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New Zealand Government Releases Details Of Marijuana Legalization Referendum

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Details about legislative plans to legalize and regulate marijuana in New Zealand were released on Tuesday.

The three political parties who are part of a minority government coalition agreed to basic elements of a referendum to allow for the use, possession, sale and cultivation of cannabis for adults 20 and older, which is set to appear on New Zealand’s 2020 ballot.

Justice Minister Andrew Little confirmed in a press release that the measure will be binding—meaning that if voters approve the measure, the government will be obliged to follow through on the voters’s will. The proposal will allow for limited home cultivation and licensed areas where people can consume marijuana socially. It will also include restrictions on advertising.

“Officials are now empowered to draft the legislation with stakeholder input, and the Electoral Commission will draft the referendum question to appear on the ballot,” Little said in a press release. “The voters’ choice will be binding because all of the parties that make up the current Government have committed to abide by the outcome.”

“We hope and expect the National Party will also commit to respecting the voters’ decision,” he said, referring to the leading opposition party that is not part of the governing coalition.

“Cabinet has agreed to hold a binding referendum at the 2020 General Election to determine whether personal use of recreational cannabis should be legalised,” he wrote in an executive summary of the plan. “If the binding nature of the referendum is to be meaningful it will be necessary to be as clear and certain about the outcome of a ‘yes’ vote as possible.”

“The referendum question should provide voters with a clear choice on this important matter,” he said. “Also, there may be merit in allowing for the public education in the lead up to the referendum to better understand the final regulatory model that is adopted.”

Little outlined four separate referendum options for the Cabinet to choose from. It appears that parties agreed on the option that reads as follows:

“A question referring to an exposure draft piece of legislation that outlines the suggested regulatory model for cannabis but was not introduced into the House until the result of the referendum was known: ‘Do you support legalising the personal use of recreational cannabis in accordance with [published draft legislation]?”. This exposure draft would be provided in confidence to limited stakeholders for consultation and a final exposure draft that would be the subject of the referendum would follow.”

Little argued that simply decriminalizing cannabis would “impede the ability to control quality of products” and “any of the harm minimization associated with removing criminal elements.” Legalizing and regulating marijuana, on the other hand, would create a “controlled and tightly regulated market” that would allow the government to “steer market behaviour towards achieving the objective of minimising harm, while providing safe and legal access to cannabis.”

Here are the primary and secondary goals of the proposed referendum, as Little outlined in a 30-page briefing document:

Primary objectives:

Address the wellbeing of New Zealanders and harm reduction—the model should minimise harms associated with cannabis, such as health-related harm, social harms and harm to youth.

Lower the overall use of cannabis over time through education and addiction services – with a particular focus on lowering the use amongst youths by increasing the age of first use. Revenue raised through the regulation of cannabis should contribute to relevant health-related measures.

Secondary objectives:

Disempowering the gangs and the illegal trade in cannabis;

Lowering the prison population over time and lowering the number of New Zealanders (especially Maori) whose future opportunities are negatively affected by cannabis use charges;

Ensure product safety and control of THC levels via legislation and regulation;

Be consistent with the rule of law – the model should uphold New Zealand’s constitution. It should also minimise opportunities for the illicit market and be clear and easy to follow;

Tailored and workable for New Zealand – the model should recognise and reflect our cultural practices and the values of New Zealand society so that it can be accepted by New Zealanders;

Fiscal sustainability – the model should seek to fund mechanisms that directly address cannabis-related harms, while also aiming to lower use over time.”

Chlöe Swarbrick, a Green Party member of Parliament who joined Little at Tuesday’s presser, released a video celebrating the development.

“In line with a health-based approach, consumption will be limited to private spaces or to those that are licensed,” she said. “We are also guaranteeing that there is going to be no advertising because the last thing we want to do is open the door to big corporates and invite another ‘Big Tobacco’ or ‘Big Alcohol’ and replace the black market with some big corporate control.”

“This is, of course, massive news and the first solid piece of information we can give you guys on the cannabis referendum,” she added. “Over the next year and a half, I will be doing my utmost to get around the country and hear from all of you about how we can create the best possible piece of legislation.”

The proposal also calls for a licensing scheme that would “provide for safe spaces for people to use cannabis away from home.”

