Governor Jared Polis (D-CO) sent a letter to the sponsors of a cannabis legalization bill, asking them to consider passing marijuana banking and tax reform first.

Senate Majority Leader Chuck Schumer (D-NY), Senator Cory Booker (D-NJ), and Senator John Wyden (D-OR) are co-sponsors of the Cannabis Administration and Opportunity Act (CAOA). The bill aims to deschedule marijuana and promote social equity.

In his letter, Polis urged the senators to pass the Secure and Fair Enforcement (SAFE) Banking Act before the CAOA.

“I am thrilled that you are bringing forward a long-term, comprehensive solution that deschedules cannabis while enhancing social equity pathways. I hope that you will first focus your efforts on the two biggest barriers to the success of the cannabis industry: banking and IRS Code Section 280E (280E). Legislation to address these issues has more bipartisan support than ever before and can be passed in the short-term as you continue to work on the details of the CAOA.”

Access to banking has been a challenge for the cannabis industry from the beginning. The SAFE Banking Act would protect banks working with the cannabis industry from being penalized or violating federal anti-money laundering and illicit finance laws.

“The cannabis industry is simply too large to be prohibited from banking opportunities, and the Senate must remedy this harm by bringing this measure up for a vote in the Senate Committee on Banking, Housing, and Urban Affairs immediately.”

“Congress has the power and traction to address these inequities in the near-term while continuing to refine the CAOA, and I encourage you to efficiently take any opportunity to pass legislation concerning banking or 280E,” the governor wrote.

Polis cautioned the lawmakers against too high of a tax rate in the CAOA.

“It is critical that the tax level is not so cost prohibitive that it undermines the federal legal cannabis systems both already in place and being developed in emerging regulated cannabis states,” he wrote.

“I encourage the bill sponsors to carefully consider the federal excise tax rate so as not to set it so high that it would supplant much needed and relied upon state and local taxes. We should regulate cannabis similarly to alcohol; so it is appropriate for the bill sponsors to continue to look to the alcohol taxation framework for guidance on setting the appropriate tax rate for cannabis.”

The letter was sent in response to a public comment request from the senators who drafted the CAOA.

New hemp-derived CBD regulations in Colorado

The Colorado Department of Public Health and Environment (CDPHE) has finalized state testing requirements for hemp. The new regulations take effect on October 1 and include all hemp-derived goods intended for human consumption, including hemp-infused CBD products.

“We don’t want to burden the industry,” Jeff Lawrence, CDPHE director of environmental health and sustainability, told Westword. “But what we’ve learned is that there are things in hemp products that we obviously need to be considerate of. Since the inception of hemp, Colorado has been a leader in this industry. This will provide some better guidance.”

Testing will screen for things like pesticides, heavy metals, and residual solvents.

Hemp-infused products like foods, drinks, nutritional supplements, cosmetics, and pet products will be subject to the new testing requirements. Industrial hemp products like textiles, fuel, and building materials, are excluded from the testing requirements. Hemp-derived smokable products, including those with modified cannabinoids like Delta-8 THC, are also excluded from the new regulations.

“Ultimately, this is a public-health issue. In 2018, when, statutorily, these products were allowed, we said it would be treated like every other food and dietary supplement requirement,” Lawrence said.

DEA-approved medical marijuana research facility coming to Denver

A Denver-based marijuana research and cultivation firm received approval from the Drug Enforcement Agency (DEA) to begin federally-approved medical marijuana studies.

The research license will allow MedPharm to study all of the molecules known to be made by the cannabis plant—more than 400 so far. The company will also be studying the interaction between phytocannabinoids and different brain cells.

“Access to the diversity of chemicals produced by cannabis has never been greater, and we are excited to unlock the medical potential of these compounds,” said Dr. Tyrell Towle, MedPharm’s director of chemistry and research.

Although MedPharm is licensed to grow medical marijuana for research purposes at the city and state levels, they’re still waiting on the DEA to approve federal licensing. That means that the company won’t be using its own marijuana for research. Currently, the University of Mississippi is the only federally licensed medical marijuana research supplier.

