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What MedMen’s Exit From Arizona’s Marijuana Market Means For Legalization In 2020

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With MedMen announcing its plans to exit Arizona’s medical marijuana market last month, some observers are left wondering where that leaves a campaign to legalize cannabis for adult use in the state—an effort that has received substantial financial contributions from the company.

The multi-state marijuana dispensary chain said that it will be selling its three vertically integrated licenses in Arizona as part of a restructuring amid an economic downturn in the cannabis industry. While the company expects to generate tens of millions of dollars from the sales and plans to continue investments in various other state markets, it departure from Arizona comes at a pivotal time.

MedMen has donated $200,000 to Smart & Safe Arizona, the campaign working to put a recreational legalization measure on the state’s 2020 ballot. That’s a sizable chunk of the $1.6 million in contributions that the campaign has reported to the secretary of state’s office so far, with the company trailing only Harvest Enterprises Inc. and CuraLeaf in top contributions.

But in an email to Marijuana Moment, campaign manager Stacy Pearson said organizers don’t expect the development to have any effect on the legalization effort.

“MedMen’s sale of its Arizona licenses won’t impact the campaign,” Pearson said. “MedMen’s leadership provided guidance during the development of the initiative and fulfilled their financial commitment of $200k.”

“To date, the campaign has raised more than $1.6 million from 53 donors—the majority of which has been raised from in state dispensary owners,” she said.

Arizona might not be the biggest state with respect to the size of its marijuana industry, but medical cannabis sales did increase there by 41 percent from 2017 to 2018. Could it then be the case that the decision to leave the Grand Canyon State had something to do with MedMen’s expectations about the likelihood that adult-use legalization will qualify for the ballot and pass in November?

The company’s exit could be seen as a sign that executives don’t believe the legalization push in Arizona will be successful; if voters approve legalization this year, MedMen would presumably stand to benefit from the expansion of the state’s legal cannabis market to all adults over 21, instead of just patients with doctors’ recommendations.

If the company is turning to the past to predict the future, it is true that Arizonans narrowly rejected a recreational legalization initiative in 2016. But advocates have been optimistic that this time around—with big-dollar contributions coming in and a growing consensus that legalization is the right move—such a measure stands a much stronger chance of passing.

In a recent interview with Marijuana Business Daily, MedMen CEO Adam Bierman didn’t discuss the specific reasoning behind its sale of the Arizona licenses but said the company “made an error in judgment” by aggressively building its brand in a variety of state markets, and he added that the states its currently operating in “have the real estate that builds brands.”

Marijuana Moment reached out to Bierman for comment on whether politics played a role in MedMen’s market shift or whether it plans to continue to fund the legalization campaign, but a representative said the CEO could not be made available for an interview.

While Arizona might not be a growth target for the cannabis corporation at this point, MedMen did emphasize that it will continue investing in other markets such as Illinois, Nevada, New York and Florida.

In Florida, MedMen has contributed significant funds to Make It Legal Florida, an effort to put a marijuana legalization measure on the state’s 2020 ballot.

Kansas Governor Says She’d Sign Marijuana Legalization Bill, But Medical Cannabis Is Her Priority

Photo courtesy of Philip Steffan.

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

DEA Seeks Contractor Capable Of Burning Four Tons of Marijuana Per Day

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The Drug Enforcement Administration (DEA) recently reached out for help burning “at least” 1,000 pounds of marijuana per hour for eight hours straight.

Every year, DEA seizes millions of marijuana plants and literal tons of raw cannabis, which eventually end up being destroyed. The successful contractor in Arizona would be responsible for burning marijuana and other controlled substances seized as evidence in drug cases “to a point where there are no detectable levels, as measured by standard analytical methods, of byproduct from the destruction process.”

“DEA shall inspect the incinerator to ensure no drug residue remains,” the agency said.

DEA posted the work description earlier this month in what’s called a “sources sought notice,” an initial step before a formal request for proposals is sent.

