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Major Alcohol Association Briefs Congress On Marijuana Legalization

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One of the nation’s leading alcohol industry associations held a briefing on Capitol Hill on Friday to tell lawmakers and congressional staffers about its position on marijuana legalization.

The Wine & Spirits Wholesalers of America (WSWA) became the first major alcohol association to call for the end of federal cannabis prohibition in July. At last week’s briefing, the group reaffirmed that stance, emphasizing that the federal government should allow states to legalize marijuana without interference.

A representative from the group also suggested that the cannabis market could take lessons from the current regulatory approach to alcohol, including when it comes to distribution and quality control testing, one person who attended the event told Marijuana Moment. There was also a conversation about developing technologies to detect active impairment from marijuana on the roads.

In a one-sheet overview distributed at the briefing, WSWA wrote that the industry’s regulatory structure “should ensure product safety, discourage underage access, create an effective tax collection regime and encourage innovation and choice for consumers, while at the same time eliminating diversion of cannabis to other states.”

WSWA then outlines a series of recommendations—from implementing impaired driving standards to testing product formulas.

Read WSWA’s full list of marijuana policy recommendations below:

Via WSWA.

For the most part, the recommendations align with existing regulatory models in legal states. Where the alcohol and marijuana industries might have disagreements, though, is with WSWA’s opposition to vertical integration, under which one company manages more than one area of production and distribution that could otherwise be delegated to other businesses.

The alcohol industry generally operates under a three-tier system in the U.S., through which separate operators handle production, wholesaling and retail sales. Some have suggested that the alcohol industry wants the cannabis market to adopt its approach so that existing businesses like beer, wind and liquor distributors can profit from legal marijuana as well. But Dawson Hobbs, WSWA senior vice president of government relations, denied as much when the association made its initial announcement earlier this year.

“No, what we’re talking about is just creating a pathway for states to have federal recognition of legalization by enacting appropriate regulation that creates a safe and reliable marketplace,” Hobbs said at the time.

A Main Ingredient In Beer Used To Be Marijuana’s ‘Sister,’ Study Shows

Photo courtesy of Chris Wallis // Side Pocket Images.

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 Los Angeles-based associate editor. His work has also appeared in High Times, VICE and attn.

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U.S. Postal Service Issues Advisory On Mailing Hemp-Derived CBD

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The U.S. Postal Service (USPS) quietly issued an advisory earlier this month clarifying rules around mailing cannabis preparations, saying that “some CBD products derived from industrial hemp can be mailable under specific conditions.”

The memo also signals that USPS will further loosen restrictions in the future in light of the passage of the 2018 Farm Bill, which federally legalized industrial hemp.

For now, the current advisory, which was first reported by the marijuana law blog Kight On Cannabis, stipulates that it is legal to mail hemp-derived CBD products in compliance with research-focused provisions of the earlier 2014 version of the federal agriculture legislation.

However, postal customers must first take certain steps such as providing a signed self-certification statement and documentation confirming the hemp producer is licensed through a state agriculture department.

Hemp mailed through USPS must also contain 0.3 percent THC—a policy that’s consistent with both the 2014 and 2018 Farm Bill definitions of hemp.

“The Postal Service has received an increasing number of requests to transport CBD oil and products containing CBD in Postal Service networks,” Travis D. Hayes III, a USPS business program specialist wrote in the March 4 advisory.

The federal agency said that the new instructions are due to change, given the broader legalization of hemp and its derivatives through the 2018 Farm Bill.

“Postal employees should be aware that the Agricultural Improvement Act of 2018 was recently signed into law,” the memo says. “This legislation removes industrial hemp from regulation under the Controlled Substances Act.”

But the agency said that it would wait until the legislation “is fully implemented” before it will “modify the mailability criteria for CBD and other cannabis products.”

The U.S. Department of Agriculture (USDA) is in charge of creating and implementing general regulations for hemp—instead of the Justice Department, which formerly oversaw enforcement against the crop—but it’s not clear when those rules will be formalized. Lawmakers and stakeholders have pressured the department to get the ball rolling, and it held a listening session last week to gather input from states and other interested parties.