Colorado Cannabis Business Office focuses on social equity

Governor Jared Polis announced the creation of a new office aimed at supporting cannabis businesses and promoting social equity.

The Cannabis Business Office (CBO) was created as part of a bill passed earlier this year. $4 million was set aside for the program for the 2022-’23 fiscal year from the state Marijuana Tax Cash Fund.

According to the CBO, the office will:

“This office will offer tools like technical help and improve access to money for businesses. Where the federal government has fallen behind, Colorado will lead. Colorado is, and always has been, the best place to live, work, grow and sell cannabis,” Polis said in a press release.

Instead of cheering for U.S. track sensation Sha’Carri Richardson later this month during the Tokyo Olympics, Americans won’t be able to see the 21-year-old compete at all.

Richardson dusted the competition in the women’s 100-meter race at the U.S. Olympic Track and Field Trials in Eugene, Oregon. However, following her qualifying race, Richardson tested positive for THC. According to the U.S. Anti-Doping Agency (USADA), the positive test disqualified her from competing—despite zero evidence that marijuana enhances athletic ability. Plus, Richardson used cannabis in Oregon, a state where it’s legal.

“Richardson’s competitive results obtained on June 19, 2021, including her Olympic qualifying results at the Team Trials, have been disqualified, and she forfeits any medals, points, and prizes,” a statement from the USADA said.

Richardson was banned for 30 days, which means she’ll miss the 100-meter race in Tokyo. There was some hope that she would still run during the women’s 4×100-meter relay, but she wasn’t on the roster released by USA Track and Field (USATF).

“First and foremost, we are incredibly sympathetic toward Sha’Carri Richardson’s extenuating circumstances and strongly applaud her accountability — and will offer her our continued support both on and off the track,” a statement from officials at USATF said.

“While USATF fully agrees that the merit of the World Anti-Doping Agency rules related to THC should be reevaluated, it would be detrimental to the integrity of the U.S. Olympic Team Trials for Track & Field if USATF amended its policies following competition, only weeks before the Olympic Games.

There has been widespread criticism of disqualifying Richardson, including a petition signed by more than half a million people to allow Richardson to compete.

Members of the House Subcommittee on Civil Rights & Civil Liberties sent a letter calling on officials to reverse the ban.

“We urge you to reconsider the policies that led to this and other suspensions for recreational marijuana use, and to reconsider Ms. Richardson’s suspension. Please strike a blow for civil liberties and civil rights by reversing this course you are on,” the letter read. “The divergent treatment of recreational alcohol and marijuana use reflects obsolete stereotypes about cannabis products and a profound misunderstanding of the relative risks of both substances.”

Amazon announced that it supports nationwide cannabis legalization and will no longer test most job applicants for marijuana use.

“We will no longer include marijuana in our comprehensive drug screening program for any positions not regulated by the Department of Transportation, and will instead treat it the same as alcohol use. We will continue to do impairment checks on the job and will test for all drugs and alcohol after any incident,” the company said in a blog post.

Additionally, the company said they would actively lobby Congress to pass the Marijuana Opportunity Reinvestment and Expungement (MORE) Act, which would legalize cannabis nationally.

“And because we know that this issue is bigger than Amazon, our public policy team will be actively supporting The Marijuana Opportunity Reinvestment and Expungement Act of 2021 (MORE Act)—federal legislation that would legalize marijuana at the federal level, expunge criminal records, and invest in impacted communities. We hope that other employers will join us, and that policymakers will act swiftly to pass this law,” according to Amazon’s blog.

Support for legalization and dropping drug testing for employees is a huge change for the second-largest private employer in the U.S. Prior to this announcement, the company disqualified people who tested positive for marijuana use from employment.

For example, in March, the company was sued by a man who said that the company reversed a hiring offer because of marijuana use—testing prospective employees for marijuana has been banned in New York City.

The Drug Policy Alliance expressed support in a statement in response to the policy change.

Drug testing has never provided an accurate indication of a person’s ability to perform their job, and yet this incredibly invasive practice has locked out millions of people who use drugs—both licit and illicit—from the workplace.”

However, the advocacy group urged Amazon to go further by ending all drug testing and supporting policies that promote equity for people of color.

