WeedLife News Network

At the behest of the Idaho Farm Bureau, the House Agriculture Committee has voted unanimously to introduce new legislation to legalize industrial hemp in Idaho, for production, processing, transportation and research. The vote clears the way for a full hearing on the bill, which supporters said they hope will settle years of debate about how to allow for industrial hemp production by Idaho agricultural producers without running afoul of concerns about hemp’s psychoactive cousin, marijuana.

Idaho is the last state in the nation to take this step; industrial hemp already is legal in 49 states and at the federal level. You can read my full story here at idahopress.com.

Braden Jensen, lobbyist for the Idaho Farm Bureau Federation, told the lawmakers, "Throughout the country, there are 49 states, two territories and 48 tribes that have legalized industrial hemp in some form or fashion. The Idaho Legislature has considered the issue over the past couple of years, and we bring before you today a new proposal for your consideration."

Jensen said the Farm Bureau worked with stakeholders on the issue including the agriculture industry, the trucking industry, state agencies and law enforcement.

"Our first goal is to legalize the production of industrial hemp in the state," he said. "Second, our goal is to maintain a strong and enforceable drug policy; and third, to work to ensure all stakeholders are comfortable with the proposal that we've developed. ... I do not pretend that everybody will love every aspect of the proposal that is before you. Nevertheless, it does represent a certain level of consensus among the stakeholders."

Cannabis is not the only industry that can act as a microcosm of the world but it may be the most prominent. Cannabis is still federally illegal so there are many areas in which people can be turned away from participating due to previous arrests for cannabis.

During the Fall Emerge 2020 Virtual Cannabis Conference & Expo, Minorities for Medical Marijuana (M4MM) Founder and CEO Roz McCarthy led a panel discussion with industry-leading advocacy organizations. Together, they addressed the myriad concerns surrounding social equity within the cannabis industry.  

Several organizations, including Women Grow and the Last Prisoner Project, were also present to add their insights to the equity-themed conference. Each has a primary directive to achieve social equity and dismantle systemic racism within the cannabis community. 

Cannabis and Criminal Justice

The Cannabis and Criminal Justice panel covered many topics, one being what exactly is the issue with handling systemic racism within the cannabis industry. 

Harborside, a California cannabis dispensary, appealed the Tax Court’s decision of tax deficiencies totaling over $29 million dollars for the periods between 2007 through 2012. Harborside’s tax liability stems from the IRS’s denial of deductions under IRC §280E and the disallowances of cost of goods sold reported on Harborside’s tax returns. Internal Revenue Code §280E prohibits tax deductions for businesses whose activities involve a federally controlled substance (within the meaning of schedule I and II of the Controlled Substances Act). Unfortunately, cannabis is still and at the time (of the facts in the case) a Schedule I Controlled Substance. 

On appeal Harborside makes two arguments: (1) whether IRC §280E violates the Sixteenth Amendment of the U.S. Constitution; (2) whether IRC §471 regulations excludes certain inventory costs for Harborside (cannabis businesses). This article will not go into the constitutionality of IRC §280E in reference to the Sixteenth Amendment but will focus on the cost of goods sold (COGS) and IRC §471 issue.

The Tax Court erred in determining that “processing costs related to inventory are not includable in Harborside’s cost of goods sold.”

The IRS did not allow Harborside to include purchasing, handling, and storage costs related to the goods it purchased for resale (“indirect costs”) — costs like testing, labeling, curing, storing, trimming, manicuring, maintaining, and packaging the [cannabis], or [cannabis] products — in its cost of goods sold.  Harborside would reject [cannabis] if it wasn’t properly cured, if it hadn’t been sufficiently trimmed, if it had an incurable safety issue such as pathogenic mold, or if it didn’t contain the right “cannabinoid profile.”

