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Marijuana Biz Lobbyist Testifies Against Home Cultivation But Is Reversed By Client

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The question of whether individuals should be allowed grow their own marijuana in states where it is legal has created discord among those who otherwise agree on broad cannabis reform, with advocates working to expand access while certain companies take an opposing stance.

The latest example comes out of New Hampshire, where a lobbyist representing the medical marijuana dispensary Sanctuary ATC testified this week against a bill that would allow patients and caregivers to cultivate cannabis.

But after the testimony was delivered to the Senate Health and Human Services Committee on Tuesday, advocates sounded the alarm and the CEO of the company said it was all a big misunderstanding.

The lobbyist, Michael McLaughlin, argued before lawmakers that the legislation would drive up retail prices, pose health concerns and undermine New Hampshire’s regulatory system.

Many patients and legalization advocates view a home grow option as a basic principle that should be permitted in all states where marijuana is legal. They see it as a civil liberties issue and a way to offer access to those who can’t afford retail prices.

But Sanctuary, based in Plymouth, New Hampshire, didn’t make that case when the company’s hired lobbyist appeared before lawmakers this week.

Instead, McLaughlin told the panel members that the legislation, if enacted, would essentially represent a breach of an agreement that the government made with cannabis licensees, which invested significant capital into the medical cannabis program under the impression that patients wouldn’t be allow to grow their own and would, therefore, have to spend their money at dispensaries.

New Hampshire lawmakers approved a medical marijuana in 2013, but the first dispensaries, including Sanctuary, didn’t open until 2016.

“We have a therapeutic cannabis program that’s a little under three years old, and the economics of the therapeutic cannabis centers is dramatic and millions of dollars have been invested,” McLaughlin said. “The whole compact between the people who are licensed in the state is undermined immediately by putting home grown cannabis into the equation.”

While the witness raised other concerns about ensuring quality control and enforcement standards for cannabis products, the financial matters received the greatest emphasis. He argued that three years wasn’t enough time to get the return on investment needed to expand the company, and said prices on medicine would be increased if the bill passed.

“You’re going to hear some poignant stories from patients who are using therapeutic cannabis, and we have great empathy for them, but if you look at what the state asked the three licensees to do, which is invest millions and millions of dollars in a program for New Hampshire citizens, you’re now saying to them, ‘Well, we’ve changed our mind.'”

But Sanctuary CEO Jason Sidman told Marijuana Moment that McLaughlin inadvertently misrepresented the company’s position and that it actually supports the legislation. He said that there were certain amendments the company wanted to see—mostly concerning certain definitions included in the bill—but that he’d never even heard of arguments the lobbyist made about the economic impact of allowing home cultivation.

He also rejected the idea that permitting patients and caregivers to grow cannabis would drive up prices at dispensaries.

“At the end of the day, I believe that it’s every patient’s right to cultivate their own medicine should they choose,” Sidman said. “I just think that there has to be—some of the definitions surrounding this bill really need to be clarified. And of course, again, that’s just our opinion.”

“I wish I was there yesterday, but all I can do now is just basically move forward, clarify Sanctuary’s position and support the therapeutic cannabis program and our patients to the best of our ability,” he said.

To correct the record, Sidman said he plans to submit a letter to the committee chairman and members to explain that Sanctuary does not oppose the legislation, which was approved by the full House earlier this month, and to clarify what changes to the bill the company does support.

“There could have been some possible miscommunications between our thoughts surrounding HB 364, and I think that this clarification will really clear that up,” he said.

While it seems unusual that Sanctuary’s lobbyist would visit the legislature and deliver both written and oral testimony without first running it by the company’s chief executive, the alleged miscommunication could represent an unexpected opportunity for advocates. Sidman’s letter, which he said he’d deliver by Thursday at latest, could ultimately bolster efforts to pass the home grow legislation.

