Connect with us

Politics

USDA Releases, Then Rescinds, Hemp Loan Notice Following Congressional Action

Published

on

The U.S. Department of Agriculture (USDA) recently released—and then promptly rescinded—a notice on providing federal loans for hemp processors.

After the crop was federally legalized under the 2018 Farm Bill, USDA announced that regulations were being developed to offer direct and guaranteed loans to the industry. The federal agency unveiled those guidelines in April and then issued a new notice this month notifying applicants about the policy change ahead of the planned expiration of the earlier 2014 hemp pilot program.

The next day, however, it posted an “obsoleting notice” invalidating the prior document.

The new guidance “was developed with the understanding that operators would no longer be authorized to produce hemp under the 2014 Farm Bill Pilot Program,” USDA said. However, because Congress approved a continuing resolution that extends the program until September 30, 2021, the loan policies are not currently applicable.

That pilot program extension came at the behest of numerous stakeholders, advocates and lawmakers who have been pushing USDA to make a series of changes to its proposed hemp regulations. As those rules are being reviewed and finalized, they said it was necessary to keep the 2014 program in place.

The president signed the continuing resolution late last month, so it’s not clear why the notice on loan policy changes was released weeks later, which then necessitated a follow-up recision. But in any case, it’s another example of the fluidity and challenges of rulemaking for the non-intoxicating cannabis crop following its legalization.

It stands to reason that the loan processes outlined in the now-invalid notice will likely be consistent with what’s ultimately released next year, assuming the pilot program does expire then.

The primary rule change concerns licensing requirements for borrowers. After the 2014 regulations are no longer in effect, hemp loan applicants must be licensed under a USDA-approved state or tribal hemp program, or under the agency’s basic regulations if the jurisdiction the business operates in has not submitted its own rules.

Borrowers who are not licensed to grow hemp will be considered in non-monetary default and any losses will not be covered. For direct and guaranteed loans, hemp businesses must have a contract with USDA’s Farm Service Agency laying out termination policies and their ability to repay the loans.

As of this month, USDA has approved a total of 69 state and tribal hemp regulatory proposals—mostly recently for Illinois, Indiana, Michigan, New Mexico, Oklahoma and South Dakota. Illinois and Oklahoma were among a group of states that USDA had asked to revise and resubmit their initial proposals in August.

While the agency released an interim final rule for a domestic hemp production program last year, industry stakeholders and lawmakers have expressed concerns about certain policies it views as excessively restrictive.

USDA closed an extended public comment period on its proposed hemp regulations earlier this month. Its initial round saw more than 4,600 submissions, but it said last month that it was reopening the feedback period in response to intense pushback from stakeholders on its original proposal.

The federal Small Business Administration (SBA) said last month that the new 30-day comment window is too short and asked USDA to push it back, and it also issued a series of recommended changes to the interim final rule on hemp, which it says threaten to “stifle” the industry and benefit big firms over smaller companies.

All told, it appears that USDA is taking seriously the feedback it’s received and may be willing to make certain accommodations on these particular policies. The department’s rule for hemp is set to take effect on October 31, 2021.

In July, two senators representing Oregon sent a letter to Perdue, expressing concern that hemp testing requirements that were temporarily lifted will be reinstated in the agency’s final rule. They made a series of requests for policy changes.

Senate Minority Leader Chuck Schumer (D-NY) wrote to Perdue in August, asking that USDA delay issuing final regulations for the crop until 2022 and allow states to continue operating under the 2014 pilot program in the meantime.

Sen. Cory Gardner (R-CO) also called on USDA to delay the implementation of proposed hemp rules, citing concerns about certain restrictive policies the federal agency has put forward in the interim proposal.

The senators weren’t alone in requesting an extension of the 2014 pilot program that was ultimately enacted legislatively, as state agriculture departments and a major hemp industry group made a similar request to both Congress and USDA in August.

Amid the coronavirus pandemic, hemp industry associations pushed for farmers to be able to access to certain COVID-19 relief loans—a request that Congress granted in the most recent round of coronavirus legislation.

