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After years of mostly silence on the issue, the U.S. Drug Enforcement Administration (DEA) has released the “final rules” on how to apply for a federal license to grow cannabis for research. The decision came after the U.S. Congress passed a bill urging an expansion of marijuana research.

Unlike almost anything these days, the bill received strong bipartisan support.

The DEA had issued preliminary final rules in March. It took comments from interested parties and made a few minor adjustments to the rules, according to the final rules published in the federal registry. The new rules go into effect on January 19.

The change will open the door to better marijuana research in the U.S.

It’s been a slow, grinding process to get to the new rule changes. Along the way, a researcher filed a lawsuit against the DEA for holding up the process. 

But the rule change will finally allow companies to get a license to grow cannabis for research purposes. Up until this point, only the University of Mississippi has been allowed to grow research marijuana for the past 50 years. Researchers have said that cannabis more closely resembles the genetic profile of hemp than it does the cannabis anyone can buy at a dispensary. 

When it comes to Virginia and cannabis, Virginia didn’t see any big changes with the last US election. This is because the state had already decriminalized cannabis earlier this spring, and expanded on its own medical legalization policy this past summer. However, there’s one other thing when it comes to Virginia and cannabis, something that’s often misunderstood. Virginia was actually the first state to legalize medicinal marijuana, back in 1979.

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Was Virginia really first?

Indeed it was! And it went through with practically no buzz at all. In 1979, Virginia did an overhaul of its drug laws which included the inclusion of the use of cannabis medicines for people specifically suffering from glaucoma and cancer. The medical legalization allowed patients with these illnesses to receive the medications, but wasn’t expanded on past that point for many, many years. In fact, it wasn’t until 2017 that the bill was finally expanded to include more conditions and generally looser policies. It was updated yet again in the summer of 2020.

So, what happened to the bill? Not much. The issue with legalizations is that they don’t come compact with finished frameworks for regulation. They merely state the decision to change the legality of a specific thing. Once the status is changed, especially when a former black-market product becomes a regular market product, there has to be some kind of setup for how it’ll work. Will it be taxed, at what rate, and by what entity? How can it be used exactly, and where? Are there age restrictions? What’s the cost, and is there a cost ceiling? Where can the product come from, and what are the regulations for producing it?

These things and more must be figured out, and if they aren’t, the legalization is open to much debate in court, apart from the fact that it stymies the ability to have an operational industry. For years the law sat, practically unknown to the Board of Medicine, attorney general, or court system in general.

Too many people who claim to believe in free markets don’t trust the American people with personal freedom.    

Disclaimer: The views expressed in this article solely belong to the author and do not necessarily represent those of The Fresh Toast. 

One of the most frustrating problems in the efforts to end marijuana prohibition has long been the distrust of freedom and the pretense that we are somehow “boldly going where no politicians have ever gone before.”  

Specifically, marijuana has been sold over-the-counter to anyone over 18 for decades in the Netherlands (not just in Amsterdam.) It also allows for on-premise consumption. And with almost no regulations, except NO HARD DRUGS. And essentially no problems (except on the still banned supply).

However, when Nevada legalized recreational sales, even Las Vegas (!!!) did not initially license on-premise consumption because they were unsure how it might work and what the consequences might be. 

An Illinois judge has ruled against more than three dozen applicants for craft cannabis cultivator licenses who filed suit against the administration of Gov. J.B. Pritzker for a delay in awarding the licenses. The craft grower licenses were supposed to be awarded by July 1 of this year to comply with state law, but state officials have not yet done so, citing delays necessitated by the ongoing coronavirus pandemic. The delay has affected the issuance of 40 craft grower licenses, as well as licenses for cannabis infusers, transporters, and 75 additional recreational cannabis retailers, which were supposed to be issued by May 1.

Cook County Judge Allen Walker issued the ruling on December 24 in the suit brought by the Illinois Craft Cannabis Association, which sought a decision directing the Pritzker administration to issue the licenses immediately. In the ruling, Walker wrote that the first emergency order issued by Pritzker to delay awarding the licenses was insufficient. But the judge also ruled that a subsequent order issued by the governor that clarified the delay was ordered because the agency tasked with issuing the licenses, the Illinois Department of Agriculture, was focusing its efforts during the pandemic on protecting the food supply, including livestock and meat production facilities. 

