capsules, and chewable forms.”

A growing and thriving grey market

Just because regulators are dragging their feet in getting a functional legal cannabis industry up and running doesn’t mean that the people aren’t already taking advantage of the new law. Seemingly taking a tip from the Washington D.C. playbook, New Jersey has begun to develop a thriving grey market industry.

While there is nowhere to legally buy or sell cannabis directly, there’s a workaround. Similar to how D.C.’s grey market operates, New Jersey currently has a gift/donation system in place to skirt the current regulations.

In this grey market, a consumer may find a delivery service online. One the website one might see several different cannabis products, or “packages” as they might be called. However that isn’t technically what the consumer is buying.

Instead, the cannabis product is simply a “gift” that is included with the purchase of another item on the website. This might be a sweatshirt, a t-shirt, or even something as small as a sticker. The price of the sticker may be around $40, which conveniently is the same price as an eighth of cannabis.

Within a couple hours, a delivery driver will be at the door with the sticker and the included gift, and bam you just “bought” legal cannabis in New Jersey. But just like D.C.’s grey market, the grey market in New Jersey is completely unregulated.

Although a legal cannabis company has to follow strict regulations on manufacturing and packaging, an unregulated market like that which is blooming in New Jersey has no such restrictions. So while regulators may think they are making progress by banning various forms of edible cannabis products, these new rules will be all but ignored by those operating in the grey market already.

In other words, the new regulations can’t possibly have any sort of impact until there is an actual legal industry to enforce them. As regulators take their time getting the legal cannabis industry up and operational in New Jersey, the grey market will continue to thrive only making it more complicated to get legitimate businesses licensed and running.

If you are interested in learning more about the New Jersey cannabis industry, need assistance with licensing, planning and implementation of your business plan, Greener Consulting Group can help you stay on top of the latest regulatory changes, fees and best practices for getting ahead of the competition when the industry takes off.

U.S. House Approves Bill to Ease Cannabis Banking

U.S. House Approves Bill to Ease Cannabis Banking

The U.S. House of Representatives late Tuesday night approved a bill that would let banks to do business with cannabis companies without fear of penalty, giving traction to the least-disputed reform sought by the growing industry. 

The so-called SAFE Banking Act would be a boon for marijuana companies, which have so-far been stymied by the necessity to deal in cash because of federal restrictions. That has meant they have extra security costs and logistical problems, even as marijuana increasingly becomes legal. Some three dozen states now allow medical or recreational use, according to New Frontier Data, a cannabis research firm.

The measure, which has been passed by the House before with bipartisan support, was this time approved by voice vote as part of the National Defense Authorization Act.

Representative Ed Perlmutter, a Colorado Democrat, who had re-introduced the bill, has said that allowing cannabis businesses to access the banking system would bring more money into the economy and offer the opportunity to create good-paying jobs. The American cannabis industry had $20.3 billion in legal sales in 2020, according New Frontier Data.

The bill’s prospects are unclear in the Senate.

Yet it’s still a far cry from the wish-list of legal reforms that the industry seeks, including all-out legalization, and relief from tax burdens.

The U.S. Cannabis Council, a trade group that represents companies in the industry, called the current rules that require marijuana firms to be all-cash a security hazard.

“Over $17 billion in legal cannabis was sold in the United States last year, overwhelmingly through cash transactions. Forcing legitimate, well-regulated cannabis businesses to conduct most of their business in cash is anachronistic and a clear threat to public safety,” the council’s chief executive Steven Hawkins said in a statement before the bill passed.

BTIG analyst Camilo Lyon said in a research note this week that the SAFE Act’s inclusion with the defense authorization might enhance its prospects.

“Discussions with our D.C. contacts suggest it has an easier pathway of getting through the Senate, largely because no senator wants to be viewed as holding up the massive 1,700 page must-pass NDAA simply because of SAFE banking,” Lyon wrote.