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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

New York City Council Members File A Dozen Marijuana Proposals In One Day

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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MedMen Temporarily Closes All Locations And Condemns Looting In Internal Memo

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The national marijuana dispensary chain MedMen has temporarily closed down all of its stores after several of its Los Angeles-based locations were looted over the weekend. While the company strongly condemned the looting, it said it recognizes the tragedies that led up to the incidents and is offering to support its black employees during this time.

Businesses in cities across the country have been impacted by outrage over recent police killings of black Americans. That includes George Floyd, whose death at the hands of a Minneapolis police officer ignited mass protests, some of which have been followed by looting.

In an internal memo to MedMen employees that was obtained by Marijuana Moment, the company said that its locations in downtown Los Angeles, West Hollywood and Beverly Hills “were heavily damaged, as were a number of other businesses, including those in the cannabis community.”

“Effective immediately, we are temporarily closing all stores and the corporate office to protect the safety of our employees,” the memo states. “The safety of everyone in the MedMen family is the most important thing right now, and we are grateful to report that while our stores were damaged, our employees and security guards were unharmed.”

“Our assumption is that all of you know this, but we want to take the time to make it very clear there is a bright line between the peaceful protests yesterday and the criminal activity that followed,” it continues. “We do not know what goes through the mind of those that would promote violence or destruction immediately on the heels of a peaceful protest designed to bring us all closer together.”

But while that language largely contrasts with that of some other impacted marijuana businesses that have more clearly sympathized with people expressing outrage in the face of police killings, MedMen also extended a hand to its black workers and said it appreciates the circumstances that contributed to the situation.

“Regarding the events of the last week, we are heartbroken, outraged and horrified by the tragic events in our country and the continued violence and injustice perpetrated against the Black community. To our Black colleagues, if there is any way we can show up for you during this time, we would encourage you to email [the CEO’s office],” the company said. “In the meantime, we offer our deepest empathy, we are here to listen, we are here to help and we are here to stand with you as a MedMen family in any way we can.”

“To those fighting for social justice, MedMen stands with you. The horrifying treatment of our black colleagues and community must end,” MedMen added in a statement to Marijuana Moment. “Systematic oppression and inequality must end. We are committed to using our platform to help. We will rebuild and come back stronger in a way that makes our communities proud and advances justice and equality.”

A spokesperson said that the company is actively assessing its plan moving forward. While the representative initially suggested to Marijuana Moment that employees would continue to be paid during the temporary shutdown, he later said that the company “will take care of our employees as demonstrated by our response to COVID-19” but could not get into specifics about ongoing financial decisions.

Meanwhile, the rapper Berner, who owns the popular Los Angeles dispensary Cookies, said after his shop was looted that ensuring justice and addressing the problems underlying the protests is more important than the loss of merchandise.

“It’s extremely unfortunate what happened to our store tonight on Melrose. But as a human living in the world we’re living in today, I cannot expect anything less until justice is served,” he said. “We can rebuild our store, but you cannot bring someone back to life.”

Debby Goldsberry, the executive director of the dispensary Magnolia Wellness Oakland, struck a similar tone in a Facebook post about their experience being looted. She said that while the property loss was extensive and will hit the small retailer hard financially, this “story is not about Magnolia Wellness. It’s about this nation, blistering in pain. It’s bubbled up, and can’t be stopped, no matter how much salve we put on it.”

“Our shop can be rebuilt, but the black lives taken by the police, again and again, are gone forever. Simply put, the police are murdering people right before our eyes, and the anger has boiled over. We saw it on camera, watching these men rampage through our space,” she wrote.

“Anger like this is based in injustice. Anger like this is based in facts. Anger like this is based in hundreds of years of oppression, and in never, ever getting a fair shot, no matter what, because the system is set up in a systematic manner that assures you never will,” the post continues. “George Floyd’s horrible death is just one of so many by now that it’s become impossible to track.”

Kris Krane, president of 4Front Ventures, said one of the company’s Mission dispensaries in Chicago was also raided over the weekend.

“Despite the sadness and destruction, my support for the protests and the underlying goal of ending police brutality, systemic law enforcement reform, and societal recognition of the fundamental humanity of people of color in this country remains undeterred,” he said. “I stand with those protesting for human rights and justice, and understand why some feel so disempowered that they have no recourse but rage and violence.”

Cannabis shops from California to Oregon have impacted by looting in recent days.

This story has been updated to include additional commentary on future plans from a MedMen spokesperson

Rapper Who Owns Looted Marijuana Dispensary Says Justice Is More Important Than Business

Photo courtesy of WeedPornDaily.

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Rapper Who Owns Looted Marijuana Dispensary Says Justice Is More Important Than Business

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One marijuana dispensary owner whose business was caught in the chaos stemming from the reaction to rampant police violence over the weekend says he values life and justice over his stolen cannabis merchandise.

Cookies, a well-known dispensary in Los Angeles, was looted during Saturday’s massive protests sparked by the killing of George Floyd. But the brand’s creator and store’s part-owner, the famous rapper-turned-cannabis-entrepreneur Berner, says he is more concerned about the underlying injustices being highlighted by protestors than the damage to his storefront.

A video on Instagram shows the Cookies location on Melrose being broken into, with people jumping the fence, entering the store and stealing products. Police are seen driving by in the clip, but no one appears to have been arrested.

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It’s going down in the streets tonight

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Berner, whose real name is Gilbert Anthony Milam Jr., released a statement shortly after the incident.

The rapper doesn’t condemn the people who broke into the store. Instead, he argues that human life is more valuable than any building.

“It’s extremely unfortunate what happened to our store tonight on Melrose. But as a human living in the world we’re living in today, I cannot expect anything less until justice is served,” Berner said in the video posted to his 1.3 million Instagram followers. “We can rebuild our store, but you cannot bring someone back to life.”

