SDZ Today News

Law & Politics

Medical

Category: recreational cannabis

Auto Added by WPeMatico

Northern Windfall: Wisconsin Residents Spend Millions on Pot in Illinois

March 21, 2023 Published by

For the state of Illinois, a thank you might be in order for its neighbors to the north. A newly released analysis says that Illinois collected millions of dollars in tax revenue from Wisconsin residents who crossed the border to buy legal marijuana. 

The two Great Lakes states border each other––Wisconsin abutting Illinois to the north––but they have very different laws on cannabis.

Illinois legalized recreational marijuana in 2019, and a state-sanctioned adult-use market launched at the beginning of 2020. The state also legalized medical cannabis in 2013.

Wisconsin, meanwhile, is one of the last remaining states where both recreational and medical marijuana are still illegal. 

Democrats in Wisconsin are determined to change that––including one lawmaker who released an analysis last week showing that the state is losing millions in potential tax revenue to Illinois. 

The report from Wisconsin’s Legislative Fiscal Bureau “estimated that $36.1 million of Illinois cannabis tax revenues in fiscal year 2022 were attributable to sales of cannabis made to Wisconsin residents.” 

The analysis “assumes that all sales to out-of-state residents in counties bordering Wisconsin were made to Wisconsin residents, which are estimated to constitute 7.8% of total Illinois cannabis-related tax revenue,” according to the report, which said that of “the sales made in counties bordering Wisconsin, $121.2 million, or 50.6%, of these sales were to out-of-state residents.”

“Relative to marijuana sales statewide, approximately 7.8% of total cannabis sales revenue in Illinois came from sales made to out-of-state residents in counties bordering Wisconsin in calendar year 2022,” the analysis said.

The report came at the request of Democratic state Sen. Melissa Agard, who has championed marijuana legalization proposals in the Wisconsin legislature for years. 

Agard, the Democratic leader in the state Senate, expressed frustration at the findings.

“It should upset every Wisconsinite that our hard earned tax dollars are going across the border to Illinois. This is revenue that could be going toward Wisconsin’s public schools, transportation infrastructure, and public safety. Instead, Illinois is reaping the benefits of Republican obstructionism and their prohibitionist stance on marijuana legalization,” Agard said in a statement last week.

Republicans hold majorities in both chambers of the Wisconsin legislature, as they have for more than a decade, which has diminished the chances for legalization. 

Wisconsin Democrats like Agard, and the state’s governor, Tony Evers, overwhelmingly support an end to the prohibition. 

“Republicans’ continued refusal to legalize marijuana is fiscally irresponsible. Wisconsinites paid more than $31 million – just in taxes – to Illinois in 2022. Wisconsin’s loss of potential revenue is even larger if we include taxes paid to Michigan, as well as Minnesota in the near future. Wisconsin is losing out on significant tax dollars that could be used to make our communities stronger, safer, and healthier,” Agard said in the statement. 

“We are an island of prohibition and the people of our state are hurting because of it. As seen in our neighboring states, legalizing marijuana for responsible adult usage will generate significant revenue for our mainstreets, safely regulate the existing illicit market, reinvest in our agriculture and farming heritage, support entrepreneurship, and address the massive and egregious racial disparities from marijuana prohibition,” Agard continued. 

“The fundamental aspect of our job as legislators is to listen to the people we represent. The people of Wisconsin have been asking the legislature to take up common sense measures that will push our state forward. We know that legalizing cannabis for responsible adult use is wildly popular among Wisconsinites, including the majority of Republicans.”

The post Northern Windfall: Wisconsin Residents Spend Millions on Pot in Illinois appeared first on High Times.

German Minister Expects to Introduce Updated Cannabis Legalization Proposal Soon

March 16, 2023 Published by

German Health Minister Karl Lauterbauch recently attended a meeting in Brussels, Belgium with the Council of Ministers for Employment, Social Policy, Health and Consumers on March 14. While in attendance, he spoke about the progress of his cannabis proposal and an estimated timeline of its release.

According to Europa Press, his proposal “has obtained a very good response from the Commission,” Lauterbach said.

He also spoke with news outlet NTV, explaining that his proposal will be presented in the “next few weeks.”

“We will soon present a proposal that works, that is, that conforms to European law,” Lauterbach said.

According to Europa Press, Lauterbach stated that it’s the responsibility of the German governing coalition to “comply with European legislation while maintaining their own objectives” in order to “[reduce] crime and to make cannabis use as safe as possible.”

