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California Officials Say No To Marijuana-Infused Alcohol And Bars With Cannabis Consumption

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In case anyone didn’t already know it wasn’t allowed, California state regulators just put the kibosh on hopes for bars and pubs where people can consume both marijuana and alcohol. They also shot down the idea of producing beverages that blend the two substances together.

For now—or at least until state law changes to specifically allow it—any mixing of America’s two favorite intoxicants are prohibited in the country’s largest recreational marijuana market, according to a new memo issued on Wednesday by the state Department of Alcoholic Beverage Control (ABC).

Per to the document, published on the state’s Cannabis Portal website, it is currently illegal to:

*Sell cannabis and alcoholic beverages at the same location;

*Allow bar patrons to bring their own cannabis to an ABC-licensed location (such as a bar) and allow them to consume it (though there are many bars and pubs that turn a blind eye to such behavior, and did well before recreational marijuana was legalized in California);

*Infuse alcoholic beverages with cannabis that contains THC or CBD;

*And, consistent with earlier direction from the state Health Department, infuse alcoholic beverages—or any other edible product—with CBD that’s derived from “industrial hemp,” which, under state and federal law, is defined as cannabis sativa with less than 0.3 percent THC.

California voters legalized recreational marijuana for adults 21 and over in the November 2016 election. Before and after—for medical cannabis, and later, for recreational marijuana— state lawmakers authorized a slew of rules governing commercial cannabis activity, including how and where it can be consumed.

Despite that, there has been some lack of clarity—and in some cases, perhaps a bit of willful ignorance—among entrepreneurs and current marijuana-sales permit holders struggling to grab or maintain part of the market as to what, exactly is allowed.

At least one bar in San Francisco had put CBD-infused cocktails on its menu. And alcohol regulators have had to inform would-be brewers of CBD-infused beer that such a product is, for now, not allowed.

On top of that, state regulators had received so many “frequently asked questions” that they published the new memo, which is “intended to offer some guidance.”

“This is not intended to be a comprehensive review of what may be permitted or prohibited,” the document warns. “You should obtain independent legal advice before engaging in business involving either alcoholic beverages or cannabis, and you should not act in reliance on any information presented herein.”

The direction from the state will, for now, put the brakes on the kind of product innovation seen in other markets.

In Canada, where recreational marijuana sales are set to begin in October, at least one company is experimenting with brewing “cannabis beer,” but without alcohol. (So, in theory, it would be legal in California).

And in a state where marijuana consumption is treated casually, it is still technically illegal to consume cannabis in public in California. There are a few dispensaries that permit “on-site consumption lounges,” but these are rare and limited to primarily the Bay Area.

Other states have gone through this exercise. In Colorado, which along with Washington legalized recreational cannabis in 2012, there has been a push to allow licensed businesses to permit patrons to consume cannabis on-site. But that push took years, a chorus of demands from businesses owners, and another ballot initiative—Initiative 300, in Denver—before such conduct could be condoned.

Major Alcohol Association Endorses States’ Rights To Legalize Marijuana

Photo courtesy of Martin Alonso.

Marijuana Moment is made possible with support from readers. If you rely on our cannabis advocacy journalism to stay informed, please consider a monthly Patreon pledge.

Chris Roberts is a reporter and writer based in San Francisco. He has covered the cannabis industry since 2009, with bylines in the Guardian, Deadspin, Leafly News, The Observer, The Verge, Curbed, Cannabis Now, SF Weekly and others.

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Illinois Gets More Tax Revenue From Marijuana Than Alcohol, State Says

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Illinois took in more tax dollars from marijuana than alcohol for the first time last quarter, according to the state Department of Revenue.

From January to March, Illinois generated about $86,537,000 in adult-use marijuana tax revenue, compared to $72,281,000 from liquor sales.

Those following the cannabis market in Illinois might not be entirely surprised, as the state has consistently been reporting record-breaking sales, even amid the pandemic. In March alone, adults spent $109,149,355 on recreational cannabis products—the largest single month of sales since retailers opened shop.

Via Illinois Department of Revenue.

It was in February that monthly cannabis revenues first overtook those from alcohol, a trend that continued into March.

If the trend keeps up, Illinois could see more than $1 billion in adult-use marijuana sales in 2021. Last year, the state sold about $670 million in cannabis and took in $205.4 million in tax revenue.

Officials have emphasized that the tax dollars from all of these sales are being put to good use. For example, the state announced in January that it is distributing $31.5 million in grants funded by marijuana tax dollars to communities that have been disproportionately impacted by the war on drugs.

The funds are part of the state’s Restore, Reinvest, and Renew (R3) program, which was established under Illinois’s adult-use cannabis legalization law. It requires 25 percent of marijuana tax dollars to be put in that fund and used to provide disadvantaged people with services such as legal aid, youth development, community reentry and financial support.

Awarding the new grant money is not all that Illinois is doing to promote social equity and repair the harms of cannabis criminalization. Gov. J.B. Pritzker (D) announced in December that his office had processed more than 500,000 expungements and pardons for people with low-level cannabis convictions on their records.

