Colorado Weed Delivery

While delivery is legal in Colorado for recreational and medical marijuana, fewer than a handful of municipalities have opted into the service.

The Colorado Legislature legalized marijuana delivery in 2019, with a staggered rollout for medical marijuana in 2020 and recreational marijuana in 2021. However, only Superior and Aurora have opted into recreational delivery, and Longmont and Boulder allow medical marijuana delivery.

The City of Denver is considering a proposal to opt in to weed delivery as well as loosening restrictions on cannabis consumption at licensed businesses.

However, a bill from House Representative Marc Snyder (D-El Paso) proposes changes to the marijuana delivery program that would add additional hurdles for marijuana businesses. If the bill were successfully passed, it would require a minimum number of days and hours of in-store operation—at least five days a week and five hours a day. The bill would also prohibit dispensaries from allowing customers to use pre-paid accounts.

The bill currently doesn’t have any co-sponsors.

 

Mexico Passes Bill to Legalize Marijuana

Mexico is one step closer to ending marijuana prohibition after lawmakers approved a bill that would legalize cannabis for recreational, medical, and scientific uses.

Mexico’s lower house, the Chamber of Deputies, approved the bill by a 316-to-129 vote. Next, the bill will head to the Senate, where it’s expected to pass before being sent to President Andrés Manuel López Obrador, who is likely to sign the legislation.

If marijuana is legalized in Mexico, it will enable adults 18 and older to purchase and possess up to 28 grams of marijuana and cultivate up to six plants. Small farmers and commercial growers could apply for a license to cultivate and sell marijuana.

 

Record employment in cannabis as the marijuana industry grows

According to the 2021 Leafly Jobs Report, the cannabis industry now supports more than 321,000 full-time jobs.

According to the report, there are “more legal cannabis workers than electrical engineers. There are more legal cannabis workers than EMTs and paramedics. There are more than twice as many legal cannabis workers as dentists.”

More than 77,000 jobs were added in 2020—a doubling of the previous year’s job growth–but the report states that diversity in cannabis is still an issue.

While Black Americans represent 13% of the population, only 1.2% to 1.7% of cannabis companies have Black ownership.

The pandemic has been hard on the U.S. economy and jobs. Outside of the cannabis industry, the economy shrank by 3.5%, and the unemployment rate almost doubled, leaving nearly 10 million Americans without work.

The pandemic has also affected marijuana sales. In 2020, Americans purchased $18.3 billion worth of cannabis products, a 71% increase over 2019.

Whether it was a year to remember or a year you wish you could forget, 2020 is coming to a close.

Here were some of the biggest stories in weed this year:

Five more states vote to legalize recreational, medical marijuana

While marijuana prohibition is still in effect at the federal level, voters in states across the country continue to push to legalize marijuana.

This November, four states voted to legalize adult-use marijuana, and two states legalized medical marijuana.

Arizona

In Arizona, voters passed Proposition 207, legalizing recreational marijuana for adults 21 years and older. Recreational sales are expected to begin in March 2021. Arizonans can grow up to six cannabis plants at home or no more than 12 plants in a house with more than one adult. Additionally, Arizonans with a prior marijuana conviction can petition to have the record expunged as of July 12, 2021.

New Jersey

Voters in the Garden State said ‘yes’ to Question 1, legalizing adult-use cannabis. Adults 21 and older will be able to purchase and possess legal cannabis, subject to rules and regulations that will be overseen by the state’s Cannabis Regulatory Commission, which already oversees New Jersey’s medical marijuana program.

Montana

Montana is so into legal weed that they voted on not one but two ballot measures to legalize recreational marijuana.

Initiative 190 legalized the sale and possession of up to an ounce of cannabis and the cultivation of up to four cannabis plants and four cannabis seedlings at home. Recreational marijuana sales will be subject to a 20% tax.

Constitutional Initiative 118 amended the state constitution to allow the Legislature to set the age for adults permitted to possess and consume marijuana to 21 years and older.

South Dakota

In South Dakota, voters went all in for legal cannabis, simultaneously legalizing medical and recreational marijuana.

Measure 26 to legalize medical marijuana passed with a whopping 69% of the vote. Amendment A passed with the approval of 52% of voters, allowing adults 21 and older to possess up to an ounce of cannabis. However, the new law doesn’t kick in until July 1, 2021, so for now, it’s still illegal to possess marijuana in South Dakota.

Mississippi

Mississippians approved Ballot Initiative 65 to legalize medical marijuana in their state. Residents will be able to apply for a medical marijuana card for 22 qualifying conditions, including cancer, chronic pain, and post-traumatic stress disorder (PTSD). Each medical marijuana patient will be able to possess up to 2.5 ounces of medical cannabis per 14-day period.

After November’s election, 15 states plus the District of Columbia have legalized recreational cannabis, and 35 states have legalized medical marijuana.

Europe’s Highest Court Rules that CBD is Not a Narcotic

The future of the CBD market in Europe is set to expand with a ruling from the European Union’s (EU) highest court that CBD is not a narcotic. According to the ruling, CBD “does not appear to have any psychotropic effect or any harmful effect on human health.”