In response to Harborside, the IRS admits in the Appellee’s brief, “if Harborside could establish that Section 471 permits it to include indirect costs in its cost of goods sold, Section 280E would not prevent that result, as that section only bars Harborside’s claim to deductions.” Section 471 states that “the use of inventories is necessary in order clearly to determine” income, and “on such basis as the Secretary may prescribe as conforming as nearly as may be to the best accounting practice in the trade or business and as most clearly reflecting the income.” 

New Zealand is facing a collapse of legal medicinal cannabis supply after March 31, when a deadline to meet stiff new government rules is expected to keep the products of three of the country’s five main importers out of the market, reports NZ Herald’s Kate MacNamara in this Herald Premium article.

Last April, the government unveiled a new regulatory system to create more safe, widespread and affordable access to medicinal cannabis. It has not yet approved a single product.

New Zealand-based importers Medleaf Therapeutics, Nubu Pharmaceuticals, and Eqalis Pharmaceuticals confirmed their products are not likely to be approved under the new standards before the March deadline. Domestic production, still in its very early stages, is not likely to reach the market until late this year.

On March 31, special provisions, which have allowed companies to import under an old, stop-gap system will expire. Shane Le Brun, regulatory and business development consultant at Medleaf, currently estimated to be the country’s largest importer of medicinal cannabis, said his firm is preparing for a hiatus from the market of at least several months. A situation he described as a “looming crisis” for patients.

Even after receiving ministry verification, products will face a lag in reaching New Zealand, Le Brun warned. Companies require licences to both import to New Zealand and export from abroad, these cannot be obtained until after verification, and shipping times are uncertain.

California just overturned a state ruling that allowed for cannabis billboard advertising along state and interstate highways. While cannabis billboards are still allowed, they are prohibited on any highway that crosses state borders, a new restriction for the industry. 

The new regulation, which comes from the California Bureau of Cannabis Control, overturns the previous ruling, which claimed that billboards were allowed unless they were within a 15-mile radius of the border. Obviously, not being allowed on any highways that leave or enter the state is a lot more restrictive than just keeping them away from the border, so this is a blow for cannabis advertising in California. 

“To comply with the law and regulations, licensees may not place new advertising or marketing on any interstate highway or state highway that crosses the California border,” the official notice explains. “Licensees should also begin the process of removing current advertising and marketing that meets this criteria.”  This can also be found in Business and Professions Code section 26152(d). 

Advertising Cannabis

Back when Proposition 64 first passed in California, the California Bureau of Cannabis Control was given the power to regulate the new industry, and the matter of cannabis billboards has pretty much been in debate since the state legalized. Some contend that the billboards are necessary for advertising what is a perfectly legal industry inside state borders, while others feel it’s just asking for tourists to stop at dispensaries and drive back across the border. 

Back in 2019, the regulations were set in place that allowed advertising on interstate and state highways, except for those that were too close to the border. However, this new rule was challenged by a resident from San Luis Obispo County, who claims that the billboards expose his children to cannabis advertising. 

Farmers and researchers across Ohio are learning some of the most basic agricultural information about hemp after the state’s first year of legal cultivation.

Unclear growing conditions coupled with unpredictable market forces mean even if farmers successfully grow a crop they sometimes don’t know much about, processing it into products that consumers can buy could be prohibitive to running a business.

“[Hemp] grows well in Ohio,” said Sano Ti Amo co-owner Karen DeLuca. “We had great success in our field even though it was an experimental field, but you need a place to take it.”

When it comes to the North vs the South in America, there is usually a pretty evident divide when it comes to social issues. From abortion to religion in schools to drugs, the South is generally slower to adopt new policies. In the case of cannabis and the south, a lot of change has happened in the last few years, signaling a massive shift in overall public perspective.

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Sometimes change comes slow to the South, and this is evident from resistance to legalized abortion, pushing religion being taught in schools, letting go of slavery (let’s not forget that one), and the decriminalization and legalization of different drugs. But even those slow with the pickup, eventually come around. Whether it’s the changing of society through new generations being born, or the insertion of new information that changes minds. Whatever the case here, and as highlighted by the last election, how cannabis is viewed in the South, has seen much change and improvement in the last few years.