“The public testimony offered on Tuesday by Sanctuary’s lobbyist in opposition to HB 364 was very offensive to patients who feel strongly about being allowed to grow their own plants,” Matt Simon, New England political director at the Marijuana Policy Project, told Marijuana Moment. “However, Sanctuary CEO Jason Sidman seems to be very sincere about helping to pass HB 364.”

“For the sake of patients who cannot afford to continue waiting, I hope our efforts to persuade the Senate will be successful this year,” he said. “Taking care of your own medical needs should not be a felony in the ‘Live Free or Die’ state.”

Marijuana Moment reached out to McLaughlin for comment, but he did not respond by the time of publication.

Outside of this specific example, conflicts between advocates and industry interests are heating up. Legislatures across the country are seeing calls to go beyond simply legalizing a commercial cannabis market and also take steps to ensure that small businesses, people of color, women and others from communities disproportionately impacted by prohibition are not left in the dust as large companies take over the industry.

That’s partly why there was widespread condemnation after Marijuana Moment reported last month that a New York-based medical marijuana business association advocated against home cultivation in a policy statement submitted to the office of Gov. Andrew Cuomo (D). The association, comprised of large companies like Vireo Health, Acreage, Columbia Care and, at the time, MedMen, did not directly indicate that their opposition was profit-driven, but advocates said they suspected money was at the bottom of the recommendation not to let people grow their own marijuana.

In New Hampshire, while the bill to allow home cultivation of medical cannabis advances through the legislature, lawmakers are also working to pass legislation to legalize marijuana for adult use after the full House, and then a key committee, approved the proposal.

You can read the home cultivation testimony from the Sanctuary lobbyist here:

Sanctuary ATC Testimony by Marijuana Moment on Scribd

You can read a letter from Sanctuary’s CEO clarifying its position below:

Sanctuary ATC homegrow letter by Marijuana Moment on Scribd

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

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

Politics

Three Federal Agencies Take Public Comments On Cannabis Topics

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Three federal agencies—the Food and Drug Administration (FDA), the Environmental Protection Agency (EPA) and the Drug Enforcement Administration (DEA)—are now accepting comments from the public on cannabis-related topics such as hemp pesticides and the legal classification of marijuana globally.

In a notice published in the Federal Register last month, FDA said that it is seeking input on potential changes to the status of marijuana under international treaties.

EPA invited comments on applications for pesticides to be used on hemp, which comes months after the crop was federally legalized.

Meanwhile, people have the chance to share their perspective on a proposal DEA released last week that calls for the cultivation of more than three million grams of cannabis for research purposes next year. That 3.2 million gram quota would be 30 percent higher than this year’s. At the same time, DEA said its quota for prescription painkillers such as fentanyl and oxycodone would be decreased next year by more than 50 percent.

The comment period opened last week, and 25 people have weighed in at this point. Submissions received so far are primarily focused on DEA’s proposed reduction opioid production, with several chronic pain patients arguing that they will be negatively impacted. People can send comments on the cannabis and other drug quotas through October 15.

FDA initially made its request for input on cannabis’s global treaty status in March, but it was closed because an expected United Nations (UN) vote on a proposal to remove marijuana from the most strictly regulated category was postponed.

Last month, FDA said it was reopening the comment period until September 30, in anticipation that the UN will make a decision on the possible changes in the coming months. So far, a total of about 3,000 comments have been received, including those posted since August 29. The vast majority voice support for legalization, with many sharing personal anecdotes about the plant’s therapeutic benefits.

“Please lift the ban and prohibition of marijuana. Marijuana isn’t ruining the lives of countless Americans… America’s drug laws are doing that all by themselves via mass incarceration,” Zach Fowler wrote.

“I am 30 years old and suffer from a progressive neurologically condition that leaves me in constant debilitating pain along with a host of other symptoms. Without cannabis, I could not function enough to work for even care for my children,” Amanda Wood-Devore said. “Cannabis calms my pain, eases corresponding anxiety, and helps my constant nausea and vomiting.”

Alex Rol said that the “current marijuana laws are more destructive than protective.”

