Latest Cannabis News: September 8, 2020

Stay up to date with the latest legalization and cannabis news with the CB Advisors. Every week, we will release a snippet of what’s happening with each state in the cannabis industry. Did you miss last week? No worries – click here for last week’s cannabis news. 

CBD:

Nebraska: A legal challenge was filed against the secretary of state’s office late last month, with Lancaster County Sheriff Terry Wagner arguing that the proposal violates the state’s single-subject rule for ballot initiatives. The state rejected that argument, but the local police official opted to take the case to court. Thursday’s hearing saw legal teams for the sheriff and the measure’s supporters—including state Sens. Adam Morfeld (D) and Anna Wishart (D)—make their respective cases about the appropriateness of including the reform proposal on the ballot.
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Virginia: Marijuana reform is speeding through the Virginia legislature during a summer special session, with another round of legislation advancing last week. On Friday, the House of Delegates approved a bill to further reduce cannabis penalties by making possession in a motor vehicle a secondary offense instead of a primary one. The measure would also prevent law enforcement from conducting searches or seizing property based on the odor of marijuana alone.
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Medical:

Arizona: One proven source to help alleviate the budget strain is marijuana (cannabis) legalization, and the Smart and Safe Arizona Act would help reduce Arizona’s current $700 million budget deficit. U.S. medical and recreation cannabis sales will exceed $15 billion this year, a 40% jump from 2019, and estimates project it to reach $37 billion by 2024. According to the Joint Legislative Budget Committee, the 16% excise tax plus the regular sales taxes on recreational marijuana products would generate $250 million in revenue. Another study by Smart and Safe Arizona estimates the figure to be $300 million a year.
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Florida: As previously mentioned in last week’s updates, Florida has approved licensed medical marijuana dispensaries to be able to produce THC-infused edible products. At 4:02 p.m. Wednesday, Arnold Lawson bought TruGels gummy candies, and a new product line for Florida’s medical marijuana industry was launched. The 54-year-old Lawson is among the 400,000 patients on the state’s Medical Marijuana Registry allowed to use cannabis to treat a variety of ailments.
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Iowa: Iowa plans to seek an official exemption from federal marijuana prohibition in an effort to resolve policy conflicts impeding its limited medical cannabis program. The state Department of Public Health recently determined that it will proceed with an application asking the Drug Enforcement Administration (DEA) for a formal exemption under the Controlled Substances Act in an effort to prevent the loss of federal funding it receives for education and long-term care facilities. The state’s market could see additional, inadvertent benefits if the application is approved, however, advocates say. “The Department has determined that it will move forward with seeking an exception for cannabis as a schedule I substance in Iowa from the DEA, in attempt to minimize conflict between State and Federal Law,” a presentation from the public health agency states.
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Maryland: An inquiry into Maryland’s 2019 medical marijuana licensing process found “no evidence of bias or undue influence,” according to a 40-page investigative report released last week. The licensing round, which was designed to expand minority participation in the state’s MMJ program through four cultivation and 10 processing licenses, spurred allegations of racial bias, lack of transparency, and improper influence. “We did find evidence of conflicts of interest, in that MSU (Morgan State University) employees and officials were affiliated with license applicants, but we found no evidence that these conflicts resulted in any bias or special favorable treatment in the license application review process,” according to the investigative report, which was released Thursday.
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Mississippi: An activist-led medical marijuana initiative in Mississippi “stands a strong chance of passage” during the November election, according to a newly released poll that shows widespread bipartisan support for the policy change. And voters showed a significant preference for the campaign’s measure over a more restrictive, legislature-passed alternative that will appear alongside it on the ballot. The support is bipartisan, with 89 percent of Democrats, 76 percent of Republicans and 82 percent of independents backing the proposal.
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Missouri: Availability of medical marijuana in Missouri expected soon. When they awarded licenses last winter, administrators of Missouri’s medical marijuana program anticipated products being dispensed during the summer. But only two dispensaries have opened (both in St. Louis), and they don’t yet have products available for patients. Having medical marijuana on the shelves for patients is imminent, according to Lyndall Fraker, director of the Missouri Department of Health and Senior Services section for medical marijuana regulation.
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Montana: The Montana cannabis market has undergone dramatic changes since voters approved medical marijuana more than 15 years ago – including near extinction followed by a voter-approved initiative in 2016 and other steps that have allowed the industry to thrive. But the industry might be in for even more turbulence after November should a ballot measure to legalize adult-use cannabis pass. Sales in 2019 reached between $66 million and $80 million, and there’s more growth forecast for the state, according to Marijuana Business Daily estimates. By 2024, even without recreational legalization factored in, sales in Montana might nearly double to as much as $155 million.
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New Hampshire: Calling it an issue of racial justice and revenue, Democratic candidate for governor Andru Volinsky pushed his plan Thursday for marijuana legalization. “New Hampshire has a revenue problem, and from the studies that we’ve read, we can expect $20 million to $30 million in direct tax revenue (from legalization),” he said. Volinsky’s proposal would allow anyone over 21 to legally possess up to 1 ounce and it would decriminalize possession for anyone under 21. Gov. Chris Sununu released a statement Thursday saying, in part, he “signed common sense decriminalization, expanded access to medical marijuana and provided a pathway to annul old convictions for marijuana possession.”
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Ohio: Ohio marijuana cardholders have repeatedly told The Coumbus Dispatch, both on the record and in private, they travel to dispensaries north of the state line to save money. Patients consistently list price as one of the biggest obstacles to buying the drug in Ohio. “In Ohio, you’re being charged double the price you pay in Michigan,” said Lea Spradlin, a medical marijuana patient who lives near Cincinnati and has traveled to Michigan to compare marijuana prices.
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Oklahoma: Oklahoma activists are collecting petition signatures to add a cannabis expungement and decriminalization question to November ballots, according to a 102.3 KRMG report. The group – We Are 788 – needs to collect 180,000 signatures in order to put the issue to voters.
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Pennsylvania: Pennsylvania Gov. Tom Wolfe is supporting the legalization of recreational marijuana, which could provide the state with additional funding through taxes. Wolfe requested state lawmakers consider the proposal, noting the money would go toward helping the state’s economy recover from the coronavirus pandemic. Codie Sanchez is a partner at Entourage Effect Capital, a private equity firm focused on the marijuana industry. She said state leaders nationwide are considering the revenues other states have collected after allowing recreational use.
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Recreational:

Maine: Maine has announced its first round of fully licensed recreational marijuana businesses, including two retail stores that can start selling adult-use cannabis to the public next month in South Portland and Northport. The two retailers are cleared to open on Oct. 9, the date Maine has chosen as opening day for adult-use sales. In addition, the state Office of Marijuana Policy approved Nelson Analytics in Kennebunk as Maine’s first testing lab and grows for Room 5 in Detroit, Gele in South Portland, and Grass Roots Marijuana in Auburn.
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Nevada: A Nevada judge ruled the state’s marijuana licensing process can resume, with some new retail marijuana stores allowed to open. The decision, issued Thursday, also means some applications for licenses will be reviewed again by state officials and some companies will continue to be denied the licenses they didn’t get in December 2018.
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Washington: The Washington State Liquor and Cannabis Board (LCB) has issued a warning to retail cannabis stores in the state about an ongoing scam strategy that has been happening for more than a year, according to the alert. Called the “fire extinguisher scam,” the perpetrators contact store employees via VOIP, a technology that allows users to make calls over the internet rather than regular phones and impersonate the store’s owner or their attorney.
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