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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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Congressional Committee Asks JUUL For Documents On Marijuana Partnerships

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Is the e-cigarette company JUUL planning on expanding its stake in the marijuana industry?

That’s one question the chair of a congressional subcommittee asked the company in a letter concerning JUUL’s role in the “youth e-cigarette epidemic” earlier this month.

Lawmakers have frequently criticized JUUL for making products—specifically flavored e-cigarette cartridges—that allegedly appeal to young people at a time when rates of cigarette use are steadily declining. But while JUUL was developed by the cannabis vaporizer company PAX, it hasn’t announced plans to further partner with marijuana companies.

Rep. Raja Krishnamoorthi (D-IL), who chairs the House Subcommittee on Economic and Consumer Policy, apparently sees the possibility on the horizon, though.

In a letter sent to JUUL on June 7, the congressman said his panel was investigating youth e-cigarette usage and, specifically, how the company’s marketing tactics might be exacerbating the issue. He requested documents on everything from clinical trials on how JUUL devices divert people away from traditional cigarettes to communications on the company’s rationale for the nicotine concentration of JUUL pods.

Tucked within the extensive request is a question about potential marijuana partnerships. Krishnamoorthi asked for:

“All documents, including memoranda and communications, referring or relating to proposals, plans, and/or intended partnerships or collaborations between JUUL and any cannabis-related companies, including but not limited to Cronos Group.”

It’s not clear where the Cronos-specific mention comes from, but the company has perviously caught the interest of the tobacco industry. The maker of Marlboro cigarettes, Altria Group, invested almost $2 billion in the Canada-based cannabis company in December. Two weeks later, Altria invested $13 billion in JUUL.

Marijuana Moment reached out to JUUL, Cronos and Krishnamoorthi’s office for comment, but representatives did not respond by the time of publication.

If a partnership does emerge, it would likely be met with some controversy, as opponents and proponents of marijuana reform alike have long expressed concern that the tobacco industry would take over the cannabis market and commercialize it in a way that mirrors how it peddled cigarettes.

Of course, given that tobacco use is declining and tobacco companies generally have the infrastructure that would make a pivot to cannabis relatively simple, such a partnership would not be especially surprising.

Senate Majority Leader Mitch McConnell (R-KY) has made the case several times that tobacco farmers in his state could leverage the federal legalization of industrial hemp and its derivatives by growing the crop to offset profit losses from declining tobacco sales.

Read Rep. Krishnamoorthi’s full letter to JUUL below:

2019-06-07.Krishnamoorthi t… by on Scribd

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Google Announces Ban On Marijuana Apps In Android Play Store

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Apps that help connect people with marijuana products are not welcome anymore in the Google Play store, the company announced in a policy update on Wednesday. That includes apps that facilitate cannabis transactions in states where it’s legal.

The updated policy section states that Google Play doesn’t “allow apps that facilitate the sale of marijuana or marijuana products, regardless of legality.” Previously the page didn’t include any specific mention of cannabis.

Via Google.

The revised guidelines go on to list descriptions of “common violations.” Apps can’t allow users “to order marijuana through an in-app shopping cart feature,” help users “in arranging delivery or pick up of marijuana” or facilitate the “sale of products containing THC.”

A google spokesperson explained the change in an email to Marijuana Moment, adding that affected companies can take advantage of a simple workaround.

“These apps simply need to move the shopping cart flow outside of the app itself to be compliant with this new policy,” the spokesperson said. “We’ve been in contact with many of the developers and are working with them to answer any technical questions and help them implement the changes without customer disruption.”

The spokesperson also said that the company recognizes the popularity of cannabis-related apps and hopes they will remain in the Play Store under the amended rules. Google is working directly with developers of affected apps, the spokesperson said.

Another new section of the policies stipulates that apps “that facilitate the sale of tobacco (including e-cigarettes)” are prohibited. Apps that help consumers purchase alcohol are apparently allowed, but not those that “encourage the irresponsible use of alcohol or tobacco.”

The update was first reported by Android Police, which also noted that Apple has previously banned marijuana-related apps such as the social networking platform MassRoots. But Apple lifted that ban in 2015 and has since taken a relatively hands-off approach to the issue.

Some of the best-known cannabis apps—Weedmaps and Eaze—are still available for download on Google Play as of the time of publication. But insiders believe that their essential functions (i.e. the ordering services) will have to be deactivated. Weedmaps alone has been installed more than one million times to date, and more than 50,000 users have downloaded Eaze.

Android Police reported that Google will be working with affected app developers to resolve any compliance issues over the next month.