“We have seen extensive reports that cannabis can be used for medical purposes and many find its effects increase the ease of life,” he said. “While I understand the concern of those less familiar with cannabis on its legalization it simply isn’t right to incarcerate people for possession of a generally harmless substance.”

“I agree with the [World Health Organization] that cannabis should be removed from the Schedule 1 classification,” Michael Ochipa wrote, referring to a recommendation WHO released in February urging the rescheduling of marijuana and descheduling of CBD.

“Most of the research to date indicates that cannabis has a very positive risk/reward profile,” he wrote. “Side effects are lower, and medicinal benefits are greater than many over the counter drugs. It can also be grown easily at home making it more economical.”

Though it’s not clear how much stock FDA will put into personal stories of individuals who’ve benefited from marijuana in shaping the Trump administration’s position on scheduling changes, the volume of comments and consistency of support for legalization is significant. While there has been a focus on the medical potential of cannabis, several others emphasized the consequences of prohibition, particularly for communities of color.

If the United Nations does decide to adopt WHO’s recommendations, it wouldn’t mean that member nations would be free to legalize marijuana without technically violating the treaties. However, even under its current strict status, Canada and Uruguay have moved forward with legalization models, with Mexico expected to follow suit as early as next month.

Over at EPA, there hasn’t been quite as much interest from the public in submitting comments on pesticides applications for hemp. The agency announced last month that it was accepting input on 10 existing applications and said it hoped “this transparent and public process will bring hemp farmers and researchers increased regulatory clarity in time for next growing season.”

EPA said it’s not required to take public comment on the applications but is doing so “because of the potential significant interest from the public in these initial applications and in furtherance of being completely transparent about these applications.”

There may be significant interest from the public on hemp legalization generally, particularly among stakeholders who are eagerly awaiting federal regulations to unlock the crop’s potential, but that isn’t being reflected on the Federal Register notice page yet when it comes to pesticides. Only five people have commented on the proposal.

One person noted that the 10 pesticides under review contain almost the same ingredients and said “it really limits the ability of producers to manage pests and diseases.”

“I highly recommend expanding the list of compounds available to producers to increase the ability to suppress pests and diseases,” the anonymous commenter wrote. “There are many more bio-pesticides on the market that are safe for humans that specifically target agricultural pests.”

Another individual who said he and his partner are making a transition from growing cannabis in California to hemp in North Carolina wrote in support of the proposed pesticides.

“We have used the products under discussion with great effectiveness, especially the biological controls,” the person said. “Because hemp can be so susceptible to mold, fungus, and pests, it is imperative to have these tools to ensure a healthy and plentiful product.”

Finally, there was one comment in opposition to allowing any pesticides on hemp because, they wrote, “IT WILL JUST TURN IT IN TO POISON.”

EPA’s public comment closes on September 23. The agency did not say when decisions would be made about the applications, but it did state that it planned to give hemp farmers approval to use the tools before the 2020 planting season.

The fact that three separate federal agencies are now accepting comments on separate cannabis issues is another sign that the public has more opportunity than ever before to influence the government’s position on marijuana policy.

DEA Wants 3.2 Million Grams Of Marijuana Legally Grown In 2020

Photo courtesy of Nicholas C. Morton.

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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Bipartisan Lawmakers Circulate Letter Urging FDA To Back Off CBD Companies

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A bipartisan pair of lawmakers are circulating a sign-on letter asking colleagues to join them in urging the Food and Drug Administration (FDA) to back off companies that are selling CBD products in a responsible manner.

The “Dear Colleague” letter, which is being led by Reps. Chellie Pingree (D-ME) and James Comer (R-KY), emphasizes that hemp and CBD were federally legalized under the 2018 Farm Bill and argues that the lack of regulations for such products is creating industry uncertainty that’s inhibiting economic opportunities.

The letter was first reported by the U.S. Hemp Roundtable, which is asking its supporters to encourage their representatives to sign on.