The last US election, and what is the ‘South’?

The last US election was quite the circus, with a persistent battle that continued after results were in, as to who actually won. As it stands, Joe Biden was officially sworn in to the white house in January, effectively ending that conundrum. But perhaps bigger news than a post-election presidential standoff, is the inclusion of several more states when it comes to cannabis legalization. In fact, for the first time, it became evident that cannabis is no longer shunned in the South, with new laws reflecting this change in perspective.

It wasn’t just the South that saw these changes. Four new states became legal for cannabis recreationally: Arizona, Montana, South Dakota and New Jersey. On the medical front, South Dakota (pulling double duty) and Mississippi joined the ranks of the legal for medical use group. Of all these states to change policy, the one that stands out the most, is Mississippi.

In a move that gave local cannabis watchers—and many dispensary owners—a serious case of whiplash, the Arizona Department of Health Services gave the green-light to recreational pot sales late last month, catching a lot of people in the industry off guard.

Harvest Enterprises, Inc., founded by CEO and Tempe native Steve White, had the first-ever Arizona adult use sale in its Scottsdale location and Harvest became the first Tucson-area dispensary to sell recreational marijuana, with patients waiting in line for hours outside the midtown outlet at 2734 E. Grant Road, on opening weekend.

Harvest’s opening came after the AZDHS allowed recreational cannabis sales to begin, letting dispensary owners know adult-use recreational sales can move forward as soon as licenses are approved and dispensaries are set up to handle both aspects of the market.

“This has been really surprising and gives an opportunity for us to have a conversation about how we don’t say a lot of good things about government,” White said. “But this is really a bang-up job by the

department.”

Democratic Gov. Laura Kelly of Kansas announced a proposal on Monday that would legalize medical marijuana to raise the revenue required to expand the state’s Medicaid program. Under the proposal, nearly 200,000 state residents who do not currently have health insurance would gain eligibility for coverage. 

“After nearly a year of challenges brought on by COVID-19, we need to use every tool at our disposal to protect the health of our workforce and our economy,” Kelly said in a statement from the governor’s office. “Getting 165,000 Kansans health care, injecting billions of dollars and thousands of jobs into our local economies, and protecting our rural hospitals will be critical to our recovery from the pandemic. By combining broadly popular, commonsense medical marijuana policy with our efforts to expand Medicaid, the revenue from the bill will pay for expansion.”

Obamacare Includes Medicaid Expansion

Under the Affordable Care Act passed in 2010, Congress authorized an expansion of the Medicaid program to provide health insurance for more low-income families, with the federal government covering 90% of the cost and the states responsible for 10%. Kansas is one of 12 states who have not implemented the expansion, with leaders of the GOP-led legislature citing the costs of the program.

“You have heard many of the comments coming from the opposition have been [that] we can’t afford it,” Kelly said in a press conference on Monday. “We have just designed a bill that pays for itself and more.”

“There’s never been any good argument against expansion other than we can’t afford it,” she added.

THREE people were recently sentenced to 30 years in prison in Tunisia for using cannabis and this verdict has ignited public debate in the country to the point of causing Prime Minister Hichem Mechichi to react on February 1.

The conviction for the consumption of cannabis has sparked a heated debate in the country around its legislation. The judgment, handed down on January 20 by a court in Kef (north), “does not relate only to the consumption of narcotics but also to the use of a sports field for the consumption of drugs,” specified on January 31 to the AFP.

A spokesman of the court, Mohamed Faouzi Daoudi said Tunisian law provides for a severe penalty for the consumption of narcotics in the public space, citing “law 52 and chapters 7 and 11”.

On social media, using the hashtag in Arabic “#prison-no, change 52”, many users protested against the verdict and called for a demonstration.

The director of the regional office of Amnesty International, Amna Guellali, described the decision made by the courts as “unacceptable” rejecting “all the [prison] sentences issued concerning the consumption and possession of narcotics”.