He also added that there have been some concerns about cannabis legalization. “We have to address several issues. One of them has been presented by the Netherlands, which […] proposes a centralized care and focuse[s] on the recommendations of the experts,” Lauterbach said.

While Lauterbach’s formal proposal has yet to be released, a separate cannabis proposal was also held in a meeting with the German Bundestag Health Committee on March 15. “MEPs [Member of European Parliament] propose allowing adults to purchase and possess up to 30 grams of cannabis or cannabis resin,” the meeting description states. “The cultivation of up to three female cannabis plants for personal or community use should also be permitted. Keeping a year’s harvest of up to three plants should also be allowed. The draft law provides for administrative offenses and fines if the maximum permissible amounts are exceeded.”

Originally, a rough draft of Lauterbach’s proposal was leaked in October 2022 by RedaktionsNetzwerk Deutschland. One week after the leak, Lauterbach gave his proposal to German Chancellor Olaf Sholz.

Under that proposal text, cannabis possession between 20 to 30 grams for adults 18 and older would not result in a punishment. Product THC limits would be capped at 15%, with a 10% limit in place for young adults between 18 and 21 years of age. Sales and distribution would only be permitted for licensed businesses (and importing would be prohibited). Finally, residents would be allowed to cultivate three cannabis plants for personal use.

At the time, Lauterbach described his plan as “the most liberal legalization of cannabis in Europe, which will result in the most regulated market in the EU.” He also shared that an updated version of the plan would be presented as early as the beginning of 2023. “A formal introduction of the legalization measure will occur in the first quarter of this year,” he estimated. 

Germany legalized medical cannabis in March 2017, but officials formally announced an interest in exploring recreational legalization in late 2021. Official interest began in June 2022 when it was announced that it would be holding five hearings to discuss the importance of public safety, youth prevention, supply chains, and more. “The hearings are intended to discuss which measures can be used to ensure the best protection for young people, health and consumers in the event of implementation,” said Federal Government Commissioner for Addiction and Drugs Burkhard Blienert. “Because one thing is clear: we want to protect children and young people in particular from possible risks.”

Officials from the delegation of the Health Committee of the Bundestag traveled to California in September 2022. They met with Oaksterdam University Chancellor Dale Sky Jones, CA NORML representatives, and many other advocates, and also toured cannabis dispensaries to assess the opportunities and risks of legalization. Finally, they explored Lowell Farms cultivation facility and discussed seed to sale, including energy and water conservation, as well as the inner workings of SC Labs in regards to lab testing and compliance.

The post German Minister Expects to Introduce Updated Cannabis Legalization Proposal Soon appeared first on High Times.

Slow Pace of Dispensary Openings Leaves Fresno, CA. with Budget Shortfall

March 16, 2023 Published by

The slow pace of retail cannabis dispensary openings in Fresno, California has led to a budget shortfall of more than $3 million for 2023, prompting city leaders to consider changes to expedite the process to get the businesses up and running. 

California voters legalized cannabis for adults in 2016 with the passage of Proposition 64, a ballot measure that passed with more than 57% of the vote. Two years later, Fresno voters approved an ordinance to tax retail sales of recreational marijuana, setting the stage for adult-use cannabis dispensaries to open in the city. 

In 2019, the Fresno City Council amended civic ordinances to regulate recreational cannabis, and in 2021 the city began awarding the first of 19 preliminary retail cannabis dispensary licenses issued to date. But more than a year later, only two recreational marijuana retailers have opened in Fresno, a pace that is wreaking havoc with the city’s budget projections.

The city budget approved for 2023 projected that cannabis taxes and fees would generate $5.37 million in revenue for the city’s coffers. But with only two dispensaries open for business so far, the city is now projecting the cannabis tax revenue to be $2,113,100, a deficit of more than $3 million. Councilmember Nelson Esparza said that the situation is “insanity.”

“We keep over-projecting cannabis every fiscal year,” Esparza said.

Only Two Dispensaries Open So Far in Fresno

The dispensaries that have opened in Fresno, Embarc and The Artist Tree, began serving recreational marijuana customers on the same day in July 2022. The remaining 17 businesses awarded preliminary licenses have submitted their applications for conditional use permits (CUPs), which must be approved before building permits are issued and construction or renovations of the site can begin. So far, 13 of the 17 pending CPU applications have been approved, and new dispensaries could open as soon as May of this year. 

Sontaya Rose, Fresno’s director of communications, noted that the timeline for construction and opening the dispensaries is controlled by the business owners, not the city.

“So, we can’t say for sure,” Rose said in an email to The Fresno Bee.

“Overall, it is taking longer for the sites to open than was originally anticipated.”