The timeline for steps toward drafting the legislation and ballot question were laid out by the justice minster as follows:

New Zealand has previously demonstrated interested in pursuing a public health-orientated approach to drug policy. Officials instructed law enforcement not to criminalize possession and consumption of synthetic drugs, which is at the center of a drug crisis in the country, and to instead treat such cases as public health concerns.

A poll released in January found that 60 percent of New Zealand residents would approve a referendum to legalize cannabis. Only 24 percent of respondents voiced opposition to the policy and 16 percent were left undecided.

Should the country opt to legalize and regulate marijuana, it would be following in the steps of Canada and Uruguay, which have already done so. Mexican lawmakers are also pushing ahead on a legalization plan.

“Subject to Cabinet decisions, any legislation to be enacted before the referendum that includes provisions relating to the overall system of cannabis, including the cultivation, sale and supply, and use of recreational cannabis in New Zealand would preferably be passed by December 2019, with March 2020 as an absolute deadline in order to undertake the referendum at the 2020 General Election,” Little wrote.

Mexican Lawmakers Plan To Tackle Marijuana Legalization This Summer

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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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Lindsey Graham Challenger Jaime Harrison Backs Legalizing Marijuana

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The Democrat mounting a well-funded bid to oust Senate Judiciary Committee Chairman Lindsey Graham (R-SC) says he supports legalizing marijuana.

“I think we should legalize, regulate and tax marijuana like we do alcohol and tobacco,” Jaime Harrison argued this week. “There is simply no medical reason to lock people up over this issue. In essence, this is about common sense.”

The former South Carolina Democratic Party chairman said that the issue is also a matter of criminal justice reform.

“We know that marijuana arrests, including those for simple possession, account for a large number of drug arrests. The racial disparities in marijuana enforcement—black men and white men smoke marijuana the same rates, but black men are much more likely to be arrested for marijuana possession—is just unacceptable,” he said in an interview with CNBC. “Across the country, we are finding that states are legalizing marijuana and medical marijuana, and it’s just time for South Carolina to lead on this issue.”

Federal campaign finance disclosures filed on Wednesday show that Harrison, who also served as an aide to Rep. Jim Clyburn (D-SC) and a lobbyist with the Podesta Group, outraised Graham for the second quarter in a row.

The state Democratic party, on Harrison’s last day in office as chair in 2017, approved a resolution endorsing a pending medical cannabis bill in the South Carolina legislature.

“Caregivers and patients are searching for treatment options for unmet medical needs, particularly for epilepsy, Alzheimer’s disease, cancers, and the effects of chemotherapy,” the measure said. “The cannabis plant in various forms including oils, creams, drops and liquids has shown some promise in treating these medical conditions.”

A South Carolina Senate committee advanced a medical marijuana bill last year but it never ended up advancing to a floor vote.

In 2018, the state’s Democratic primary voters approved an advisory medical cannabis ballot question by an 82 percent to 18 percent margin.

Graham, for his part, opposes marijuana legalization and hasn’t brought any pending cannabis legislation up for hearings or votes in his panel, which handles criminal justice issues.

That said, he has cosponsored a handful of reform bills in past years. For example, in 2016 he signed onto legislation to protect medical marijuana states from federal interference and reschedule cannabis, and in 2017 he cosponsored a bill to remove CBD from the list of federally banned substances.

He has a mixed record when it comes to votes on cannabis amendments.

In 2015, Graham voted against an Appropriations Committee amendment that would have allowed the U.S. Department of Veterans Affairs to recommend medical cannabis to patients; but the next year he reversed himself and supported a similar measure. Also in 2016, he backed an amendment to prevent the Department of Justice from spending money to interfere with state medical cannabis laws.

Shortly after it was announced he would be taking over the Judiciary panel’s gavel, Sen. Cory Booker (D-NJ) joked that he would be sending marijuana-infused brownies to congratulate Graham, a quip that the incoming chairman seemed to appreciate.

While South Carolina typically isn’t seen as a state where Democrats are likely to pick up a U.S. Senate seat, this year’s contest between Harrison and Graham is attracting attention from national political observers due to the outsized funding haul the challenger has been able to bring in so far.

