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What is the Cannabis Administration and Opportunity Act?

by Travis C | Jul 22, 2022 | 420 News, Blog, Cannabis Law, Cannabis Law and Compliance, Cannabis News, Culture, Legalization, Marijuana, Politics

Cannabis Administration and Opportunity Act introduced

Senators Cory Booker, Chuck Schumer and Ron Wyden have introduced a bill that would legalize and regulate cannabis at the federal level.

The Cannabis Administration and Opportunity Act (CAOA) is a comprehensive legislation that would end federal cannabis prohibition by removing cannabis from the Controlled Substances Act. The CAOA would also empower states to create their own cannabis laws; ensure federal regulation protects public health and safety; and prioritize restorative and economic justice.

The bill was initially introduced as a discussion draft in 2021, and after receiving over 1,800 comments, the senators made adjustments and additions to the bill before introducing it this to the chamber this week.

The restorative justice aspect of the bill would help undo the decades of harm caused by the failed War on Drugs, ends discrimination in the provision of federal benefits on the basis of cannabis use, provides major investments for cannabis research, and strengthens worker protections. By decriminalizing cannabis at the federal level, the CAOA also ensures that state-legal cannabis businesses or those in adjacent industries will no longer be denied access to bank accounts or financial services simply because of their ties to cannabis.

“As more states legalize cannabis and work towards reversing the many injustices the failed War on Drugs levied against Black, Brown, and low-income people, the federal government continues to lag woefully behind,” said Sen. Booker. “With strong restorative justice provisions for communities impacted by the drug war, support for small cannabis businesses, and expungement of federal cannabis offenses, this bill reflects long overdue, common sense drug policy. I am proud to have partnered with Senators Schumer and Wyden to introduce this critical legislation. The support that we have received from committee chairs and outside groups underscores the historic nature of this bill and the urgent need for Congress to pass it.”

The Cannabis Administration and Opportunity Act has several goals, including protecting public health and safety, and prioritizing restorative and economic justice. This would be done by implementing safeguards like track-and-trace and purchase limits on retail cannabis for the former. Expunging federal cannabis convictions and encouraging states to do the same would be an initial step for the latter objectives.

It would be made easier for more individuals to get involved in the legal cannabis industry by expanding access to loans and capital for entrepreneurs, especially those impacted by the war on drugs.

The regulation and taxation of cannabis would be implemented by transferring jurisdiction over cannabis from the Drug Enforcement Agency (DEA) to the Alcohol and Tobacco Tax and Trade Bureau (TTB). The regulatory framework would be similar to alcohol and tobacco while supposedly recognizing the unique nature of cannabis products.

By default, federal banks would now be permitted to freely do business with legal cannabis businesses without fear of prosecution from the government. Further, cannabis businesses would actually be allowed to claim tax deductions for business expenses, which currently isn’t an option in most states.

One of the last main objectives of the Cannabis Administration and Opportunity Act is to encourage cannabis research which has been severely lacking for decades. The CAOA would require more federal research into the impacts of cannabis on health and public safety.

The bill would also establish clinical trials through the VA to study the effects of medical cannabis on the health outcomes of veterans, compile industry-related data and trends, and establish grants for cannabis research.

For employees, federal drug testing for cannabis would be removed as well as random testing for cannabis. However certain “sensitive categories” of federal employees could still be drug tested. This includes those working in national security, law enforcement and commercial transportation.

Regular industry employees would also get worker protections.

There is no current timeline on when the bill we be held to a vote in the Senate. The SAFE Banking Act which aimed to only allow legal cannabis businesses in states access to federal banking, has been shot down in the Senate several times.

Luxembourg becomes first European country to legalize cannabis

by Travis C | Oct 22, 2021 | 420 News, Blog, Cannabis Law, Cannabis Law and Compliance, Cannabis News, Culture, Legalization

Luxembourg legalizes cannabis for consumption and cultivation

In an effort to combat the illicit drug market, Luxembourg will legalize home cultivation and consumption of cannabis.