Relatedly, a state-funded initiative was recently established to help residents with marijuana convictions get legal aid and other services to have their records expunged.

But promoting social equity in the state’s cannabis industry hasn’t been smooth sailing. The state has faced criticism from advocates and lawsuits from marijuana business applicants who feel officials haven’t done enough to ensure diversity among business owners in the industry.

New Mexico Governor Signs Marijuana Legalization Bill, Making State Third To Enact Reform Within Days

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Colorado Marijuana Sales Reached $167 Million In February

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Colorado’s overall cannabis sales for the first two months of 2021 are $78 million higher than those for January and February of 2020.

By Robert Davis, The Center Square

Total marijuana sales in Colorado reached $167 million in February, the state’s revenue department announced on Friday.

The total represents a $20 million decline in sales from the previous month. However, Colorado’s overall sales for the first two months of 2021 remain $78 million above the pace set between January and February of 2020.

Marijuana sales are calculated by adding the total sales for both medical and recreational marijuana sales in Colorado’s 64 counties.

Denver County led all others in total recreational sales with over $38 million. Arapahoe and Adams counties followed suit with $13 million and $11 million in recreational sales, respectively.

Denver also led the way in medical marijuana sales, bringing in a total of $14 million. El Paso County was a close second, reaping over $10 million in medical sales.

Sales are not automatically accounted for in the state’s accounting system. This means the Department of Revenue (CDOR) relies on each county to report their sales before reporting the total. In effect, marijuana sales are reported one month behind tax and fee revenue totals.

Meanwhile, Colorado collected over $33 million in tax revenue in March. This total represents both taxes levied from medical and recreational marijuana sales, as well as license and application fees.

Between February and March, state tax revenue from marijuana sales declined 4 percent, according to CDOR data.

Tax revenue comes from a 2.9 percent state sales tax on marijuana sold in stores, a 15 percent state retail marijuana sales tax, and a 15 percent state retail marijuana excise tax on wholesale sales or transfers of retail marijuana.

This piece was first published by The Center Square.

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Uber Will ‘Absolutely’ Explore Marijuana Deliveries When Federal Prohibition Ends, CEO Says

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The CEO of Uber said on Monday that the ride share company will “absolutely” explore adding marijuana deliveries to its services when federal prohibition ends.

Dara Khosrowshahi was asked about the prospect of expanding his business to include cannabis deliveries during an interview with CNBC. He said while the company remains focused on grocery and alcohol deliveries, in addition to its core ridesharing service, that’s certainly in the cards if marijuana is federally legalized.

Uber is interested in “the types of deliveries that a high percentage of consumers are going to want delivered fast into their home and are quite frequent,” he said. “We think, obviously, food, grocery, pharmacy and alcohol are part of that category,” but cannabis also holds potential.

“When the road is clear for cannabis when federal laws come into play, we’re absolutely going to take a look at it,” Khosrowshahi said. “But right now with grocery, with food, with alcohol, et cetera, we see so much opportunity out there and we’re going to focus on the opportunity at hand.”

The tech executive was specially asked about the possible expansion into the cannabis market in light of legalization recently being enacted in New York. And if polling from that state is any indication, Uber would see the demand for deliveries that it’s looking for, as 53 percent of New Yorkers said in a survey that they would favor having that option available to consumers.

But for now, the CEO said the business is keeping its eyes on current expansions, which includes its recent acquisition of the alcohol delivery service Drizly. That company did launch an ancillary cannabis delivery service called Lantern—but following the Uber deal, it announced that the two entities would be separated, with Lantern operating independently as a private company.

Of course, as a national corporation, Uber is also making a risk assessment given the ongoing ban on cannabis at the federal level. But a policy change to that end could come sooner than later.

Senate Majority Leader Chuck Schumer (D-NY) has said that a bill to legalize marijuana that he’s been working on with Senate Finance Chairman Ron Wyden (D-OR) and Sen. Cory Booker (D-NJ) will be released “shortly.”

On the House side, Judiciary Chairman Jerrold Nadler (D-NY) has similarly signaled that his cannabis descheduling bill—the Marijuana Opportunity, Reinvestment and Expungement (MORE) Act—will be reintroduced this session. That proposal passed the House last year but did not advance in the Senate.

With Democrats in control of both chambers and the White House this session, there’s renewed hope among advocates that the days of prohibition are soon to be over. Still, questions remain about President Joe Biden’s role in the reform, as he opposes adult-use legalization and his press secretary said last month that his position “has not changed” to that end.

In any case, Uber’s apparent interest in participating in the market once those federal barriers are lifted is another sign of the industry’s potential. That said, many advocates have expressed that small businesses—particularly those operated by people most impacted by cannabis criminalization—should be prioritized in any legalization legislation over large companies.

Four More States Could Still Legalize Marijuana This Year After New Mexico, New York And Virginia

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