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.
Photo courtesy of Philip Steffan.
Virginia Marijuana Decriminalization Gets Closer To Governor’s Desk With New Amendments
One week after bills to decriminalize marijuana in Virginia were passed by both the House and Senate, they advanced again on Wednesday in committee votes, where they were revised in an effort to ease the path to the governor’s desk.
The goal was to make the language of the bills identical, with lawmakers hoping to streamline the process by avoiding sending differing pieces of decriminalization legislation to a bicameral conference committee to resolve differences.
The House of Delegates and Senate were under pressure to approve their respective versions of decriminalization ahead of a crossover deadline last week. After clearing floor votes in their respective chambers, the Senate-passed bill was sent to the House Court of Justice Committee, while the House’s legislation was referred to the Senate Judiciary Committee.
Those panels amended the bills and advanced them on Wednesday, with senators voting 10-4 to advance the revised legislation and delegates voting 8-5. However, the Senate panel also struck a part of the text of a compromise substitute version concerning a record clearing provision while the House committee accepted the substitute as offered.
That means it will be up to the Finance Committees to resolve the remaining differences if lawmakers hope to skip the conference step prior to full floor votes in both chambers.
Regardless of the unexpected complication, advocates said the new committee actions represent a positive development.
“Fortunately, the patrons were able to reach a consensus and move the bills forward,” Jenn Michelle Pedini, executive director of Virginia NORML, told Marijuana Moment. “Virginians have waited long enough for this important step, one that will dramatically reduce both marijuana arrests and the collateral consequences that follow such charges.”
The legislation as amended would make possession of up to one ounce a civil penalty punishable by a $25 fine without the threat of jail time. Currently, simple possession is punishable by a maximum $500 fine and up to 30 days in jail.
A provision that would have allowed courts to sentence individuals to up to five hours of community service in lieu of the civil penalty was removed with the latest revisions. The bill also stipulates that juveniles found in possession of cannabis will be treated as delinquent, rather than go through a less punitive process for a “child in need of service.”
Language providing a means to seal prior records for marijuana convictions was successfully reinserted into the House Courts of Justice Committee-passed bill after it was previously removed and placed in a separate expungement bill. That latter legislation is stalled, so lawmakers put it back into the decriminalization measure via the substitute to ensure its enactment.
The Senate Judiciary moved to delete that section, however, creating complications for avoiding a conference committee.
Meanwhile, the House Rules Committee voted in favor of a separate Senate-passed resolution on Wednesday that calls for the establishment of a joint commission to “study and make recommendations for how Virginia should go about legalizing and regulating the growth, sale, and possession of marijuana by July 1, 2022, and address the impacts of marijuana prohibition.” That vote was 12-5.
That’s a significant step, as the legislature is generally reluctant to enact bold reform without first conducting a study on the issue.
While Gov. Ralph Northam (D) is in favor of decriminalization, including a call for the policy change in his State of the Commonwealth address last month, he’s yet to embrace adult-use legalization. That said, Attorney General Mark Herring (D), who is running to replace the term-limited governor in 2021, said he’s optimistic that Northam will come around on the issue.
Herring organized a cannabis summit late last year to hear from officials representing states that have already legalized marijuana. That’s one tool he said the governor could use as he considers broader reform.
For now, Virginia seems to be on the path to become the 27th state to decriminalize marijuana, and the first to do so in 2020. Last year, three states—New Mexico, Hawaii and North Dakota—also approved the policy change.
Alabama Lawmakers Approve Medical Marijuana Legalization Bill
An Alabama Senate committee approved a bill on Wednesday that would legalize medical marijuana in the state.
The legislation would allow patients with qualifying conditions to purchase cannabis products from licensed dispensaries. It would be a limited system, however, prohibiting patients from smoking or vaping marijuana.
The Senate Judiciary Committee cleared the bill in a 8-1 vote, with one abstention. The next stop for the legislation will be the Senate floor.
The proposal would establish the Alabama Medical Cannabis Commission, which would be responsible for overseeing a patient registry database, issuing medical cannabis cards and approving licenses for marijuana dispensaries, cultivators, transporters and testing facilities.
This vote comes two months after a panel created by the legislature, the Medical Cannabis Study Commission, issued a recommendation that Alabama implement a medical cannabis program.
The full Senate approved a medical cannabis legalization bill last year, but it was diluted in the House to only provide for the establishment of the study commission. Sen. Tim Melson (R) sponsored both versions of the legislation and served as chairman of the review panel.
The current bill has been revised from the earlier version. For example, this one does not require patients to exhaust traditional treatment options before they can access medical cannabis.
The committee also approved a series of amendments by voice vote, including several technical changes to the bill. Another one would shield physicians from liability for recommending medical cannabis. One would clarify that employees are ineligible for workers’ compensation for accidents caused by being intoxicated by medical cannabis, which is the same standard as other drugs.
Watch the Alabama Senate Judiciary Committee debate and vote on medical cannabis below:
Members also agreed to an amendment creating a restriction on who can be on the cannabis commission.