“With that being said, we stand with what is going right now in the world. A statement needed to be made. All I say is, I pray everyone stays safe and protects their family in a time like this,” the rapper said. “How can I worry about a store when there is so much more going on in the world right now? So much hate, so much anger, so much pain, and a lack of justice. Please take care of your families and stay safe.”

There were six armed security guards at the storefront, Berner said, but he told them not to be violent towards protesters. “I don’t want to see anyone die!! I told everyone to stand down,” he posted. “I’m not allowing anyone to die on my watch… all life matters. And money comes and goes…”

Instagram commenters were quick to suggest that insurance money stemming from the theft would be advantageous to Berner. One commenter, Elijah71p, wrote: “Plus that insurance money won’t hurt.”

But Berner said he wasn’t counting on it, replying: “We sell weed. I’m not sure that insurance will honor our business, I haven’t even thought about it. I was focused on preserving life and instructing the armed guards to stand down and not to shoot.”

Another commenter wrote on the post: “Someone had good insurance, lol other wise I’m sure this would sound different.”

“Nah man, the world is a fucked up place,” replied Berner. “This is from the heart homie.”

Cannabis companies have historically had a hard time accessing coverage for things like lost employee wages, property damage and more due to marijuana’s federal classification as a schedule I substance.

Berner started Cookies as a clothing and cannabis brand in the San Francisco Bay Area in 2016. The company has held itself up as an equity success story, opening the Cookies Haight Street location with CEO Shawn Richard under San Francisco’s first social equity license. While some have raised questions about the involvement of white investors and people with political pull helping to win the dispensary’s approval, Berner has maintained that the company is holding true to authentic cannabis culture—one that represents and speaks up for black, indigenous and people of color.

The Cookies brand, well-known for its bright blue packaging, is on sale in eight medical and adult-use markets across the country, including in Its dispensary storefronts in Los Angeles, Santa Ana, San Francisco and Denver.

Cookies isn’t the only dispensary to have been impacted by looting over the weekend. Photos of a ransacked MedMen location in downtown Los Angeles have surfaced, for example.

The company has not issued a statement at the time of publication.

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Oregon Marijuana Sales Spike During Pandemic, But Officials Expect Market To ‘Mellow’

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Amid one of the sharpest economic downturns in state history, Oregon marijuana sales continue to roll along at a healthier-than-normal pace. State budget officials say that shelter-in-place policies and economic stimulus programs have kept marijuana sales “quite strong” during the pandemic so far.

Since March 1, the sales of adult-use marijuana products are up 60 percent compared to a year ago, the state Office of Economic Analysis said in its latest quarterly budget forecast published last week.

“These increases are not only related to the stockpiling consumers did after the sheltering in place policies were enacted,” the report says, “but have continued through April and early May.”

Oregon marijuana sales during COVID-19

In April alone, consumers bought $89 million worth of legal cannabis products—a record amount—thanks in part to what officials described as a “4/20 bump.” While the boost in sales figures are due in part to rising prices, state budget analysts said that “underlying demand is up as well.”

“The increase in sales for other marijuana products, like concentrates, edibles and the like, are due to significant gains in consumer demand as prices are flat or down,” analysts reasoned.

The June 2020 budget forecast estimates that the current increase in marijuana sales will yield an extra $9 million in state tax revenue during the 2019-2021 budget period. It’s a rare bright spot in the overall budget report, which state analysts described as “the largest downward revision to the quarterly forecast that our office has ever had to make.”

Oregon marijuana demand

But even the marijuana sector’s boost may be time limited.

“Expectations are that some of these increases are due to temporary factors like the one-time household recovery rebates, expanded unemployment insurance benefits, and the shelter in place style policies,” the report says. “As the impact of these programs fade in the months ahead, and bars and restaurants reopen to a larger degree, marijuana sales are expected to mellow.”

Demand for marijuana is also expected to fall in coming years due to a lower overall economic outlook, which is projected to reduce Oregon’s population and cut average incomes. “A relatively smaller population indicates fewer potential customers,” the report notes, “and lower total personal income than previously assumed indicates less consumer demand.”

Oregon population forecast

The projected slowdown in sales isn’t expected to make an impact until the next budget period, beginning in 2021. At that point, the forecast says, sales will begin trending down by 5 percent relative to the current period “due to the lower economic outlook” associated with COVID-19.

The pandemic has also changed how Oregonians are making marijuana purchases, the report found, though perhaps not as much as one might expect. The share of sales completed by delivery services more than doubled in recent months, but it remained relatively small, making up just 1.4 percent of total sales. As the Office of Economic Analysis observed, “Consumers still prefer to shop in store.”

Oregon is one of a handful of states looking to legal cannabis sales to help buoy tax revenues. A report published last month by cannabis regulators in Michigan, where legal sales to adults began this past December, forecasts annual marijuana sales in that state to top $3 billion as the market matures. That would mean another 13,500 jobs and roughly $500 million per year in taxes to state coffers. Factoring in the effects on peripheral businesses, the state found, the “total economic impact is estimated to be $7.85 billion with a total impact on employment of 23,700.”

Although tax revenue from cannabis sales will help pad budgets in many legal states, the Oregon report doesn’t mince words: The pandemic’s hit to the state’s economy will be drastic. Oregon’s current recession is “the deepest on record with data going back to 1939,” according to state analysts, and it hit with virtually no warning. “The path looks more like what happens to economic activity during a labor strike or in the aftermath of a natural disaster.”

Oregon incomes over time

For its part, Oregon’s Office of Economic Analysis predicts a relatively swift recovery. “While this recession is extremely severe, it is expected to be shorter in duration than the Great Recession,” analysts wrote. “The economy should return to health by mid-decade.”

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