Illinois Collects $52 Million In Marijuana Tax Revenue In First Six Months Of Legal Sales

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GOP Congressman Withdraws Amendment To Block D.C. Psychedelics Decriminalization

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A GOP congressman filed an amendment to a spending bill on Wednesday, seeking to undermine a local Washington, D.C. ballot initiative to deprioritize enforcement of laws against a broad class of psychedelics.

But while Rep. Andy Harris (R-MD) made the case that his proposed measure represented a reasonable compromise—making it so only psilocybin mushrooms would be low police priorities and only if a doctor recommended them for medical reasons—he ultimately withdrew the amendment rather than force a vote.

“This amendment deals with Initiative 81…which would make the use of hallucinogenic drugs a low priority for enforcement in the District of Columbia,” Harris said in his opening remarks before the House Appropriations Committee.

The congressman added that he’s particularly concerned about the scope of the ballot measure, acknowledging that “there is limited data that psilocybin may be useful in some circumstances” but asserting that the same can’t be said of the other entheogenic substances such as mescaline that would be covered under the activist-driven initiative.

Watch the debate over Harris’s D.C. psychedelics amendment below: 

It should be noted that while activists behind the initiative submitted their signatures last week and believe they have more than enough to qualify for the November ballot in the nation’s capital, the Board of Elections has yet to certify them. Harris acknowledged that but said “I suspect it might be [qualified for the ballot] by the time” the spending bill goes to a bicameral House and Senate conference committee that will finalize the Fiscal Year 2021 Financial Services and General Government bill for delivery to the president’s desk later this year.

It’s not clear if he was signaling that he planned to reintroduce his amendment, which also stipulates that driving under the influence of psychedelics would be prosecutable, on the House floor or if he plans to work to get a senator to tack it onto that chamber’s version of the legislation, which deals with funding for D.C.

“I think the District of Columbia is different from other cities because we have people coming in from all over the country—and we certainly, I would hope, don’t want to be known as the drug capital of the world,” he said.

There was some debate on the measure by the panel. House Appropriations Financial Services and General Government Subcommittee Chairman Mike Quigley (D-IL) and Rep. Betty McCollum (D-MN) voiced opposition while the subcommittee ranking member, Rep. Tom Graves (R-GA), and Rep. Robert Aderholt (R-AL) spoke in favor of the proposal.

“If the district residents want to make mushrooms a lower priority and focus limited law enforcement resources on other issues, that is their prerogative,” Quigley said. “Congress has allowed jurisdictions in California and Colorado to exercise their sovereign right to set policy on mushrooms, the District of Columbia too should be allowed to use their local funds to support their local needs and their priorities.”

Graves argued that “we all can agree that policies that increase the availability of psychedelic drugs in our nation’s capital, that’s dangerous.”

“As the nation’s capital, the District of Columbia, it should be a place where Americans come to see their government at work, for history, maybe go to a Braves-Nats game—it shouldn’t be a destination for illegal drugs,” he said.

McCollum said the amendment serves as another example of Congress attempting to impose excess regulations on D.C. and argued in favor of statehood for the district.

“Now we’re not even allowing the District of Columbia to move forward and decide whether or not this is a good idea,” she said. “I oppose the amendment.”

Rep. Eleanor Holmes Norton (D-DC) celebrated the amendment’s withdrawal with a taunt on Twitter, saying, “Regular #homerule offender @RepAndyHarrisMD tried to bar DC from using its own funds to enact a proposed ballot initiative on entheogenic plants + fungi or any similar law, but then withdrew it before the committee could defeat it.”

That prompted Harris to reply that the “process of educating Congress about how dangerous this initiative is has begun. DC has enough of a drug abuse problem without becoming the drug capital of the country.”

Harris’s office didn’t respond to Marijuana Moment’s request for comment about whether he withdrew the amendment because he sensed he didn’t have the votes to pass it in committee.

In his closing remarks at the markup, the congressman said that his measure “is more than just mushrooms. That’s my whole point.”

“Mushrooms is psilocybin—that has a medical use. This includes mescaline, peyote, three other substances [that] have no medical use at all,” he said.

Melissa Lavasani, who proposed the D.C. ballot measure and is part of the Decriminalize Nature D.C. group working to pass it, said in a press release that “our campaign is about helping D.C. residents by enacting common sense reforms to police priorities that ensure that those using healing plant and fungi medicines are not law enforcement targets.”

This isn’t Harris’s first go at pushing for legislation that leverages Congress’s control over the D.C. budget to interfere in local drug policy issues.

