Cannabis Project Newsletter - June 19, 2020
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What Happened in May?
In the wake of national protests over racial disparities and criminal justice reform, many states are re-examining how cannabis can be used to level the playing field. Recently released data from the states shows continued inequities in both ownership in the industry, and incarceration of cannabis offenders. Several states are considering bills, or have taken other actions, which would offer pardons to low level cannabis offenders and increase minority participation in the market.
Nationally, two studies were released relating to potency and impairment which send conflicting signals. The USDA outlined the challenges and opportunities in the Hemp industry, and the DEA elaborated on the dangers of vaping cannabis concentrates. Finally, rioting during protests has resulted in several cannabis businesses across the nation being looted and/or completely destroyed, with little to no financial assistance being offered for recovery.
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Ohio Medical Board Committee Rejects Additions of Autism and Anxiety to Qualifying Medical Conditions for Cannabis -
Last week, an Ohio medical board committee declined to recommend the addition of autism and anxiety to the list of conditions that would qualify a patient for medical cannabis. Several children’s health organizations had pointed to the lack of clear scientific data supporting the use of cannabis for these conditions during the open public comment period, but the committee did not elaborate on their decision during the meeting. The committee did, however, recommend the addition of Cachexia to the list of qualifying conditions, a wasting disease associated with Cancer and AIDS. Click
here
for more info.
U.S. Virgin Islands Considers Cannabis Legalization Amid COVID-19 -
As a territory that traditionally relies heavily on tourist income, the U.S. Virgin Islands (USVI) is feeling the financial impacts of COVID-19 more dramatically than other areas of the country. In an effort to create new sources of revenue, last month Gov. Albert Bryan released a revised adult use & medical cannabis legalization bill and sent it to the Senate for consideration. Last week, several USVI government agencies testified in support of the bill, saying that it is likely to create about $13.8 million in tax revenue and between 600-800 new jobs in the first year. Under the bill, medical cannabis would not be taxed, and patients would be allowed to grow cannabis in their home. Recreational cannabis would be taxed at 7.5% for residents and 25% for non-residents, and recreational home-grows would be banned. Click
here
for more info.
Nevada Board Pardons Thousands of Minor Cannabis Offenders -
This week, the Nevada Board of Pardons considered and approved a proposal by Gov. Steve Sisolak that will pardon around 15,000 offenders convicted of minor cannabis possession charges. Pardons will remove barriers to voting and civil service for offenders but will not reverse convictions. The next step, according to Clark County Commissioner Tick Segerblom, would be to begin clearing the records of minor cannabis offenders through either expungement or sealing. Other states, like Washington and Illinois, are considering similar proposals. Click
here
for more info.
Missouri’s First Medical Cannabis Company Opens its Doors -
After being granted several cultivation, manufacturing and dispensary licenses in December and January of this year, Missouri’s first medical cannabis company has begun operations as of last week. BeLeaf Medical’s Sinse brand has initiated the cultivation and manufacturing process, with sales expected to begin by the end of this year. Click
here
for more info.
Questions in Many States About Temporary Delivery Rules -
As the country begins to find its way to the new normal, many states are grappling with the question of whether temporarily enacted rules for delivery and curb-side pickup of cannabis should carry on past the pandemic. Industry insiders and consumers have expressed a preference for the new rules, arguing that making the rules permanent would increase convenience for consumers and increase market sales. Several major parcel delivery companies, like FedEx and Amazon, are positioning themselves to deliver cannabis through the mail, which would potentially open up major opportunities for the industry. Due to federal illegality, however, state regulators have been hesitant to express any indication that they may extend the rules past the pandemic. Click
here
for more info.
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DEA Releases Drug Fact Sheet on Vaping & Marijuana Concentrates
Early in June, the DEA released a Drug Fact Sheet on Vaping & Marijuana Concentrates which highlighted the dangers of consuming high concentrate cannabis through electronic cigarettes. The DEA did not highlight any specific side effects of vaping cannabis concentrates, stating that the long-term effects are still unknown. The DEA did, however, point out that the traditional symptoms of marijuana use, such as paranoia, anxiety and hallucinations, can be experienced much more intensely due to the high concentrations of THC. Some high-level findings include:
- Cannabis Concentrates typically have THC levels between 40% and 80%, while top shelf flower typically contains around 20% THC.