“While (the later order) does not explicitly say: ‘IDOA’s issuing cannabis licenses by the (deadline) would have the effect of diverting needed resources from the pandemic effort thus making it more difficult for the governor to cope with the COVID-19 crisis,” Walker wrote in the order, “that is the point implicitly being made.” 

Trade Group Files Suit

The craft growers trade association filed suit against the Pritzker administration for the delay, citing mounting costs for applicants to rent and maintain facilities for their proposed cannabis operations. The suit claims that Pritzker’s order is unlawful because it failed to identify a sufficient legal basis for the delay and did not set a new deadline for the issuance of the licenses.

In addition to seeking immediate issuance of 40 craft grower licenses, 40 cannabis infuser licenses, and an unlimited number of transporter licenses as specified by state law, the suit seeks allowances for applicants who have lost business sites, employees, or other factors of their licensing plans because of the pandemic.

In November, pot stocks soared on both a Joe Biden presidential win and the legalization of recreational marijuana in four more states (Arizona, Montana, New Jersey, and South Dakota). There's been plenty of optimism that there could be significant changes ahead for the cannabis industry, including the decriminalization of marijuana and moving it off its current Schedule I classification with the Drug Enforcement Administration (DEA). 

But time and time again, cannabis investors have gotten their hopes up after marijuana legislation passed in the House of Representatives only for it to end up going nowhere. Even a change in leadership at the White House may not be enough to move the needle. Arguably, one of the biggest obstacles for the cannabis industry is the U.S. Senate -- but power there could soon shift as well.

Runoff elections will dictate which party controls the Senate

In Georgia, two Senate runoff elections are scheduled for today, Jan. 5. All eyes are peeled on the race, given that Republicans currently hold 50 seats while Democrats occupy 48 (if you include the two independents who caucus with them, Bernie Sanders and Angus King). With two seats at stake, a Democratic sweep would give the party an equal share. And if there is a tie in the Senate, the deadlock is broken by the vice president -- a seat that Democrat Kamala Harris will soon hold.

Why does it matter if Democrats gain control?

Democratic control of the Senate is important to the pot industry, because Republicans have historically taken a harder stance on cannabis than Democrats. While multiple marijuana bills have passed the Democrat-controlled House in the past few years, there's been no progress in the Senate. In September 2019, the House passed the Secure and Fair Enforcement (SAFE) Banking Act. The bill was an effort to help the industry easily access banking services and avoid having to hold excessive amounts of cash, which many argue is a security issue. And even that failed to go anywhere in the Senate. 

America will need to be super stoned to survive the gorilla cage that it may get stuffed inside next year. It’s not that we’re trying to be pessimistic, but there is little doubt that the population can withstand another year of lockdowns and stimulus living.

If there is one thing we’ve learned over the past several long, excruciating months, it’s that humanity doesn’t do well with handling apocalyptic turns. Not unless it can, on occasion, they jump through an escape hatch in the brain that lets them forget that they’re just weeks away from moving into a cardboard box. It’s the reason that cannabis dispensaries continue to make money hand over fist while the rest of the country tries to figure out how in the hell to live on $1.64 per day. Some argue that weed is how we fix a three-legged economy and keep on kicking through the downtrodden like a well-endowed mule. But it’s going to have to go legal at the federal level first.

It might sound like a bit of a pipe dream to think that the federal government is just all of a sudden going to legalize marijuana in the United States and end its more than eight-decade-long reign of terror against the stoner class. But there’s a decent chance legal weed could finally get some much-needed consideration next year.

Strangely, that all depends on the outcome of Georgia’s runoff election scheduled for next week. So get those bets in while you still can.

This is one race that you won’t want to miss.

We imagine that the same reasons he has for refusing the American people money they need to stay alive is part of his motivation for wanting to stop legal marijuana from taking hold.