But Agriculture Secretary Sonny Perdue has tried to temper expectations, emphasizing the need to “proceed slowly” given the crop’s complexity and saying that USDA plans to have its regulations ready for the 2020 growing season.

“We’re proceeding very judiciously obviously because of the uniqueness of the crop hemp and its relationship to other crops that we’re not encouraging,” he said last month, referring to marijuana.

While the USPS said that it issued the advisory because it was receiving an influx of inquiries about the rules governing mailing CBD, Kight On Cannabis suggested that it was prepared as a response to a legal dispute from last year surrounding the postal service’s seizure last year of hemp-derived CBD products that had been lawfully mailed.

Read the full USPS memo on mailing hemp-derived CBD below:

USPS CBD Hemp Clarification by on Scribd

USDA Receives Hemp Legalization Feedback From States And Stakeholders

Photo courtesy of Wikimedia/Kevin Payravi.

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Marijuana Activists Protest John Boehner’s SXSW Speech

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Advocates for social equity in the increasingly legal marijuana economy are protesting keynote speeches by former Republican House Speaker John Boehner and MedMen CEO Adam Bierman at South by Southwest (SXSW).

The Equity First Alliance, a group that promotes racial and social justice in the cannabis industry, said that Boehner and Bierman’s scheduled Friday appearances at the festival are a reflection of an ongoing trend where mostly white men are profiting off a market while people of color continue to disproportionately face criminalization for marijuana offenses.

Via Equity First Alliance.

Boehner has been the subject of ongoing criticism from marijuana advocates, who point out that he failed to act on cannabis reform, and opposed certain criminal justice reform legislation, during his 24 years in Congress. While he never introduced, cosponsored or voted in favor of marijuana bills in that time, he joined one of the largest cannabis firms, Acreage Holdings, as a board member last year.

In fact, Boehner consistently voted against an amendment to protect medical cannabis states from federal interference.

Bierman has been accused in a lawsuit filed by a former employee of making racist and homophobic remarks. His company, which was valued at $1.6 billion last year, was also a member of a New York-based medical marijuana industry association that advocated against allowing home cultivation in a memo submitted to Gov. Andrew Cuomo. (The company told Marijuana Moment that it supports the right to home cultivation, but did not answer questions about its involvement in drafting the document. It was later asked to leave the group over Bierman’s alleged remarks.) Acreage remains a member of the same association.

“Our protest at SXSW sends a bold message in support of cannabis equity, justice, and repair,” the Equity First Alliance’s Felicia Carbajal said in a press release. “We stand together, recognizing that by defending the most marginalized among us, we defend all of us. We support the advocacy and resistance movements that reflect our multiple and intersecting identities, and we call on all defenders of human rights to join us.”

Activists held protest signs over a nearby highway and at a hotel where Boehner’s speech—which covers “the likely paths to national legalization and the challenges and opportunities America’s fastest growing industry face today”—will take place on Friday. The signs condemn “big marijuana” and call for social equity policies such as community reinvestment.

“It’s clear this market is going to expand,” Boehner told CNBC in an interview ahead of the event. “And as it does, lawmakers in Washington have to look up and realize that the federal government is way out of step. It’s time for the federal government to get out of the way.”

In the press release, Equity First Alliance listed additional reasons they’re protesting as well as policies they support.

“In protest of:

—Those profiting off of cannabis without an intentional plan to repair and make whole individuals, families, and communities that have been devastated by the War on Drugs;
—Those profiting off of cannabis who once participated in prohibition;
—And those who would profit before freeing all cannabis prisoners and vacating all cannabis convictions

And calling for:

—10% of companies’ annual revenue to be reinvested in communities disproportionately harmed by the
War on Drugs;
—A new paradigm of social responsibility in the cannabis industry;
—And public policies that create an equitable, just, and reparative industry.”