- One method of extracting concentrates utilizes large amounts of butane gas, which has been known to cause explosions.
- Many users prefer vaping concentrates because the effects are more instantaneous. It is also often odorless and smokeless, and therefore very easy to conceal.
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NDCP Adds 3 New Areas to Appalachia HIDTA
On June 11th, the Office of National Drug Control Policy announced that the areas of Clark, Logan and Simpson Counties in Kentucky have been added to the Appalachia High Intensity Drug Trafficking Area (HIDTA). The HIDTA program now oversees
29 regional HIDTAs
across the country, with about 70% of Americans residing in a HIDTA-designated county. Click
here
to read the notice in the federal register.
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Rapid Growth in Hemp, but the Industry Needs More Data
On June 9th, the USDA published a blog article which discussed the rapid growth of the hemp industry since 2014, as well as the challenges the industry continues to face. In 2014, during the beginning of the hemp production pilot program, only 4 states reported total hemp production of around 1,800 acres. As of 2018, the U.S. has 90,000 acres of hemp production across 22 states. Between 2014 and 2018, the number of licensed hemp producers increased from 292 to 3,852, with the vast majority of that growth occurring between 2017 and 2018.
But with that rapid growth comes complications. Industry insiders identified the number one challenge in the market today as a lack of up-to-date market data to inform decisions. Producers and purchasers often struggle to find each other. Other than basic data collection, little thorough research has been done on economic and agronomic best practices for hemp production and sale. But while challenges exist, the rapid growth and global demand for hemp will likely serve as key drivers in the success of the industry going forward. Click
here
to read the blog post.
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Small Variations in THC Can Create Big Differences in Impairment, Study Finds
A recently published study in the medical journal
Drug and Alcohol Dependence
has shed some light on how the effects on impairment can vary in low intensity users who consume THC infused foods. 17 adults who infrequently use cannabis were tested over 4 sessions. In each session, each subject was given a cannabis brownie which contained either 0, 10, 25 or 50 milligrams of THC.
The study revealed that, while little or no impairment was observed in those who consumed 10mg brownies, moderate to severe impairment was identified in individuals who consumed 25 or 50mg brownies, although their blood-THC content still tested below
the most common law-enforcement threshold
for determining impairment of 5 nanograms. The study also found that the effects of consuming THC infused foods occur much later than the effects of consuming THC via inhalation, with peak effects occurring 1.5 to 3 hours after consumption and lasting as long as 8 hours. Click the button below to read the study.
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However, Potency Does Not Necessarily Correlate with Impairment
Moving from non-users to frequent users, a recent study conducted at the University of Colorado at Boulder focused on the relationship between potency and impairment after consuming high-THC concentrates, as compared with low-potency flower. 121 adult regular users participated in the study and were randomly assigned to either consume a high-potency concentrate, or low-potency flower.
Interestingly, while researchers did identify impairment of verbal and memory functions after use, they did not identify a significant difference in impairment between those who consumed flower and those who consumed concentrates. While blood-THC contents differed drastically, levels of impairment remained consistent. The study highlights the need for law enforcement officials to consider alternative methods of determining impairment, but also points to the fact that consumers looking for more intense effects may not need to use high-potency concentrates. Click the button below to read the study.
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CDOT Releases Findings on Perceptions of Cannabis Impaired Driving
The Colorado Department of Transportation (CDOT) has concluded a two-year project focused on understanding when and why cannabis users consume and drive, in an effort to better educate users on the dangers of driving while impaired. The project found that, while 94% of drivers believe that driving after drinking alcohol is very dangerous, only 70% of drivers believe that driving after consuming cannabis is very dangerous. Surveys showed that 20% of cannabis users within the state consistently drive after consuming cannabis.
