On October 12, Michigan Gov. Gretchen Whitmer (D) signed the “Clean Slate” legislation to expand expungement for marijuana convictions in the state. The legislation is a series of seven bills to broaden the criteria for expungements related to not only marijuana but also traffic offenses and other minor crimes.

“This is bigger than criminal justice reform,” Lt. Gov. Garlin Gilchrist said. “This is about economic opportunity and full participation in our economy and our society.”

Michiganders convicted of misdemeanor marijuana offenses that would have been legal after cannabis was legalized in the state in 2018 can apply to have their convictions erased. Prosecutors will have 60 days to dispute the claim. If prosecutors don’t make a rebuttal, the marijuana conviction will be expunged.

Misdemeanors and felonies not related to marijuana will be cleared with an automatic expungement process.

“During my 2018 campaign for governor, I made expungement of marijuana charges one of my key priorities, and I’m so proud today that we can follow through on that goal,” Whitmer said at a press conference. “For too long, criminal charges have created barriers to employment, barriers to housing, and others for hundreds of thousands of Michiganders. These bipartisan bills are going to be a game-changer.”

Michigan will automatically clear misdemeanors seven years after sentencing. Felonies will be removed ten years after sentencing or the person’s release from incarceration, whichever was last. Up to two felonies and four misdemeanors can be automatically cleared.

“You’re in your community, you’re invested in your community, you’re spending time with your family, you’re working, you’re accessing housing,” said State Rep. Graham Filler (Dewitt-R). “We have less recidivism, less victims. This is what happens when you access expungement.”

The laws are set to take effect in April 2021.

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.

 

 

Recreational marijuana officially lit in Michigan

On Dec. 1, Michigan became the first state in the Midwest to allow recreational marijuana sales.

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.

“The consumer demand was off the charts,” said Rick Thompson, who serves on the Michigan NORML board. “Each of the provisioning centers had lines out the door and around the block. Most had police officers on hand to ensure people were safe from traffic.”

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.

1,400 of Michigan’s 1,800 cities and townships do not allow marijuana sales. Detroit has delayed recreational sales until Jan. 31.

Adults 21 and older can purchase up to 2.5 ounces of flower, including up to 15 grams of concentrate.

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.

 

Illinois to ring in the new year with legal adult-use 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.

“As the first state in the nation to fully legalize adult-use cannabis through the legislative process, Illinois exemplifies the best of democracy—a bipartisan and deep commitment to better the lives of all of our people,” Pritzker said. “Legalization of adult-use cannabis brings an important and overdue change to our state, and it’s the right thing to do.”

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 marijuana will have a graduated tax rate according to the THC content:

“The most historic aspect of this is not just that it legalizes cannabis for adults but rather the extraordinary efforts it takes to reduce the harm caused by the failed war on marijuana and the communities it hurt the most,” said state Sen. Toi Hutchinson (D).

Illinois is the eleventh state to legalize recreational cannabis.

 

Massachusetts sells $400 million in marijuana during first year of recreational sales

During its first year of legal recreational marijuana, Massachusetts raked in nearly $400 million in sales despite having only 36 licensed retail shops.

For comparison, during the first year of its recreational marijuana market, sales in Colorado amounted to $300 million with 306 licensed retailers.

Data released from the Massachusetts Cannabis Control Commission (CCC) shows that daily sales regularly exceed $1 million, and often exceed $2 million. At its current pace, adult-use sales could exceed $1 billion by 2021.

The lack of marijuana dispensaries in the state is something CCC Chairman Steven Hoffman says the Commission is planning to address.

“I have no expectation there will be a retail store on every corner, but we have a lot more geographic expansion to do,” Hoffman said. “That’s the biggest part of our job.”

The CCC has approved an additional 53 provisional licenses for cannabis retailers, with another 166 applications pending.

While cannabis may the same across the country, not all legal-cannabis states regulate it in the same way. Ironing out the particulars of marijuana laws isn’t always straightforward, with regulations leaving some states struggling to keep pace with demand.