Senate Majority Leader Mitch McConnell is perhaps the most despised person in the United States. The top Senate Republican recently sidelined an effort to provide the American people with checks for $2000 instead of the $600 stimulus approved under the latest coronavirus relief bill.

The entire nation has been screaming at McConnell for days from their computers, televisions and smartphones because the lawmaker fails to see the necessity of providing folks with enough cash to actually aid them in catching their fiscal breath. Meanwhile, the cannabis advocacy troop is presumably happy that the rest of the country is finally seeing what they’ve known for years: McConnell is anti-progress.  

When the U.S. House of Representatives passed the MORE Act (Marijuana Opportunity and Expungement Act), they knew the bill didn’t have a fighting chance at being taken seriously with this Congress. As Senate Majority Leader, McConnell determines which legislation sees the light of day and which doesn’t. Marijuana-related legislation is always something he has ignored to the bitter end.

Although McConnell was instrumental in reviving industrial hemp cultivation in 2018, the self-proclaimed grim reaper of Capitol Hill wants nothing to do with making its stoner cousin an American staple. Some think he is apprehensive because he wants to give hemp farmers a chance to thrive first, while others believe that he’s just too old school for pot’s progressive ways. Regardless of which is true, McConnell is one of the main reasons that cannabis prohibition is alive and well. So how much longer is this lawmaker going to be a problem for pot? 

Making predictions about California’s marijuana industry was a challenge even before a global pandemic changed everything.

It’s not just that the legal cannabis market, which launched three years ago in California, is so new. It’s also the singularity of an industry in which licensed, legal operators still compete against a much larger illicit market, even as the industry’s core consumer product — which is medicine for some people — remains illegal at the federal level.

Some of the trends that were expected to shake up California’s marijuana industry at the start of 2020 were overshadowed or fully sidelined by the coronavirus. Still, California’s marijuana businesses fared better than some other sectors thanks to their “essential” designation, which allowed retailers and others in the supply chain to stay open and generate revenue during lockdowns.

Will that growth continue in 2021? Experts point to four changes that figure to affect the state’s cannabis industry in the coming year.

State regulators who oversee California’s cannabis industry are gearing up for major changes in the year to come.

As of January 1, 2021, it is no longer illegal to possess small amounts of marijuana for recreational use in Montana. However, there are still a number of questions before any legal sales take place.

The legalization was approved by Montana voters, who voted in favor of two measures in the November 2020 election: Constitutional Initiative 118 (CI-118) amended the state constitution to allow the Legislature or voters to set the age at which adults are allowed to possess and consume marijuana; and Initiative 190 (I-190) legalized the sale and possession of limited amounts of marijuana and levies a 20 percent tax on the sale of non-medical marijuana in Montana. It also allows people serving a sentence for an act now legal to apply for resentencing or an expungement of a conviction and prohibits the advertising of marijuana and related products.

While the Montana Legislature is likely to reshape the state’s marijuana laws in response to the initiatives, the first provisions took effect on Friday – before lawmakers even had a chance to meet.

The newly-effective sections allow people 21 and older to possess and use up to one ounce of marijuana or eight grams of marijuana concentrates. They also allow growing up to four marijuana plants inside a private residence, with the property owner’s permission.

However, Montanans shouldn’t expect to be able to immediately buy marijuana at a retail outlet, unless they have a medical card. The sections allowing recreational sales won’t take effect until at least October 2021, and current dispensaries are still limited to serving only registered patients.

With much to fight for, marijuana advocates say that people can and should do their part however possible. Here’s how.

Cannabis reform continues to make progress in America. With several states passing legislation on Election Day, and several more on the verge of doing the same soon, some may think that the fight is winding down. That isn’t the case when talking to those involved in the movement.

While much of the decades-long heavy lifting to earn back the public’s support for cannabis is already complete, there is much more to get done. Be it legalization or other policy reforms, advocates across the U.S. can and should still get involved in the fight. Even the most progressive of states continue to suffer pain points that advocates hope to address in a bid to create a fair and equal market for patients, consumers, marginalized communities and everyone else in the space. 