City leaders and business owners in the cannabis industry cite several reasons for the slow pace of dispensary openings. Several of the coming dispensaries will be located in old buildings that require extensive renovations before they can open and begin serving customers, according to the city. Others have had to make accommodations for their landlords, including waiting for current tenants to vacate the building so renovations on the site can begin.

Lauren Carpenter, the CEO of Embarq, which has received preliminary approval for two cannabis dispensaries in Fresno, says that her company has experienced delays at both of the locations. The company is “working expeditiously to open our second location later this year,” Carpenter said.

“A variety of factors influenced the timing” of the first and second location, she added, “including site conditions, driving duration of build out and the speed in which tenants were able to vacate the premises.”

“Fortunately, our first location affords us the ability to serve Fresnans while training our team to become leaders in our second,” said Carpenter.

Lauren Fontein, founder of The Artist Tree, said that the state of California’s regulated cannabis industry is also influencing the opening of new businesses. Wholesale prices for cannabis have plummeted in the state, squeezing profit margins throughout the supply chain. High taxes and licensing fees for cannabis businesses also take a hefty bite out of the bottom. Many companies are struggling, and some have had to lay off workers to stay afloat.

“There’s much less an appetite for investing in the cannabis industry,” Fontein said. “It’s not this kind of cash cow business that people thought it was.”

Civic leaders in Fresno have looked to several jurisdictions for possible solutions and are considering several options to expedite the opening of additional adult-use cannabis retailers in the city. In West Hollywood, the city council amended its cannabis ordinance so more licenses could be issued, while Riverside conducted an additional round of licensing to add to the city’s roster of cannabis dispensaries. Fontein said that Fresno is considering adding deadlines to its ordinance to encourage a quicker opening of new dispensaries.

“The city just kind of needs to get practical at this point,” she said.

But the city has few options. While businesses are given a one-year deadline to submit CUP applications, the city ordinance does not have provisions that set a timeline for dispensaries to open for business.

Rose wrote in an email to the Fresno Bee that the city manager’s office is working with the staff at the city attorney’s office “to determine options for establishing additional deadlines for applicants to make progress towards opening.” But she was unable to offer a timeline to get the businesses up and running.

Until that happens, Fresno will continue to see a shortfall in projected cannabis tax revenues that could impact the city’s ability to provide services. 

The post Slow Pace of Dispensary Openings Leaves Fresno, CA. with Budget Shortfall appeared first on High Times.

Hawaii Senators Pass Adult-Use Cannabis Bill

March 10, 2023 Published by

On March 7, the Hawaii Senate voted to pass an adult-use cannabis bill in a 22-3 vote. Also referred to as SB669 SD2, the bill would set up a framework for cultivation, manufacturing, sales, and taxes. It would allow residents to possess up to 30 grams, cultivate up to six plants for personal use, and also decriminalize small amounts of cannabis as well.

The bill was first introduced by Sen. Joy A. San Buenaventura, Sen. Stanley Chang, Sen. Jarrett Keohokalole, and Sen. Angus LK McKelvey on Jan. 20, and has consistently worked through numerous committee hearings. Sen. Keohokalole chairs the Senate Committee on Commerce and Consumer Protection, where amendments were addressed, including establishing penalties for unlicensed cultivation, protecting employers who want to prohibit employee cannabis use, preventing any cannabis business from opening within 1,000 feet of youth-related areas, and other changes to address cannabis licensing that does not allow monopolies to develop. 

“Today marks a significant step forward in the legalization of adult-use cannabis in Hawaiʻi. These amendments are reflective of the Senate’s commitment to ensuring a fair and well-regulated cannabis market that provides safe access to both adult consumers and existing medical patients,” said Keohokalole. “If legalization of adult-use cannabis is something that is supported by the Governor, we hope his administration, which has thus far opposed every proposal to legalize adult-use cannabis, will work with us to bring this to fruition.” 

After passing in the Senate with amendments, it was sent to the House for consideration on the same day.

On Jan. 11, a different adult-use cannabis bill, HB-237, was introduced by Rep. Hawaii Rep. Jeanné Kapela. This bill would establish a regulatory framework for legalization as well, but would also include language to allow out-of-state patients to benefit from medical cannabis law, and would make medical cannabis sales exempt from being charged with the general excise tax. Additionally, Kapela introduced HB-283, which would prohibit employers from discriminating against potential hires or current employees for their medical cannabis consumption. Neither HB-237 and HB-238 have progressed past hearings, which were held in late January.