Michigan

Recreational cannabis sales haven’t yet begun in Michigan, but it’s the state’s medical marijuana market that’s been experiencing a serious supply shortage.

In 2016, Michigan passed a law that implemented a five-tiered licensing system to grow, process, test, transport, and sell medical marijuana. The Michigan Medical Marijuana Licensing Board issued licenses to 54 medical marijuana dispensaries but only 31 cannabis growers, leading to a supply shortage. Michigan has 297,515 registered medical marijuana patients.

Before the 2016 change to the medical marijuana program, licensed dispensaries could buy cannabis from more than 40,000 registered caregivers in the state. Under the medical marijuana law approved by voters in 2008, caregivers could grow up to 72 plants and sell the excess to dispensaries. In 2016, lawmakers changed the system, requiring licensed dispensaries to buy cannabis from licensed growers.

Under emergency rules in effect up until late last year, around 215 unlicensed dispensaries were still able to buy medical marijuana from caregivers, putting licensed dispensaries at a disadvantage. As of Dec. 31, 2018, all unlicensed dispensaries were forced to close, and the shortage of product from growers forced even some licensed dispensaries to shut their doors temporarily.

In an effort to solve the cannabis supply problem and the slow licensing process, newly-elected Gov. Gretchen Whitmer (D) issued an executive order to eliminate the state licensing board and create a new Marijuana Regulatory Agency. The executive order will also allow unlicensed cannabis facilities to temporarily reopen and allow them to purchase cannabis from caregivers while new licensing regulations are put in place.

Illinois

Illinois isn’t currently facing a cannabis shortage, but a new study commissioned by state legislators has found that legal recreational marijuana demand could exceed what licensed growers could supply. The report found that demand for recreational cannabis could be as high as 555,000 pounds of marijuana a year.

Under the state’s medical marijuana program, there are 16 licensed cannabis cultivators. The study found that with the current number of marijuana growers, they could only meet 35 to 54 percent of the demand for recreational marijuana. While shortages are a concern, the report notes that oversupply of cannabis is equally important to avoid.

“Systems that either dramatically fall short of demand or that oversupply the market create public policy challenges,” according to the report. “Avoiding both is an important expectation from the public, from producers, and from public health and public safety officials.”

If market demands were met, the report found that Illinois could bring in at least $440 million in tax revenue annually.

State Sen. Heather Steans (D) and state Rep. Kelly Cassidy (D) commissioned the report ahead of introducing a bill to legalize recreational marijuana.

California

Similar to the medical marijuana situation in Michigan, slow-licensing and expiring temporary permits may cause a recreational marijuana shortage in California. Before the state finalized recreational marijuana regulations last year, most cannabis companies were operating under temporary licenses. Nearly 10,000 temporary licenses are set to expire this year, and the backlog of applications means that some dispensaries and cannabis grows may need to close temporarily before they are issued full annual permits.

Last month, state Sen. Mike McGuire (D) introduced Senate Bill 67 in an effort to keep cannabis companies with temporary permits in operation. The bill would allow the state’s three licensing authorities to extend existing temporary licenses while the bottleneck in licensing is addressed.

In a hearing for the bill, Terra Carver, the executive director of the Humboldt County Growers Alliance, told lawmakers, “Without passage of this bill, there will be dire consequences, such as the imminent market collapse of hundreds of businesses.”

However, the soonest the bill could pass in the state legislature and be signed into law by Gov. Gavin Newson (D) won’t be for at least two months.

“Best-case scenario, making it through all policy committees and off the floor of the Senate and Assembly in the next 60-90 days,” McGuire told Marijuana Business Daily. In the meantime, thousands of cannagrows and recreational marijuana dispensaries could be forced to close temporarily.