Jordan Isenstadt is the senior vice president of New York-based PR firm Marino. Isenstadt, who has worked in the administration of several New York State Senators and the Governor, spoke about the importance of advocacy in the community. He calls cannabis reform “one of the great social challenges of our time.” 

Isenstadt described the previous century of cannabis policy as failed and racist. “Being an advocate for cannabis today is about righting the wrongs of a century of failed policymaking,” said Isenstadt. He added, “Cannabis advocates have an opportunity to make history over the next few years.”

In advance of the 2021 legislative sessions, NORML will be providing a more detailed break down of legislative efforts in various states across the nation that are poised to enact significant marijuana reforms next year. This is the latest in a series of blogs examining where state-specific reform efforts stand.

Republican lawmakers in South Carolina are looking ahead to 2021 with hopes of passing a bill to legalize medical cannabis access. Earlier this month, State Rep. Bill Herbkersman (R) acknowledged, “It is unacceptable that South Carolinians with serious illnesses have to break the law to alleviate their suffering.”

Rep. Herbkersman, along with Senator Tom Davis (R) have pre-filed separate House and Senate versions of the South Carolina Compassionate Care Act in advance of the 2021 legislative session, which would allow qualifying patients to access medical cannabis under a physician’s supervision.

The South Carolina Compassionate Care Act was previously approved by a subcommittee vote in April 2019.

Ahead of the 2021 legislative session, Sen. Davis is optimistic that “there is a very good chance we get something passed this session,” but if that does not happen, Davis indicated that he will  “work on a bill to send the question to the people.”

Every Sunday, EZ’s Dispensary sends its weekly menu of bud via text message, offering strains like AK-47 and Girl Scout Cookies, to thousands of people in New York City. Customers respond with their order—quarter, half, full ounce—and their address. Pretty soon, a dealer in a rental car pulls up to complete the sale.

All of this is illegal, but weed delivery is part of the city’s fabric—some New Yorkers can get cannabis delivered to their door faster than a pizza. Naturally, as states have legalized marijuana sales, legal delivery services have followed, from Snoop Dogg-funded Eaze to Lantern, which is owned by alcohol delivery and e-commerce platform Drizly. And thanks to the pandemic, delivery services are booming and companies are hiring and raising venture capital to keep up with the surge in demand.

Khaled Naim, the CEO and co-founder of Onfleet, a San Francisco-based delivery management software company, raised a $14 million Series A in October to scale the business and keep up with the pandemic-inspired growth.

“Cannabis delivery has exploded this year,” says Naim. “We used to manage thousands of cannabis deliveries, now its tens of thousands.”

High-End High: Sava is targeting the higher-end, less price conscious consumer with its scheduled delivery service. Basket size grew from $162 per average customer pre-pandemic to over $170.

The USA’s Federal Trade Commission has announced its first crackdown on CBD vendors that make deceptive claims about their products.

Operation CBDeceit is already poised to claim a few scalps – its goal being to protect consumers from false, deceptive and misleading health claims regarding cannabidiol (CBD) made in online advertisements, on web sites and social media platforms. Initial action is being taken against half a dozen sellers of CBD products.

According to the FTC, one of those vendors collared claimed its products prevent a wide range of serious conditions including cancer, diabetes and heart disease. The FTC says it is illegal to advertise a product can prevent, treat, or cure disease without competent and reliable scientific evidence to support such claims.

The financial penalties proposed in five of the six cases range from USD $20,000 to $85,000. The proposed administrative orders settling the FTC’s charges also include directions for those vendors to stop making unsupported health claims immediately and prohibits engaging in deceptive advertising in the future.

“The six settlements announced today send a clear message to the burgeoning CBD industry: Don’t make spurious health claims that are unsupported by medical science,” said FTC Bureau of Consumer Protection Director Andrew Smith. “Otherwise, don’t be surprised if you hear from the FTC.”

The National Basketball Association and the NBA Players Association have reached an agreement that will not test players for marijuana use for the entirety of the 2020 to 2021 season, which starts December 22. It's a continuation of a policy used during the unusual "bubble" arrangement for the 2020 NBA playoffs in Orlando.