“This shows what can happen when politics override the will of the people and causes a stalemate in the rollout of voter-favored programs,” says one industry expert.

Four of the five states that passed cannabis-centric ballot initiatives on Election Day 2020 have since run into hurdles.

The pathway from ballot question to implementation has only been smooth for one of the five states to pass measures recently — Arizona. Adult use sales began on Jan. 22, with many medical dispensaries expanding to adult use to accommodate the newly opened market.

The Copper State sets a new bar by opening its market just a couple months after passing an initiative. Lawmakers from the other four states, however, are stalling the process.

South Dakota

South Dakota Governor Kristi Noem issued a January executive order showing that she ordered a lawsuit to overturn the adult use portion of its result

Exciting times have arrived in Arizona’s cannabis industry! The Arizona Department of Health Services (the “Department”) (1) released final interim rules for recreational licensees, and (2) issued new recreational licenses. As noted by Marijuana Moment’s Kyle Jaeger, the marks the fastest transition from voter approval to sales implementation of any state that has legalized marijuana to date.

Specifically, on January 22, 2021, the Department issued 86 new licenses for adult use or recreational use marijuana (CLICK HERE for the list). By happenstance, I drove by the Harvest dispensary in North Scottsdale on Friday (January 22), and the lines were literally around the building! So, it appears that recreational sales have started out strong in Arizona.

The Department also released final interim rules for adult use establishments in January 2021, that were effective as of January 15, 2021 (CLICK HERE to view the regulations). Unfortunately, it does not appear that the Department released a redline of the regulations that show the changes from the draft rules to the interim final rules. However, I will discuss a few of the more important changes below.

It’s worth noting too that the Department did not make changes to certain rules notwithstanding public requests to do so. For example, certain commenters requested that the license fee be reduced for initial licensees. The Department decided to stick with its original proposal, so the initial licensing fee remains a pretty steep $25,000.

One change made to the rules is with regard to the financial conditions that must be satisfied by a licensee. Under the draft rules, the applicant had to demonstrate it had “at least $500,000 in funds available” and a financial institution had to provide evidence of same within 60 days of the application. Under the interim final rule, while there is still a requirement for at least $500,000 in available funds, there are now a few other requirements. A.A.C. R9-18-303(A)(6).

Minnesota is back with their legislative push to legalize recreational cannabis this year, hoping to follow in the footsteps of many of their neighbors.

“The ability for Minnesotans to drive across the border to get cannabis is going to increase significantly,” said House Majority Leader Ryan Winkler. “People are willing to drive to Wisconsin in order to buy fireworks. They’re sure as heck going to drive to South Dakota to get cannabis.”

However, while democrats and cannabis advocates keep pushing, and 51 percent of registered voters in the state support legal cannabis, the republicans, who control the Senate in Minnesota, are mainly anti-cannabis. 

“My main concerns are the unintended consequences of recreational pot similar to the concerns we all have about tobacco, drinking, or prescription drug abuse,” said Senate Majority Leader Paul Gazelka. “Just because it’s legal, doesn’t mean there aren’t consequences. We’re just starting to learn about legalization’s adverse effects in other states like Colorado and Washington. There is no reason to rush this in Minnesota without learning more.

Pot’s Got A Fighting Chance

The Alabama Legislature goes into session tomorrow, but already lawmakers are not shying away from controversial topics. State Sen. Tim Melson, R-Florence, is bringing back his medical marijuana legislation for 2021.

The legalization of medical marijuana is an issue that Melson brought up in 2019 and in 2020. Both times, the Alabama Senate narrowly passed the legislation and both times, the decriminalization of medical marijuana failed to get out of committee in the Alabama House of Representatives. This year, Melson’s bill has been pre-filed in the state Senate as Senate Bill 46.