“We implore Amazon and other employers to let this be the starting point and not the goal post. This change can and should be the catalyst to a much larger move—ending drug testing for all drugs—that would ensure a more just and equitable future for millions of people, especially Black, Brown and Indigenous communities who have been disproportionately impacted by these policies.”

New York state has legalized adult-use marijuana, becoming the 15th state in the country to end cannabis prohibition.

In addition to legalizing recreational cannabis, the legislation that Gov. Andrew Cuomo (D) signed into law last Wednesday will expunge the records of people with a previous marijuana conviction.

“This is a historic day in New York — one that rights the wrongs of the past by putting an end to harsh prison sentences, embraces an industry that will grow the Empire State’s economy, and prioritizes marginalized communities so those that have suffered the most will be the first to reap the benefits,” Cuomo said in a statement. “I’m proud these comprehensive reforms address and balance the social equity, safety and economic impacts of legal adult-use cannabis.”

Keep in mind that marijuana sales won’t start immediately, as the state needs time to establish a regulatory framework. The first cannabis sales are expected to begin in 2022.

Under the new law, adults can possess up to 3 ounces of cannabis and 24 grams of concentrate and cultivate up to three mature and three immature cannabis plants. Social consumption sites and weed delivery will be permitted.

Tax revenue from recreational marijuana sales will go towards education, a community grants reinvestment fund, and a drug treatment and public education fund. The state estimates that legalizing marijuana will create 30,000 to 60,000 jobs in the state.

New York’s neighbor, New Jersey, legalized recreational marijuana earlier this year.

“We expect 2021 to be a record-breaking year for legislatures legalizing cannabis,” Steve Hawkins, executive director at the Marijuana Policy Project, said in a statement. “More than two-thirds of Americans believe it’s time to end prohibition and this move represents the latest example of elected officials joining the chorus of support for legalizing and regulating cannabis for adults.”

The New Mexico Legislature ended their 60-day legislative session Saturday without hearing a bill to legalize marijuana. Gov. Michelle Lujan Grisham (D) announced that she would call a special session on the issue before the end of March.

“We’re going to have a special session in a week or so. We’re going to get cannabis because I am not going to wait another year,” the Governor said. “We’re going to win it, and it’s going to have the social justice aspects that we know have to be in the package.”

HB 12 passed the state House of Representatives in February, and the Senate was scheduled to hear the legislation on their last full day in session. However, as the legislative session ended on Saturday, it was clear that the Senate didn’t have time to hear the bill.

In a joint statement issued by the bill’s sponsors, Reps. Javier Martínez (D-Albuquerque) and Andrea Romero (D-Santa Fe) supported the Governor’s announcement of a special session.

We need to legalize adult-use cannabis tonight or in a special session. It’s now up to the Senate to have a vote. House Bill 12 puts forward New Mexico’s best opportunity to establish a multi-million-dollar industry with a framework that prioritizes social justice and equal opportunity for our communities. The Governor has made a commitment to sign a bill that represents our shared principles, and we welcome any avenue to do so. New Mexico is ready.”

If the Senate passes HB 12, it will allow the sale of recreational cannabis to adults 21 and older starting in April 2022.

“I believe legalization will be one of the largest job-creation programs in state history, driving entrepreneurial opportunities statewide for decades to come,” Gov. Lujan Grisham said. “I look forward to continuing to work with lawmakers to get the job done right.”

If the Senate passes HB 12 during a special session, it will head back to the House for final changes before going to the Governor for her signature.

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.

Thirty-seven lawmakers signed a letter to President Joe Biden asking him to issue a general pardon for all federal, nonviolent marijuana offenses.

In the letter, Congressional Cannabis Caucus co-chairs Reps. Earl Blumenauer (D-OR) and Barbara Lee (D-CA) wrote that a mass pardon is a racial justice issue and “until the day that Congress sends you a marijuana reform bill to sign, you have a unique ability to lead on criminal justice reform and provide immediate relief to thousands of Americans.”

The lawmakers reminded Biden that past presidents have used the pardon power for marijuana offenses.

“This is not a partisan issue; every President since George H.W. Bush has exercised their pardoning power for cannabis offenses. There is legal and scholarly support for the use of a blanket pardon on the War on Drugs.”