In announcing the decision, NBA officials pointed to the coronavirus pandemic as a motivator. NBA spokesman Mike Bass said in a statement, "Due to the unusual circumstances in conjunction with the pandemic, we have agreed with the NBPA to suspend random testing for marijuana for the 2020 to 2021 season and focus our random testing program on performance-enhancing products and drugs of abuse."

In announcing the decision, NBA officials pointed to the coronavirus pandemic as a motivator. NBA spokesman Mike Bass said in a statement, “Due to the unusual circumstances in conjunction with the pandemic, we have agreed with the NBPA to suspend random testing for marijuana for the 2020 to 2021 season and focus our random testing program on performance-enhancing products and drugs of abuse.”

The announcement is another milestone in the ever-evolving relationship between professional sports and cannabis. Earlier this year, the NFL announced that players will face fines, not suspensions, when testing positive for marijuana use.

How long will the new policy last?

The NBA's decision is of interest to people in the cannabis business because sports often reflect broader cultural trends. It's also another case of businesses having to recalibrate drug testing policy in light of marijuana legalization taking place in states across the country.

Many states have stepped up to legalize medical or recreational cannabis, and federal legalization or decriminalization could finally be on the horizon for the U.S. But South Carolina continues to hold out as one of the states without even a medical industry, falling behind the rest of the country. All that could change, however, with the pre-filing of a new bill in the South Carolina Senate. 

The bill, so far known as Senate Bill 150 or the South Carolina Compassionate Care Act, was filed by Senator Tom Davis (R-Beaufort). He really thinks the bill has a chance in 2021, despite the state’s history. 

“I have a majority of state Senators who will vote for this, and I have a majority of House members who will vote for this bill,” Davis said.

While this is an exciting bill for cannabis advocates, Davis himself admits that it’s extremely conservative as cannabis bills go, which is why he is hopeful that it will pass. 

“We limit the qualifying conditions to medical conditions for which there is empirical evidence that medical cannabis can be a medicinal benefit.”

U.S. Senator Rand Paul has introduced the Hemp Economic Mobilization Plan (H.E.M.P) Act of 2020 that seeks to significantly boost the maximum THC limit of hemp.

A major challenge for hemp farmers in the USA is the THC limit currently in place – 0.3%. Crops over this level are considered “hot” and must be destroyed. It’s a double-whammy as not only do affected farmers have the crops they’ve toiled over destroyed, they often have to also pay for their destruction. Additionally, they may be prosecuted.

The current THC limit restricts the choice of hemp varieties US farmers can cultivate, putting them at a disadvantage on the international scene as a number of other countries allow for higher THC content crops.

Senator Paul’s H.E.M.P Act of 2020 would  change the legal definition of hemp to raise the THC limit from 0.3% to 1% . Even at that level, hemp would have no recreational value. The legislation would also see testing of the final hemp-derived product instead of the hemp flower or plant.

Farmers have stated the current 15-day timeframe for harvesting and testing a hemp crop’s THC content is too short and does not take into aspects beyond their control; whereas hemp processors and manufacturers have greater control over THC content in their products.

One of the biggest arguments right now for ending marijuana prohibition in the United States is that it would generate beaucoup bucks in tax revenue and provide the nation with a trapdoor out of the economic sludge brought about by the coronavirus. After all, marijuana sales are a boon in states where it is legal.

In Colorado, one of the first states to legalize the leaf for recreational purposes, dispensaries have sold more weed in 10 months than they did all of last year. The state is poised to end the year with almost $2 billion in pot sales, providing millions of dollars in state tax revenue.

So why not take this concept nationwide? It would make sense since American economies are starved for financial relief. Some data shows that nationwide legalization would create around 1 million jobs and contribute hundreds of billions in federal tax revenue.

However, the federal government is doing just fine without putting a taxed and regulated cannabis market to work. In fact, marijuana legalization stands to cut the head off a mega-money beast that has been capitalizing on pot prohibition for years. For starters, Uncle Sam is already raking in loads of money in marijuana taxes every year.