While USDA previously said that hemp farmers are specifically ineligible for its Coronavirus Food Assistance Program, that decision was reversed last month. While the department initially said it would not even reevaluate the crop’s eligibility based on new evidence, it removed that language shortly after Marijuana Moment reported on the exclusion.

Meanwhile, USDA announced last week that it is planning to distribute a national survey to gain insights from thousands of hemp businesses that could inform its approach to regulating the industry.

Kamala Harris Touts ‘Commitment’ To Marijuana Decriminalization And Expungements Under Biden Administration

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.

Politics

Alabama Senate Approves Medical Marijuana Legalization Bill

Published

on

The Alabama Senate on Wednesday approved a bill to legalize medical marijuana in the state.

Weeks after the chamber’s Judiciary Committee advanced the legislation, it cleared the full floor in a vote of 21-8 following a brief, 15-minute discussion.

The bill, sponsored by Sen. Tim Melson (R), would allow people with qualifying conditions to access cannabis for therapeutic purposes.

Melson is the same lawmaker who sponsored a similar bill that was approved by the full Senate last year but which later died without a House vote amid the coronavirus pandemic.

This latest proposal would establish an 11-member Alabama Medical Cannabis Commission to implement regulations and oversee licensing.

To qualify for the program, patients would have to be diagnosed with one of about 20 conditions, including anxiety, sleep disorders, post-traumatic stress disorder and intractable pain. Regulators would not be able to independently add additional conditions, leaving that decision up to lawmakers.

Advocates say they’re encouraged that medical cannabis reform is advancing in Alabama, but they’ve raised concerns about a number of aspects of the bill.

One problematic provision, they say, is that patients with chronic or intractable pain could only be recommended medical marijuana in cases where “conventional therapeutic intervention and opiate therapy is contraindicated or has proved ineffective.”

The bill also prohibits raw cannabis, smoking, vaping and candy or baked good products. Patients would instead be allowed to purchase capsules, lozenges, oils, suppositories and topical patches.

Patients would be allowed to purchase and possess up to “70 daily dosages of medical cannabis.” Under an amendment approved on the floor, the maximum daily dose was reduced from 75 to 50 milligrams. However, the amendment’s sponsor said it could be increased to 75 milligrams in some circumstances.

The revision also calls for a label on marijuana products to indicate that cannabis can cause drowsiness.

It also calls for a nine percent gross proceeds tax on medical marijuana sales. After covering implementation costs, 60 percent of revenue would go to the state’s general fund and 30 percent would go to research into the medical potential of cannabis.

Patients, caregivers and and medical cannabis businesses would receive legal protections under the proposal, preventing them from being penalized for activities authorized by the state.


Marijuana Moment is already tracking more than 700 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.

For physicians to be able to recommend cannabis to patients, they would have to complete a four-hour continuing education course and pass an exam. The course would cost upwards of $500 and doctors would also be required to take refresher classes every two years.

Under the bill, regulators would be tasked with developing restrictions on advertising and setting quality control standards. Seed-to-sale tracking and laboratory testing would be mandated.

Other changes approved on the floor would add language to stipulate that gelatinous cannabis products cannot be sugar coated and insert provisions promoting good manufacturing practices and tamper-evident packaging.

A separate amendment that cleared the chamber added sickle cell anemia as a qualifying condition for medical marijuana.

Applications for cannabis business licenses would have to be accepted starting September 1, 2022 and then proceeded within 60 days.

The commission would be required to approve at least four cultivators, up to four processors, up to four dispensaries for the first year of implementation (more could be approved after that point depending on demand) and as many as five vertically integrated operators.

This bill’s reintroduction has been greatly anticipated by advocates. The Senate approved a separate medical cannabis bill in 2019, but the House later severely compromised it. The legislation as enacted would not have legalized patient access; rather, it set up a study commission to explore the issue and make recommendations.

The commission came back with its report in December 2019, with members recommending that medical marijuana be legalized.

