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

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New York Gov. Andrew Cuomo (D) took marijuana reform supporters by pleasant surprise when he endorsed legalization last year after previously calling cannabis a “gateway drug” that should remain prohibited. But for advocates, there was at least one major disappointment in store when he got around to revealing the details of his plan: the proposal, unveiled as part of his budget last month, would ultimately include a ban on home cultivation of recreational marijuana.

Home growing—seen by many as a commonsense policy that ensures access to cannabis for individuals who can’t afford retail prices, live too far from a dispensary or just want to flex their green thumbs—has been a feature of almost all legal adult-use marijuana systems operating in the U.S., with the exception of Washington State’s. So what’s behind the New York governor’s opposition to letting adults cultivate their own crops?

It could be that Cuomo took a page from the commercial cannabis industry. Literally.

Roughly a month before the governor announced the details of his legalization proposal, a New York-based marijuana business association—led by the executives of the state’s major licensed medical cannabis providers—sent a policy statement to Cuomo’s office in the interest of offering “some thoughts on various issues associated with a transition from medical to adult-use.”

One of those thoughts centered on the businesses’ desire to prevent consumers from growing their own marijuana.

Politico first reported the existence of the document, created by New York Medical Cannabis Industry Association (NYMCIA), in December. This month, Marijuana Moment obtained the full 29-page memo through a state freedom of information law request.

There are some broad recommendations that most legalization supporters would take no issue with, such as encouraging individuals from communities disproportionately impacted by prohibition to participate in the legal industry and leveraging partnerships to expand research into medical cannabis.

But a chapter titled “The Fallacy of Home Grow” makes very specific—and, in the eyes of advocates, misleading—arguments against allowing marijuana cultivation for personal use.

The group recognized that people want home cultivation because of “currently high prices of medical marijuana” or because they see it as an “individual civil liberty.” But according to NYMCIA, home cultivation “creates a significant public safety and black market risk.”

The industry organization listed five claims to support that argument:

1. Home grow will make it impossible for the state to eliminate the black market.

2. Home grow will make it impossible for law enforcement to distinguish between legal and illegal products, thus frustrating enforcement efforts.

3. Home grow will undermine the state’s harm reduction goal of ensuring that cannabis sold in New York State is grown without noxious pesticides or other contaminants.

4. Home grow will undermine the state’s public health interest in ensuring that cannabis sold in New York State is tested, packaged, and and labeled correctly.

5. Home grow will cost the state tax revenue, thus hindering the state’s ability to fund priorities such as drug abuse treatment and community investment.

Per that last point, it’s entirely reasonable to assume that New York state would miss out on some sales tax revenue if residents decided to grow their own plants. But the other side of that dilemma is that it’d likely mean missed profits for cannabis businesses, including those affiliated with NYMCIA.

“From our perspective, it’s really hard to see any real reason—other than individual and corporate greed—to be against home cultivation at this point,” Erik Altieri, executive director of NORML, told Marijuana Moment in a phone interview. “There’s not a lot of rational concerns when it comes to allowing a limited amount of plants for an individual to grow at home.”

Melissa Moore, New York deputy state director of the Drug Policy Alliance, also pushed back against NYMCIA’s claim that a home grow option would make eliminating the illicit market “impossible.”

It’s the “fallacy of ‘The Fallacy of Home Grow,'” as she put it. It would make more sense to attribute difficulties reducing illicit market sales to state tax rates on retail cannabis, she said in a phone interview.

“It’s really disingenuous to try to say that it would not be possible to eliminate the illicit market if we allow for home grow. That certainly hasn’t been the experience of other states that allow home grow.”

Moreover, NYMCIA’s position is not consistent with that of other marijuana industry groups such as the National Cannabis Industry Association (NCIA), which argues that allowing home growing can actually benefit businesses.