A recent poll published by the Hawaii Cannabis Industry Association at the end of January found that 86% of adult Hawaiian residents are in favor of legalizing adult-use cannabis, with only 9% in opposition, and 5% saying that they don’t know. The poll also found that adult-use was slightly more popular than medical, in a 45% to 41% comparison. Overall, the state could collect up to $81.7 million in taxes and $423 million in gross revenue if cannabis legalization was passed. 

An additional report from the Dual Use Cannabis Task Force also published its findings in January, and shared that cannabis tax revenue could reach between $34 million to $53 million. 

Kapela focused on the data provided by that task force report to create the bill she introduced. “We all know, and Hawaii’s people know, that it is high time to legalize recreational cannabis use for adults in Hawaii. This year we stand on the precipice of history,” Kapela said. “Following the recommendations of a task force devoted to addressing cannabis policy, we now have a roadmap for legalizing recreational cannabis in our islands.”

Aside from the pace of support for cannabis legalization from legislators, efforts to legalize therapeutic psilocybin have also become popular. One such bill, SB-1454, was introduced in January, and unanimously passed in the Senate Committee on Health and Human Services on Feb. 6. It aims to establish regulations to create a “therapeutic psilocybin working group” to examine the medical benefits of psilocybin for conditions such as post-traumatic stress disorder, depression, anxiety, and end-of-life psychological distress.

The post Hawaii Senators Pass Adult-Use Cannabis Bill appeared first on High Times.

Oklahoma Voters Reject Recreational Pot Legalization Initiative

March 9, 2023 Published by

Voters in Oklahoma on Tuesday rejected a ballot measure that would have legalized recreational marijuana in the state that already has one of the nation’s most robust medical marijuana programs. Supporters of State Question 820, however, vow to continue the effort to legalize cannabis for adults in Oklahoma.

“Our mission from the very start has been about making a more prosperous, just and safer state,” Yes on 820 campaign director Michelle Tilley said in a statement after the results of Tuesday’s election became apparent. “We are moms and dads who want more revenue in our schools, more resources for law enforcement, and more jobs and investment in communities across the state. Unfortunately, tonight we fell short.”

Oklahoma voters defeated the legalization initiative by a solid margin, with nearly 62% opposed and only 38% voting in favor as of Wednesday morning, with more than 95% of votes counted in all 77 of the state’s counties, according to information from The New York Times. The defeat came following strong opposition from law enforcement groups and Republican politicians including Oklahoma Governor Kevin Stitt. 

Oklahoma Supporters Vow To Continue Legalization Effort

Supporters of SQ 820 had originally planned for the ballot measure to appear before voters during last year’s presidential election, but delays in certifying the measure prevented the initiative from being included on the ballot in November. In October, Stitt announced that voters would go to the polls on March 7 for a special election to vote on the measure.

Brian Vicente, founding partner at the cannabis law firm Vicente LLP and a member of the Yes on 820 campaign’s steering committee, said that the failure of the ballot measure to gain approval at the polls on Tuesday is not the end of cannabis policy reform efforts in Oklahoma, where voters legalized medical marijuana in 2018.

“With a March special election and no other issues on the ballot, we knew from the beginning this would be an uphill battle,” Vicente wrote in an email to High Times. “The results still demonstrate there is significant support for legalizing and regulating cannabis for adult use, and we expect it to continue growing until a similar measure passes in the near future. Overcoming a century of anti-marijuana propaganda is no simple task, and there is still work to be done.”

Had it passed, SQ 820 would have legalized cannabis for adults 21 and older and established a regulatory framework for commercial production and sales of recreational marijuana. The measure also included provisions to allow those with past convictions for some marijuana offenses to petition the courts to have their criminal record expunged. Yes on 820 campaign senior advisor Ryan Kiesel, who helped draft the ballot language, said that the defeat of the measure will continue Oklahoma’s disproportionate enforcement of marijuana prohibition.

“We have thousands of families being torn apart and thrown into chaos every year because a mom or a dad has a small amount of marijuana that would be legal in 21 other states and legal in Oklahoma for medical card holders,” said Kiesel. “Furthermore, the enforcement of Oklahoma’s marijuana laws has historically been deeply slanted against Black Oklahomans, who are much more likely to be arrested than their White counterparts. We must continue to work to end these unjust and wasteful arrests and to give people who do have arrests or convictions on their records the tools to seek expungement and start with a clean slate.”

Jeffrey M. Zucker, co-founder and president of cannabis consulting firm Green Lion Partners and the vice chair of the board of directors of the Marijuana Policy Project (MPP), promised more work to end cannabis prohibition in the Sooner State.