The country of just over 650,000 will permit home cultivation and consumption of cannabis, and allow the sale and purchase of seeds through local shops and from ordering abroad. There will be no shops to purchase cannabis flower or other cannabis products.

The law specifies that cultivation can only be done “in the four walls of your own home,” and the same goes for consumption. Which means there won’t be any sort of consumption lounges, and consumers cannot do so outdoors.

The leaders of the Greens – one of the three coalition partners in government along with the Democratic Party, and the Socialist Workers’ Party – said the move “represents a fundamental reorientation of Luxembourg’s drug policy”, as the government aims to tackle drug-related crime with a more “holistic” approach.

“The war on cannabis has failed,” the party said in a statement on Friday.

“The announcements of the Minister of Justice, Sam Tanson, represent a fundamental reorientation of Luxembourg’s drug policy. At last, the use of cannabis is being regulated and a legal alternative to the black market is being created.”

The Greens added that the main objectives of new legislation on cannabis would be to exempt production, purchase and consumption of a given amount of cannabis from punishment, keep users away from the black market, reduce the mental and physical dangers associated with it, and combat acquisitive crime.

With this new law Luxembourg will become the first European country to legalize cannabis for recreational use. While multiple other countries have decriminalized or legalized medical cannabis, and many have legalized hemp production in some form, none have fully legalized it for recreational use.

Even in a country like Holland, famous for Amsterdam which many consider a legal cannabis haven, cannabis is not technically legal.

While the Luxembourg law may be restrictive and lacking plans for an operational commercial industry, the government isn’t ruling out the domestic production of seeds for commercial purposes.

Billionaire-backed Denver Ordinance 300 would raise retail cannabis tax by 13%

by The Real Dirt | Oct 13, 2021 | Blog, Business, Cannabis Business, Cannabis Law, Cannabis Law and Compliance, Cannabis News, Industry News, Legalization, Politics

Denver Ordinance 300 would raise taxes on recreational cannabis.

An advocacy organization registered in Delaware and backed by a Bahamas-based billionaire Forbes calls “the world’s richest 29-year-old” is going head-to-head with the Denver cannabis industry — and the mayor — through a proposed city ordinance that would increase Denver’s recreational marijuana tax by 13%.

Initiated Ordinance 300, which will appear on the 2021 ballot, proposes that “Denver retail marijuana sales tax be increased by $7 million” through a 1.5% tariff to fund “pandemic research” at the University of Colorado Denver.

Should a statewide ballot initiative that will also be put before voters in 2021, Proposition 119, pass along with Ordinance 300, Denver cannabis consumers will be paying nearly 25% more for their weed within the next three years. Denver residents currently pay a total of 26.41% in taxes on recreational cannabis: 11.41% to the city and 15% to the state.

The move has Colorado cannabis industry insiders wondering why Colorado, why CU Denver and why their sector.

“Ordinance 300 taxes Denver cannabis consumers to fund, and I’m putting this in big old air quotes, ‘future pandemic research,'” Marijuana Industry Group Executive Director Truman Bradley told Denver Business Journal. “I literally cannot think of a cause that’s going to achieve more attention globally than [pandemic research]. It makes no sense to ask Denver cannabis consumers to foot the bill for that.”

MIG, along with industry advocacy organization Colorado Leads, primarily expressed concern about the impact on cannabis buyers who consume for medical purposes but may not have the means for a medical card — something that requires an often expensive annual physical exam and fees paid to the state — or simply don’t want to be on an official list.

“This measure — funded by a rich, out-of-town carpetbagger — taxes people’s pain relief to pay for a random pandemic preparation program that has no accountability, no oversight, no specific solutions and no connection to the marijuana industry,” Chuck Smith, Colorado Leads board president and CEO of Denver-based cannabis giant BellRock Brands, told DBJ. “If, as the proponents contend, this program is so beneficial, why aren’t all Denver industries asked to pay their fair share?”