Before the ruling, many CBD products in the EU existed in the grey market that allowed cannabis to be sold for agricultural purposes.

The ruling comes as the result of a lawsuit in France against a company that makes CBD oil from whole hemp plants. Only the fiber and seeds of hemp plants containing less than 0.2% THC could be used commercially in France.

The EU court ruled that France’s law banning the use of whole plant hemp-derived CBD went against the EU’s law on the free movement of goods.

Marijuana Dispensaries Essential Businesses During COVID-19

In March, COVID-19 upended our lives and temporarily shuttered businesses across the country. Marijuana dispensaries were among the businesses deemed essential.

After stay-at-home orders were issued in Colorado, recreational marijuana dispensaries converted to online pre-orders and curbside pickup. While Gov. Jared Polis (D) said that recreational and medical marijuana dispensaries were “critical” retail businesses, the process wasn’t without hiccups.

In contradiction to the governor, Denver Mayor Michael Hancock (D) deemed recreational marijuana dispensaries and liquor stores non-essential. Several hours later, Denver officials walked back the decision after hordes of Denverites rushed to stores to stock up.

Pandemic marijuana sales consistently break records

Maybe people just needed a way to cope, or maybe they had more free time—whatever the reason, marijuana sales records broke records month-over-month this year.

Colorado dispensaries sold $192,175,937 worth of marijuana in May, about 11 percent higher than the previous sales record of $173.2 million set in August 2019. Colorado cannabis sales were up 29% from April and up 32% as compared to May 2019.

Adult-use marijuana sales amounted to $158,102,628 during June, the first time that more than $150 million worth of recreational cannabis had been sold during June.

Marijuana sales hit an all-time high in July at $226 million, and for the year, more than $1.63 billion in cannabis products have been sold in the state.

 

Cannabis sales during coronavirus shutdowns haven’t been the same in every state, with newer cannabis markets seeming to fair better than established markets that depend on tourism.

Despite a statewide stay-at-home order issued on March 23, Washington state saw record-breaking cannabis sales in April. Recreational marijuana sales increased 20% compared to April 2019, generating $106 million. Adult-use cannabis sales in Washington during March amounted to $99 million.

According to Marijuana Business Daily, Washington is a good test state to see if cannabis is “recession-proof” because it has a relatively mature market that generates a higher portion of sales from locals.

States like Colorado generate a higher amount of cannabis sales from tourists, so even with the leveling off of sales in the state in recent years, Colorado should expect to see a dip in cannabis revenue.

“Estimates prepared for the Department of Revenue suggest that tourists accounted for 7 to 9 percent of marijuana consumption in Colorado between 2014 and 2017,” according to a state budgeting report.

Adult-use cannabis sales in Colorado during April 2020 generated $91 million, a 16% decrease as compared to the same time in 2019

While California saw a modest gain in cannabis sales in April, monthly sales growth was less than before the pandemic. In March, Californians bought $276 million in recreational cannabis, an increase of 53% compared to March 2019. In April, sales equaled $248 million, an increase of only 17%.

With travel all but grounded during the pandemic, Nevada’s cannabis businesses have been hit hard by the lack of tourism. Adult-use cannabis sales fell 26% in the state, earning $38 million in sales in April, down from $54 million in March. According to Will Adler, Director of the Sierra Cannabis Coalition, 80% of recreational and medical marijuana sales in Nevada are generated from tourists.

Illinois’ adult-use cannabis market launched in January, with a record-setting $39.2 million in sales. April’s adult-use marijuana sales didn’t top January’s numbers, but they were still higher than average. In April, Illinois sold nearly $37.3 million in recreational cannabis, $2.6 million more than was sold in March.

In Oklahoma, residents bought a record amount of medical marijuana, increasing tax collections by more than 25%. The Oklahoma Tax Commission received $9.8 million in state taxes in April. By comparison, the state generated $7.8 million in medical marijuana tax revenue in March. According to The Oklahoman, medical marijuana dispensaries sold $61.4 million worth of medical cannabis in April or nearly $217 per licensed patient.

Bud Scott, executive director of the Oklahoma Cannabis Industry Association, credits people staying home with the increase in medical marijuana sales.

“With the stay-home order in place, and medical marijuana dispensaries being categorized as essential health services, Oklahoma patients were afforded the ability to take their medicine on a more regular basis and sample a broader range of available medicines,” Scott said.

Cannabis users looking for relief from stress and anxiety could account for increases in marijuana sales that don’t rely on tourism.

“I’ve probably medicated more these past few months. You’ve got people staying home and getting stimulus checks, and what are they spending it on? Things that help keep them calm and collected,” Keith Wiley, owner of Native Brothers Dispensary, told The Oklahoman.

We know that Colorado raked in tons of money in cannabis revenue in 2017, but new numbers released by the Colorado Department of Revenue show that Denver accounted for a sizable chunk of that number. The Mile High City accounted for over a third of the state’s total cannabis revenue, totaling $577.5 million, according to Westword.