The Senate’s president voted against medical cannabis in 2020 but said he is open to letting the issue advance again in the new session. Meanwhile, the House speaker said that “if the bill comes up and it has proper restrictions in it, then I’m open to at least debating it.”

There could be additional pressure on the legislature to enact legalization given that voters in neighboring Mississippi approved a medical cannabis reform initiative during the November election.

New York Marijuana Legalization Proposals Get First Joint Legislative Hearing Of 2021

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 York Marijuana Legalization Proposals Get First Joint Legislative Hearing Of 2021

Published

on

New York lawmakers on Tuesday held the first public hearing of the year on proposals to legalize marijuana, specifically focusing on budget implications.

In a joint session with members of the Senate Finance Committee and Assembly Ways & Means Committee, legislators heard testimony from two pro-legalization industry representatives and one opponent, Kevin Sabet of the prohibitionist group Smart Approaches to Marijuana.

Notably, despite their ideological differences when it comes to legalization in general, all three panelists were critical of the reform proposal that Gov. Andrew Cuomo (D) included in his budget request.

NY Cannabis Growers and Processors Association President Allan Gandelman and NY Medical Cannabis Industry Association President Ngiste Abebe both said they favor a legalization measure out of the legislature—the Marijuana Regulation and Taxation Act (MRTA)—arguing that its tax structure and social equity provisions are superior to the governor’s plan, even after Cuomo submitted amendments in hopes of shoring up support among skeptical lawmakers.

“We deeply appreciate the possibilities offered in the MRTA. New York will need to balance issues involving taxes, licensing and speed to market,” Gandelman said. “The MRTA does an excellent job allowing for social consumption, cannabis home grow, microbusinesses, home delivery and funding for social equity applicants. These policies should be, without question, integrated into any final legislation enacted by the state.”

Watch the joint public hearing on marijuana legalization in New York below: 

Cuomo did propose amending his legalization plan to add a home delivery option and specify how social equity grants for cannabis businesses would be distributed—but advocates say it still falls short of the MRTA, sponsored by Sen. Liz Kreuger (D), chair of the Finance Committee.

Abebe, who also serves as public policy director for Columbia Care, said that her organization believes “the governor’s proposal could be improved as well—and then, between the [Cannabis Regulation and Taxation Act] and the MRTA, there is a pathway to effective legalization in New York.”

But the April 1 deadline to get those improvements included in Cuomo’s budget plan and pass the legislation is quickly approaching, and legislative leadership has indicated that they’d prefer to pass the MRTA first and then begin negotiations with the governor’s office.

“It is my hope and desire that New York will legalize adult-use of cannabis this current session in 2021,” Assembly Majority Leader Crystal Peoples-Stokes (D), who has been especially critical of the governor’s proposal, recently said.

Earlier this month, Lt. Gov. Kathy Hochul (D) told Marijuana Moment in an interview that there would be room for revisions to the governor’s plan, stating that “much of it is going to be negotiated with the legislature, and all these details can be resolved with their input as well.”


Marijuana Moment is already tracking more than 700 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.

Cuomo said that the changes in his bill reflect “the conversations we’ve had, but I’m hopeful that we can come to an agreement and we can get it done. He added that he believes, “because I’ve seen this movie before, “if we don’t get it done by April 1, we won’t get it done.”

This is the third year in a row that Cuomo has included a legalization proposal in his budget plan. The last two times, negotiations with the legislature stalled amid disagreements over certain components such as the tax structure for the market and funding for social equity programs.

Regardless of which direction the legislature ultimately goes on this issue, there’s growing recognition in the state that legalization is an inevitability.

The top Republican in the New York Assembly said in December that he expects the legislature to legalize cannabis this coming session.

Senate Majority Leader Andrea Stewart-Cousins (D) said in November that she also anticipates that the reform will advance in 2021, though she noted that lawmakers will still have to decide on how tax revenue from marijuana sales is distributed.

Cuomo also said that month that the “pressure will be on” to legalize cannabis in the state and lawmakers will approve it “this year” to boost the economy amid the health crisis.