Election Day is finally behind us, and there were big wins for marijuana legalization. Three of the four states that had cannabis on the ballot voted to end cannabis prohibition. Here’s how the votes played out in Michigan, North Dakota, Missouri, and Utah:

Michigan

Michigan is the first state in the Midwest and the 10th in the country to approve recreational marijuana. Voters approved Proposal 1 by a 56-44 percent margin. Michiganders 21-and-older will legally be able to possess 2.5 ounces or less of marijuana or 15 grams of concentrate, grow up to 12 cannabis plants and store up to 10 ounces from those plants. There will be a 10% tax on adult-use marijuana sales, with revenue going towards regulatory and implementation costs, as well as to municipalities, clinical research, schools, and roads.

The measure takes effect ten days after election results are certified, but don’t expect to buy adult-use marijuana at the store until 2019 or 2020.

North Dakota

North Dakota was the only one of four states with cannabis initiatives to on the ballot to vote against marijuana legalization. Measure 3 was unlike other proposed cannabis legislation in that it would not have set limits on how much an adult 21-and-over could grow or possess and did not include language regarding regulation and taxes. Marijuana convictions would have been expunged.

The initiative was rejected by a 41-59 percent margin. Medical marijuana is already legal in North Dakota.

Missouri

In Missouri, voters approved Amendment 2, which will amend the state constitution to allow medical marijuana. Amendment 2 was one of three medical marijuana initiatives on the ballot and passed with 65 percent approval. The other two initiatives, Amendment 3 and Proposition C, did not garner enough votes to pass.

Amendment 2 will allow doctors to prescribe medical cannabis for ten qualifying medical conditions and patients will be able to cultivate up to six plants. Medical marijuana in the state will be taxed at 4%, with tax revenue going toward regulatory costs and healthcare services for veterans.

Utah

Despite the Mormon church’s opposition to passing medical marijuana legislation in Utah, voters in the state approved Proposition 2. The approval of the initiative will allow adults with qualifying medical conditions (including PTSD, cancer, HIV, epilepsy, chronic pain, Crohn’s, Alzheimer’s, and ALS) to consume cannabis. Smoking marijuana will not be permitted, however, and all cannabis consumption must be in the form of edibles, tinctures, oils, or vaporizers.

Proposition 2 passed with a 53-47 percent margin and may have brought more Utahns to the polls. According to a poll released in October, 1 of 5 respondents cited the cannabis initiative as their primary motivation for participating in the election.

Four states have marijuana initiatives on the ballot this November, two to legalize recreational marijuana and two to legalize medical marijuana. With voting less than a week away, here’s everything you need to know about which states could legalize cannabis.

Michigan

The Coalition to Regulate Marijuana Like Alcohol and MI Legalize are the main backers of Proposal 1, the ballot initiative that would legalize marijuana for adults 21 or older. Should the initiative pass, anyone meeting the age requirement would be able to “possess, use, transport, or process 2.5 ounces or less of marijuana or 15 grams of marijuana concentrate.” It would also be legal to “share or transfer without payment” up to 2.5 ounces of marijuana to another person over 21 years old. Individuals would be able to grow up to 12 cannabis plants and store up to 10 ounces from those plants. A 10% tax would apply to all adult-use marijuana sales and would go toward regulatory and implementation costs, as well as to municipalities, clinical research, schools, and roads. Unlike some other states, individuals with previous marijuana convictions would not be pardoned or expunged.

A poll conducted in May by Victory Phones found that 48% of respondents support cannabis legalization, while another poll conducted the same month by Michigan State University’s Institute for Public Policy and Social Research found support for the initiative at 61%.

North Dakota

North Dakota’s approach to legalization is unique. Measure 3 would legalize adult-use cannabis for those 21 and older and also remove “hashish, marijuana, and tetrahydrocannabinols” from the state’s list of Schedule I substances. Marijuana convictions would be expunged and convicting anyone over 21 for growing, selling, possessing, or testing cannabis would be prohibited. On top of that, North Dakota would not regulate marijuana in any way–no limits on how much a person could grow or possess.

There’s limited polling data in North Dakota, but a survey of voters conducted in February by Kitchens Group found that 46% of respondents supported Measure 3, while 15% were undecided.

Missouri

Missouri doesn’t just have one medical marijuana initiative on the ballot; they have three. While that might sound like a good thing, the competing measures could confusion at the voting booth, as well as create some speed bumps down the line if one or more of the initiatives is adopted.

Amendment 2 would amend the state’s constitution to legalize, regulate, and tax medical marijuana. It’s the only one of the three initiatives to allow home cultivation of cannabis. If passed, the initiative would tax medical marijuana at 4%, and tax revenue would go towards regulatory costs and healthcare services for veterans. New Approach Missouri, a “coalition of patients, doctors and veterans” is behind the initiative.

Amendment 2 has the support of the Marijuana Policy Project, the Drug Policy Alliance, and NORML.

Amendment 3, nicknamed the “Bradshaw Amendment” after the personal injury lawyer who wrote and bankrolled it, would tax medical marijuana at 15% and use that tax revenue to fund a state-run cancer institute chaired by Brad Bradshaw. Bradshaw would also select the institute’s governing board.

Proposition C, unlike the other two proposals, would create a new law rather than an amendment to the state constitution. Also known as the Patient Care Act, it would allow the cultivation, production, testing, and dispensing of medical marijuana. Medical marijuana would be taxed at 2%, and tax revenue would go towards public safety, veterans’ services, drug treatment, and early childhood education. Home cultivation of cannabis would not be permitted.

General support for legal medical marijuana in Missouri is at 54%

Utah

Proposition 2 would allow people with qualifying medical conditions, including PTSD, cancer, HIV, epilepsy, chronic pain, Crohn’s, Alzheimer’s, and ALS, to use medical marijuana. Smoking marijuana would not be allowed if the initiative passes, making edibles, tinctures, and vaporizers the main method of cannabis consumption. Home-growing marijuana would only be permitted if a patient lives more than 100 miles from a dispensary. Utah Patient’s Coalition is behind the ballot initiative.

Polling in support of Proposition 2 has been as high as 75%, but support has recently dropped to 64% following the Mormon church’s opposition to the initiative.

Red and swing states that have traditionally opposed marijuana legalization have been slowly coming around, moving the U.S. closer to national legalization.

Last month, Oklahoma became the 30th state to legalize medical marijuana. Oklahoma has long been known as a conservative, “law-and-order” state, so the fact that a medical marijuana initiative passed with a 57% to 43% margin shows just how much public opinion has shifted.

In Missouri, three (and possibly four) medical cannabis measures could make it onto the ballot this fall.

In Utah, where there’s been fierce opposition from cannabis prohibitionists, voters will finally have their say on medical marijuana. The Salt Lake Tribune released a survey last October that found that 75 percent of the state’s registered voters support medical cannabis.

In Maine–a blue state with an independent electorate and a Tea Party Republican governor–the state legislature overturned Gov. Paul LePage’s veto of a medical marijuana reform bill. One of the most progressive medical marijuana programs in the country, the bill eliminates requiring qualifying conditions allows physicians, nurse practitioners, and physician assistants to recommend medical cannabis at their discretion. Dispensaries in the state will also be allowed to operate more like pharmacies, and patients will be allowed to possess a whopping 8 pounds of cannabis.

Last year, North Dakota voters surprised marijuana advocates by passing a medical marijuana initiative. They may be set to do the same thing this year after the North Dakota Marijuana Legalization Initiative collected more than 18,000 signatures in support of legalizing cannabis for adults 21 and older. If state officials verify at least 13,482 of those signatures, North Dakotans will vote on legalizing recreational marijuana in November.

The swing state of Michigan could become the ninth state (plus the District of Columbia) to legalize recreational marijuana this November. The state legislature took up a citizen-initiated proposal to allow adult-use and commercial sale of cannabis in June but failed to garner enough support. A poll conducted by the National Organization for the Reform of Marijuana Laws (NORML) conducted a survey in February that polled 600 Michiganders on their support for November’s ballot initiative. The poll showed that 61% backed the proposal, and among younger voters (18-34), support was at 87%.