“Today’s decision in Oklahoma is heartbreaking, especially considering how many challenges this bill faced before it got to the ballot and how much work advocates put in,” Zucker said in a statement. “We have a long way to go to undo the damage of the war on drugs, especially in a state where more than 4500 people are arrested annually for cannabis possession.”

Tuesday’s defeat of SQ 820 continues a string of setbacks for the cannabis policy reform movement in traditionally conservative states. In the November general election, voters in Arkansas, North Dakota and South Dakota voted against recreational marijuana ballot measures, while similar proposals succeeded in Maryland and Missouri.

The post Oklahoma Voters Reject Recreational Pot Legalization Initiative appeared first on High Times.

Top New York Democrats Seek To Change Cannabis Tax

March 8, 2023 Published by

A pair of influential New York lawmakers are seeking to overhaul the state’s tax structure for adult-use cannabis sales, which they say is currently too complicated.

Crystal Peoples-Stokes, the majority leader of the state assembly, and state Sen. Jeremy Cooney, both Democrats, announced a proposal on Monday that would make major changes to how the Empire State taxes recreational cannabis sales. 

As reported by NY1, under the proposed legislation, “the current tax which levies based on potency would be replaced with an increase in the current excise tax.” The outlet noted that it was “not immediately clear what the fiscal implications of the change would be if granted final approval.”

“After careful consideration, it became clear that we need to simplify the tax structure of adult-use cannabis,” People-Stokes said, as quoted by NY1. “As the state continues to build out licensed cannabis operations, a simpler tax structure will be better for businesses and consumers. It is imperative to establish the licensed cannabis marketplace as the best option for consumers and stamp out the illicit cannabis operations popping up all over the state. This new tax approach will ultimately lead to thriving cannabis businesses at all levels of the supply chain. We will see higher tax revenues, which will result in more funds being reinvested in communities and invested in education and other important programs.”

Cooney echoed that, saying that if New York is to meet its “goal of building the most diverse and inclusive cannabis market in the nation, we must create an environment where small businesses can thrive.”

“Replacing the potency tax with an increase in the excise tax will allow licensed operators, including social equity operators, to sell competitively-priced products and be less susceptible to undercutting by illicit market prices without sacrificing revenues to be reinvested and used for valuable community programming,” Cooney said.

According to an official legislative summary of the bill, the measure increases “the tax from nine to sixteen percent of the amount charged for the sale or transfer of adult-use cannabis products to a retail customer; removes requirements that records reflect the total amount of THC content of the adult-use cannabis products sold to or produced by persons who sell such products; makes related provisions.”

Peoples-Stokes was heavily involved in the effort to legalize marijuana in New York, which officially ended the prohibition on recreational pot use in 2021.

Last year, after the state approved the first 52 cultivation licenses for the new recreational cannabis program, Peoples-Stokes said that the state was on its “way towards realizing our goal of creating a viable and inclusive path for minorities and small farmers to have the opportunity to create generational wealth for their families and communities.”

Her new tax proposal comes at a time when the state is looking to expand the nascent cannabis program.

Last week, regulators in New York announced they are doubling the number of cannabis retailer licenses, going from an original plan of 150 to 300.

“With this expansion, more entrepreneurs will be able to participate in the first wave of this industry, allowing them to capitalize on the growing demand for cannabis products,” Tremaine Wright, chair of the New York Cannabis Control Board, said at the time. “As more businesses enter this market, the innovation and competition will increase, leading to better quality experiences for consumers. The expansion of New York’s cannabis market will benefit everyone involved in this exciting industry.” 

According to NY1, the new tax measure from Peoples-Stokes and Cooney is “being proposed as New York lawmakers and Gov. Kathy Hochul are negotiating a broader $227 billion budget plan that is expected to pass by April 1, the start of New York’s fiscal year.”

The post Top New York Democrats Seek To Change Cannabis Tax appeared first on High Times.

California Cannabis Sales Declined in 2022

March 7, 2023 Published by

Finalized data from the California Department of Tax and Fee Administration shows that California cannabis sales declined in 2022. The decrease in sales is the first dip since adult-use sales began in 2018.

In 2021, the state collected $5.77 billion in adult-use cannabis sales, but 2022 numbers reflect only $5.3 billion for the past year—an $8.2% decrease. According to coverage by Forbes, many believe that expensive taxes and not enough dispensaries have contributed to this decline.