Previous numbers released by the DOR in February reported that the state made $1.5 million in cannabis sales last year. When added to the total revenue since legal recreational cannabis sales began in 2014, that amounts to nearly $4.5 billion in sales. Data including sales from the entire state show that overall dispensary sales rose in December for the first time since August 2017. That’s a 7 percent increase in revenue from November (119.56 million) to December ($128.27 million). Numbers from recreational marijuana sales in December 2017 accounted for approximately $96.34 million. Medical sales amounted to $31.92 million.

The data shows a trend for seasonal sales differences. Cannabis sales spike during the warm summer months and decline beginning in September. In August of last year, Denver dispensaries brought in over $53.6 million, with recreational pot accounting for $35 million. February is the slowest month for cannabis sales in Denver, with just over $29.5 million in sales in 2017.

The numbers released by the DOR in March show that Denver dominates marijuana sales in Colorado with more dispensaries than any other Colorado city. Denver has nearly 1,150 active cannabis business licenses within city limits, 364 of which are for dispensaries. The number of dispensaries in Denver is triple that of those found in Colorado Springs, the state’s runner-up in the number of shops selling legal cannabis.

Only 25 of 64 Colorado counties currently allow recreational marijuana sales. Arapahoe and Douglas counties prohibit retail cannabis sales; however, Aurora, which is part of both counties, does allow recreational sales. Adams and El Paso counties either limit or outright ban retail marijuana.

Cannabis sales are booming in Alaska: in July the state sold more weed in one month than the 3-month sales average.

The Alaska Department of Revenue reported that they collected nearly $600,000 in marijuana tax revenue during July–which equals about a third of the total marijuana tax revenue brought in last fiscal year. The figures are the highest to date in Alaska since recreational sales began last October.

During the last fiscal year that ended on June 30, the cannabis industry generated $1.7 million in marijuana tax revenue for the state. In Alaska, state taxes are collected from cannabis farms rather than retail dispensaries.

The Juneau Empire reported that Fairbanks had a total of 12 cannabis farms returning tax revenue, the most of any city in the state. Anchorage came in second with seven farms. Soldotna was third with four farms, and Juneau ended tied for fourth with multiple cities having three farms.

Kalley Mazzie, Alaska’s excise tax supervisor, reported that there was no revenue from outdoor marijuana farms in July, “but it shouldn’t be much longer before we start seeing those crops make their way to market.”

In July, 612 pounds (280 kilograms) of cannabis bud and 369 pounds (170 kilograms) of stems or leaves were sold. The state collects $50 per ounce of bud and $15 per ounce for trimmings.

Despite the record sales, the figures were lower than the state expected. In fiscal year 2017, the state expected $2 million in revenue, but failed to meet the mark. In fiscal year 2018, the state expects $10.6 million in marijuana tax revenue, or an average of $883,000 per month.

Mazzie expects similar numbers when August figures are published in October.

Colorado governor John Hickenlooper signed a budget bill on Friday that earmarks how marijuana tax revenue will be spent. Marijuana is still big business in Colorado, and tax revenue from the 2016-2017 fiscal year brought more than $105 million to the state’s “Marijuana Cash Fund.”

The bill allocates funds to programs that support health programs in public schools, housing for at-risk populations, and treatment programs aimed at combating the opioid epidemic.

Housing for at-risk populations:
$15.3 million of the tax revenue will be used to pay for “permanent supportive housing and rapid re-housing assistance for individuals with behavioral health needs, and for individuals experiencing or at-risk of homelessness. By providing stable housing, which includes rental assistance and supportive services, we expect to reduce incarceration, hospitalization, and homelessness for many of Colorado’s most vulnerable citizens.”

Addressing Mental Health in Colorado’s Criminal Justice System:
The Department of Human Services will receive $7.1 million aimed at “ending the use of jails for holding people who are experiencing a mental health crisis, and to implement criminal justice diversion programs at the local level. These initiatives will help direct individuals with immediate mental health and substance needs to more appropriate services outside the criminal justice system.”

School Health Professionals Grant Program:
Colorado’s Department of Education will receive $9.7 million. The money will go towards hiring 150 health care workers  who will visit high schools statewide to provide “education, universal screening, referral, and care coordination for students with substance abuse and other behavioral health needs.”

Unregulated “Gray Market” Medical Marijuana Activity:
$5.9 million will be doled out to combat the gray market–marijuana diverted from the regulated medical and recreational markets and sold in the unregulated market. Funds will go towards reimbursing local governments for law enforcement and prosecutions costs. In addition, the governor signed legislation that places a new 12-plant cap on the number of plants that can be possessed or grown on a residential property.

Medication-Assisted Treatment Program for Opioid Addiction:
Finally, Hickenlooper signed a bill that allocates $500,000 per year for the next two years towards creating a pilot program to expand access to medication-assisted treatment in Pueblo and Routt, two Colorado counties hit hard by the opioid epidemic.