“It’s hypocritical for an Austin based company like SXSW, a company imbedded in a city that preaches diversity and inclusion, to neglect the work of committing to create an inclusive space, and instead give a keynote platform to John Boehner,” Chas Moore, executive director of the Austin Justice Coalition, said. “This is disgusting.”

Marijuana Moment reached out to Acreage for comment, but a representative did not respond by the time of publication.

Marijuana Companies Urged Governor To Ban Cannabis Home Cultivation, Document Shows

Photo courtesy of Gage Skidmore.

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.
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Model Legislation Aims To Help Cities Bring People Of Color Into Marijuana Industry

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In the continuing work to diversify the legal cannabis space and include communities that have been hurt the most by the war on drugs, advocates have unveiled a model local ordinance that would help more people of color enter the industry.

The Model Municipal Social Equity Ordinance, released Monday by the Minority Cannabis Business Association (MCBA), “creates a baseline framework for adopting and advancing social equity in the cannabis industry as official public policy.”

Notes from an MCBA planning meeting.

The document was drafted with assistance from the National Cannabis Industry Association and the Drug Policy Alliance.

Research shows that African Americans are almost four times more likely to be arrested on marijuana-related charges than their white counterparts—even while usage rates are virtually identical. But as legalization makes its way across the country, the effects of this systemic racial bias persist: More than 80 percent of legal cannabis businesses are owned by white people, according to one survey.

In other words, the communities that have been punished the most for something as simple as marijuana possession have yet to see many of the benefits associated with legalization.

To address this disparity, MCBA’s model ordinance calls for cities to create cannabis social equity programs to provide financial and technical support to people who might not be able to otherwise own, invest or otherwise work in the cannabis industry. For example, under current policies enacted elsewhere, they may not be able to afford the high costs associated with licensing. Or they may be barred from even applying to work in the industry because of a past drug conviction.

The model ordinance is designed to even the playing field. People who were arrested on charges related to marijuana prior to legalization, who had a family member arrested on such charges and/or lived in an area with disproportionately high cannabis arrest rates would be eligible to participate in the program. It also invites people with low income—defined as those with “household income of less than 80 percent of the current fiscal year median family income for the county of residence”—to participate as well.

“The licensing structure… prioritizes folks who have been impacted by the war on drugs for ownership,” Jason Ortiz, MCBA vice president, told Marijuana Moment in a phone interview. “Those folks are often left behind, if included at all. We put them at the front of the line.”

Another important part of the ordinance, Ortiz said, is that it empowers local governments to study the impact of marijuana prohibition on their communities and use that data to influence decisions on where money generated from the industry should go.

“If your community was specifically targeted for arrests, your community now has data to support why they should be the ones to receive the support that is generated,” he said.

The model ordinance also encourages cities to create a “community reinvestment fund” from tax dollars and other revenue from cannabis businesses to use for job training, re-entry services and other community-centered support.

Other provisions include the facilitation of “resentencing and expungement to restore the civil rights of prior cannabis arrestees” (such as the automated process recently instituted in San Francisco) and the end of “suspicionless drug testing,” among other considerations.

The next step, of course, is to get municipalities to actually adopt the model ordinance. That’s going to take community engagement and dialogue, Ortiz said.

“For us, the importance and relevance of this document is that it allows anyone anywhere to start to have a conversation about equity at their local and state level,” he said.

“The Model Ordinance is a statement from the communities we represent to the local lawmakers, regulators, entrepreneurs and other stakeholders who are building our nation’s cannabis industry one town at time–social equity is not only possible, it should be the industry standard moving forward,” Khurshid Khoja, co-chair of the MCBA Policy Committee, said in a press release. “Our work gives those actors the tools they need to make equity a present reality in our industry rather than a lost opportunity.”

In 2017, MCBA released a similar model bill for state legislatures championing industry-wide equity.

New Jersey Mayors Demand Social Equity In Marijuana Legalization Bill

Photos/screen grabs from video produced by MCBA.

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.
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