Cannabis cultivators in California have been trying to tell legislators about the issue. “Most of us farmers have been trying to tell the state [regulators] that the marketplace is imploding,” Johnny Casali, founder of Huckleberry Hill Farms, told Forbes. “The drop in retail sales means the customer is tired of paying the exorbitant taxes and are now buying it from a friend of a friend or the guy on the corner.” Casali explained how all of his product was sold in 2022, but he still experienced a loss of $50,000.

This loss is likely due to the decreased price per pound of cannabis statewide. American financial services firm Cantor Fitzgerald cites the wholesale price of cannabis at $665 a pound, which is a 26% decrease year over year. According to New Leaf Data Services, wholesale cannabis prices have dropped more than 50% between 2017 and 2022.

California has more than 800 licensed cannabis dispensaries, and cultivators grow more than can be purchased. Casali hopes that the situation will improve. “We are already getting orders for this season,” Casali said. “But without federal legalization, I don’t know how we fix our supply-and-demand problem.”

Cantor Fitzgerald analyst Pablo Zuanic states that there was a boost in California revenue gain due to increased sales during the pandemic, between 2020-2021. Zuanic believes that a return to more normal sales, on top of current inflation, is also contributing to the sales decline. He did state his belief that 2023 will be a year that California’s cannabis industry will bounce back though, comparing the 8% decrease in 2022 with the 68% increase in 2020.

Glass House Brands founder Graham Farrar told Forbes that he believes that Californians didn’t smoke less in 2022, but that the black market is just outselling legal flower. “Nobody prefers bathtub gin, right? You only drink bathtub gin if legal gin costs twice as much,” Farrar said. “If we could bring taxes on the consumer down, I think you’ll see more people in the legal market. And I think you’d actually collect more tax revenue.”

The overall decline of cannabis sales in general has pushed some cannabis brands to leave California. Garcia Hand Picked recently announced its departure from California. “We’re taking a pause in California,” said the brand’s parent company, Holistic Industries. “We want to ensure CA consumers have the highest quality flower for the long term, so we are in the process of choosing a new local partner for cultivation, production, sales, and distribution of Garcia Hand Picked in CA.”

Some regions are trying to help cannabis cultivators, such as Sonoma County, which recently eased tax burdens for some growers based on their operating size. Most recently, a California grant of $20 million has been earmarked to “provide local jurisdictions with resources to expand access to regulated cannabis products to underserved areas.”

In mid-February, the last Californian federal prisoner who was imprisoned for cannabis was finally released. After spending 15 years in prison, Luke Scarmazzo was released with the help of The Weldon Project. “The feeling is surreal. We’ve worked toward this day for so long,” Scarmazzo wrote on Facebook. “This was a huge victory for my family, friends, community and the entire cannabis movement. I’ll take a moment to enjoy this, but make no mistake, there’s still much work to be done—my people need to be free—and that hard work begins now.”

The post California Cannabis Sales Declined in 2022 appeared first on High Times.

Missouri’s First Month of Legal Recreational Pot Sales Tops $100 Million

March 7, 2023 Published by

Cannabis retailers in Missouri rang up more than $100 million in sales in February, the first month of legal recreational marijuana sales in the state. According to information from the Missouri Department of Health and Senior Services released on Friday, total cannabis sales came to $102.9 million last month. The figure includes nearly $72 million in adult-use cannabis retail purchases, while sales of medical marijuana in Missouri topped $31 million for the month.

Missouri voters legalized the recreational use of cannabis in last year’s midterm elections with the passage of Amendment 3, a ballot measure that was approved with more than 53% of the vote. Sales of recreational marijuana began at existing medical marijuana on February 3, less than three months after voters approved the adult-use cannabis legalization measure.

Andrew Mullins, executive director of the Missouri Cannabis Trade Association (MOCann), said that the opening month of regulated sales of adult-use cannabis in the state eclipsed the launch of recreational pot sales in neighboring Illinois in 2020.

“That’s more than double what Illinois did in a state with twice the population,” Mullins said about Missouri’s $71.7 million in adult-use cannabis sales last month. “So it really shows the interest and excitement for the new adult-use industry in Missouri.”

Mullins noted that if the pace of sales during the first month continues, Missouri cannabis retailers will sell more than a billion dollars worth of weed this year. He attributed a portion of February’s sales to visitors from adjoining states. Out of Missouri’s eight neighboring states, only Illinois has legalized recreational marijuana to date.

“Canna-tourism folks that may decide to come to Missouri to access and utilize cannabis,” Mullins told St. Louis Public Radio. “That seems to also be having an impact on the amount of sales that Missouri’s experiencing.”

Laurie Gregory, the chief marketing officer for Good Day Farm, said that the company’s dispensaries in cities such as Kansas City and Independence located near the borders with other states saw significant traffic from out-of-state customers.

