Connect with us

Politics

Meet Massachusetts’s Pro-Legalization Marijuana Regulator

Published

on

A panel of just five officials is now in charge of implementing Massachusetts’s voter-approved marijuana legalization law.

Advocates expressed concern amid news that four members of the new Cannabis Control Commission voted against last November’s marijuana initiative — opposite the 54% of voters who approved the measure. (A new poll released on Thursday found that 63% of Bay State voters now support legalization.)

Legal marijuana supporters took heart, however, in the appointment to the panel of Shaleen Title, a longtime anti-prohibition advocate and industry insider who actually helped to write the ballot measure.

Her new role marks the first time an activist who helped to craft a marijuana legalization law has been put in charge of implementing it.

Title first got involved in the fight to legalize marijuana in college as a member of NORML and Students for Sensible Drug Policy. After a stint working as a tax law consultant for Deloitte, she returned to activism as key staffer for Law Enforcement Against Prohibition, an organization of police professionals who speak out for drug policy reform.

In 2014, she co-founded THC Staffing Group, a recruitment firm that helps connect cannabis businesses with employees for the jobs they are looking to fill. Title chose to give up her ownership of the company in order to take on her new role as a public official regulating the marijuana industry.

(Full disclosure: Title has been a friend of mine for a decade, and serves with me on the board of directors for the nonprofit Marijuana Majority.)

Title was named to the new state cannabis regulatory commission this month in a joint appointment by Massachusetts Gov. Charlie Baker, Attorney General Maura Healey and Treasurer Deb Goldberg. She and her four new colleagues will craft regulations and licensing processes with the goal of rolling out legal cannabis in the Bay State early next year.

In this, the first interview she has granted since being named to the regulatory body, Title outlines her thinking as she takes on the most important role of her career and transitions from activist to public official.

In broad terms can you help us understand your main duties in your new role as a member of the Cannabis Control Commission?

The CCC is a brand new agency tasked with implementing Massachusetts’ new marijuana law. This entails setting up regulations for the new industry and a licensing process for cultivation, manufacturing, retail and testing, as well as policy development around things like edibles, packaging and advertising. Our deadline under the law is to begin accepting applications by April 1, 2018.

How meaningful do you think it is to have someone who helped draft the legalization measure be one of a small handful of people who are now in charge of implementing it? And how do you think your background working in the legalization movement and helping companies in the cannabis industry hire staff will inform your work as a public official?

I think it’s essential to have at least one person on the commission who has a historical understanding of the legal and cultural context around marijuana. To my mind, that holistic approach is crucial in order to fairly implement the law.

In terms of my legal and business background, having an existing knowledge of the complex cannabis laws and regulations is helping me to hit the ground running, but all of that can be learned from books. It’s the time I’ve spent organizing on the ground over the past fifteen years that leads me to honor different communities’ complex feelings toward cannabis, prohibition and regulation, particularly Black and Latino communities that have bore the brunt of prohibition.

Being of Indian descent, I also come from a culture myself in which cannabis has been used since the beginning of recorded history, so there’s a level of respect that comes with that.

Should voters who supported legalization be concerned that the four other members of the commission now charged with implementing the measure opposed it last November?

I don’t think so. None of them are knee-jerk prohibitionists. In my mind, voting yes on the initiative and having used marijuana before are not strict requirements to be able to do this job. While they may be relevant factors, there is a very long list of far more relevant requirements when you are creating a team of people to build a government agency from scratch.

I have been very vocal about my belief that working with people who are different from you yields better results, and that universal principle applies here as much as anywhere. You need people from different backgrounds and perspectives to criticize and challenge each other’s work. The more I get to know my new colleagues, the more impressed I am at the thoughtfulness that went into appointing a team with the diverse set of backgrounds needed to be able to tackle this difficult task.

What are some of the main challenges you and your fellow commissioners will face in getting Massachusetts’s new law up and running?

The primary challenge is meeting a tight deadline while being underfunded. The state treasurer estimated that our agency would need $10 million in the first fiscal year; as of now, we have about $2 million. Starting from scratch is also a major challenge. We currently have no staff and are operating out of temporary office space.

Most challenging for me personally has been the built-in inefficiencies for the sake of transparency. Because of the open meetings law, we can’t do regular check-ins or collaborate via Google Docs or Slack. We can’t even reply-all to emails.

But, anyone who has been involved in marijuana legalization knows that if you have the will, you can do what many people consider impossible, and often with very small groups working under the scrappiest of circumstances. I’m optimistic.

