Home delivery of medical marijuana may soon be available to patients in Delaware under an emergency program being rolled out by state regulators. It’s yet another step designed to ensure safe access to medical cannabis products while limiting the risk of coronavirus transmission.
Delivery from one company, Columbia Care, which has locations in Wilmington, Smyrna and Rehoboth Beach, is expected to begin as soon as this week, regulators confirmed to Marijuana Moment on Friday. The program is being allowed under Delaware’s state-of-emergency declaration, although regulators intend to allow deliveries to continue even after the COVID-19 pandemic stabilizes.
“The Office of Medical Marijuana is not establishing this as a convenience option,” Paul Hyland, director of the state Office of Medical Marijuana, said via a spokesperson, “but as a stop-gap system to allow homebound and the most vulnerable patients to obtain products safely.”
Hyland added that there are “a number of steps to be completed” and “no firm date has been set” on when deliveries will begin, “however Columbia Care is looking to launch delivery” this week.
Columbia Care representatives didn’t immediately respond to a request for comment, but its website says it is “proud to be the first medical marijuana company in Delaware to deliver products to patients and designated caregivers.”
The program could eventually expand to other dispensaries in the state, such as Fresh Delaware and First State Compassion. Those other operators “can participate” in the delivery program, Hyland said, “however at this time, they were not in a position to accommodate delivery in the time necessary to respond to the current situation.” Neither company responded to requests for comment on Friday.
Hyland said patients won’t need to take any additional steps to register for Columbia Care’s delivery service. “It will work the same way as in-store pick-up currently works for Columbia Care,” he said, “through an option on their website.”
In a blog post Friday that broke news of the delivery program, the Delaware chapter of NORML, a leading cannabis advocacy organization, said it was “thrilled” by the development and urged officials to implement the plan quickly.
“Some patients may not drive and many do not have an authorized caregiver,” the group wrote. “Ordering online with pick up options isn’t enough when a vast majority of patients are now homebound with little resources to facilitate those services. By definition, medical patients are the most at risk and we should be doing everything we can to ensure their safety.”
Laura Sharer, the director of Delaware NORML, had urged the state last week to allow delivery options for patients who needed it. She cheered the move in an email to Marijuana Moment on Friday. “This is historic advocacy action,” she wrote. “To have expressed an urgent need an have it quickly met is not something that has happened within (Delaware’s medical marijuana) program before. I truly applaud our state officials for stepping up to meet patients’ needs.”
Sharer said that she understands Columbia Care plans to make delivery available for orders of $50 or more and will charge a $10 delivery fee. Patients will be able to place orders online or by phone. “As of now, there are no other requirements or extra steps for the patients,” Sharer said, although she stressed that delivery “is a new process and I anticipate they may adjust if needed.”
NORML in its blog post asked patients to continue to use existing curbside-pickup options if they’re able, which will minimize demand on delivery drivers and help them service the state’s most vulnerable patients. “Please be mindful that for many patients this will be their *ONLY* option,” the group wrote. “If you can facilitate the online ordering with pick up option safely, please continue to do so and save this service for those who need it most.”
“I would like to convey that this one center will not be able to meet the demands of the 12,000+ current patients” in the state, Sharer said on Friday, adding that she hoped more dispensaries will soon offer delivery. “I would urge patients to only facilitate this service if they must, reminding that some patients are homebound and this would be their only option.”
Delaware NORML also provided Marijuana Moment with recent email correspondence between activists and Delaware regulators, who wrote in the emails that they began working on a delivery plan in late March.
“Last week we started working with Columbia Care to start a delivery service,” Alanna Mozeik, a policy head at the state Department of Health and Social Services, wrote in a message on Wednesday. “Not all of the vendors are on board at this time, but Columbia Care has the digital infrastructure already in place and they are working diligently to develop the other necessary processes and procedures so that this can occur safely.”
As Mozeik explained in an earlier email to NORML, Delaware law doesn’t expressly forbid cannabis delivery. Prior to the coronavirus pandemic, however, the state hadn’t put together a formal process to evaluate and approve delivery proposals. “While the governing statute does not prohibit delivery, OMM (the Office of Medical Marijuana) would still require compassion centers to submit a plan for delivery implementation for review,” she wrote on March 26.
In the email to Marijuana Moment on Friday, Hyland, the director of Delaware’s Office of Medical Marijuana (OMM), said that his office plans to “create a more defined delivery program” going forward.
“Once the (state of emergency) is over, the Office of Medical Marijuana will work to create the proper regulatory and operational framework to standardize delivery across the program,” he said. “Prior to the impacts of COVID-19, the Office of Medical Marijuana was already in initial discussions with compassion center vendors on how to operate a delivery service in Delaware. This planning phase is on pause until the pandemic is over, but at that time the OMM will create a more defined delivery program.”
Nearly all U.S. states with legal cannabis programs have deemed retail outlets essential businesses and allowed them to remain open, with one notable exception being Massachusetts, which has shuttered adult-use cannabis businesses and allowed only medical dispensaries to remain open. Many states have also relaxed regulations in order to allow for curbside pickup, designed to improve social distancing, although only a handful of states currently allow delivery.
In Colorado, regulators last month issued that state’s first delivery license to The Dandelion, a Boulder dispensary operated by the company Native Roots. The store began medical marijuana deliveries last week but for now can deliver only to Boulder and the nearby town of Superior.
Illinois Gets More Tax Revenue From Marijuana Than Alcohol, State Says
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.
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.
Colorado Marijuana Sales Reached $167 Million In February
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.
Uber Will ‘Absolutely’ Explore Marijuana Deliveries When Federal Prohibition Ends, CEO Says
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.”
Could you get your weed delivered through Uber? CEO Dara Khosrowshahi discusses the potential business strategy: "When the road is clear for cannabis and federal laws come into play, we're absolutely going to look at it." (via @CNBCTechCheck) https://t.co/6VM454ugka pic.twitter.com/bRjpv7vvhU
— CNBC (@CNBC) April 12, 2021
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.