Connect with us

Politics

Federal Reserve Bank Examines Marijuana Industry’s Growth

Published

on

The Federal Reserve Bank Of Kansas City recently issued a report looking at Colorado’s marijuana market, ultimately concluding that the cannabis industry is primed to continue to grow as public support for legalization increases, although perhaps not quite at the rate seen in the early years of the policy change’s implementation.

The central bank district had analysts examine various aspects of Colorado’s legal system over the past six years, including employment rates, taxes, business licenses and sales data. In their report, the authors identify “signs of maturation” as the market has stabilized over time.

Overall, the analysis—published in the reserve’s Rocky Mountain Economist late last month—observes that while the industry boomed in the initial years after the state legalized marijuana for adult use, there’s been a leveling off when it comes to sales, licenses and jobs in the state’s cannabis market.

Via Kansas City Fed.

Tax revenue has continued to rise, helping to fund public service programs and the state’s general fund, but the Fed report’s authors write that experts don’t anticipate the rate of that growth can be sustained in the long-term if sales continue to steady.

Via Kansas City Fed.

The federal bank also explored the “potential costs of marijuana legalization,” determining that after an initial spike, rates of youth consumption have “recently dropped below pre-legalization levels.” Cannabis-related crimes have also dropped off “due largely to a significant drop in marijuana possession offenses,” the report states. However, it finds that “there still are signs” of the illicit market operating in the state.

“It is important to continue to highlight that Colorado’s legalization of marijuana, as well as that of other states as mentioned earlier in this article, conflicts with federal law,” the authors write. “This continues to create challenges for marijuana businesses, including access to the payment and banking systems.”

That point about banking complications is especially relevant. While members of Congress may have diverging views on cannabis reform in general, there’s a growing, bipartisan consensus that the lack of access to financial services for state-legal marijuana businesses creates an untenable situation.

The head of the Kansas City Federal Reserve Bank discussed the issue during an American Bankers Association summit last year, stating that the country must “get reconciliation across federal and state law ultimately to make this work” and “in the meantime, you’re going to have some of these challenging situations.”

A bipartisan bill to achieve that reconciliation was approved by a wide margin in the House in September. However, while the chair of the Senate Banking Committee has expressed interest in taking the legislation up in his chamber, he recently proposed changes that advocates view as unworkable, such as making financial services available only to marijuana businesses that sell cannabis products with a maximum THC concentration of two percent.

In the new report’s conclusion, the authors write that while “Colorado’s marijuana industry continues to expand, economic indicators in this sector are showing early signs of nearing a longer-term equilibrium.”

“Though there still is room for growth, demonstrated by a spike in recreational marijuana sales during the summer months of 2019, the industry is unlikely to see rapid expansion in employment and business formation comparable to the growth during the first few years after legalization,” the report states. “That said, there are factors that may influence the pace of industry growth in Colorado, such as changes in marijuana legislation at the state and federal levels.”

“While it is unclear if marijuana ever will be legalized at the federal level, a 2019 survey released by Pew Research Center showed that an estimated two-thirds of adults in the United States support the legalization of marijuana, up from just one-third of adults at the turn of the century,” it continues. “This change in public perception represents a growing acceptance of the industry despite its potential costs.”

Federal Marijuana Reform Will Get Another Congressional Hearing Next Week

Photo courtesy of Mike Latimer.

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.

Kyle Jaeger is Marijuana Moment's Sacramento-based senior editor. His work has also appeared in High Times, VICE and attn.

Politics

Bipartisan Pennsylvania Senators File Bill To Let Medical Marijuana Patients Grow Their Own Plants

Published

on

A bipartisan group of Pennsylvania senators introduced a bill on Thursday that would allow medical marijuana patients to cultivate their own plants for personal use.

Sens. Dan Laughlin (R) and Sharif Street (D) first announced their intent to file the legislation in November, arguing that it is a necessary reform to ensure patient access by giving people a less costly alternative to buying from dispensaries.