“NCIA does not oppose limited home cultivation,” Morgan Fox, media relations director at the group, said in an email. “In fact, it can act as an incubator for people to develop skills which can be used in the legal cannabis industry, which benefits businesses as well as individuals looking to enter the market. Much like home brewing has helped spur interest the craft beer market, limited home cannabis cultivation can do the same in legal states.”

Who is involved in NYMCIA and why do they want to ban home cultivation?

Marijuana companies Columbia Care, Etain, PharmaCann, The Botanist and Acreage NY, Vireo Health and MedMen were all listed as members of NYMCIA in the memo to Cuomo’s office. (MedMen later acquired PharmaCann, and more recently, NYMCIA urged MedMen to leave the association amid a controversy over racist remarks allegedly made by the company’s executives).

(A separate controversy previously enveloped Columbia Care, which owns dispensaries and grow facilities in multiple states, after its Massachusetts-based subsidiary, Patriot Care, was discovered to be advocating against letting certain people with past drug convictions work in the legal cannabis industry).

Acreage Holdings, a cannabis firm that Republican former U.S. House Speaker John Boehner joined as a board member, declined to comment for this story through a public relations firm that represents the company.

A MedMen spokesperson said in a statement to Marijuana Moment that it “respects the right of those who choose to cultivate cannabis for their personal use,” but did not respond to specific questions about the company’s involvement in drafting the policy statement that urged New York officials to continue prohibiting such activity.

Jeremy Unruh, director of public and regulatory affairs at PharmaCann, told Marijuana Moment that the document “was our industry association’s first go at formulating some broad policy positions” prior to meeting with the governor’s office and that the company’s “position on home grow is far more nuanced than a simple approve/oppose.”

“Those policy points you have are sound, but our positions have evolved (and will continue to do so) as we’ve had a chance to socialize these concepts” with other stakeholders, Unruh said. He argued that New York has superior quality control standards in place for medical cannabis and that while the company recognizes “the nature and value of civil liberty” of home cultivation, allowing it would pose public health risks.

But ultimately, “Our position is this: We support the governor’s homegrow proposal,” he wrote in an email.

While recommending that lawmakers ban personal cultivation of recreational marijuana, Cuomo did include a home grow option for medical cannabis patients in his budget plan.

(Full disclosure: Several members of the companies involved in NYMCIA support Marijuana Moment through monthly Patreon pledges, or have in the past.)

Cannabis reform advocates aren’t buying NYMCIA’s claims.

It is quite obvious that NYMCIA’s affiliates have a financial stake in the shape of whatever marijuana law eventually emerges from the New York legislature. And their opposition to a home grow option is a point of concern for advocacy groups.

“[T]o advocate against home cultivation given all we know about how it works in practice from the industry side really just is kind of despicable and illustrates their greed, that they’re willing to sacrifice individual freedoms for the slightest increase in their profits,” NORML’s Altieri said.

The association’s recommendation also runs counter to what Marijuana Moment was previously told by the vice president of corporate communications for Vireo Health, Albe Zakes.

Asked about the memo following the initial Politico report that only vaguely described the document, Zakes wrote in an email that “our CEO and COO assured me that we’ve never lobbied against home grow and in fact support home grow as part of larger legislation, as long as it is regulated and controlled in a responsible manner, the same way medical or recreational markets would be, in order to protect consumers.”

(Vireo CEO Aaron Hoffnung signed an Internal Revenue Service financial disclosure form for NYMCIA last year as one of the association’s directors.)

Marijuana Moment sent a follow-up request for comment after obtaining the policy statement through the public records request, but Zakes said the he was unable to reach the company’s executives and so Vireo would have to decline the opportunity for further comment.

Advocates question whether NYMCIA leveraged its influence for the right reasons.

Is the worry really that a home cultivation policy would sustain an illicit market or complicate law enforcement activities in New York? Are concerns about the public health impact genuine? Or is it that cannabis businesses want the entire market to themselves?