Issuing pardons for federal cannabis charges would fulfill a promise that Biden made during a Democratic primary debate.

“During your campaign, you committed that you would “automatically expunge all past marijuana convictions for use and possession,” the letter states. “Therefore, we urge you to grant executive clemency for all nonviolent cannabis offenders. We look forward to working with you and the incoming Attorney General on quickly making this a reality.”

Marijuana reform and advocacy groups, including NORML, the Minority Cannabis Business Association, and the National Cannabis Industry Association, also reminded President Biden of his campaign promises in a letter sent on Presidents’ Day.

“President Biden, we urge you to clearly demonstrate your commitment to criminal justice reform by immediately issuing a general pardon to all former federal, nonviolent cannabis offenders in the U.S. In addition, all those who are federally incarcerated on nonviolent, cannabis-only offenses for activity now legal under state laws should be pardoned and their related sentences commuted.”

Without pardons, the harm done during the war on drugs continues to impact communities of color disproportionately, reform advocates say in the letter.

“Criminal histories related to cannabis can be particularly harmful for individuals, despite the change in laws in many states. Convictions can seriously limit job opportunities, housing, and educational options. Long after a person has gone through the legal system, the baggage of the war on marijuana continues to undermine that person’s life and diminish their prospects. It is past time for the harm to stop.”

Other signatories of the letter sent by lawmakers include House Judiciary Committee Chairman Jerry Nadler (D-NY), House Rules Committee Chairman James McGovern (D-MA), Small Business Committee Chairwoman Nydia Velázquez (D-NY), and Reps. Ed Perlmutter (D-CO), Luis Correa (D-CA), Ro Khanna (D-CA), Rashida Tlaib (D-MI), Ilhan Omar (D-MN), Ayanna Pressley (D-MA), and Alexandria Ocasio-Cortez (D-NY).

Democrats announced earlier this month that they plan to introduce legislation to legalize cannabis federally.

Senate Majority Leader Chuck Schumer (D-NY), Cory Booker (D-NJ), and Ron Wyden (D-Or) said that they would push not only to end marijuana prohibition but will also focus on social equity and restorative justice.

“The War on Drugs has been a war on people—particularly people of color. Ending the federal marijuana prohibition is necessary to right the wrongs of this failed war and end decades of harm inflicted on communities of color across the country. But that alone is not enough. As states continue to legalize marijuana, we must also enact measures that will lift up people who were unfairly targeted in the War on Drugs,” said Sens. Chuck Schumer, Cory Booker (D-NJ), and Ron Wyden (D-Or) in a joint statement.

The senators said that they expect to unveil the legislation “in the early part of this year” that is a “unified discussion draft on comprehensive reform to ensure restorative justice, protect public health and implement responsible taxes and regulations.”

Hearing from marijuana advocacy groups and stakeholders in the cannabis industry will be part of drafting the legislation. Last week, the senators held a virtual roundtable with representatives from NORML, Drug Policy Alliance (DPA), Veterans Cannabis Coalition, and Students from Sensible Drug Policy, as well as the National Cannabis Industry Association and the Minority Cannabis Business Association (MCBA).

“We are committed to working together to put forward and advance comprehensive cannabis reform legislation that will not only turn the page on this sad chapter in American history, but also undo the devastating consequences of these discriminatory policies. The Senate will make consideration of these reforms a priority,” the senators said.

In 2020, the House passed the MORE Act, which sought to deschedule cannabis, expunge marijuana convictions, and create reinvestment programs in communities most impacted by the war on drugs. Unfortunately, the bill never received a hearing in the Senate.

“Last year, we moved heaven and earth to get a bill passed through the House with key criminal justice and restorative justice provisions, but Mitch McConnell blocked consideration,” said Earl Blumenauer (D-Or) in a statement. “Now, new Senate leadership is prepared to pick up the mantle.”

Support for ending cannabis prohibition has come a long way since Colorado and Washington voted to legalize marijuana in their states in 2012. As of this year, 15 states plus the District of Columbia have legalized weed. According to a Gallup poll conducted last November, 68% of Americans support marijuana legalization.

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.