In a blog post on Wednesday, Google said that it was generally making a series of policy changes to ensure that its app store serves as “a positive, safe environment for children and families.” As TechCrunch pointed out, this comes about five months after Google Play was the subject of an FTC complaint, which alleged that the company wasn’t doing enough to vet apps that appear in the kids section.

The tech industry has had a strained relationship with marijuana businesses, even as a growing number of states have decided to legalize and regulate the sale of cannabis.

Facebook, which recently showed off its artificial intelligence technology that’s capable of identifying images of marijuana, continues to prohibit the commercial advertising of cannabis products, regardless of the legality of the business under state law.

Noncommercial cannabis news sites such as Marijuana Moment and state regulatory bodies like the Massachusetts Cannabis Control Commission have also been caught up in the anti-marijuana policy despite the fact that they do not promote or sell cannabis products. In some cases, it appears these organizations have been hidden from appearing in search results—a practice known as “shadowbanning.”

The online shopping site eBay also gave cannabis consumers some bad news this week, clarifying that CBD products will continue to be banned globally regardless of individual country laws on the compound.

“Eaze connects adults only to licensed, regulated cannabis retailers,” Elizabeth Ashford, senior director of corporate communications for Eaze, said in an email. “Google’s decision is a disappointing development that only helps the illegal market thrive, but we are confident that Google, Apple and Facebook will eventually do the right thing and allow legal cannabis companies to do business on their platforms. We regret any inconvenience this may cause for customers and patients.”

“Prohibition is over,” she added. “Voters across the country have legalized cannabis.”

Marijuana Moment also reached out to Weedmaps for comment but the company has not yet provided a statement reacting to the Google policy change.

On the flip side, at least one major tech company is testing the regulatory waters after hemp and its derivatives were legalized under the 2018 Farm Bill. The payment processing service Square announced last week that has launched a pilot program designed to give businesses that sell hemp-derived CBD products access to credit card processing services as an alternative to traditional financial institutions that remain wary of working with the industry.

Marijuana might be banned from Google’s app market, but just last year it seemed the company’s executives were pretty bullish about loosening cannabis laws. Google co-founder Sergey Brin joked about supplying employees with joints at a post-election meeting in September.

“I was asking if we could serve joints outside on the patio, but apparently these things take a little while to take effect,” Brin said, referring to the implementation of California’s cannabis legalization measure. “It was a huge, huge disappointment. I’ve been bemoaning that all week, I’ll be honest with you.”

Disclosure: Weedmaps and Eaze are Marijuana Moment advertisers/sponsors.

This story was updated to include comment from Google and Eaze.

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Photo courtesy of Rick Proctor.

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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eBay Says It Will Continue To Ban People From Selling CBD Products

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The massive online shopping site eBay says CBD products will continue to be banned globally on its platform, even as other companies like the payment processor Square are working to make it simpler to market hemp-derived goods.

In response to a tweet complaining about cannabidiol oil being removed from the site, the company said last week that the “sale of CBD products is highly regulated in many countries,” and while “they may be legal to buy and sell in some countries, they are regulated by the FDA and enforced by some law enforcement agencies.”

“For this reason, we have decided to prohibit the items globally,” an eBay representative wrote.

Compare that stance to the recent announcement from Square, which said last week it has launched a pilot program designed to give CBD businesses access to credit card processing services—something that some companies say they continue to struggle with even though hemp was federally legalized via the 2018 Farm Bill.

A quick search of eBay does turn up several listings for CBD products, including oils, gummies and lotions. But as far as the company is concerned, those sellers are violating a policy that has been a source of frustration for CBD consumers for years.

Community forums discussing the platform’s CBD ban go back to at least 2015, with many challenging eBay’s rationale. But it is the case that while Congress and President Trump acted to legalize hemp and its derivatives late last year, FDA does maintain regulatory authority over CBD and has said it’s currently unlawful to market the cannabis-derived compound as a food item or dietary supplement.

However, FDA is holding a public meeting on Friday to further discuss alternative regulatory pathways that may eventually allow people to sell hemp-derived CBD products. Former FDA Administrator Scott Gottlieb has indicated that the issue may have to be resolved through further congressional action.

But until then, large companies are testing the waters, with companies like CVS Pharmacy saying they will begin selling CBD products in spite of existing federal restrictions.

It doesn’t appear that eBay competitor Amazon has commented on their policy on selling CBD products, but again, a search of the site reveals thousands of hits for a wide range of hemp-based items.

TSA Updates Marijuana Rules To Allow Hemp-Derived CBD On Flights

Photo courtesy of Pixabay.

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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