Registered patients who are 21 and older, and who have been residents of the state for at least 30 days, could grow up to six plants in an “enclosed and locked space” at their residence, according to the text of the bill. They would be allowed to buy cannabis seeds from licensed dispensaries

 

In an earlier cosponsorship memo for the new home grow bill, the lawmakers said that letting patients cultivate their own medicine would “help ease the cost and accessibility burdens for this important medicine.”

The new legislation has three other initial cosponsors in addition to Street and Laughlin.

Street had attempted to get the reform enacted as an amendment to an omnibus bill this summer, but it did not advance.

The senators argue that patients in particular are deserving of a home grow option, as some must currently travel hours to visit a licensed dispensary and there are financial burdens that could be alleviated if patients could grow their own plants for medicine.

Late last year, Laughlin and Street also unveiled a separate adult-use legalization proposal that faces significant challenges in the GOP-controlled legislature. And Street is behind another recent cannabis measure to provide state-level protections to banks and insurers that work with cannabis businesses.


Marijuana Moment is already tracking more than 1,000 cannabis, psychedelics and drug policy bills in state legislatures and Congress this year. Patreon supporters pledging at least $25/month get access to our interactive maps, charts and hearing calendar so they don’t miss any developments.

Learn more about our marijuana bill tracker and become a supporter on Patreon to get access.

In the interim, Lt. Gov. John Fetterman (D), who is running for U.S. Senate this year, said one of his key goals in his final year in office is to ensure that as many eligible people as possible submit applications to have the courts remove their cannabis records and restore opportunities to things like housing, student financial aid and employment through an expedited petition program.

Pennsylvania lawmakers could also take up more modest marijuana reform proposals like a bill filed late last year to expand the number of medical marijuana cultivators in the state, prioritizing small farms to break up what she characterized as a monopoly or large corporations that’s created supply problems.

Rep. Amen Brown (D) separately announced his intent to file a legalization bill that he’ll be working on with Sen. Mike Regan (R), who expressed his support for the policy change a day earlier.

Additionally, another pair of state lawmakers—Reps. Jake Wheatley (D) and Dan Frankel (D)—formally unveiled a legalization bill they’re proposing last year.

Philadelphia voters also approved a referendum on marijuana legalization in November that adds a section to the city charter saying that “the citizens of Philadelphia call upon the Pennsylvania General Assembly and the Governor to pass legislation that will decriminalize, regulate, and tax the use, and sale to adults aged 21 years or older, of cannabis for non-medical purposes.”

Gov. Tom Wolf (D) said last year that marijuana legalization was a priority as he negotiated the annual budget with lawmakers. However, his formal spending request didn’t contain legislative language to actually accomplish the cannabis policy change.

The governor, who signed a medical cannabis expansion bill in June, has repeatedly called for legalization and pressured the Republican-controlled legislature to pursue the reform since coming out in favor of the policy in 2019. Shortly after he did that, a lawmaker filed a separate bill to legalize marijuana through a state-run model.

A survey from Franklin & Marshall College released last year found that 60 percent of Pennsylvania voters back adult-use legalization. That’s the highest level of support for the issue since the firm started polling people about it in 2006.

An attempt to provide protections for Pennsylvania medical marijuana patients from being charged with driving under the influence was derailed in the legislature last year, apparently due to pushback by the state police association.

Nebraska Activists Say New GOP Medical Marijuana Bill Is A ‘Poison Pill’ Meant To Detract From Ballot Efforts

Photo courtesy of Mike Latimer.

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.
Continue Reading

Politics

Minnesota Democratic Leaders Preview Marijuana Legalization Plan For 2022

Published

on

Minnesota Democratic leaders are preparing for another push to legalize marijuana this session, with the sponsor of the House-passed reform bill saying he will be reworking the legislation in an effort to build further support—though it continues to face an uphill climb in the GOP-controlled Senate.

House Majority Leader Ryan Winkler (D) and Senate Minority Leader Melisa Franzen (D) discussed the legislative strategy during a roundtable event hosted by the Minnesota Hemp Growers Cooperative on Wednesday.