The push to legalize in New York could also be bolstered by the fact that voters in neighboring New Jersey approved a legalization referendum in November.

Separately, several other bills that focus on medical marijuana have been filed in New York, and they touch on a wide range of topics—from tenants’ rights for medical cannabis patients to health insurance coverage for marijuana products.

Biden Cabinet Pick Defends Proposal To Use Marijuana Tax Dollars To Fund Schools

Photo courtesy of WeedPornDaily.

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

Biden Cabinet Pick Defends Proposal To Use Marijuana Tax Dollars To Fund Schools

Published

on

President Joe Biden’s pick for secretary of the Interior Department on Tuesday defended a past campaign promise to support marijuana legalization as a means to diversify her state’s economy and help fund public education.

Rep. Deb Haaland (D-NM) was pressed on her 2018 remarks during a confirmation hearing before the Senate Energy and Natural Resources Committee. Sen. John Barrasso (R-WY), the panel’s ranking member, asked whether it was still her position that tax revenue from cannabis sales could be used to support schools as a replacement for oil and gas royalties as part of a plan to shift away from fossil fuels.

“Well, I think the point of that, ranking member, was to say that we should diversify our funding streams for education and not just rely on one,” she replied.

“Is selling marijuana among what the Biden administration calls ‘better choices’ that the Biden administration has promised to give displaced oil and gas workers?” Barrasso asked. “Is that the better choice? Marijuana?”

“I honestly don’t know what President Biden’s stance is on cannabis currently,” the nominee said.

The president’s position on marijuana does depart with Haaland’s, as he has maintained an opposition to adult-use legalization and hasn’t signaled that he’d be interested in enacting the reform as a way to raise revenue for any particular initiative. He supports legalizing medical cannabis, decriminalizing low-level marijuana possession, modestly rescheduling the plant, expunging prior cannabis convictions and letting states set their own policies.

In any case, the senator—along with the Republican National Committee (RNC), which circulated Haaland’s 2018 comments ahead of the hearing—apparently feels that the marijuana position of his nominee to head Interior are damning, despite the bipartisan public support for legalization and broad sentiment that tax revenue from cannabis should be effectively utilized for public services.

“We know what your stances on replacing the revenue, the energy jobs, the jobs that power our economy and the energy that powers our country. And your preference is to turn to drugs is what you’ve recommended to the voters,” Barrasso said. “At a time when there’s high unemployment and energy workers lose their jobs—we’ve seen it in West Virginia, we’ve seen it around the country—there’s been an opioid crisis in this nation. And yet what I hear from you is the answer in a better choice world is marijuana.”

Later in the hearing, Sen. Maria Cantwell (D-WA) returned to the ranking member’s line of questioning and said “just to be clear on the marijuana issue, this isn’t a Seattle issue. Out of 39 counties, 20 to 25 counties in the state of Washington supported legalizing cannabis.”

“I don’t blame our legislature or others from getting revenue from that and put it towards public health issues in the state of Washington,” she said. “This is respecting the wishes of the voters and then putting it to good use.”

Watch Cantwell’s marijuana comments, starting around 55:45 into the video below: 

Marijuana also came up during Haaland’s initial committee confirmation hearing on Tuesday, with Rep. Don Young (R-AK) introducing Haaland and joking about her energy policy by saying that “anybody who thinks you’re going to cut off fossil fuel immediately is smoking pot—that’s legal in the state of Alaska, by the way.”

Watch Young’s cannabis comments, about 37:00 into the video below:

For advocates, while it’s encouraging to see administration nominees embrace pro-reform positions, this was not the most consequential cannabis comment during a confirmation session this week. On Monday, Merrick Garland, the president’s nominee for attorney general said it is not “a useful use of limited resources” to go after people who are complying with state marijuana laws. He also citied cannabis enforcement as an example of the racially discriminatory impact of the criminal justice system.

Another New Mexico House Committee Approves Marijuana Legalization Bill

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