Harris has been a consistent opponent of cannabis reform, repeatedly backing a long-standing congressional rider that bars D.C. from using its tax dollars to implement a legal marijuana marketplace. Last year, however, it was not included in the annual spending bill as introduced by House Democratic leaders and the congressmen didn’t attempt to introduce an amendment to reinsert it. It was included in the Senate version and was included in the final enacted bill following conference committee negotiations, however.

The Drug Policy Alliance sent a letter to committee leadership in advance of Wednesday’s hearing, urging them to oppose any attempts to interfere in D.C.’s ability to vote on the psychedelics reform initiative.

Colorado Marijuana Regulators Propose ‘Franchise’ Business Model For Equity Applicants

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Colorado Marijuana Regulators Propose ‘Franchise’ Business Model For Equity Applicants

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Colorado marijuana regulators are looking for feedback on a proposal to create a franchise cannabis business model to promote equitable participation in the industry by people from communities harmed by the war on drugs.

When legislators initially approved a bill to create an accelerator program for marijuana businesses, it was only designed to give eligible entrepreneurs an opportunity to share a cannabis facility with an existing company. But following stakeholder meetings, regulators laid out a proposal to let those entrepreneurs functionally serve as franchises of current larger marijuana businesses, operating out of separate facilities but sharing branding, advertising and intellectual property under certain conditions.

“The Division contemplates certain components of this alternative ‘separate premises’ model will be similar to a franchisor-franchisee business relationship,” the state’s Marijuana Enforcement Division said in a notice last month.

In order to participate under the new model, the division said it would require a series of disclosures, including initial investments from both parties, terms of any financial arrangements and obligations for the licensee such as non-compete requirements.

Additional requirements could still be developed. For example, the department is considering whether franchisees should be offered reduced or waived rent to use facilities owned by existing businesses that agree to be “endorsement holders.” Regulators are also contemplating limitations for the amount of money a franchise can charge an accelerator licensee as a fee for use of their facilities, as well as liability rules.

“Available incentives for accelerator-endorsed licensees to support the ‘separate premises’ model may also include fee reductions resulting from increased financial assistance and no-cost rent arrangements, and reduced accelerator-endorsed licensee liability,” the division said.

Beyond potentially collecting fees from licensees, the benefit of becoming an endorsement holder under this separate premises model seems to be that they get to indirectly expand their business and exposure while supporting entrepreneurs who might not have the immediate resources to break into the industry.

That said, some advocates are weary of the proposed based on past experience.

“While accelerator programs sound good on paper, they so often create terrible long term power dynamics for smaller businesses that we can not endorse this approach,” Jason Ortiz, president of the Minority Cannabis Business Association, told Marijuana Moment.

“Any relationship that puts a small business owner at the whim of a larger conglomerate makes us concerned that the power dynamic there does not favor the smaller business, who will now have their operation tied to the success of the larger entity,” he said. “We instead encourage any business to invest in grant based programs that allow for smaller businesses to operate on their own premises and to run their business how they see fit.”

At the same time, Morgan Fox, media relations director for the National Cannabis Industry Association, told Marijuana Moment that the proposal “looks like it could create a lot of opportunities for people to get into the industry without having large amounts of capital and could generally lower the barriers of entry significantly.”

“Judging from the comments in the feedback solicitation, it appears that the possibility of predatory or unfair franchise relationships is at the front of the Marijuana Enforcement Division’s priorities and it intends to make it very difficult for endorsement licensees to exploit accelerator licensees,” he said. “However, we’ve learned from the shortcomings and abuses in other equity programs around the country that it is important to continually monitor and assess these programs to ensure their effectiveness.”

Stakeholders can fill out an online form to submit input on the proposal. A hearing to finalize the rulemaking is tentatively set for July 30.

At the same time, the division is also working on the implementation of a bill that defines who qualifies as a social equity cannabis business applicant for the accelerator program. Gov. Jared Polis (D) signed that legislation, which also gives him authority to streamline pardons for prior marijuana convictions, last month.

The division is scheduled to hold a separate hearing on implementing the new bill on July 28.

Illinois Collects $52 Million In Marijuana Tax Revenue In First Six Months Of Legal Sales

Photo courtesy of Kimberly Lawson.

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