Read Full Story on Denver Business Journal

New York cannabis board holds first meeting

by The Real Dirt | Oct 7, 2021 | 420 News, Blog, Business, Cannabis Business, Cannabis Law, Cannabis Law and Compliance, Cannabis News, Industry News, Legalization, Politics

New York marijuana regulators on Tuesday sought to make up for delays in the drug’s rollout by approving a chief equity officer and making immediate changes to the medical cannabis program during the inaugural meeting of the state Cannabis Control Board.

The five-member board charged with implementing marijuana legalization and advancing the state’s cannabis industry set a clear tone: They wanted to move past delays in implementing the Marijuana Regulation and Taxation Act.

The state law legalizing marijuana took effect in March, but infighting between then-Gov. Andrew Cuomo and the state Legislature exacerbated delays in getting members appointed to the board, slowing down the work of getting regulations for legal sales in place.

“The MRTA was signed into law on March 31. But we were not able to begin the work of establishing New York’s cannabis market until Sept. 22, when the full cannabis control board was appointed. As such, there was a six-month delay to make up,” Christopher Alexander, executive director of the Office of Cannabis Management, told the board Tuesday afternoon.

The state legislature ended its regular session without making appointments to the board because lawmakers had been entangled in a fight with Cuomo over appointments to the Metropolitan Transportation Authority.

Since Cuomo left office in August, Gov. Kathy Hochul has made getting the board going central to her early administration, saying in a statement announcing several new members of the board: “New York’s cannabis industry has stalled for far too long.”

The impact of the slow rollout could be felt. A portion of the law that would allow marijuana cardholders to grow plants six months after the law went into effect was delayed because the board was not in place, the Times Union in Albany reported.

But on Tuesday, the regulators moved ahead with several changes to the medical cannabis program. They include permanently waiving a $50 registration fee for patients and caregivers and making the whole flower an approved form of medical cannabis product.

Another provision allows for a 60-day supply of medical cannabis to be given to a certified patient or designated caregiver instead of a month supply.

Read Full Story on NCPR

Missouri Medical Marijuana Sales Set Record in June

by The Real Dirt | Jul 6, 2021 | 420 Culture & Travel, Blog, Business, Cannabis Business, Cannabis News, Culture, Industry News, Legalization, Medical Marijuana

missouri medical marijuana sets new sales record

JEFFERSON CITY — Missouri’s medical marijuana industry topped $70 million in cumulative sales, including nearly $16.4 million in June, according to the Missouri Department of Health and Senior Services.

Eight months after the state’s first dispensary opened in October 2020, 126 dispensaries operate throughout the state. Those dispensaries, plus manufacturers, transporters, and laboratories, total 201 medical marijuana facilities in the state.

“This is essentially Missouri’s newest twenty-first century industry,” Alan Zagier, a representative from the Missouri Medical Cannabis Trade Association, said. “Now we’re really at the moment when rubber hits the road, and we’re really starting to see the results of all this hard work our members have put in.”

Zaiger said the industry contributes to a post-COVID economy.

“The benefit extends to not just cannabis patients but also to the workforce,” he said. “This is a real shot in the arm for lots of communities across the state. These are real, tangible jobs.”

A total of 375 facilities have been licensed to handle medical marijuana by DHSS.

“We’re not just talking about dispensaries in our urban centers in St. Louis and Kansas City, and even there in mid-Missouri,” Zaiger said. “We’re talking about dispensaries in places like Hayti and Caruthersville.”

Shangri-La Dispensaries is one of those facilities, with dispensaries in Columbia and Jefferson City.

“Business is phenomenal,” Michael Lafrieda, the Chief Operating Officer for Shangri-La, said. The dispensary sees “several hundred [customers] a day. On some of the longer holiday weekends, a couple thousand people.”

Lafrieda said his customers range in age from teens to eighties. Zaiger said that nearly 121,000 Missourians have been approved as medical marijuana patients, with many more applications.

“For the sake of comparison,” Zaiger said. “Illinois has about 12.6 million residents, so that’s more than double of Missouri. And even now, several years into their program, they currently only have 55 licensed retail outlets open, so that’s less than half of the number that we have open in less than a year’s time.”