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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

Kentucky GOP Congressman Touts ‘High Hemp IQ’ Of His Constituents

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Rep. James Comer (R-KY) says that he proved his political advisors wrong when he decided to champion hemp legalization.

When he served as Kentucky’s Agriculture Commissioner before joining Congress and first contemplated “making hemp a reality,” he was told that people would conflate the crop with marijuana and he’d face a backlash, Comer said during an interview that aired this week.

“They said the people of Kentucky will never know the difference. They’ll think you’re talking about marijuana and you’re done,” he said during the Kentucky Educational Television appearance. “You can’t be a Republican and do this.”

“But people in Kentucky are smarter than some people give us credit for, and the people in Kentucky knew the history of hemp,” he said, noting that his own grandparents cultivated the crop.

“We have a high hemp IQ in Kentucky, and people across America are now learning the difference between hemp and marijuana.”

One of the areas that Comer said he hopes to see expanded is the use of hemp fibers to create products such as furniture and car parts. He mentioned one example of a Kentucky company that’s creating hardwood flooring out of hemp, and House Agriculture Committee Chair Collin Peterson (D-MN) is going to tour that facility with him soon.

Shortly before becoming the panel’s chair, Peterson said he was considering growing hemp on his own farm.

Most of the existing hemp facilities in Kentucky are producing CBD oil, which Comer said he also takes to treat minor pain.

While hemp and its derivatives were federally legalized under the 2018 Farm Bill, businesses are still awaiting guidelines from the U.S. Department of Agriculture (USDA) and the Food and Drug Administration (FDA). And that regulatory uncertainty has led some financial institutions to deny credit lines to hemp companies.

To that end, Comer said he and Senate Majority Leader Mitch McConnell (R-KY) are working closely to resolve the problem. That includes pushing for the Secure And Fair Enforcement (SAFE) Banking Act, which would protect banks that service state-legal cannabis businesses from being penalized by federal financial regulators.

“We teamed up with the marijuana people in the states,” Comer said.

Watch Comer’s hemp comments, starting around 5:30 into the video below:

“They’ve legalized marijuana. They’re selling marijuana. They’re not allowed to deposit the cash. They’re not allowed to take credit card transactions at those marijuana stores,” he said. “We have worked with them to try to create a system where you can have financial transparency, and that bill is making its way through Congress now.”

The SAFE Banking Act was approved by the House Financial Services Committee in March. And on Tuesday, the Senate Banking Committee took advocates by surprise after it announced that it would hold a hearing on marijuana banking issues next week, with just days left before the August recess.

Separately, the Senate Agriculture Committee will meet to discuss hemp production two days later.

McConnell has been an especially vocal advocate for hemp and CBD. For example, he led the head of USDA on a tour of a Kentucky hemp facility that produces CBD oil earlier this month.

Comer also claimed in the new interview that large pharmaceutical companies feel threatened by hemp-derived CBD as more consumers gravitate toward it as a “natural supplement” that could be a substitute for prescription painkillers.

“Now what you are having up here in Washington as we speak, the big drug companies are like, ‘Wow, people are buying this CBD oil and not buying our drug,'” the congressman said. “So they’re demanding that the FDA regulate it.”

He and McConnell are working to “keep the FDA off the backs of people,” Comer said.

While former FDA Commissioner Scott Gottlieb stressed that creating a regulatory pathway that allows for the lawful marketing of CBD as a food item or dietary supplement would take years without congressional action, the agency recently said that it is speeding up the rulemaking process and will issue a progress report by early fall.

USDA similarly recognized the intense interest from lawmakers and stakeholders in developing regulations for the crop, and it plans to issue an interim final rule for the crop in August.

Senate Schedules Second Cannabis Hearing For Next Week

Photo courtesy of KET.

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Psychedelics Decriminalization Moves Forward In Cities Around The U.S.

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Activists in Berkeley, California and Port Townsend, Washington took steps this week to get psilocybin mushrooms and other psychedelics decriminalized, following in the footsteps of successful similar efforts in Denver and Oakland.

In Berkeley, a decriminalization resolution advanced in a City Council committee on Wednesday, and organizers in Port Townsend spoke about their proposal at a county public health board meeting on Thursday, with plans to formally present it to the City and County Council.

The Berkeley measure would prohibit city departments and law enforcement from using any funds to enforce laws against possession, propagation and consumption of psychedelics by individuals 21 or older. Members of the City Council Public Safety committee unanimously voted to send the resolution to the body’s Public Health Committee for further consideration.

If that panel approves the measure, the full Council will schedule a hearing and vote on final passage. Decriminalize Nature, the group behind this resolution as well as the successful passage of neighboring Oakland’s psychedelics decriminalization effort last month, said they hope the Council will act on the measure by early November.

Separately, activists in Port Townsend announced that they delivered a speech about their psychedelics decriminalization proposal during a meeting of the Jefferson County Board of Health.