Section 280E of the American Tax Code requires illegal marijuana businesses (even those considered legal in some states) to claim their earnings on their tax returns. But since none of these businesses can write off expenses like other sectors, they are subject to a 70% tax rate. Yep, Uncle Sam is taking the majority of the money from businesses it still considers illegal. If this policy sounds like robbery, that’s because it is. Data shows the federal government makes billions taxing weed operations in legal states. 

Following the results of the 2020 presidential election, cannabis advocates across the nation breathed a sigh of relief; for the first time in our history, cannabis decriminalization was being supported by the party in office. Since 2012, 15 states and Washington, DC, have legalized cannabis for adults over the age of 21. And 36 states have legalized medical cannabis — meaning that a majority of Americans now have some form of access to cannabis, whether medically or recreationally. On December 4th, the House passed the Marijuana Opportunity, Reinvestment, and Expungement (MORE) Act, a historic bill which will remove cannabis from the Controlled Substances Act and serves as the first step in ultimately deciding the fate of federal decriminalization in the United States. 

But, as proponents are keenly aware, major changes will need to be made at the regulatory level to ensure decriminalization rolls out effectively across the country, while setting the United States up for federal legalization in the not-so-distant future. So, where better to look for lessons learned on the path to legalization, than Canada?

Lessons from the North

The cannabis industry has made major strides across North America over the last few years, including Canada, which federally legalized cannabis two years ago. Having already forged the path, Canada can now serve as a case study for the United States as it takes its first step toward legalization, through decriminalization, offering guidance into best practices for launching a new legal industry, and warnings of the costly repercussions of unpreparedness, inexperience, and premature rapid growth.

While the legal Canadian market took off as investors took interest, growing the market to hit CAD $908 million in online and retail store sales within the first year, the numbers fell well short of analysts’ initial projections as a poorly executed retail distribution framework and high costs had many consumers turning to the legacy market. Within a year of legalization, the industry was experiencing mass layoffs and major executive changes at some of the country’s largest producers, alongside multi-billion-dollar stock-market losses. Initial product shortages were then followed by a massive surplus in inventory, with licenced producers reporting more than 400 metric tonnes of excess supply that forced price reductions as they dealt with overflowing warehouses. To ensure a successful transition from decriminalization to legalization, while avoiding the pitfalls that the Canadian industry faced, the US will need to focus on five major areas.

1. Prioritize distribution channels

The US’s ability to capitalize on rapid growth will start with having a proper retail distribution structure. Where Canada struggled in this regard, lacking the infrastructure to approve enough retail licenses to meet the distribution needs of producers, the US needs to use this opportunity to establish a sufficient retail distribution framework to ensure that producers can get their products into the hands of consumers in a timely manner. 

Public and political support for legalizing recreational marijuana use has surged. Florida lawmakers need to accept that reality and come up with effective legislation. If not, the public will legalize pot via constitutional amendment. (Photo by strelov/Getty Images)

When it comes to legalizing marijuana in Florida, the question is no longer whether it should be legalized. The question is whether lawmakers want a role in that process.

We think they should. But first, lawmakers have to accept a simple reality.

It’s time to legalize recreational use of marijuana for adults.

There are plenty of reasons, not the least is that resistance has become futile. The political will to legalize pot is strengthening. A growing majority of Americans want it.

Gov. Jared Polis signed a landmark bill affecting the cannabis industry on June 29 in front of Simply Pure in Denver. The dispensary was the first in the nation owned by a Black couple.

HB20-1424 creates a new social equity license that is intended to boost minority participation in the cannabis industry. The program goes into effect Jan. 1.

The bill also authorizes the governor to pardon individuals for possession of up to 2 ounces of marijuana — the current legal limit for medical patients — removing a barrier to ownership of marijuana businesses.

“This month, across our whole state and our whole society, we’ve had a long overdue and renewed conversation about race, about racial inequalities … and cannabis is no different than anything else,” Polis said at the bill signing. “The majority of those in prison for cannabis-related crimes are people of color, while the majority of people that are making money legally on cannabis are white.”

People with prior convictions have been prevented from raising capital and getting loans, leases, jobs, licenses and mortgages, Polis said.