Finally, on a personal note, was it hard for you to give up your business to take on this new role? And do you still consider yourself an activist at the same time you’re a public official? How do you approach that balance?

All of my nonprofit, business and political projects have had the same goal: replacing prohibition with sensible policies that are fair and inclusive and promote health and safety. I will miss THC Staffing Group, but I’ll be working toward that same goal.

There have been a few turning points in my life where I was compelled to follow my gut instinct and immediately say yes, before I had a chance to think about it rationally. The first time was when I quit my job consulting in tax law to work on legalization full-time, and the second time was when I moved to Colorado by myself to work on Amendment 64. The third time was when the Treasurer’s office called me with the offer to appoint me as Commissioner.

While I’m admittedly going through a bit of a culture shock, being given a chance to help Massachusetts set a good example for other states in creating a newly legal market is a once-in-a-lifetime opportunity. Particularly as it relates to being able to implement the sections of the law that champions equity for communities that have been targeted by past criminalization policies — there’s nothing else I’d rather be working on.

This story was first published by Forbes.

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.

Tom Angell is the editor of Marijuana Moment. A 20-year veteran in the cannabis law reform movement, he covers the policy and politics of marijuana. Separately, he founded the nonprofit Marijuana Majority. Previously he reported for Marijuana.com and MassRoots, and handled media relations and campaigns for Law Enforcement Against Prohibition and Students for Sensible Drug Policy. (Organization citations are for identification only and do not constitute an endorsement or partnership.)

Politics

Top IRS Official Says Marijuana Banking Reform Would Help Feds ‘Get Paid’

Published

on

The Internal Revenue Service (IRS) would like to get paid—and it’d help if the marijuana industry had access to banks like companies in other legal markets, an official with the federal department said. She also talked about unique issues related to federal tax deductions for cannabis businesses.

At an event hosted by UCLA’s Annual Tax Controversy Institute on Thursday, IRS’s Cassidy Collins talked about the “special type of collection challenge” that the agency faces when it comes to working with cannabis businesses while the product remains federally illegal.

While IRS isn’t taking a stand on federal marijuana policy, Collins said that the status quo leaves many cannabis businesses operating on a cash-only basis, creating complications for the agency, in part by making it harder for banks to “pay us.”

“The reason why [the marijuana industry is] cash intensive is twofold,” she said. “Number one, a lot of customers don’t want a paper trail showing that they’re buying marijuana, and number two, the hesitancy of banks to allow marijuana businesses to even bank with them.”

Of course, the reason why many financial institutions remain hesitant to take on cannabis companies as clients is because the plant is a strictly controlled substance under federal law.

“There’s been a number of legislative bills that have been introduced—and I am definitely not expressing any opinion personally or on behalf of the IRS about any pending or proposed legislation,” Collins, who is a senior counsel in the IRS Office of Chief Counsel, said. “But it is interesting to note that, if the law changed so that the marijuana businesses could have banks, that would make the IRS’s job to collect [taxes] a lot easier. As part of collection, we want the money. That’s our end goal there.”

A major part of what makes cannabis businesses unique is that they don’t qualify for traditional tax credits under an IRS code known as 280E. That policy “prohibits them from claiming deductions for business expenses because they’re technically being involved in drug trafficking,” Collins explained at the event, from which small excerpts of her comments were reported by Bloomberg.

There are some options available to lessen the burden on marijuana firms, however. At the end of the day, “IRS will work with marijuana companies because, again, we want to get paid,” Collins said.

One of the ways the agency works with marijuana business operators is to have them visit designated IRS “tax assistance centers” that accept cash payments in excess of $50,000. But the official warned businesses to “be prepared to be there for a little while” as the center checks—and double checks—the amount of cash being submitted.

“Revenue officers will assist the marijuana companies in paying us,” she said.

IRS officials could also help cannabis firms by having officials accompany them “to the bank in order to try to help the taxpayer secure a cashier’s payment to pay the IRS, as well as using money orders,” she said, adding that “our revenue officers are are wanting to work with the marijuana companies to help assist them to pay us.”

“When the revenue officers are there in person with the taxpayer, that could potentially help increase the likelihood that the bank will cooperate and help the taxpayer transition into a cashier’s check,” she continued. “And that has been a trend since this first became legal [at the state level], that more and more banks are allowing cannabis companies to bank with them.”

In a report published earlier this year, congressional researchers examined tax policies and restrictions for the marijuana industry—and how those could change if any number of federal reform bills are enacted.