Winkler said that his bill, which moved through 12 committees before being approved on the House floor last year, is the “product of hundreds of hours of work involving thousands of people’s input, countless hearings and public listening sessions—but it is not a perfect bill.”

“As we look ahead to this session…our goal is to go back and reexamine provisions of the bill,” he said. Licensing structures, public safety and substance misuse concerns are among the issues that lawmakers will be looking at to improve upon the legislation.

“We will be working with our colleagues in the Minnesota Senate,” Winkler added. “We’re interested in pursuing legalization to make sure that the bill represents senators’ priorities for legalization as well.”

The leader said that “any effort this year that would be successful would require Republican support as well.”

But while advocates are encouraged to hear that the House may again vote to pass the legalization legislation, the Senate minority leader tempered expectations about the bill’s prospects in her Republican-run chamber.

“Unfortunately, I don’t think there’s a path to legalization this year in the Minnesota Senate,” Franzen said. “It’s controlled by the Republican party, and they have there’s a few members who are really adamantly opposed to legalization.”

Gov. Tim Walz (D) is supportive of cannabis legalization, and while the broad reform didn’t advance last session, he did sign a bill to expand the state’s medical marijuana program, in part by allowing patients to access smokable cannabis products.

Winkler said on Wednesday that “it was because of the work done” by advocates on legalization that put pressure on Senate Republicans to advance that legislation.

Another cannabis issue playing out in Minnesota concerns CBD. The state agriculture department and pharmacy board have increased enforcement against the sale of the non-intoxicating cannabinoid in recent months, prompting calls for legislative reform.

Winkler said that the political dynamics around legalization that led to the expansion of the state’s medical cannabis program will be “a template for how we will address challenges with CBD this year.”

“My staff is working very closely with advocates, working with senators, working with other House members to get in a repair for the CBD industry, and I have every confidence that we will be able to do that with your help,” he said.

A poll conducted by Minnesota lawmakers that was released last year found that 58 percent of residents are in favor of legalization. That’s a modest increase compared to the chamber’s 2019 survey, which showed 56 percent support.

Winkler said in 2020 that if Senate Republicans don’t go along with the policy change legislatively, he hopes they will at least let voters decide on cannabis as a 2022 ballot measure.

Rhode Island Governor Includes Marijuana Legalization And Expungements In Budget Request

Photo courtesy of Philip Steffan.

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.
Continue Reading

Politics

Nebraska Activists Say New GOP Medical Marijuana Bill Is A ‘Poison Pill’ Meant To Detract From Ballot Efforts

Published

on

A Republican Nebraska senator introduced a bill on Thursday that ostensibly seeks to legalize medical marijuana in the state—but activists have raised concerns that the restrictive measure may be an attempt to subvert an effort to pass even broader patient protections on the 2022 ballot.

Sen. Mike Groene (R) filed the legislation, which would allow certain patients to buy and possess cannabis oils, pills and up to two and a half ounces of flower at a limited number of dispensaries. Smoking or inhaling marijuana would be banned, however, as would making edibles—so it’s not clear how patients would consume the flower they could possess.

But the main problem is, the bill would maintain that cultivating marijuana in Nebraska for commercial or personal use is illegal, meaning dispensaries wouldn’t even have a legal means of obtaining cannabis products for patients.

The bill is also severely restrictive in terms of who would qualify for cannabis. It would only permit access to people with stage IV cancer, uncontrolled seizures, severe muscle spasms caused by multiple sclerosis or muscular dystrophy or a terminal illness with less than a one year probable life expectancy.

It’s being backed by the Nebraska chapter of the prohibitionist group Smart Approaches to Marijuana (SAM), leading some advocates to suspect that the lack of cultivation provisions is designed to be a “poison pill” while misleading voters into thinking that there is a good faith effort to legalize medical cannabis legislatively.

“This appears to be a political stunt,” Jared Moffat, state campaigns manager at the Marijuana Policy Project, said in a press release. “Opponents of medical cannabis know there is a viable campaign to put medical cannabis on the ballot, and they know Nebraskans will overwhelmingly support that effort.”