Beyond prohibiting the use of government funds to criminalize adults for using and possessing the substances, the local Washington resolution also calls on the city administrator to “instruct the City’s state and federal lobbyists to work in support of decriminalizing all Entheogenic Plants and plant-based compounds that are listed on the Federal Controlled Substances Schedule 1.”

“We are overwhelmed by the support of our community. Our group of supporters filled up half the audience,” the Port Townsend Psychedelic Society said in an Instagram post. “We are currently making plans to speak with the county health officer to talk about next steps in presenting in front of city and county council.”

Alex Williams, who is leading the decriminalization effort in Berkeley, told Marijuana Moment that Wednesday’s Council committee meeting there “went better than I had anticipated” and that he feels “there is an excellent chance of the resolution passing.”

Watch the Berkeley Public Safety Committee discuss psychedelics, starting at about 42:00:

While Williams said two members of the committee seemed to be under the impression that the resolution is singularly geared toward recreational use and meant to “capitalize on a new market,” Decriminalize Nature plans to address those misconceptions, emphasizing that the measure would not provide for commercial manufacturing or sales and that “this process is very important to allowing safe, equitable access to marginalized communities.”

“It is essential that entheogenic substances be treats as sacred spiritual practices and healers,” he added.

The resolution defines entheogenic substances as “plants and natural sources such as mushrooms, cacti, iboga containing plants and/or extracted combinations of plants similar to ayahuasca; and limited to those containing the following types of compounds: indoleamines, tryptamines, phenethylamines.”

Two Councilmembers, Rigel Robinson and Cheryl Davila, are sponsoring the measure.

“You can imagine a day where, years from now, doctors working with patients with serious depression or veterans dealing with PTSD could actually offer them a more realistic and comprehensive suite of potential treatments, which may include some of these plants as the research over the last several decades has indicated,” Robinson said at the meeting.

While Berkeley might seem like an obvious target for psychedelics reform given the city’s decades-long close association with counterculture, the movement to remove criminal penalties is gaining steam nationally. Decriminalize Nature is maintaining a map of jurisdictions throughout the country where activists have expressed interest in pursuing a similar model.

Also this week, a resident spoke at a Columbia, Missouri City Council meeting, asking the body to consider a resolution to decriminalize psychedelics. At least one councilmember expressed interest in following through, and he called the therapeutic potential of the natural substances “very promising.”

Individuals from nearly 100 cities have reached out to the organization for assistance advancing their own decriminalization efforts.

Voters in Denver kicked things off by approving the nation’s first-ever ballot measure to decriminalize psilocybin mushrooms in May.

Activists are currently pursuing efforts to place psilocybin-focused measures on statewide ballots in California and Oregon for next year.

More Than 100 Marijuana Businesses Urge Congress To Include Social Equity In Legalization

Photo courtesy of Wikimedia/Mushroom Observer.

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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Top Democratic Party Leader Flops With Attempted Joke About Trump Smoking Hemp

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The chairman of the Democratic National Committee (DNC) apparently thinks that hemp gets you high—and that getting high makes you dumb.

In an attempted dig at President Donald Trump, who said last week that farmers struggling amid a trade war were “over the hump,” DNC Chair Tom Perez said he thought the president “was smoking some hemp when he said they were over the hump.”

“If you smoke some hemp, I guess that would stimulate certain farm economies here,” he added during his remarks at a press conference in Wisconsin.

Watch Perez’s hemp comment at about 6:45 into the video below:

Because hemp contains only trace amounts of THC, the main psychoactive ingredient in marijuana, it wouldn’t get you high, as Perez implied. But legalization advocates say it’s especially problematic that a party leader is treating marijuana as a laughing matter in the first place.

“I would need to be smoking something a hell of a lot stronger than hemp to find Tom Perez’s weak attempt at a marijuana joke funny,” Erik Altieri, executive director of NORML, told Marijuana Moment.

“At a time when over 600,000 overwhelmingly black and brown Americans are still being arrested every year for simple possession, our failed and racist prohibition is no laughing matter,” he said. “While we have made great progress in winning elected officials nationwide to our cause, Perez illustrated that we have a lot of work left to do when it comes educating them about the issue and still a bit of a road to go down before we can stop dealing with dad jokes and bad weed puns.”

Don Murphy, director of federal policies for the Marijuana Policy Project, echoed that point.

“We need more leadership and action at the federal level, not more stupid jokes, puns and inaccurate comments about hemp’s ability to get you high,” he told Marijuana Moment. “Luckily that is something that many of his party’s presidential candidates understand,” he said. “Sadly, Mr. Perez does not.”

Perez’s position on cannabis policy isn’t quite clear, as he’s remained largely silent on the issue. In contrast, many 2020 Democratic presidential candidates are campaigning on broad marijuana reform proposals.

The DNC chair made his attempted hemp quip during a press availability in Milwaukee, where he is meeting donors and coordinating preparation for next year’s Democratic National Convention.

Senate Schedules Second Cannabis Hearing For Next Week

Photo courtesy of Flickr/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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