“This is not a request for proposals and does not obligate the Government to award a contract,” the post says. “The Drug Enforcement Administration (DEA) is conducting market research, and is encouraging all businesses, including small businesses, to respond to this notice.”

An accompanying statement of work gives a behind-the-scenes look at the DEA’s process of destroying seized drugs. Typical boxes weigh between 40 and 60 pounds, for example, but can weigh up to 200 pounds. Contraband might come in on “semi-trucks, tractor trailers, cargo vans, fork lifts, etc.,” the work description says.

“The drugs are usually tightly compressed ‘bricks’ or ‘bales,’” it continues, and are packaged in all sorts of materials: cardboard, wrapping paper, plastic wrap, aluminum foil, packing tape, “duct tape and derivatives,” plastic evidence bags, “grease/oil” and others. Contractors will be expected to burn that stuff, too.

To avoid potential contact highs, there must be ”proper ventilation” and “no smoke buildup” will be allowed. Other mandates include closed-circuit cameras that capture the entire process, which DEA reserves the right to access, as well as background checks and regular drug tests of all personnel.

Armed DEA agents and contractors will be present during scheduled burns.

The work is also very hush-hush, so whoever gets the job shouldn’t expect to regale friends with stories of the latest large-scale federal weed burning sesh.

“The contractor and its personnel shall hold all information obtained under the DEA contract in the strictest confidence,” the work description says. “All information obtained shall be used only for performing this contract and shall not be divulged nor made known in any manner except as necessary to perform this contract.”

The work would start January 1 of next year and the contract would expire in 2026 unless terminated sooner. The deadline to send information for would-be contractors was Friday.

DEA Seized More Marijuana Plants In 2019, But Arrests Fell

Photo courtesy of Chris Wallis // Side Pocket Images

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Harris Will Give Biden ‘Honest’ Input On Legalizing Marijuana And Other Issues As Part Of ‘Deal’

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Democratic vice presidential nominee Kamala Harris says she has a “deal” with Joe Biden to candidly share her perspective on a range of progressive policies he currently opposes, including legalizing marijuana. Separately, she also recently discussed cannabis reform in a private meeting with rapper Killer Mike.

During an interview on 60 Minutes that aired on Sunday, the senator was pressed on marijuana and numerous other issues where she and Biden disagree. In response, while she didn’t specifically commit to proactively advocating for comprehensive cannabis reform, she pledged in general that she would always share her views with the would-be president if the pair are elected next week.

“What I will do—and I promise you this and this is what Joe wants me to do, this was part of our deal—I will always share with him my lived experience as it relates to any issue that we confront,” she said after the interviewer listed cannabis legalization among a handful of issues on which she and Biden depart. “I promised Joe that I will give him that perspective and always be honest with him.”

Asked whether that perspective will be “socialist” and “progressive,” Harris laughed and said “no.”

“It is the perspective of a woman who grew up a black child in America, who was also a prosecutor, who also has a mother who arrived here at the age of 19 from India, who also, you know, likes hip hop,” she said.

The senator’s taste in music also came up during her own 2020 presidential bid, when she said in an interview that she listened to Snoop Dogg and Tupac while smoking marijuana during college despite graduating before those artists released their debut albums.

Music culture has played a key role in this election cycle, and one of the strongest voices for criminal justice reform in the industry is Killer Mike, who worked as a surrogate for Sen. Bernie Sanders (I-VT) when he was running for the Democratic presidential nomination. The artist said he met with Harris on Friday and the two discussed cannabis business opportunities for communities of color.

As she’s done repeatedly since joining Biden’s campaign, Harris also reiterated at a rally in Pontiac, Michigan on Sunday that the administration would pursue marijuana decriminalization and expunging prior cannabis convictions.

She made similar comments during a campaign event in Atlanta last week, stating that the “war on drugs was, by every measure, a failure, and black men were hit the hardest.” That said, while the senator has come to embrace broad cannabis reform, she’s faced criticism over her past opposition to legalization and role in prosecuting people for marijuana offenses as a California prosecutor.

In another interview released last week, Harris said she and Biden “have a commitment to decriminalizing marijuana and expunging the records of people who have been convicted of marijuana offenses.”