CDOT has reported that 13.5% of drivers involved in fatal crashes tested positive for cannabis in 2018. Law enforcement hopes to use the data collected from the project to create a marketing campaign directed at cannabis consumers explaining the dangers of driving while under the influence of cannabis, but public commentators have expressed the desire for more research and guidance on how long to wait before driving after consumption. Click
here
for more info.
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National Cannabis Law Expert Provides White Paper on 4th Amendment Issues to AGA
Also this week, Professor Rob Mikos of Vanderbilt Law School released his most recent white paper on the changes in national case precedent regarding probable cause for search and seizure in the wake of state cannabis law reforms. Special thanks to Prof. Mikos and his students in the Spring 2020 Marijuana Law & Policy course at Vanderbilt for preparing the paper for the AGAlliance. Click the button below to download the paper.
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Colorado's New Cannabis Social Equity Bill
Early this week, Colorado legislators sent a bill to the Governor’s desk which featured several important social equity provisions. Most notably, the bill refines the definition of a social equity applicant, and grants the Governor broad powers in issuing pardons for low-level cannabis crimes.
Currently, individuals in Colorado from “economically disadvantaged communities” are eligible for the Cannabis Accelerator Program, which grants the individual access to existing facilities to use when beginning business operations. The proposed bill would expand on the definition of economically disadvantaged communities, as well as add 2 additional categories of eligibility; those individuals who have been arrested or convicted for cannabis offenses, and those whose income falls below a certain threshold.
The bill would also grant the Governor unilateral decision-making authority over pardons for convictions of possession of less than two ounces of cannabis. Under current law, the Governor must first submit an application for comment to the district attorney before making any pardoning decision. Click
here
for more info.
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States Report on Disparities in the Cannabis Industry
Washington D.C. and Colorado recently released data on the cannabis industry which reveals marked disparities between white and black Americans.
In Colorado, the city of Denver released
survey results
which found that 75% of cannabis business owners within the city are white. African Americans make up only 6% of the industry, which includes ownership and employment. In Washington D.C.,
arrest records
show that there were about 12,000 cannabis-related arrests between 2012 and 2019, and about 11,000 of those arrested were African American. A separate report found that, nationally, black Americans are 3.6 times more likely to be charged with a cannabis related offense than a white American. These studies are emblematic of a national problem for the industry.
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Cannabis Dispensaries Targeted Amid Rioting
In the midst of the recent national protests over the killing of George Floyd, cannabis dispensaries have emerged as a recurring target for looting and destruction. In California and Oregon,
43 dispensaries
reported looting and/or property damage during riots, and similar patterns appear in major cities across the country. While these actions appear, for the most part, to be those of organized criminals and not protesters, the result for many business owners is the same: financial ruin.
As we have discussed in previous newsletters, cannabis dispensaries serve as a particularly alluring target for criminal activity due to the mostly cash nature of the industry. Coupled with the financial impacts of the COVID-19 pandemic and the inability of the industry to obtain federal relief, these business owners are expressing serious concerns about whether they will be able to open their doors again. Click
here
for more info.
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Annual Meeting Draft Agenda & Updates
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We are working closely with the Colorado Governor's office, the Broadmoor Resort and the CDC to create a safe environment and COVID-compliant meeting atmosphere. Last week, we released our
comprehensive guide
to these policies and procedures to all registered attendees. Thank you for your patience and understanding.
State registration is still open and available.
To register and for more information, please email Ale Stephens at
AStephens@AGAlliance.org
.
Our latest draft agenda, available below, now includes
3 private subcommittee breakout sessions:
- Alcohol Regulators Meeting (July 23)
- Cannabis Regulators Meeting (July 23)
- Cybersecurity Working Group (July 25)
*All subcommittee members will receive more information in the coming weeks. Please email Andrea Friedman at
AFriedman@AGAlliance.org
with questions.
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For all meeting or sponsorship-related inquiries, please contact:
Ale Stephens
303-304-9206
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This newsletter was written and prepared by Austin Bernstein and Cole White
| THE AG ALLIANCE CANNABIS PROJECT |
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