There have been big moves in cannabis in 2019, with approval for the end of marijuana prohibition reaching all-time highs. Cannabis and hemp saw more legalization both at the state and federal level, and even some bipartisan support in Congress.

Here were some of the biggest stories in weed in 2019:

Colorado finally approves rules for legal pot lounges and cafes

The problem of where to consume cannabis in Colorado has been an issue since adult-use cannabis use was approved by voters in 2012. In 2020, Colorado tokers will finally have a place to light up.

In May, Gov. Jared Polis (D) signed HB 1230 into law,  licensed marijuana hospitality spaces in which cannabis can be consumed on-site. The new rules open the door for a variety of businesses to cash in on cannabis consumption, including hotels, spas, art galleries, cafes, lounges, and more. After purchasing medical or recreational cannabis at a dispensary, tourists and residents will be able to try out their purchases at on-site marijuana tasting rooms.

The law won’t go into effect until 2020, and cities and counties have the option of banning social-use establishments. Local governments will have the option of adjusting the regulations to allow vaping, for example, but not smoking.

 

Cannabis banking bill gains bipartisan support in House

The House of Representatives passed the Secure and Fair (SAFE) Banking Act of 2019 in September.

The SAFE Banking Act would protect banks that work with the cannabis industry from being penalized, or from violating federal anti-money laundering and illicit finance laws. For years the cannabis industry has struggled to gain access to even the most basic banking services.

Despite being a multibillion-dollar industry, marijuana businesses have largely been given the cold shoulder by banks and credit unions, leaving them holding literal bags of cash.

This is the first time that the House has passed standalone marijuana legislation. Rep. Ed Perlmutter (D-CO) sponsored the SAFE Banking Act, and it passed with a vote of 321-103. All but one Democrat and 91 Republicans voted in favor of the bill, giving it broad bipartisan support.

 

USDA releases draft hemp regulations

In October, the U.S. Department of Agriculture (USDA) released draft rules for hemp regulation.

The USDA drafted the regulations as a result of the 2018 Farm Bill that descheduled and legalized hemp. Under the draft rules, the THC content must be under 0.3%, and any “hot” hemp found to exceed that amount would be destroyed.

Not everyone is happy with the proposed rules. Hemp farmers say that the USDA regulations will make producing high-quality CBD that doesn’t exceed THC limits impossible.

 

Colorado cannabis sales generate $1 billion in tax revenue

Since recreational marijuana sales began in Colorado in 2014, the state has collected $1.02 billion in tax revenue, according to the latest numbers released by the Colorado Department of Revenue. Adult-use cannabis sales in the last five years have exceeded $6.56 billion. Legal cannabis has created jobs for 41,076 people who work in the industry, and there are currently 2,917 licensed marijuana businesses in the state.

Cannabis sales in Colorado have begun to level out, in part due to a decline in medical marijuana sales. In 2018, recreational marijuana sales were up 11%, but medical cannabis sales were down 20%.

 

End of marijuana prohibition gains traction in Congress

The House Judiciary Committee approved the Marijuana Opportunity Reinvestment and Expungement (MORE) ACT in November. The bill would deschedule cannabis, expunge marijuana convictions, and create reinvestment programs in communities most impacted by the war on drugs.

“This will remove a stain on people’s record but really a stain on the United States of America,” said Rep. Steve Cohen (D-TN).

Some key elements of the MORE Act include:

Additionally, removing cannabis from the Controlled Substances Act would allow veterans access to medical marijuana through the Department of Veterans Affairs (VA).

While the bill is likely to pass in the House, its future is less certain in the Senate.

 

Illinois becomes 11th state to legalize cannabis

Jan. 1, 2020, will mark the beginning of more than just a new decade in Illinois as the state’s first recreational marijuana dispensaries are set to open on New Year’s Day.

Illinois was the first state to legalize recreational marijuana through the state legislature rather than through a voter-approved ballot initiative.

In June, Gov. J.B. Pritzker (D) signed a bill that allows adults 21 and older to possess and purchase cannabis. In addition to legalizing adult-use cannabis, the new law includes provisions to expunging prior marijuana convictions and the creation of social equity programs.

Recreational flower, edibles, and infused products will have a graduated tax rate according to the THC content.

 

Michigan first Midwest state to legalize adult-use marijuana

On Dec. 1, Michigan became the first state in the Midwest to allow recreational marijuana sales. Adults 21 and older can purchase up to 2.5 ounces of flower, including up to 15 grams of concentrate.

Michigan voters approved Proposal 1 to legalize adult-use marijuana in 2018. Sales were originally slated to begin Jan. 1, 2020, but the state moved up the date in an effort to reduce black market sales. Detroit has delayed recreational sales until Jan. 31.

On the first day of sales, the state’s three licensed retail marijuana shops generated more than $200,000 in cannabis sales and an estimated $36,000 in tax revenue.

Marijuana Industry Daily projected that marijuana sales in Michigan are expected to reach $1.4 billion to $1.7 billion per year when the market reaches maturity.

 

 

Hold on to your CBD-infused lattes, because cannabis is going to space.

Front Range Biosciences, an agricultural technology company, has partnered with the University of Colorado, Boulder to send 480 hemp and coffee plant cultures to the International Space Station (ISS).

“This is one of the first times anyone is researching the effects of microgravity and spaceflight on hemp and coffee cell cultures,” said Dr. Jonathan Vaught, Co-Founder and CEO of Front Range Biosciences in a press release. “There is science to support the theory that plants in space experience mutations. This is an opportunity to see whether those mutations hold up once brought back to earth and if there are new commercial applications.”

The goal of the experiments is to see if zero gravity and radiation will mutate or genetically alter the coffee and hemp plants. Scientists will be able to see how the plants react to the stress of space travel. The research could help scientists develop plants that can endure drought and cold. On Earth, that could mean developing more resilient crops that can be grown in environments that don’t normally support hemp growth.

“We envision this to be the first of many experiments together,” said Louis Stodieck, Chief Scientist of BioServe Space Technologies at the University of Colorado, Boulder. “In the future, we plan for the crew to harvest and preserve the plants at different points in their grow-cycle so we can analyze which metabolic pathways are turned on and turned off. This is a fascinating area of study that has considerable potential.”

The hemp and coffee cultures will travel to the ISS aboard SpaceX CRS-20 in March 2020. The incubated cells will spend a month is space before returning to Earth to be analyzed by Front Range Biosciences.

“In the future, we plan for the crew to harvest and preserve the plants at different points in their grow-cycle, so we can analyze which metabolic pathways are turned on and turned off,” Louis Stodieck, director of BioServe Space Technologies at the University of Colorado, Boulder, said in a statement. “This is a fascinating area of study that has considerable potential.”

The passage of the 2018 Farm Bill removed hemp as a Schedule I substance, legalized the production of hemp, and removed barriers to federal research. Hemp is a type of cannabis plant that contains less than 0.3 percent THC and has a variety of uses, including in textiles, bioplastics and biofuel, food, and insulation.

Hemp also contains high concentrations of CBD and other non-intoxicating cannabinoids.

While scientific research on hemp in space is in its early stages, it’s not the first time cannabis has left Earth. Earlier this year, Space Tango sent hemp seeds to the ISS for a series of experiments. The hemp seeds were sent back to Earth and planted for another series of experiments. The results have not yet been published.

This week the U.S. Department of Agriculture (USDA) released draft rules for hemp regulation. There will be a 60-day public comment period before the rules are finalized.

“At USDA, we are always excited when there are new economic opportunities for our farmers, and we hope the ability to grow hemp will pave the way for new products and markets,” said Secretary Perdue in a press release. “We have had teams operating with all-hands-on-deck to develop a regulatory framework that meets Congressional intent while seeking to provide a fair, consistent, and science-based process for states, tribes, and individual producers who want to participate in this program.”

The USDA drafted the regulations as a result of the 2018 Farm Bill that descheduled and legalized hemp. Under the draft rules, the THC content must be under 0.3%, and any hemp found to exceed that amount would be destroyed. Other key elements of the new regulations include:

States and American Indian tribes will have some say in setting their own hemp regulations (as long as they don’t violate USDA guidelines), and the USDA must evaluate these plans within 60 days of submission. In states where hemp production is illegal, such as South Dakota, farmers will not be able to cultivate hemp unless state law changes.

Not everyone is happy with the proposed rules. Hemp farmers say that the USDA regulations will make producing high-quality CBD impossible.

“We’re going to be forced, if we want to continue farming CBD, to be harvesting in week four to week six of flower time, where we’re typically not starting our harvest until seven or eight,” Phoenix-based hemp farmer Adam Harris told KTVL News10.

Hemp farmers say that the window between testing, receiving results, and harvesting is too narrow and will hurt the quality of their harvest.

“Most scientific research to date is indicating that the most medicinal benefits are with that full-spectrum CBD. These new USDA regulations make it so we can’t even take in the harvested material to take in those full-spectrum extracts the way that we have been,” said Mitra Sticklen of Om Farms LLC, a hemp company based in Jacksonville.

Senators urge FDA to speed up CBD regulation

Senator Richard Blumenthal (D-CT) and five other senators are calling on the Food and Drug Administration (FDA) to issue guidance on CBD within 90 days.

“Consumers need and deserve guidance. So do manufacturers and hemp growers. That is why I am calling on the FDA to establish a regulatory framework as it has promised to do for these products,” said Blumenthal.

Hemp-derived CBD was legalized under the 2018 Farm Bill, but since then, the FDA hasn’t issued any rules for cannabis companies selling CBD products.

“Consumers rely on the FDA to conduct timely and appropriate oversight of new and emerging ingredients, and guidance from the FDA would also help manufacturers to develop safer, more effective, and more credible products for consumer use,” the lawmakers wrote in a letter to the FDA. “The market for CBD products is rapidly outpacing the FDA’s current regulatory efforts, and your agency clearly must expedite its efforts to promote accuracy and transparency within the CBD industry.

Along with Sen. Blumenthal, Sens. Patrick Leahy (D-VT), Jon Tester (D-MT), Tammy Duckworth (D-IL), Chuck Schumer (D-NY) and Kirsten Gillibrand (D-NY) signed the letter addressed to the FDA.

Teen cannabis use in Washington declined after legalization

One of the arguments against legalizing marijuana was that it would increase teen drug use, but in Washington and other states that have ended cannabis prohibition, the opposite is true.

According to a new study by the Centers for Disease Control, marijuana use “decreased or remained stable through 2016 among King County students in grades 6, 8, 10, and 12. Among grade 10 students, the decline in use occurred among males while the rate among females remained steady. Use of alcohol or other substances was four times as frequent among marijuana users as among nonusers.”

Washington saw its first decline in teen marijuana use in 2012, the year it legalized cannabis. The researchers noted that the decline in youth marijuana use after legalization was consistent with trends reported in both Colorado and Oregon.

“Although the relationship between legal adult recreational use and youth use is not well understood, two possible reasons for the observed decline in youth use include reduction of illicit market supply through competition and loss of novelty appeal among youths,” according to the study. “Furthermore, it would be important to monitor the long-term role legalization might play to foster a permissive use environment given observed strong associations with use and individual and family factors that influence youth use.”

Study finds marijuana legalization doesn’t lead to increased crime

A federally funded study published in Justice Quarterly found that violent and property crime rates in Colorado and Washington did not increase after recreational marijuana was legalized. The crime rates stayed close to the average of other states where adult-use cannabis isn’t legal. Plus, since Washington legalized marijuana, burglary rates have actually declined more sharply than in states that haven’t legalized.

“Our results suggest that marijuana legalization and sales have had minimal to no effect on major crimes in Colorado or Washington,” according to researchers. “We observed no statistically significant long-term effects of recreational cannabis laws or the initiation of retail sales on violent or property crime rates in these states.”

Researchers looked at crime rates in Colorado and Washington from 1999 to 2016 and compared the data to 21 non-legal states. The study used crime statistics from the FBI.

“As the nationwide debate about legalization, the federal classification of cannabis under the Controlled Substances Act, and the consequences of legalization for crime continues, it is essential to center that discussion on studies that use contextualized and robust research designs with as few limitations as possible,” said Dale Willits, one of the study’s co-authors. “This is but one study and legalization of marijuana is still relatively new, but by replicating our findings, policymakers can answer the question of how legalization affects crime.”

Senate Majority Leader Mitch McConnell and other members of Congress are urging the Food and Drug Administration (FDA) to speed up its guidance on hemp-derived CBD products. Specifically, Congress wants the FDA to issue formal “enforcement discretion” regarding CBD.

Hemp was legalized last year thanks to the 2018 Farm Bill, which made CBD legal as well. However, without guidance from the FDA, hemp and CBD are in a regulatory gray area. Lawmakers say that the FDA’s current approach to CBD has “created significant regulatory and legal uncertainty for participants in this quickly evolving industry.”