“This is an attempt to take our focus away from that,” he said. “But it won’t succeed because it’s clear that this proposal is not a good faith effort to find some middle ground on the issue.”

The bill comes as Nebraskans for Medical Marijuana (NMM) continues to work to collect signatures for a pair of medical cannabis legalization initiatives that advocates hope to place on the November ballot. They have until July to collect 87,000 valid signatures to qualify each of their complementary measures.

Activists with the group collected enough signatures to qualify a medical marijuana legalization measure for the 2020 ballot, but the state Supreme Court invalidated it, finding that the proposal violated the single-subject rule for citizen initiatives.


Marijuana Moment is already tracking more than 1,000 cannabis, psychedelics and drug policy bills in state legislatures and Congress this year. Patreon supporters pledging at least $25/month get access to our interactive maps, charts and hearing calendar so they don’t miss any developments.

Learn more about our marijuana bill tracker and become a supporter on Patreon to get access.

Now this legislation from Groene is entering the mix for the 2022 session. And SAM Nebraska co-chair John Kuehn told The Lincoln Journal-Star that it’s “a good faith effort and we are willing to look at this as an acceptable alternative to creating a marijuana industry in the state of Nebraska.”

While advocates aren’t necessarily buying that argument given that it would authorize dispensaries without providing the ability to cultivate marijuana products, some like NMM co-chair Sen. Anna Wishart (D) are willing to work with the senator to get the bill into a more acceptable shape for patients.

“It would be the status quo,” Wishart said. “I want a safe system, but there are practical realities patients are living with every day. No one wants a system that doesn’t work.”

Notably, Groene did support a procedural motion to advance Wishart’s more expansive medical cannabis bill last session.

Jane Kleeb, chair of the Nebraska Democrats, pounced on the restrictive nature of Groene’s bill and said it makes it “not easy or feasible for most” to obtain a medical cannabis recommendation from a doctor.

Shari Lawlor, a member of Nebraska Families for Medical Cannabis, said that the group is “grateful that Sen. Groene recognizes the importance of medical cannabis,” but as drafted, “this is a medical cannabis bill with no cannabis.”

“It envisions a system with dispensaries but no farmers or cultivators who actually produce the medical cannabis that patients need,” she said. “And since patients are not allowed to cultivate medical cannabis themselves under this proposal, there is effectively no way for patients to get the relief they need.”

Gov. Pete Ricketts (R) is no fan of legalization. He partnered with SAM Nebraska on a recent ad urging residents to oppose cannabis reform in the state. Given the organization’s support for this new GOP proposal, there’s some suspicion that he might back it to give the appearance that the administration isn’t deaf to calls for reform by voters.

Advocates aren’t going to be deterred by the bill’s introduction. They will be moving forward with the complementary medical cannabis initiatives in hopes to getting the issue to voters.

The campaign deliberately chose to take a bifurcated approach because of the state Supreme Court invalidation over the single-subject rule.

One of the statutory initiatives would establish legal protections for patients and doctors around cannabis, while the other would allow private companies to produce and sell medical marijuana products.

Lawmakers attempted to advance medical cannabis reform legislatively last year, but while the unicameral legislature debated a bill to legalize medical marijuana in May, it failed to advance past a filibuster because the body didn’t have enough votes to overcome it.

Wishart and NMM co-chair Sen. Adam Morfeld (D) announced in late 2020 that they would also work to put the question of legalizing marijuana for adult use before voters in 2022. But for now their focus appears to be on the medical cannabis effort.

For what it’s worth, Nebraska’s attorney general argued in an opinion in 2019 that efforts to legalize medical marijuana legislatively in the state would be preempted by federal law and “would be, therefore, unconstitutional.”

Rhode Island Governor Includes Marijuana Legalization And Expungements In Budget Request

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.
Continue Reading
Advertisement

Marijuana News In Your Inbox

Support Marijuana Moment

Marijuana News In Your Inbox

Marijuana Moment