IRS, for its part, said last month that it expects the cannabis market to continue to grow, and it offered some tips to businesses on staying compliant with taxes while the plant remains federally prohibited.

As it stands, banks and credit unions are operating under 2014 guidance from the Financial Crimes Enforcement Network (FinCEN) that lays out reporting requirements for those that choose to service the marijuana industry.

Leaders in both chambers of Congress are working on legalization bills to end federal marijuana prohibition. But stakeholders are hopeful that, in the interim, legislators will enact modest marijuana banking reform. Legislation to protect financial institutions from being penalized for working with cannabis businesses passed the House for the fifth time last month.

Rodney Hood, a board member of the National Credit Union Administration, wrote in a Marijuana Moment op-ed this month that legalization is an inevitability—and it makes the most sense for government agencies to get ahead of the policy change to resolve banking complications.

IRS separately hosted a forum in August dedicated to tax policy for marijuana businesses and cryptocurrency.

Earlier this year, IRS Commissioner Charles Rettig told Congress that the agency would “prefer” for state-legal marijuana businesses to be able to pay taxes electronically, as the current largely cash-based system under federal cannabis prohibition is onerous and presents risks to workers.

Former Treasury Secretary Steven Mnuchin said in 2019 that he’d like to see Congress approve legislation resolving the cannabis banking issue and he pointed to the fact that IRS has had to build “cash rooms” to deposit taxes from those businesses as an example of the problem.

IRS released updated guidance on tax policy for the marijuana industry last year, including instructions on how cannabis businesses that don’t have access to bank accounts can pay their tax bills using large amounts of cash.

The update appears to be responsive to a Treasury Department internal watchdog report that was released earlier in the year. The department’s inspector general for tax administration had criticized IRS for failing to adequately advise taxpayers in the marijuana industry about compliance with federal tax laws. And it directed the agency to “develop and publicize guidance specific to the marijuana industry.”

Luxembourg Set To Become First European Country To Legalize Marijuana Following Government Recommendation

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.
Continue Reading

Politics

Luxembourg Set To Become First European Country To Legalize Marijuana Following Government Recommendation

Published

on

Luxembourg is poised to become the first European country to legalize marijuana, with key government agencies putting forward a plan to allow the possession and cultivation of cannabis for personal use.

The ministers of justice and homeland security on Friday unveiled the proposal, which will still require a vote in the Parliament but is expected to pass. It’s part of a broader package of reform measures the agencies are recommending.

Under the marijuana measure, adults 18 and older could grow up to four plants. However, under the non-commercial model that is being proposed, possessing more than three grams in public would still be a civil offense, carrying a fine of €25-500 ($29-581). Currently, the maximum fine for possession is €2,500 ($2,908).

In terms of access, adults would be able to buy and trade cannabis seeds for their home garden.

Justice Minister Sam Tamson said the government felt it “had to act” and characterized the home cultivation policy change as a first step, The Guardian reported.

“The idea is that a consumer is not in an illegal situation if he consumes cannabis and that we don’t support the whole illegal chain from production to transportation to selling where there is a lot of misery attached,” he said. “We want to do everything we can to get more and more away from the illegal black market.”

While limited in scope, the reform would make Luxembourg the first country in Europe to legalize the production and possession of marijuana for recreational use. Cannabis has been widely decriminalized in certain countries in the continent, but it has remained criminalized by statute.

Government sources in Luxembourg told The Guardian that plans are in the works to develop a program where the state regulates the production and distribution of marijuana. Tamson said they are working to resolve “international constraints” before taking that step, however, referring to United Nations treaty obligations that multiple U.S. states and other countries like Canada and Uruguay have openly flouted.

For now, the country is focusing on legalization within a home setting. Parliament is expected to vote on the proposal in early 2022, and the ruling parties are friendly to the reform.

This has been a long time coming, as a coalition of major parties of Luxembourg agreed in 2018 to enact legislation allowing “the exemption from punishment or even legalization” of cannabis.

Meanwhile in the U.S., congressional lawmakers are working to advance legalization legislation. A key House committee recently approved a bill to end marijuana prohibition, and Senate leadership is finalizing a separate reform proposal.

In Mexico, a top Senator said this week that lawmakers could advance legislation to regulate marijuana in the coming weeks. The Supreme Court has already ruled that adults cannot be criminalized over possession or cultivation, but there’s currently no program in place to provide access.