For Alabamians with a medical affliction that they think might be treated with medical cannabis, there are no legal options other than to move to another state. SB46 would create the Compassion Act. It would authorize certain residents of Alabama diagnosed with a qualifying medical condition and designated caregivers to be registered and obtain a medical cannabis card, thereby authorizing the patient to use cannabis for medical use.

Under existing law, unlawful possession of marijuana in the first degree is a Class C or Class D felony, and unlawful possession of marijuana in the second degree is a Class A misdemeanor. Even marijuana legally prescribed by a doctor in another state is a violation of the Alabama criminal code. While dozens of states have legalized medical marijuana, if citizens of those states visit an Alabama beach or to even drive through the state with their legally prescribed medical marijuana, they are committing a crime and could potentially do jail time if caught.

SB46 would tightly regulate medical marijuana from seed to the final end-user:

Lawmakers in New Jersey late last week moved forward on legislation designed to clear up penalties for underage cannabis use. 

Characterized as a “cleanup bill,” the legislation “would revise the consequences associated with the underage possession or consumption of illegal marijuana or hashish, or legalized cannabis items which may only be lawfully possessed by persons 21 years of age or older,” after the first attempt at a compromise bill unraveled earlier this month.

That previous bill, according to NJ.com, “fell apart when Black lawmakers came together in opposition, arguing that the penalties it set forth for those under 21 would disproportionately affect Black and Brown youth,” although the follow-up legislation that was introduced last week “is not so different from that prior attempt.”

“The main change on penalties is the lowering of fines those 18 to 20 could face for possessing marijuana,” NJ.com reported.

As for the new bill’s prospects, NJ.com said this: “If the full Legislature passed the cleanup bill, [New Jersey Gov. Phil Murphy] could sign it and the two other bills legalizing (S21) and decriminalizing (S2535) marijuana into law together. He has said he cannot sign the other two as is, citing conflicting language that both legalizes possession of marijuana for those under 21 and makes it a disorderly persons offense.”

Even though the state’s decriminalization model won’t eliminate all problems associated with drug abuse, it could help chip away at it while saving law enforcement resources.

Oregon decriminalized the possession of all drugs in the November 2020 election. The law officially goes into effect on February 1, 2021. This means, from this point forward, those caught holding what the state considers a “small amount” of any illegal substance, including cocaine, methamphetamine and heroin, will no longer be charged with a crime and fed to the wolves of the criminal justice system. Instead, the offender would have to pay a small fine. No jail, no lengthy court battle.

The state is also putting a renewed focus on drug rehabilitation by allotting more than $100 million in cannabis taxes for those services. This concept might sound groundbreaking, but it is actually nothing new. Drug decriminalization has been successful for decades in Portugal. But will the United States government take notice of this policy and make a similar shift in the coming years?

The new drug decriminalization law in Oregon eliminates the criminal penalties associated with the possession of illicit substances and makes it a civil infraction. Anyone caught holding personal amounts of illegal drugs will be given the option of paying a $100 fine or participating in a health assessment. The goal is to provide addicts with a pathway to recovery rather than treat them like criminals.

According to the Oregon Criminal Justice System, the new law will decrease the number of convictions for possession of controlled substances by more than 90%. In addition to using cannabis funds to finance addiction services, the state says it will save millions by not locking up drug offenders. This money will also be put toward harm reduction programs.

When it comes to nationwide marijuana decriminalization, the president would need the help of the full Congress to get it done. And that’s where things get tricky.

Joe Biden wants America to see him as the hip, new president who is just flat out better than Donald Trump. He’s not interested in building walls, inciting riots, or tweeting a bunch of jibber-jabber from the White House throne. No sir, old Cup of Joe has a more reasonable agenda than the lame-brained administration that just moved out. He’s trying to tame the coronavirus debacle, repair a beaten-down economy, and conduct a significant overhaul on immigration.

If time allotted, Biden would also like to be the Commander in Chief to kick some major tail in the realm of marijuana reform. Not only does he support the legalization of medical marijuana, but he’s also interested in eliminating the criminal penalties associated with minor possession. 