“Opening weekend we had patients who drove from Texas and Illinois,” Gregory said. “There are states around Missouri that don’t have a program. Anecdotally, what we hear is that the border town dispensaries are having significant sales because of that.”

Regulated Weed Prices Lower Than Neighboring Illinois

Prices compared to cannabis retailers in the one neighboring state with regulated recreational marijuana sales were also cited as a factor behind the strong numbers in Missouri.

“At the different stores, we have flower strains priced from $25 to $40,” said Gregory. “In Illinois, it’s anywhere from $30 to $60.”

Jack Cardetti, a spokesman for MOCann, said that better access for consumers is largely behind Missouri’s strong sales numbers, noting that the state has 196 dispensaries to serve a population of 6 million, while Illinois has only 113 retailers but a population of 12 million. He also noted that taxation exacerbates the price difference between the two states.

“Not only are the retail prices lower in Missouri than Illinois, but when you actually factor in the higher taxes in Illinois, the take-home price is significantly lower,” Cardetti says. “We’ve seen time and time again, if you tax marijuana too much, people will continue to access the illicit market, which is exactly what legalization is meant to prevent.”

Former NBA star Al Harrington’s company Viola is backing two cannabis dispensaries that opened in St. Louis over the weekend, making the shops the only Black-owned retailers in the city, according to Daniel Pettigrew, the CEO of Viola STL. He said that the city has given the company a warm welcome and noted that the company’s dispensary on Iowa Street in St. Louis is the only cannabis retailer in the city with a drive-thru.

“We want people to be able to come into a safe, secure place, get their product and then get out, so that’s the main thing. It will really allow us to serve more customers,” Pettigrew told KSDK television news. “This neighborhood is in the community, so it was important to them, as we met with them, that they didn’t want a lot of people standing around and lingering in the area. It just allows us to complete the transaction in a safe secure environment, facilitate it, get everyone what they need and let them get on their way as quickly as possible.”

Bryce Chapman, a consumer who previously purchased marijuana from the unregulated market, said that buying from dispensaries is easier than buying from underground dealers. He added that he appreciates the consistent quality and clear pricing at regulated dispensaries, factors he said make him a repeat customer of the new shops.

“You can just go in, get what you need and leave,” said Chapman. “You don’t have to find the guy with the right kind of stuff or anything like that – you can just go get exactly what you need. I really like how scientific it is. Like, ‘Do you want this much THC or do you want a higher dose? Do you want sativa dominant?’ Before it was just like, I’ll just get what I can get.”

The post Missouri’s First Month of Legal Recreational Pot Sales Tops $100 Million appeared first on High Times.

Legalization Bill Moving Along in Hawaii Legislature

March 6, 2023 Published by

A bill to make Hawaii the next state to legalize recreational cannabis cleared a legislative hurdle this week.

The legislation “advanced out of two state Senate committees Thursday — and is now moving to the full senate,” according to local station HawaiiNewsNow.

Under the measure, adults aged 21 and older could legally possess and consume marijuana, while the state would regulate and oversee a cannabis market. 

The station said that the bill was “approved by the Consumer Protection and Ways and Means Committees.”

According to local news station KHON2, the chair of the Consumer Protection Committee “chose to provide some proposals on amendments that had been integrated to cover issues that had been raised in earlier hearings.”

Per the station, those amendments are: “1. Language was added to establish civil penalties for unlicensed cannabis growth and distribution activities; 2. Language was added that protects employers who seek to prohibit cannabis use amongst their employees; 3. Prohibition of advertising within 1,000 feet of any youth-centered area; 4. Proposed licensing of cultivation, manufacturing, testing and retail facilities that ensure a properly regulated industry while also preventing future consolidation and monopoly control of cannabis dispensaries.”

Democratic state Sen. Jarrett Keohokalole, who chairs the Consumer Protection Committee, said that the bill’s approval by the two senate committees marked “a significant step forward in the legalization of adult-use cannabis in Hawaiʻi.”

“These amendments are reflective of the Senate’s commitment to ensuring a fair and well-regulated cannabis market that provides safe access to both adult consumers and existing medical patients,” said Keohokalole, as quoted by KHON2.

Democrats control both chambers of the Hawaii state legislature. The state’s Democratic governor, Josh Green, who was elected and took office last year, has said that he would sign a cannabis legalization bill if it were to land on his desk.

“I think that people already have moved past that culturally as a concern,” Green said during a gubernatorial debate in the fall. “But here’s what I would do. First of all, if marijuana is legalized, it should be very carefully monitored, and only done like cigarettes, or I’ve been very careful to regulate tobacco over the years. We should take the $30 to $40 million of taxes we would get from that and invest in the development and recreation of our mental healthcare system for the good of all.”

An adviser to the governor reiterated that support this week.

“Governor Green supports legalized use of cannabis by adults, providing that any legislation that emerges protects public safety and consumers, and assures product safety with testing and tracking. The Governor also seeks to ensure the continued viability of our medical cannabis industry. Because these are complicated issues, he has encouraged his departments to state their concerns, and to make suggestions if there are ways to mitigate them. If a bill passes the legislature that accounts for his primary concerns, he has indicated he will likely sign it,” the adviser said in a statement, as quoted by HawaiiNewsNow.

Moreover, there is broad public support for legalization among Hawaiians. 

A poll released earlier this year found that more than 50% of residents there support the legalization of adult-use marijuana.

But while the bill is widely expected to pass out of the Hawaii state Senate, it is “likely to run into strong opposition in the state House,” according to HawaiiNewsNow.

The station reported that the speaker of the state House of Represenatives, Scott Saiki, has “said the state is not ready this year.”

The post Legalization Bill Moving Along in Hawaii Legislature appeared first on High Times.

Florida Group Submits 420,000 Signatures for Cannabis Amendment—Halfway to Qualifying for Ballot

March 6, 2023 Published by

The group that is powering a proposed constitutional amendment to legalize recreational cannabis in Florida is halfway to its goal of getting the measure on next year’s ballot.

According to the News Service of Florida, supporters of the proposed amendment “have submitted more than 420,000 valid petition signatures to the state,” and they will “need to submit at least 891,589 signatures to get on the ballot” in 2024.

“Last month, the committee topped a 222,898-signature threshold needed to trigger a crucial Florida Supreme Court review of the proposed ballot wording,” the News Service reported.

The group behind the effort, Smart and Safe Florida, is being heavily backed by the medical cannabis company Trulieve, which has a significant presence in the Sunshine State.

Smart and Safe Florida launched its campaign last summer.

“We came into this with a mission to provide access to high-quality products that are safe and have an appropriate value proposition to give folks control over their—in the original days—medical journey,” Trulieve CEO Kim Rivers said at the time. “I don’t think that changes here. I mean, in effect we are at our core about expanding the opportunity for access to safe legal product, which is what this would allow us to continue to do.”

Trulieve donated $5 million last summer when the campaign launched.

According to the News Service of Florida, the company “had spent $25 million as of the end of January on the Smart & Safe Florida initiative.”

The amendment would legalize the possession and consumption of cannabis for adults in Florida aged 21 and older, and would also set the framework for a state-regulated pot industry. 

Specifically, the measure would enable the state’s existing medical cannabis facilities to transition into recreational pot dispensaries.

Florida legalized medical cannabis in 2016.

“One of the interesting aspects here is that we do have [a] medical-cannabis market and we have hundreds of thousands of patients in Florida who are utilizing medical cannabis regularly. So our ability to reach out and to have more direct communication…is a bit unique from a positioning perspective,” Rivers said in the summer.

Activists in Florida have been stymied in their previous attempts to get marijuana legalization over the line, including most recently in 2021, when an initiative was blocked by the state Supreme Court.

“Every initiative has provided some level of learning,” Rivers said last year. “With this initiative, the authors have taken a hard look at the Supreme Court rulings surrounding the previous efforts and taken that into consideration. We believe it’s a very appropriate and narrowly focused amendment that does defer appropriately to the Legislature.”

With a growing population that ranks as the third largest in the country, Florida is a coveted potential market for cannabis investors.

“Florida is definitely a market of interest, especially compared to some of the other more mature, more saturated markets,” said Jade Green, president of cannabis industry consulting firm Next Titan Capital. “The main reason is, everybody has a similar belief that, whatever happens in 2024, eventually adult-use (recreational) cannabis will come to Florida.” 

“If you can make it in Florida until rec (recreational marijuana) hits, then you will have a significant advantage in what will be one of the largest cannabis economies not just in the U.S. but in the world,” Green added.

Florida Gov. Ron DeSantis, widely thought of as 2024 Republican presidential contender, has spoken negatively about marijuana legalization in the past.

“What I don’t like about it is if you go to some of these places that have done it, the stench when you’re out there, I mean, it smells so putrid,” DeSantis said last year.

The post Florida Group Submits 420,000 Signatures for Cannabis Amendment—Halfway to Qualifying for Ballot appeared first on High Times.