New Bipartisan Marijuana Research Bill In Congress Would Let Scientists Study Dispensary Products

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.
Continue Reading

Politics

New Bipartisan Marijuana Research Bill In Congress Would Let Scientists Study Dispensary Products

Published

on

A bipartisan group of federal lawmakers introduced a bill on Thursday to remove barriers to conducting research on marijuana, including by allowing scientists to access cannabis from state-legal dispensaries.

The Medical Marijuana Research Act, filed by the unlikely duo of pro-legalization Rep. Earl Blumenauer (D-OR) and prohibitionist Rep. Andy Harris (R-MD), would streamline the process for researchers to apply and get approved to study cannabis and set clear deadlines on federal agencies to act on their applications.

“Congress is hopelessly behind the American people on cannabis, and the quality of our research shows why that is an urgent problem,” Blumenauer told Marijuana Moment. “Despite the fact that 99 percent of Americans live in a state that has legalized some form of cannabis, federal law is still hamstringing researchers’ ability to study the full range of health benefits offered by cannabis, and to learn more about the products readily available to consumers.”

“It’s outrageous that we are outsourcing leadership in that research to Israel, the United Kingdom, Canada, and others. It’s time to change the system,” he said.

Late last year, the House approved an identical version of the cannabis science legislation. Days later, the Senate passed a similar bill but nothing ended up getting to the president’s desk by the end of the last Congress. Earlier this year, a bipartisan group of senators refiled their marijuana research measure for the current 117th Congress.

Meanwhile, lawmakers are also advancing a separate strategy to open up dispensary cannabis to researchers. Large-scale infrastructure legislation that has passed both chambers in differing forms and which is pending final action contains provisions aimed at allowing researchers to study the actual marijuana that consumers are purchasing from state-legal businesses instead of having to use only government-grown cannabis.

The new bill filed this week by Blumenauer and Harris, along with six other original cosponsors, would also make it easier for scientists to modify their research protocols without having to seek federal approval.


Marijuana Moment is already tracking more than 1,200 cannabis, psychedelics and drug policy bills in state legislatures and Congress this year. Patreon supporters pledging at least $25/month get access to our interactive maps, charts and hearing calendar so they don’t miss any developments.

Learn more about our marijuana bill tracker and become a supporter on Patreon to get access.

It would additionally mandate that the Drug Enforcement Administration (DEA) license more growers and make it so there would be no limit on the number of additional entities that can be registered to cultivate marijuana for research purposes. It would also require the U.S. Department of Health and Human Services (HHS) to submit a report to Congress within five years after enactment to overview the results of federal cannabis studies and recommend whether they warrant marijuana’s rescheduling under federal law.

“The cannabis laws in this country are broken, including our laws that govern cannabis research,” Blumenauer said in remarks in the Congressional Record. “Because cannabis is a Schedule I substance, researchers must jump through hoops and comply with onerous requirements just to do basic research on the medical potential of the plant.”

The new legislation will “both streamline the often-duplicative licensure process for researchers seeking to conduct cannabis research and facilitate access to an increased supply of higher quality medical grade cannabis for research purposes,” he said, adding that expanded studies will help make sure “Americans have adequate access to potentially transformative medicines and treatments.”

For half a century, researchers have only been able to study marijuana grown at a single federally approved facility at the University of Mississippi, but they have complained that it is difficult to obtain the product and that it is of low quality. Indeed, one study showed that the government cannabis is more similar to hemp than to the marijuana that consumers actually use in the real world.

There’s been bipartisan agreement that DEA has inhibited cannabis research by being slow to follow through on approving additional marijuana manufacturers beyond the Mississippi operation, despite earlier pledges to do so.

In May, the agency finally said it was ready to begin licensing new cannabis cultivators. Last week, DEA proposed a large increase in the amount of marijuana—and psychedelics such as psilocybin, LSD, MDMA and mescaline—that it wants produced in the U.S. for research purposes next year.

Under the new House bill, the agency would be forced to start approving additional cultivation applications for study purposes within one year of the legislation’s enactment.

HHS and the attorney general would be required under the bill to create a process for marijuana manufacturers and distributors to supply researchers with cannabis from dispensaries. They would have one year after enactment to develop that procedure, and would have to start meeting to work on it within 60 days of the bill’s passage.

In general, the legislation would also establish a simplified registration process for researchers interested in studying cannabis, in part by reducing approval wait times, minimizing costly security requirements and eliminating additional layers of protocol review.

Read the full text of the new marijuana research bill below:

Click to access medical-marijuana-research-act-hr-5657-text.pdf

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.
Continue Reading
Advertisement

Marijuana News In Your Inbox

Support Marijuana Moment

Marijuana News In Your Inbox

Marijuana Moment