FDA has said it is in the process of developing rules for the non-intoxicating compound, including a potential alternative regulatory pathway allowing for CBD to be added to the food supply and as dietary supplements. That could take years, however, as former FDA Commissioner Scott Gottlieb has noted.

In the meantime, the agency is being selective about enforcement action against companies that make unsanctioned claims about their products while also maintaining that all businesses selling CBD food items are violating the law.

The lawmakers aren’t satisfied. They described FDA’s regulatory timeframe as “untenable,” particularly because the U.S. Department of Agriculture is expected to release its rules for hemp “any day now,” and an official revealed this month that its draft regulations are currently undergoing final White House and Department of Justice review.

The members of Congress added that FDA’s current approach to CBD has “created significant regulatory and legal uncertainty for participants in this quickly evolving industry.”

“Given the widespread availability of CBD products, growing consumer demand, and the expected surge in the hemp farming in the near future, it’s critical that FDA act quickly to provide legal and regulatory clarity to support this new economic opportunity,” they wrote.

“Please join us in signing this bipartisan letter to Acting FDA Commissioner Ned Sharpless urging the agency to adopt a risk-based policy of enforcement discretion that targets bad actors while eliminating uncertainty for responsible industry stakeholders and consumers. Additionally, we are requesting that FDA to issue an interim final rule to regulate CBD as a dietary supplement and food additive.”

In the letter to Sharpless that Pingree and Comer are asking fellow lawmakers to sign, they laid out two requests for FDA.

First, the agency should “promptly issue guidance announcing a policy of enforcement discretion that maintains FDA’s current risk-based enforcement approach towards hemp-derived CBD products.” And second, it should “consider issuing an interim final rule, pending issuance of a permanent final rule, to establish a clear regulatory framework for CBD as a dietary supplement and food additive.”

The lawmakers added that they appreciate that FDA has pursued “enforcement actions against the worst offenders,” but that “it can do so while eliminating regulatory uncertainty for farmers, retailers, and consumers.”

“Without a formal enforcement discretion policy, anyone participating in the growing marketplace for legal hemp-derived products will continue to face significant legal and regulatory uncertainty,” they wrote.

Though issuing guidance on a “policy of enforcement discretion” wouldn’t be a codified law allowing companies to market CBD in the food supply, it would demonstrate to the industry that some protections are in place while FDA continues to navigate the rulemaking process.

Lawmakers have until Tuesday to sign the letter to FDA.

Read the Dear Colleague invitation and CBD letter to FDA below:

Pingree Comer CBD Letter by Marijuana Moment on Scribd

GOP Senate Chair Says He Plans Marijuana Banking Vote

Photo by Kimzy Nanney.

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Marijuana Banking Bill Will Get A Full House Floor Vote This Month

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A bipartisan bill to protect banks that service marijuana businesses will get a House floor vote by the end of the month, the office of Majority Leader Steny Hoyer (D-MD) confirmed to Marijuana Moment on Friday.

House leadership announced the decision to Democratic lawmakers at a closed-door meeting on Thursday.

“Mr. Hoyer said at the Whip meeting yesterday that he intends to move it this month,” a Hoyer staffer said in an email. “We’re discussing it with Members, but it hasn’t been scheduled just yet.”

Prior to confirmation from Hoyer’s office, four sources initially described the development to Marijuana Moment, with some saying the vote would be made under suspension of the rules—a procedure that is generally reserved for non-controversial legislation.

Voting on suspension would require two-thirds of the chamber (290 members) to vote in favor of the Secure and Fair Enforcement (SAFE) Banking Act in order for it to pass. The bill, which cleared the House Financial Services Committee in March, currently has 206 cosponsors, including 26 Republicans.

No amendments would be allowed to be added on the floor under the suspension process.

Problems could arise if lawmakers aren’t able to rally additional votes from conservative members or if there’s pushback over the strategy from progressive lawmakers, though it is unlikely Democratic leadership would advance the bill if they didn’t believe they have the votes for passage.