Unfortunately, President Biden cannot crawl out of bed this morning and sign an executive order to end marijuana prohibition. He wouldn’t even if he could. Although Biden’s campaign showed a willingness to get behind modest cannabis reforms, full-blown legalization wasn’t one of them. However, Biden has some executive power he can use to help further the marijuana movement.

He can sign one ordering his health secretary to initiate the rescheduling process for the cannabis plant. And he might just do that. Biden has suggested that he would be willing to downgrade marijuana’s Schedule I listing to a Schedule II. Yet, when it comes to nationwide marijuana decriminalization, the president would need the help of the full Congress to get it done. And that’s where things get tricky.

Washington state's cannabis industry has grown at a "staggering rate" since the drug was legalized, adding an estimated $2 billion to the economy and generating total tax revenues of more than $883 million, according to a new report.

The report, by Washington State University, also found that the cannabis industry can grow even more with new innovations and nurturing from state lawmakers.

The report is the first to detail the positive economic impacts associated with the state’s newest agriculture industry. It was compiled by WSU's Impact Center for the Washington State Cannabis Alliance.

“This is a tremendous peek under the hood,” said Caitlein Ryan, interim executive director of the Alliance. “It’s easy to see how much the industry has grown and now contributes to the state’s economic well-being."

She added, “These findings also clearly tell us that the industry has grown at a staggering rate, adding nearly 20,000 jobs to the private sector, and hundreds of millions of dollars to the state’s economy. And there is still substantial growth to come, as the industry matures.”

When Jo Anne Zito was initially arrested for at-home cultivation nearly 10 years ago, her kids were taken away from her. Though her charge was later downgraded to low-level possession thanks to a grand jury, she’d already gotten a taste of how severely those who grow cannabis at home are criminalized.

Only after completing a pricey drug rehabilitation program was she legally eligible to receive custody, on top of serving three years of probation. Her husband, now deceased, was also charged and sentenced to drug court.

Three-and-a-half years into his sentence, he died while fulfilling the intense requirements of the program, Zito, board member at the Coalition for Medical Marijuana—New Jersey (MMNJ), told the state Senate in December during her public testimony in favor of at-home cannabis cultivation.

Under the proposed legislation on Gov. Phil Murphy’s desk, at-home cultivation (or home-grow) still remains severely criminalized.

“I don’t want to be in the business, I just want to grow and be left alone. Legalize me,” she said during testimony.

Okay, it’s an admittedly vague title, but it’s still true. France’s upcoming medical pilot program involves supplying medical cannabis to patients for free, and though the program was postponed, France just released the companies that won the bid to supply this free marijuana.

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Let’s be honest, France is not the most liberal when it comes to marijuana. Unlike its neighbors Spain, Italy, Switzerland, Belgium, and Germany, France does not allow for any decriminalization, personal use, or medical legalization measures. In fact, not only is France still rather conservative when it comes to cannabis, but the country was willing to allow a whole lawsuit with the EU (which it lost) just to keep CBD out. (Of course, this move was likely for the protection of pharmaceutical interests, but we’ll get into that later.) Now, with the recent announcement of a medical pilot program, France is promising to give out cannabis for free, and already lined up the companies that will provide it.

France and cannabis

The idea that France is about to give away cannabis for free is certainly a 180⁰ turn from its current laws. It is illegal to both use and possess cannabis in France. France doesn’t even make a designation between personal possession and trafficking, meaning how a case is treated is determined by the amount of cannabis in question, and what the prosecutor decides. So, if a person happens to get caught with a bunch of marijuana for their own personal medical use, it could actually be determined as trafficking. Punishments range from fines of €3,750 – €75,000, and prison sentences of 1-5 years. Cultivation is also illegal as use and possession are illegal, and no medical program exists…yet.

Selling and supply crimes are always illegal, and in France a person can incur 5-10 years in prison, along with a fine. If an offender has been found to be part of a criminal organization for trafficking, they can face life in prison, and a €7.5 million fine.