We need to make sure that we have a check on the potential greed of the industry that we can already see in these early stages based on this advocacy document,” Altieri said. “We need to make sure that the market in New York not only begins to address all the harms caused by the war on cannabis but also is oriented toward the consumer and not large industry interests.”

Banning home cultivation benefits no one but corporations and large industry groups.”

Despite Cuomo including the home grow ban in his proposal, it seems that advocates may get more time to voice their concerns about the policy. Some leading lawmakers such as Senate President Andrea Stewart-Cousins (D) are increasingly doubtful that marijuana reform will make it into the final state budget, meaning that negotiations on separate legalization legislation could end up resulting in a law that allows consumers to grow their own cannabis.

Marijuana Moment reached out to NYMCIA itself, Cuomo’s office, Etain and Columbia Care for comment, but representatives did not respond to multiple inquiries by the time of publication.

Read the full NYMCIA policy statement, including the section on home cultivation, below: 

New York Medical Cannabis I… by on Scribd

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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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Company Gets Trademark For The Word ‘Psilocybin,’ Frustrating Decriminalization Advocates

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As psychedelics reform efforts pick up across the U.S., there’s an increasing weariness among advocates about the potential corporatization that may follow.

That’s why many found it alarming when a California-based company announced on Thursday that it had successfully trademarked the word “psilocybin,” the main psychoactive constituent of so-called magic mushrooms.

Psilocybin™ is a brand of chocolates that do not contain the psychedelic itself but are meant to “begin educating, enlightening and supporting the community in upgrading their inner vibrations in order to get everything they want of their time here on earth,” according to a mission statement.

Soon after founder Scarlet Ravin shared news of the trademark on LinkedIn, advocates raised questions and concerns: What does that mean on a practical level for other psilocybin organizations? Why should one brand get exclusive rights (to a certain legal extent) to the scientific name of a natural substance?

The reality of this particular trademark is more nuanced than it might appear at first glance. While it’s true that the company was granted the distinction by the U.S. Patent and Trademark Office, it’s specifically for educational materials and it’s listed on the supplemental register, rather than the principal register, which means it would be incumbent upon the brand to prove that it has earned distinctiveness of the mark if the issue went to court.

“It’s certainly good for her business to have that mark, but I think at the end of the day, it’s going to be somewhat weak,” Larry Sandell, an intellectual property attorney at Mei & Mark LLP, told Marijuana Moment. He added that this example is “indicative that people are trying to stake early claims to IP.”

“Even if they might be somewhat overreaching, people see a potential new market here and they want to stake out their ground,” he said. “It’s a big next space that people are anticipating a legal market. Maybe it’s where cannabis was five to 10 years ago.”

Despite those legal limitations, reform advocates view the trademark as emblematic of a bigger issue—that someone would presume to take ownership of a substance that’s at the center of a national debate on whether or not to criminalize individuals for using it.

Kevin Matthews, who led the successful campaign to decriminalize psilocybin mushrooms in Denver last year and is the founder of the national psychedelics advocacy group SPORE, told Marijuana Moment that he didn’t doubt Ravin had the right intentions—to promote education into the substance—but he said the decision to trademark is nonetheless questionable.

“This being an open-source movement, trademarking the word psilocybin, in some ways it feels like—although I don’t think this is her intention—it’s lacking perspective,” he said. “Does that mean we can’t use psilocybin as SPORE because we’re an educational non-profit and she’s a for-profit branded company? It doesn’t make a lot of sense to me. She needs to let go of the trademark.”

Ravin said that her goal in trademarking psilocybin was to prevent the substance from being becoming the next cannabis, which she said has been corrupted from its “true spiritual, medicinal benefit” and turned into a corporate commodity.

Via Psilocybin.

“Knowing that psilocybin is going to be next [to be legalized] I feel strongly guided by the deepest part of my heart to really offer a sense of education of what could be when you take such a strong, beautiful medicine and to give people an education platform here and now to let them know what’s coming, how to receive it, how to get the most benefit from,” she told Marijuana Moment in a phone interview.

“We paved the way for this being a medicinal offering and not a consumer, recreational shitshow. That was our intention,” Ravin said. “The only way that we are going to have access to mainstream consumers is by having some sort of trademark on the word so that we can use it for something that’s not what it actually is.”

“With this being something that we can now put into market with a box of chocolates that has no psilocybin in it, but as you can already see, it creates a platform for discussion of what the beauty of this plant can do,” she said. “Me and my movement and my team, we don’t own the word. We’re not going to ever sue anyone who also uses the word—we’re opening a doorway for ourselves and anyone that wants to see this educated upon so that we can hit people who are unfamiliar with it now with downloads to actually have this be a safe, successful psychedelic transition.”

Asked to react to criticism about the trademark from advocates, Ravin said “we’re all here to follow spirit guidance to show love and light, and the visions I had of doing what we’re doing now was based upon breaking boundaries and breaking perceptions and allowing people to have an opportunity to sink into being one unit.”

“Yeah, it might be coming out, we might be using the platform of psilocybin. We can use any platform to do this,” she said. “We can use any platform to come together as a whole, and the longer that people sit in duality and say, ‘oh now she’s going to have a stronger voice than me is just looking at something not through their heart,’ it’s looking at it through ego and judgement.”

“The more that we describe what we’re doing, the more people I think will start to feel our unity and we’ll be able to move together as a stronger force than pointing fingers and trying to separate one another,” she said. “Those days are done.”

Ravin said that once the Psilocybin™ chocolates are ready for market, she plans to contribute 10 percent of profits to the Multidisciplinary Association for Psychedelic Studies (MAPS), which is involved in researching therapeutic benefits of psychedelic substances.

Congressman Backs Ballot Measure To Legalize Psychedelic Mushrooms For Therapeutic Use

Photo courtesy of Wikimedia/Workman.

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China Must Import More Hemp From U.S. Under New Trade Deal

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After years of being one of the United States’s main sources of hemp imports, China will now be required to buy a lot more of the non-intoxicating cannabis crop from the U.S. under a new trade deal.

Hemp, which was federally legalized under the 2018 Farm Bill, is one of a long list of agricultural products that China agreed to import on a larger scale over the next two years as part of an international trade agreement that was signed on Wednesday.

“The Parties acknowledge that trade and economic structural changes resulting from this Agreement and from other actions being taken by China to open up its economy and improve its trade regime should lead to improved trade flows, including significant increases in exports of goods and services to China by the United States and other countries,” the accord says.

“The Parties believe that expanding trade is conducive to the improvement of their bilateral trade relationship, the optimal allocation of resources, economic restructuring, and sustainable economic development, given the high degree of complementarity in trade between them. The Parties recognize that the United States produces and can supply high-quality, competitively priced goods and services, while China needs to increase the importation of quality and affordable goods and services to satisfy the increasing demand from Chinese consumers.”

While the deal didn’t specify just how much more hemp China will be importing, the document states that the country must spend at least $12.5 billion more than it did in 2017 on more than 200 agricultural commodities, including the cannabis plant, for calendar year 2020. The following year, it must spend at least $19.5 billion more.

Included in the deal is a particular form of cannabis, which is referred to as “true hemp” in the document.

“True hemp (cannabis sativa l.), raw or processed but not spun; tow and waste of true hemp (including yarn waste and garnetted stock),” the description of the item states.

Via USTR.

Jonathan Miller, general counsel for the U.S. Hemp Roundtable, told Marijuana Moment that hemp’s inclusion in the trade deal is a “really good development.”

“The fact that China would be importing our hemp and would be giving a new market for American farmers is pretty exciting,” he said, referring to the fact that the U.S. has historically imported the crop from China and that it has sometimes been criticized as being of inferior quality.

While cannabis has been cultivated in China for thousands of years, the country has only recently begun expanding the industry domestically. Part of the delay has to do with strict anti-drug laws, but as the legalization has spread internationally, more businesses are getting into the hemp, and particularly CBD, market.

Meanwhile, in the U.S., the hemp industry has exploded, with bipartisan lawmakers working with regulators to ensure that hemp farmers have access to the resources they need to expand and meet booming consumer demand for CBD products. The U.S. Department of Agriculture (USDA) is currently finalizing its regulations for the crop after releasing an interim final rule last year.

USDA clarified in guidance last year that hemp plants and seeds are able to be imported from other countries. In 2018, the U.S. imported about $3.3 million in hemp from China, according to Hemp Industry Daily.

Congressional Hearing Exposes Marijuana Research Limitations Imposed By Federal Law

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Coca-Cola Denies CBD Beverage Rumor Spurred By Video

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Coca-Cola denied that it has plans to enter the CBD market in a statement to Marijuana Moment on Thursday.

The comment comes after a man who said he obtained a prototype of a childproof can of Coke claimed to have insider knowledge of the soda company’s intent to launch a line of CBD-infused drinks in partnership with the Canadian cannabis company Aurora.

In a video shared on YouTube on Wednesday, the individual, who goes by Gabor the Blind Guy, said his father is an engineer for a company that “produces bottling and capping machines” for pharmaceutical and food businesses.

“Recently he was approached by Coca-Cola in Canada to design a machine that puts a childproof cap on cans of Coca-Cola,” he said. “In Canada, Coca-Cola is coming out with a new line of Coca-Cola that contains CBD extracts—pretty much cannabis-based drugs.”

“Obviously, they don’t want little kids popping open those cans and drinking them…so my dad was tasked with designing a cap that will prevent little kids from opening these cans of CBD Coca-Cola,” he said.

The description of the video on YouTube mentioned the alleged partnership with Aurora.

Watch a mirrored version of the now-deleted YouTube video below:

But on Thursday, a media relations officer for Coca-Cola told Marijuana Moment that the “rumors are untrue.”

“As we have stated many times, we have no plans to enter the CBD market.”

Gabor claimed that his father gave him a prototype of a non-CBD can with the cap he designed because he wanted to see if a blind person could open it. The video led some to speculate that he inadvertently disclosed confidential information that could be in violation of a non-disclosure agreement.

Not only did Gabor later delete the video from his YouTube account, but he also deleted the channel itself, as well as his Twitter and Facebook accounts.

On Reddit, users questioned whether the video was authentic. Some wondered if the claim was an attempt to boost Aurora’s stock. However, marijuana wasn’t a main focus of Gabor’s YouTube prior videos posted over a period of years.

Marijuana Moment also reached out to Aurora for comment, but a representative was not immediately available.

This isn’t the first time that people have speculated about Coca-Cola’s potential interest in entering the cannabis space. Bloomberg reported last year that the company was monitoring the industry but hadn’t made any decisions yet.

Coca-Cola CEO James Quincey has said on several occasions that the company isn’t planning to get involved in the cannabis market.

“There’s been no change in my position, which is: there’s nothing happening,” he said in July.

“We want to sell drinks that people can drink each day. So it’s not like you have something once,” he told CNBC last year. “You have one a day. And if you can’t cross [off] those three things of legal, safe and consumable, it’s not an ingredient that’s going to work for us.”

Also in a statement last year, Coca-Cola said the company has “no interest in marijuana or cannabis.”

“Along with many others in the beverage industry, we are closely watching the growth of non-psychoactive CBD as an ingredient in functional wellness beverages around the world,” the statement read. “The space is evolving quickly. No decisions have been made at this time.”

With respect to prior rumors about talks specifically between Coca-Cola and Aurora, the soda company declined to comment when previously pressed. Aurora said in a statement that it had “no agreement, understanding or arrangement with respect to any partnership with a beverage company.”

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Image via Gabor the Blind Guy.

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