While interest in resolving the banking issue is generally bipartisan, it’s within reason to assume that lawmakers on both sides of the aisle might have wanted the opportunity to offer provisions such as extending protections to hemp businesses or adding language promoting social equity policies. That said, it is possible that leadership could file an entirely new piece of legislation that is similar to the SAFE Banking Act but contains modified provisions negotiated with key members and use that as the vehicle for floor action.

Many expected cannabis banking legislation to receive a floor vote before the August recess, but that did not come to fruition.

In any case, the development comes as the Senate Banking Committee is also preparing to hold a vote on marijuana banking legislation, with Chairman Mike Crapo (R-ID) announcing on Thursday that his panel is “working to try to get a bill ready.” He didn’t offer a timeline, however, other than saying he hoped to advance the legislation by the end of the year.

While sources told Marijuana Moment that Hoyer made his decision to allow cannabis banking vote following an earlier Wednesday meeting on the issue, it is likely that building momentum in the GOP-controlled Senate added to pressure on the House to act so that Democrats wouldn’t be seen as lagging behind Republicans on cannabis reform, an issue the party has sought to take political ownership of.

Following Crapo’s statement on advancing the banking legislation, Rep. Ed Perlmutter (D-CO), chief sponsor of the SAFE Banking Act, told Marijuana Moment that he welcomes the senator’s “commitment to resolve the banking conflicts that have been created by the misalignment in state and federal law on the issue of cannabis.”

“I remain focused on passing the SAFE Banking Act out of the House and look forward to working with my colleagues in the Senate as they take up the SAFE Banking Act or work to develop and pass similar legislation,” he said.

Banking access is largely seen as one of the most achievable pieces of cannabis legislation that stands to pass this Congress. Advocates and reform-minded lawmakers view it as one of the first steps on the path toward ending federal marijuana prohibition.

“We are seeing the blueprint in action and moving forward on critical legislation to protect state legal cannabis banking,” Rep. Earl Blumenauer (D-OR) told Marijuana Moment, referring to a memo he sent to House leadership last year outlining a committee-by-committee process for passing incremental cannabis bills leading up to major legislation to end federal prohibition. “Earlier this summer, the House passed protections for state and tribal cannabis laws. In the most cannabis friendly Congress in history, we need to keep up this momentum. There is still much to be done.”

There has been some disagreement within advocacy circles about whether it’s prudent to pass legislation viewed as primarily favorable to the industry before advancing comprehensive legislation that deschedules cannabis and takes steps to repair the harms of prohibition enforcement.

“It is our hope that after the successful passage of the SAFE Banking Act in the House, we will be able to advance legislation that ends the federal criminalization of cannabis once and for all,” Justin Strekal, political director of NORML, told Marijuana Moment. “Now is our time to demonstrate that marijuana law reform is both good policy and good politics.”

“We will not stop until otherwise law-abiding Americans are no longer discriminated against or criminalized due to the past or future choice to consume cannabis,” he said.

Neal Levine, CEO of the Cannabis Trade Federation, told Marijuana Moment that the group is “delighted that the U.S. House of Representatives is on the brink of passing a landmark piece of cannabis policy legislation that modernizes our antiquated banking laws to reflect the will of the people.”

“This is welcomed and long overdue news for the over 200,000 employees that work in the industry, cannabis businesses, and for public safety in the communities in which we operate,” he said. “Once the SAFE Banking Act passes the U.S. House, we call on the U.S. Senate to move quickly to protect our businesses and our workers.”

Pressure has been building all year from stakeholders and policymakers alike to get the legislation passed. Endorsements aren’t just coming from reform groups, either; 50 state banking associations, the National Association of State Treasurers, the top financial regulators of 25 states, a majority of state attorneys general and bipartisan governors of 20 states have also voiced support for the SAFE Banking Act.

Earlier this month, the head of the American Bankers Association predicted that the bill would be passed in the House “as early as September.”

GOP Senate Chair Says He Plans Marijuana Banking Vote

This story was updated to add comment from Perlmutter and Hoyer’s office.

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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