“When you look at the awful war on drugs and the disproportionate impact it had on black men and creating then criminal records that have deprived people of access to jobs and housing and basic benefits,” she said.

There’s been some frustration among cannabis reform advocates that Harris has scaled back her reform push since joining the Democratic ticket as Biden’s running mate. During her own run for the presidential nomination, she called for comprehensive marijuana legalization but has in recent weeks focused her comments on the more modest reforms of decriminalization and expungement.

Harris, who is the lead Senate sponsor of a bill to federally deschedule marijuana, said last month that a Biden administration would not be “half-steppin’” cannabis reform or pursuing “incrementalism,” but that’s exactly how advocates would define simple decriminalization.

In any case, the senator has repeatedly discussed cannabis decriminalization on the trail. She similarly said during a vice presidential debate earlier this month that she and Biden “will decriminalize marijuana and we will expunge the records of those who have been convicted of marijuana.”

In addition to those policies, Biden backs modestly rescheduling the drug under federal law, letting states set their own policies and legalizing medical cannabis.

Musician John Legend Endorses Drug Decriminalization Ballot Measure In Oregon

Photo element courtesy of California Attorney General’s Office.

Marijuana Moment is made possible with support from readers. If you rely on our cannabis advocacy journalism to stay informed, please consider a monthly Patreon pledge.
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GOP Tennessee Senator Calls For Medical Marijuana Legalization In New Campaign Ad

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A Tennessee senator touted his support for legalizing medical marijuana in a campaign ad released on Friday.

In the 30-second spot, which has notably high production value for this kind of local race, state Sen. Steve Dickerson (R) talks about both the therapeutic benefits of cannabis and the consequences of broader marijuana criminalization.

“As your state senator, I’ve led the fight to legalize medical marijuana so our veterans and sickest Tennesseans can deal with chronic pain,” he said. “But this same life-saving plant has led to mass incarceration, with nonviolent marijuana possession resulting in lengthy prison sentences.”

“I think that’s wrong. That’s why I’ve been pushing for criminal justice reform,” the senator added.

Dickerson, who sponsored a medical cannabis legalization bill that cleared a Senate committee in March, said in a Q&A published earlier this month that the policy change would be among his top three legislative priorities if he’s reelected.

His Democratic opponent, former Oak Hill Mayor Heidi Campbell, is in favor of “fully legalizing marijuana,” with her campaign site stating that cannabis crimes “disproportionately impact people of color and it’s time to end marijuana prohibition.”

But while Dickerson has earned a reputation as a moderate Republican given his positions on issues like cannabis reform, he’s faced backlash after declining to denounce an independent ad taken out on his behalf that some, including the LGBTQ rights organization Tennessee Equality Project (TEP), called racist.

The ad, which was paid for by Lt. Gov. Randy McNally’s (R) political action committee MCPAC, hits Campbell over her support for a nonprofit organization that is designed to keep young people out of prison, and it frames the group as “radical” and “extremist.” TEP rescinded their endorsement of Dickerson over his refusal to condemn the ad.

In the Tennessee legislature, marijuana reform has yet to pass—but there’s growing recognition that voters are in favor of the policy change. For example, former House Speaker Glen Casada (R) released the results of a constituent survey last year that showed 73 percent of those in his district back medical cannabis legalization.

Another former GOP House speaker, Beth Harwell, highlighted her support for the reform proposal during her unsuccessful bid for governor in 2018, and she referenced President Trump’s stated support for medical marijuana on the campaign trail.

In other Tennessee drug policy politics, a lawmaker in June blocked a resolution to honor murdered teen Ashanti Posey because she was allegedly involved in a low-level cannabis sale the day she was killed.

New York Will Legalize Marijuana ‘Soon’ To Aid Economic Recovery From COVID, Governor Cuomo Says

Photo courtesy of Philip Steffan.

Marijuana Moment is made possible with support from readers. If you rely on our cannabis advocacy journalism to stay informed, please consider a monthly Patreon pledge.
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