Currently, the FDA prohibits adding CBD to food or drinks marketed beyond a single state or to be added to food as a dietary supplement. Because of the regulatory confusion, some local governments have insisted that CBD is illegal in their state.

“Given the widespread availability of CBD products, growing consumer demand, and the expected surge in the hemp farming in the near future, it’s critical that FDA act quickly to provide legal and regulatory clarity to support this new economic opportunity,” lawmakers wrote.

The FDA has said it could take years to finalize CBD regulations. Congress isn’t waiting, and the US Senate Appropriations Subcommittee on Agriculture is working on guidelines to submit to the FDA. According to U.S. Hemp Rountable, Congress is working on rules that would require the FDA to:

Lawmakers wrote that they appreciate that the FDA has pursued “enforcement actions against the worst offenders,” but that “it can do so while eliminating regulatory uncertainty for farmers, retailers, and consumers.”

“Without a formal enforcement discretion policy, anyone participating in the growing marketplace for legal hemp-derived products will continue to face significant legal and regulatory uncertainty.”

McConnell, who has been supportive of the hemp industry, does not support ending marijuana prohibition. Asked to comment of legalizing hemp but not cannabis, McConnell said that hemp is “a different plant. It has an illicit cousin which I choose not to embrace.”

Another year, more legal cannabis! 2018 saw a ton of changes in the cannabis industry and support for legalization is at an all-time high.

These were some of the biggest cannabis stories of 2018:

California Adult-Use Sales

On January 1, recreational marijuana sales officially began in California. The state is home to nearly 40 million people, and the potential cannabis revenue is in the billions. Changing regulations, licensing delays, high taxes, local cannabis bans, and testing snafus caused a less than smooth roll-out of adult-use sales in the state. California’s Bureau of Cannabis Control (BCC), charged with issuing licenses to retailers and distributors, initially issued businesses licenses to eighty-eight stores in 34 cities. As of December, the BCC has issued 547 temporary licenses to recreational marijuana dispensaries, still on the low end to supply the market adequately. Only 70 of California’s 482 cities allows recreational cannabis retail stores, but recent changes in regulations will allow cannabis deliveries throughout the state.

Massachusetts also began adult-use sales this year, with the first recreational dispensaries opening in November.

FDA Approves Cannabis Epilepsy Medication, Pushes to Deschedule CBD

The U.S. Food and Drug Administration (FDA) approved Epidiolex, a cannabis-derived medication used to treat certain forms of epilepsy, in June. Epidiolex, developed by UK-based GW Pharmaceuticals, is made from CBD and contains no THC.

In October, the FDA released a memo advising the U.S. Drug Enforcement Agency (DEA) that CBD has “negligible potential for abuse,” “currently accepted medical use in treatment,” and that any abuse “may lead to limited physical dependence.” As a result, the FDA recommended that the DEA reschedule CBD under its least restrictive category, Schedule 5.

Canada Legalizes Marijuana Nationwide

On October 17, Canada became the second country in the world to legalize adult-use cannabis. Uruguay was the first country to legalize cannabis in 2013. In June, the Senate and House of Commons passed the Cannabis Act, making it legal for adults 18 years-and-older to purchase, possess, and grow cannabis. Canadians will be able to cultivate up to four plants and possess up to 30 grams of cannabis in public. There’s no limit to the amount of cannabis residents can possess in their homes.

State Legalization

November’s mid-term elections resulted in huge wins for adult-use and medical marijuana legalization. Michigan was the first state in the Midwest and the 10th in the country to approve recreational marijuana. The first recreational dispensaries are expected to open in 2019 or 2020.

In Missouri and Utah voters were in favor of medical marijuana, a watershed moment in states that have traditionally opposed marijuana use. Missouri had three medical marijuana initiatives on the ballot, but Amendment 2 was the only one to pass with 65 percent approval. In Utah, Proposition 2 met voter approval, despite opposition from the Mormon Church.

Farm Bill Legalizes Hemp

The 2018 Farm Bill removed industrial hemp from the federal government’s list of controlled substances, legalizing its use as an agricultural product. While the bill didn’t deschedule CBD, it did legalize CBD extraction from hemp. The bill will enable farmers to grow, sell, and export industrial hemp, and opens the door for researchers studying CBD and other cannabinoids. Moving hemp to legal status will make banking and advertising in the industry more accessible, and this could be another step closer to nationwide cannabis legalization.