While it’s not clear how the House would approach the bill if it advances to the chamber this year, the speaker said this week that he’s “in a wait and see mode” and commended Melson for his work on the measure. The state’s attorney general, meanwhile, sent a letter to lawmakers expressing opposition to the reform move.
Under the measure, patients suffering from 15 conditions would qualify for the program. Those include anxiety, cancer, epilepsy and post-traumatic stress disorder. Patients would be able to purchase up to a 70-day supply at a time, and there would be a cap of 32 dispensaries allowed in the state.
Prior to the vote, committee heard from a series of proponents and opponents, including parents who shared anecdotes about the therapeutic benefits of cannabis for their children. Interest in the reform move was so strong that an overflow crowd has to be moved to a separate hearing room.
“Sometimes people are not able to empathize with others who have gone through something. I guarantee you if one of relatives, members of the legislature, went through something like the testimonies that we’ve heard today, they would want it,” Sen. Vivian Figures (D) said. “But they would probably have the means to fly somewhere and get it.”
One thing we're watching on Goat Hill today is the medical marijuana bill. Alabama is one of only 17 states where medical cannabis remains illegal. https://t.co/V8CK8nm6mm
— Alabama Democrats (@aldemocrats) February 19, 2020
There would be a number of restrictions under the bill when it comes to advertising. It would also require seed-to-sale tracking for marijuana products, set packaging and labeling requirements and impose criminal background checks for licensed facility employees.
A nine percent tax would be levied on “gross proceeds of the sales of medical cannabis” sold at a retail medical cannabis dispensary. Part of those funds would go toward creating a new Consortium for Medical Cannabis Research, which would provide grants to study the plant.
Last year, the Senate Judiciary Committee also approved a bill to decriminalize marijuana.
Photo courtesy of Philip Steffan.
Ballot Language Approved For Washington, D.C. Psychedelics Decriminalization Measure
The campaign to decriminalize psychedelics in Washington, D.C. took another step forward on Tuesday, with the Board of Elections approving a short title and summary statement for the ballot initiative.
This comes about two weeks after the board ruled that the proposal is lawful under city rules and can proceed. There were some questions about whether a congressional rider prohibiting the District from using its local dollars to lower penalties for Schedule I drugs would disqualify the measure, but the body agreed with activists that it did not.
The initiative wouldn’t change local laws banning entheogenic substances like psilocybin and ayahuasca. Rather, it would make enforcement of those laws among the District’s lowest priorities and call on the D.C. attorney general and the District’s federal prosecutor to end prosecutions of such offenses.
The new board-approved short title and summary statement reads as follows:
“Entheogenic Plant and Fungus Policy Act of 2020”
If enacted, this Initiative would:
-Make the investigation and arrest of adults for non-commercial planting, cultivating, purchasing, transporting, distributing, possessing, and/or engaging in practices with entheogenic plants and fungi among the Metropolitan Police Department’s lowest law enforcement priorities; and
-Codify that the people of the District of Columbia call upon the Attorney General for the District of Columbia and the United States Attorney for the District of Columbia to cease prosecution of residents of the District of Columbia for these activities.
“Decriminalize Nature D.C. was very pleased with today’s hearing,” Seth Rosenberg, a spokesperson for the group behind the proposed ballot measure told Marijuana Moment. “The final language of Initiative Measure 81 is very close to our proposed language, and we are grateful that the [Board of Elections] saw the value in bringing this measure to the citizens of Washington D.C. We are even more excited about getting the petition process started to get on the 2020 ballot.”
The short title and summary will be published in the D.C. Register next week, following which point a 10-day challenge period will be opened. After the close of the comment period on March 9, the panel will then the hold another meeting to give final approval to the language.
Once the title and summary get final approval, organizers will have to collect about 25,000 valid signatures from voters within 180 days in order to qualify for the November ballot.
“The Campaign’s message of education, including the safe use of medicinal and sacred plants and fungi, is finding an increasingly receptive audience across all levels of society as more and more people are seeking help for themselves or loved ones,” Melissa Lavasani, spokesperson for Decriminalize D.C., said in a press release.
Beyond pursuing decriminalization through the ballot, Lavasani told Marijuana Moment in an interview last month that it would also be pushing for District Council action and that the ballot serves partly as an educational tool to show legislators that there’s public support for the policy change.
The psychedelics reform movement has made significant strides this past year. After Denver became the first city in the U.S. to decriminalize psilocybin mushrooms, Oakland’s City Council followed suit and made a wide range of entheogenic substances among the city’s lowest law enforcement priorities. Organizers there are now hoping to legalize the sale of such plants and fungi.
Santa Cruz became the third city to decriminalize the substances in a Council vote last month. And activists in more than 100 cities are pushing to implement similar policies, according to Decriminalize Nature.
California activists are also collecting signatures to put psilocybin mushroom legalization on the state’s 2020 ballot. In Oregon, a campaign to legalize psilocybin for therapeutic use is underway.
Read the full short title and summary of the D.C. psychedelics decriminalization measure below: