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Chronicle AM: Marijuana Descheduling Bill Filed, Model West African Drug Law Presented, More... (5/22/19)

A federal marijuana descheduling bill picks up some cosponsors who want to be president, the California Senate approves a bill to allow special banks to deal with state-legal pot businesses, the drug czar announces a new initiative, and more.

There is getting to be an awful lot of marijuana bills floating around the Capitol these days. Now, there's one more. (CC)
Marijuana Policy

Four Democratic Presidential Contenders Sign on to Federal Descheduling Bill. Sens. Bernie Sanders (I-VT), Elizabeth Warren (D-MA), Kirsten Gillibrand (D-NY) and Rep. Tulsi Gabbard (D-HI) are all cosponsors of companion marijuana rescheduling bills filed Monday by Senate Majority Leader Chuck Schumer (D-NY) and Rep. Hakeem Jeffries (D-NY). The bills would remove marijuana from the federal Controlled Substances Act and use some funds from marijuana taxes to help socially disenfranchised individuals find a role in the legal industry.

California Senate Approves Special Banks for Marijuana Retailers. The state Senate voted 35-1 Tuesday to approve a bill that would allow people to start banks and credit unions that could accept cash from state-legal marijuana businesses. SB 51 would allow those banks to issue special checks to retailers that could only be used for certain purposes, such as paying state taxes and state-based vendors. The bill now goes to the Assembly.

New Jersey Decriminalization, Expungement Bills Held Up. A last-minute move to pass decriminalization and expungement bills after legalization was stifled in the legislature is itself now stalled. A vote that was set for Thursday has been canceled after Senate President Steve Sweeney (D) said he was not in favor of the legislation.

Hemp

Louisiana Hemp Bill Advances, But Is Encumbered by Regulations. A bill to legalize hemp farming in the state, HB 491, has passed out of the Senate Agriculture Committee, but only after committee chair Sen. Francis Thompson (R), an avowed hemp skeptic, tacked a series of amendments on the measure that imposes a "tremendous amount" of regulation, according to Agriculture Commissioner Mike Strain, who supports the bill. The measure has already passed the House and now goes to the full Senate. Gov. John Bel Edwards (D) has said he will sign it if it makes it to his desk.

Drug Policy

ONDCP Director Carroll to Convene Emerging Threats Committee. White House Office of National Drug Control Policy (ONDCP -- the drug czar's office) Director Jim Carroll announced Tuesday the formation of an Emerging Threats Committee to identify and respond to evolving and emerging drug threats in the United States. "The drug threats facing the United States are constantly changing and more complex than ever before. It is critical we not only meet the challenges of today, but also prepare to address the threats of tomorrow. By bringing together those people on the front lines of this fight, we can position ourselves to proactively respond to these threats, and preserve the safety and security of American citizens," Carroll said. The committee consists of 14 representatives from National Drug Control Program agencies, state, local and tribal governments, and non-governmental agencies.

Foreign Policy

House Committee Votes to Increase Colombia Anti-Drug Aid. The House Appropriations Committee has approved a $40 million increase in development and counternarcotics assistance to Colombia. That would make next year's package worth $457 million, far more than the $344 million the Trump administration requested in its budget. "The committee is inclined to continue its partnership with Colombia and to build on the progress of recent years made possible by the adoption of the peace accord. The agreement, combined with a renewed initiative to fight illegal crop cultivation and drug trafficking, offers great hope for the social, economic and political future of the country," the committee said in a statement. $189 million of the funds would go to anti-drug efforts.

International

Model Drug Law for West Africa Presented to Health Ministers on Sidelines of 72nd Session of the World Health Assembly. The West Africa Commission on Drugs, UNAIDS and the Global Commission on Drug Policy presented the Model Drug Law for West Africa to ministers of health of the Economic Community of West African States on Wednesday. The model drug law provides concrete templates that countries can adapt to reform their drug laws -- legal provisions and how they relate to international legal obligations -- as well as useful commentary that explains different options and reasons for choosing the proposed legal solutions. The model drug law offers a measured way for decriminalizing drug use and possession for personal use by introducing thresholds, thereby allowing people who use drugs to access health services and seek support. The model drug law acknowledges that barriers must also be removed so that the millions of people in need of health services, including people living with cancer or with HIV, can access the treatment and care they need.

(This article was prepared by StoptheDrugWar.org's 501(c)(4) lobbying nonprofit, the Drug Reform Coordination Network, which also pays the cost of maintaining this website. DRCNet Foundation takes no positions on candidates for public office, in compliance with section 501(c)(3) of the Internal Revenue Code and does not pay for reporting that could be interpreted or misinterpreted as doing so.)

Chronicle AM: NJ Marijuana Moves, IL Needle Exchange Bill Filed, More... (5/20/19)

The state treasurers' association wants banking access for legal weed, New Jersey sees a sudden decriminalization and expungement bill, a Texas CBD medical marijuana bill gets expanded, and more.

Welcome to New Jersey, where legalization is stalled but other marijuana reform is happening. (Creative Commons)
Marijuana Policy

State Treasurers Call on Congress to Pass Marijuana Banking Legislation. The National Association of State Treasurers adopted a resolution last Friday calling on Congress to pass legislation to allow the legal marijuana industry access to financial services. The association "supports common sense federal laws and regulations to provide essential banking services to state legalized cannabis businesses, promote public safety and financial transparency, and facilitate local, state and federal tax and fee collection." The group cited public safety and regulatory concerns. The resolution comes after 17 state treasurers sent a similar letter earlier this month.

New Jersey Marijuana Decriminalization and Expungement Bill Suddenly Emerges. As the push to legalize weed falters in Trenton, lawmakers have come up with a new bill that would decriminalize the possession of up to two ounces and reduce penalties for other marijuana offenses. It would also allow people with existing marijuana convictions to apply for expungement of their records and dismiss pending criminal cases against anyone caught with less than two ounces. This new bill cleared the Senate Health Committee Monday and a vote in the Assembly Appropriations Committee Monday afternoon.

Medical Marijuana

New Jersey Medical Marijuana Expansion Bill Advances. As the legalization push falters in Trenton, a bill that would greatly expand the state's medical marijuana system is now moving. The Jake Honig Compassionate Use Medical Marijuana Act, S 10, was advanced by committees in both the Senate and the Assembly on Monday and could head for floor votes as early as Thursday. The bill increases the amount of medicine patients can buy each month from two to three ounces and legalizes edible forms of medical marijuana.

Texas Senate Committee Expands CBD Medical Marijuana Bill to Include More Patients. The Senate Committee on Health and Human Services last Friday voted to advance HB 3703, which would expand the state's CBD-only Compassionate Use Act. The bill originally expanded the list of qualifying conditions to include multiple sclerosis, epilepsy and spasticity, but the committee amended the bill to add even more conditions: ALS, terminal cancer, and autism. The bill now heads for a Senate floor vote.

Harm Reduction

Illinois Needle Exchange Bill Filed. State Sen. Melinda Bush (D-Chicago) last Friday filed SB 1828, which would legalize needle exchange programs statewide under regulation by the Department of Public Health. The bill also provides criminal immunity for needle exchange workers. Some counties in the state currently have needle exchange programs, but workers fear being subject to arrest under ambiguous current state laws.

Legal Marijuana Is a Job Creation Machine [FEATURE]

As the marijuana business comes out of the shadows and into the legal marketplace, jobs in the legal industry are coming with it -- by the hundreds of thousands, with more on the way. In fact, the legal marijuana business is forecast to see the greatest increase in demand of any profession over the next ten years.

More than 200,000 people work in the marijuana industry now. (Sandra Yruel/DPA)
That's according to the marijuana information clearing house Leafly, which crunched the numbers in its recently-released Special Report: 2019 Cannabis Jobs Count. That report finds that legal marijuana has already created 211,000 full-time jobs, with more than 64,000 added last year alone, and tens of thousands more being created this year.

The marijuana workforce increased 21 percent in 2017, jumped by another 44 percent last year, and Leafly expects at least another 20 percent growth this year. That's a more than doubling of the industry workforce in just three years.

By way of comparison, the Bureau of Labor Statistics recently listed the industries with the fastest job growth prospects. Home health care aide positions are expected to jump 47 percent, while openings for wind turbine technicians and solar voltaic installers are expected to double. But that's in the next 10 years; the marijuana industry did it in three.

Because marijuana remains federally illegal, the Bureau of Labor Statistics doesn't count pot jobs. That left Leafly's data team, working in conjunction with Whitney Economics, to come up with the numbers. They did so using state-reported data, industry surveys, on-the-ground reporting, Leafly's own proprietary data, and economic formulas devised by Whitney.

The upward jobs trend is likely to continue for years to come, rolling through the individual states as they embrace medical marijuana and recreational legalization. So far, 34 states have some form of legal medical marijuana, but only ten have achieved full-blown legalization, so the medium-term job creation potential is substantial.

We can see this playing out in the legal states. Early legalizers Colorado and Washington saw double-digit jobs growth last year -- 17 percent and 26 percent, respectively -- but these numbers actually represent a plateau as their legal markets mature. Triple-digit job growth figures are common as states come online. In Florida, when medical marijuana dispensaries opened up last year, the state added more than 9,000 pot jobs, a stunning increase of more than 700 percent.

The Sunshine State wasn't alone in seeing huge job increases last year. Nevada added more than 7,500 jobs, Pennsylvania went from 90 pot jobs to nearly 4,000, and New York nearly tripled the number of full-time positions. By year's end more than 5,000 New Yorkers worked in the industry.

This year, Leafly predicts the biggest harvest of new jobs in the industry will come in California, where hiring was flat last year because of disruptions caused by the shift from the unlicensed medical system to tightly regulated adult-use legalization. The Golden State should see 10,000 new cannabis jobs, bringing total employment to around 60,000.

Massachusetts, where the adult-use market is just getting started, is set to add some 9,500 positions, while Florida's rollout of medical marijuana should see jobs there increase by 5,000 this year, bringing the total for the state to 15,000. In Oklahoma, there were no legal marijuana jobs in 2018, but with the November 2018 victory of a medical marijuana initiative, there are more than 2,100 jobs now, which should more than double to 4,400 by year's end. Similarly, in Arkansas, where the first dispensary is set to open any day now, the number of industry positions is expected to go from 135 now to nearly a thousand before the year is up.

Now, just imagine what happens when states such as Connecticut, Illinois, New Jersey, and New York manage to actually get legalization bills through the legislature. The jobs will follow in a wave that will eventually make its way to the last stubborn prohibitionist holdouts in places like South Carolina and South Dakota. The marijuana job boom isn't ending; it's just getting underway.

This article was produced by ​Drug Reporter​, a project of the Independent Media Institute.

Chronicle AM: VA Governor Vetoes Overdose Homicide Bill, VT Legal MJ Sales Bill Advances, More... (5/3/19)

A Vermont bill to legalize recreational cannabis sales takes another step forward, a New Hampshire bill to let patients grow their own goes to the governor's desk, Virginia's governor vetoes an overdose homicide bill, and more.

Twenty states have passed overdose homicide laws. Virginia won't be next, but North Carolina might. (Creative Commons)
Marijuana Policy

Lawmakers Demand End to Policy Punishing Immigrants Working in Marijuana Industry. Four Colorado US representatives have sent a letter to the Justice Department and the Department of Homeland Security asking them to end a policy that bars immigrants who work in the state-legal marijuana industry from gaining US citizenship. The US Customs and Immigration Service has ruled that working in the industry means immigrants lack the "good moral character" required for citizenship.

Vermont Recreational Sales Bill Wins First House Committee Vote. The House Committee on Government Operations voted 10-1 Thursday to approve a bill that would legalize marijuana sales in the state, SB 54. The bill would tax marijuana sales at 16% and give localities the option of adding another 2%. The bill now goes to the House Ways and Means and Appropriations committees before getting a House floor vote. The bill has already passed the Senate.

Medical Marijuana

New Hampshire Senate Approves Medical Marijuana Home Cultivation. The Senate on Thursday approved HB 364, which would allow patients to grow up to three mature plants, three immature plants, and 12 seedlings at home. The House has already passed the bill but will have to vote again to approve amendments made in the Senate. If it does so, the bill will then head to the desk of Gov. Chris Sununu (R).

Heroin and Prescription Opioids

DEA, Drug Distributors Team Up to Block Release of Opioid Delivery Information. The DEA and the nation's largest drug distributors worked together Thursday to block the public release of information that would show the number of opioid pain pills the companies delivered to pharmacies across the country. Lawyers for the Washington Post and two West Virginia newspapers had sued for release of the information, arguing that distributors and DEA only sought to withhold the information because it would be embarrassing for companies that shipped massive amounts of opioids to states and towns that were arguably unjustifiable, and the DEA doesn't want to explain its actions. In oral arguments in the US 6th District Court of Appeals in Cincinnati, judges hearing the case expressed skepticism about DEA and distributor claims, but issued no ruling.

Pharmaceutical Company Founder, Executives Found Guilty of Bribing Doctors to Prescribe Opioids. Insys Therapeutics founder John Kapoor and four colleagues were found guilty by a federal jury in Boston Thursday of participating in a scheme to bribe doctors to prescribe its fentanyl spray, Subsys. The bribery scheme involved retaining doctors to act as speakers at sham events that were supposedly meant to educate other doctors about the drug. They're looking at 20 years in federal prison. but maintain their innocence and plan to appeal.

Asset Forfeiture

North Dakota Governor Signs Asset Forfeiture Reform Bill into Law. Gov. Doug Burgum (R) on Thursday signed into law a bill reforming civil asset forfeiture, HB 1286. The bill doesn't end civil forfeiture but raises the evidentiary standard for seizures from "a preponderance of the evidence" to "clear and convincing evidence." It also includes a proportionality test to block seizing property worth more than the criminal penalty for the offense. And it adds reporting requirements for courts, prosecutors and the attorney general.

Drug Policy

Amy Klobuchar Releases $100 Billion Proposal to Fight Drug Addiction. Democratic presidential contender and Minnesota Sen. Amy Klobuchar on Friday released a $100 billion policy proposal for tackling drug addiction. While short on specifics, the proposal focuses on funding prevention programs and treatment centers across the country. She also calls for bringing down the price of naloxone and curbing "doctor shopping." Klobuchar's father was an alcoholic, and that makes the issue personal for her. "The one thing I hear over and over again across the country is people’s stories of battling with mental health and addiction," she said in a statement. "People need help, but they just can't get it. I believe everyone should have the same opportunity my dad had to be pursued by grace and get the treatment and help they need." [Ed: Sometimes what's called "doctor shopping" is really pain patients whose doctors they went to are afraid to provide the prescriptions they need.]

Sentencing

North Carolina Senate Approves Homicide by Overdose Bill. The Senate voted on Thursday to approve SB 375, which would allow people who distribute a drug that results in an overdose death to be charged with murder. That means that drug users who share with friends, partners who use from the same supply of drugs, and people who sell to support a drug habit could face murder charges even when the death is an accident. The bill now heads to the House.

Virginia Governor Vetoes Homicide by Overdose Bill. Gov. Ralph Northam (D) on Thursday vetoed HB 2528, which would have made it easier for state prosecutors to go after drug dealers with a felony homicide charge when users die of an overdose. "The disease of addiction has long devastated our communities," Northam said in his veto message. "While I share the goal of addressing the opioid crisis and ensuring drug dealers are punished for supplying dangerous drugs, this bill goes beyond drug dealers and would punish individuals who are themselves struggling with addiction. The way to help individuals struggling with addiction is to ensure they receive proper treatment."

(This article was prepared by StoptheDrugWar.org's 501(c)(4) lobbying nonprofit, the Drug Reform Coordination Network, which also pays the cost of maintaining this website. DRCNet Foundation takes no positions on candidates for public office, in compliance with section 501(c)(3) of the Internal Revenue Code and does not pay for reporting that could be interpreted or misinterpreted as doing so.)

Chronicle AM: Bipartisan Cannabis Banking Bill Filed, Texas MedMJ Hearings, More... (4/12/19)

Some 20 senators sign on to a bill to solve legal marijuana's banking problem, a Maine jail appeals a federal court ruling that it must provide Suboxone to a prisoner, and more.

Marijuana Policy

Bipartisan Federal Bill Would Open Banks to Marijuana Businesses. Sens. Jeff Merkley (D-OR) and Cory Gardner (R-CO), along with 18 other cosponsors, filed legislation Thursday that would shield banks that maintain accounts for marijuana businesses from being punished by federal regulators. The Secure and Fair Enforcement (SAFE) Act would stop federal agencies from being able to "prohibit, penalize, or otherwise discourage a depository institution from providing financial services to a cannabis-related legitimate business or service provider or to a State, political subdivision of a State, or Indian Tribe that exercises jurisdiction over cannabis-related legitimate businesses." Companion legislation in the House has already passed out of committee and awaits a House floor vote.

Medical Marijuana

Texas Medical Marijuana Bills Get Hearing. The House Public Health Committee held a hearing on a trio of medical bills Thursday. Testimony was sometimes highly emotional, and no one spoke up against medical marijuana. HB 122 would create a legal defense for patients possessing medical marijuana and doctors who recommend it; HB 1405 would allow hospital patients to use CBD cannabis oil; and HB 3703 would expand current use of CBD cannabis oil to all epilepsy patients, not just those with intractable epilepsy. No votes were taken.

Drug Treatment

Maine Jail Appeals Federal Court Ruling It Must Provide Drug Used in Opioid Treatment. The Aroostook County Jail is appealing a federal judge's ruling that it must provide an opioid addiction medication it says it is necessary to keep addiction in remission. A federal judge granted a preliminary injunction on March 27 that required the jail to provide buprenorphine (Suboxone) to the prisoner. The jail argues that the judge didn't defer enough to jail administrators for policymaking decisions.

In Bid to Blunt Black Market, California Eyes Marijuana Tax Cuts [FEATURE]

Steve D’Angelo was prescient. As the era of legal recreational marijuana in California began just over a year ago, the East Bay medical marijuana maven expressed concerned that taxes on the newly legal industry were too high.

“It’s going to mean that a significant number of people, less affluent consumers are going to turn to the lower prices of the underground market,” he told KPIX 5 on January 1, 2018, the day it became legal in the state.

A year later D’Angelo’s concerns have been borne out. The state had estimated that retail marijuana sales would exceed the $3 billion in 2017 sales, which came solely from medical marijuana outlets, but instead legal sales actually declined to $2.5 billion.

As a result, tax revenues for the state are significantly lower than projected. The FY 2018 state budget estimated $185 million in marijuana sales taxes, but actually gathered only about $84 million. And based on January sales, the FY 2019 budget, which estimated tax revenues at $630 million, now looks to be overly optimistic. The latest projections have tax revenues for the fiscal year at $471 million.

In California, legal pot sales are saddled with a $9.25 per ounce cultivation tax paid by growers, as well as a 15 percent retail excise tax and a 7.25 percent retail sales tax paid by consumers. When you add in local taxes, pot buyers in some counties could be paying as much as 45 percent in aggregate tax on legal weed.

To be clear, high taxes aren’t the only things strangling the state’s legal marijuana market. Industry figures and analysts point to two other factors as well: The state’s onerous and costly regulatory requirements are keeping many growers and retailers from leaving the black market, and the refusal by many localities to allow legal marijuana sales in their jurisdictions has left broad swaths of the state with no alternative but the black market. (In a bid to boost the legal market, the state last month okayed plans for statewide deliveries no matter what localities say.)

Still, cutting the tax rate is something that could begin to make a dent in the black market. Assemblymember Rob Bonta (D-Oakland) introduced a pot tax cut bill last year that was defeated, but now, with a year’s worth of disappointing marijuana market news to provide momentum, he’s back again with another pot tax cut bill this year.

Late last month, with three cosponsors Bonta refiled Assembly Bill 286, which proposes eliminating the $148 per pound cultivation tax and reducing the 15 percent retail excise tax to 11 percent for three years. The bill also has the support of newly elected state Treasurer Fiona Ma.

 “The black market continues to undercut businesses that are complying with state regulations and doing things the right way,” Bonta said as he rolled out the bill. “AB 286 will temporarily reduce the tax burden on these licensed operators to keep customers at licensed businesses and help ensure the regulated market survives and thrives. This very strategy has been shown to actually increase overall tax revenue in other states.”

One of the cosponsors is Assemblymember Tom Lackey (R-Palmdale), who authored an identical bill last year. That bill made it through two committees, only to die in Assembly Appropriations.

“Right now, the illicit market is dominating California’s cannabis industry,” said Assemblymember Tom Lackey (R-Palmdale). “These are bad people who are making our communities unsafe.  We need to give the good guys a chance to succeed otherwise our one chance at creating a regulated industry will be compromised.”

Bonta and his colleagues pointed to the experience of legal marijuana states Oregon and Washington, which have successfully taken steps to reduce tax rates and encourage the growth of the legal market. Washington saw exponential growth in marijuana tax revenue after it simplified its tax structure and reduced its rates. Tax revenues there jumped from $13.4 million in the final month of the initial tax rate in June 2015 to more than $33 million in April 2017.

“By lowering the excise tax and postponing the cultivation tax it will lower the overall price for consumers at the register, which will also reduce the differential between illicit and legal prices. Reducing this gap is critical to making the legal market more competitive against the illicit market and more attractive for consumers,” said Beau Whitney, Senior Economist at New Frontier Data.

Fixing California’s pot taxes clearly won’t resolve all the issues the state faces as it makes the transition to the world’s largest legal marijuana market, but it’s a start. 

This article was produced by Drug Reporter, a project of the Independent Media Institute.

How Much Money Can You Make Working in the Legal Marijuana Industry?

Legal marijuana is a growth industry. Medical marijuana is legal in 30 states and full-on legalization in nine, with more states set to join the green revolution this fall. New Jersey could become the next legalization state sometime in the next few weeks, and Election Day could see two more medical marijuana states (Utah and Missouri) and two more legalization states (Michigan and North Dakota).

From budtenders to compliance officers, there are jobs in pot. (Sondra Yruel/DPA)
In a new analysis of legal pot's jobs and pay scales, the marijuana head-hunting firm Vangst, which describes itself as the "Monster.com of the cannabis industry," reports that pot is hot. The company says it expects employment in the industry to more than double next year and that salaries at licensed pot businesses are up 18 percent this year.

But pot businesses are, after all, businesses, and they have some of the same issues as any other privately-held businesses. More than one-fifth of the 1,200 firms surveyed for this report offer no employee benefits at all and more than half offer no medical, dental, and vision insurance. Those industry workers most likely to get such benefits are those in the most lucrative jobs.

Marijuana businesses also replicate wage and salary differentials common in other industries. Managers and some skilled positions can take home well north of a hundred grand a year, while hourly workers, such as trimmers and budtenders, get paid proletarian wages.

The Vangst survey isn't exhaustive -- it doesn't cover some mid-level jobs at grow and extraction operations or dispensaries, nor does it cover jobs that don't directly touch on marijuana, such as publicists, accountants, and marketers -- but it does provide at least a partial glimpse at the pot jobs market.

But if you're looking for work in the legal pot industry, here's what to expect for various positions:

Cultivation director: Oversees all cultivation operations to ensure the production of compliant and high-quality cannabis. Establishes all standard operating procedures, nutrient and harvest schedules, integrated pest management programs, hiring, training, and personnel management. Responsible for ensuring the highest levels of plant health, potency, and production.

Low: $47,000
Average: $88,000
High: $140,000
Top: $250,500

Extraction director: Oversees all cannabis extraction and refinement operations. This includes facility design, laboratory setup, standard operating procedure development, regulatory compliance, hiring, training, and personnel management. Responsible for ensuring all cannabis extracted products are produced safely, efficiently, and consistently.

Low: $47,000
Average: $72,00
High: $135,00
Top: $191,00

Compliance manager: Ensures local, state, and federal compliance with all laws and regulations. Implements a company-wide program, which includes seed-to-sale tracking and internal compliance audits. Anticipates and tracks pending and current laws and regulations. Creates new policies and procedures as necessary and ensures the staff has an understanding of all compliance requirements.

Low: $45,000
Average: $62,500
High: $81,750
Top: $149,000

Outside sales representative: Focuses on sales strategies and account management to build value in the marketplace. An Outside Sales Representative develops relationships into new accounts in order to meet sales goals and manages existing accounts using Customer Relationship Management (CRM) software. They enhance product branding and increase sales through the training and education of retail partners and customers.

Low: $28,000
Average: $58,800
High: $73,500
Top: $150,000

Dispensary manager: Oversee day-to-day operations of a medical or recreational cannabis retail location. Create standard operating procedures, develop inventory processes, and ensure dispensary is fully compliant with all state and federal regulations. Responsible for hiring, training, and managing all dispensary staff.

Low: $41,500
Average: $56,250
High: $65,400
Top: $98,000

Budtender (per hour): Provides excellent customer service to all patients and customers in medical and recreational dispensaries. Uses point of sale system and other technology to ensure all cannabis product sales are properly tracked. Provides information to customers on product choices, consumption methods, compliance, and safety. Remains up to date on all cannabis regulations to ensure compliance within the dispensary.

Low: $12
Average: $13.25
High: $14
Top: $16

Trimmer (per hour): Manicures and prepares all harvested flower product to be sold in medical and recreational cannabis retail locations.

Low: $11.50
Average: $12.25
High: $13
Top: $14.50

Chronicle AM: DOJ Takes Aim at SISes, States Demand Congress Act on Pot Banking, More... (8/28/18)

Even as a California safer injection site bill approaches final passage, the Justice Department takes aim at the harm reduction practice; state financial regulators want Congress to act on marijuana banking, and more.

Vancouver's InSite safer injection site. Coming soon to San Francisco? (Creative Commons)
Marijuana Policy

State Financial Regulators Call on Congress to Deal With Marijuana Banking Problems. The top financial regulators in 13 states sent a letter last week to congressional leaders demanding that they take action to protect banks working with marijuana businesses. The conflicts between state-level legalization and federal prohibition have created confusion in the financial sector and jeopardized public safety, the regulators said. "It is incumbent on Congress to resolve the conflict between state cannabis programs and federal statutes that effectively create unnecessary risk for banks seeking to operate in this space without the looming threat of civil actions, forfeiture of assets, reputational risk, and criminal penalties," the regulators wrote. "While Congress has taken some action, such as the Rohrabacher amendment prohibiting federal funds being used to inhibit state medicinal marijuana programs, this has been an impermanent approach that requires a permanent resolution." Regulators from Alaska, Connecticut, Hawaii, Louisiana, Michigan, Montana, Nevada, New York, Oklahoma, Oregon, Pennsylvania, Utah and Washington State signed the letter.

Medical Marijuana

Oklahoma Proposed Medical Marijuana Regulations Now Open for Public Comment. State officials are now asking the public for its input on the regulation and implementation of medical marijuana in the state. "Lawmakers in the legislative working group are seeking a path forward to implement State Question 788 in a way that conforms to the desires of voters who passed the law," said Speaker Charles McCall (R-Atoka). "To do that effectively, the working group needs as much input as possible from citizens -- supporters, advocates, patients, health-care providers, public safety and law enforcement officers and even those who have concerns. I would encourage all Oklahomans who have an interest in this issue to use this opportunity to share input and have their voices heard." Comments can be sent to [email protected]. Messages will then be shared with members of the working group.

Harm Reduction

Justice Department Attacks Safer Injection Sites. In an op-ed in the New York Times titled "Fight Drug Abuse, Don't Subsidize It," Deputy Attorney General Rod Rosenstein attacked safer injection sites as "very dangerous" and argued they would "only make the opioid crisis worse." He also points out that they are federally illegal and warns that violations are punishable by up to 20 years in federal prison. His op-ed comes as cities such as New York, Seattle, and San Francisco advance plans to open such facilities in a bid to reduce harms.

California Safer Injection Site Bill Passes Senate. The Senate voted Monday to approve Assembly Bill 186, which will allow the city of San Francisco to undertake a three-year, pilot safer injection site program. The bill now goes back to the Assembly for a final concurrence vote before heading to the desk of Gov. Jerry Brown (D).

Trump's Tariffs and Trade War Will Hit the Marijuana Industry, Too

The Trump administration has included vaping devices and their components among the Chinese products subject to punitive tariffs, and that's going to have an impact on the marijuana industry. But it's not just vaping devices: Many other products made in China, from fixtures to packaging materials and more that are used in the pot industry, are also subject to increased tariffs.

The bottom line will be increased costs for legal marijuana companies and increased prices for their customers. To the degree that tariffs subdue growth in legal marijuana markets, they could also end up putting a hit on marijuana tax revenues for states and localities.

Companies selling vaping products are on the front line, said Arnaud Dumas de Rauly, co-CEO of the Blinc Group, which develops and sells technology and products related to vaping and runs an incubator program to research, develop, and brand technologies for marijuana and nicotine vaping. Dumas de Rauly made his comments in July 24 testimony at public hearings on the tariffs held by the Office of the U.S. Trade Representative.

The vast majority of vaping devices, as well as batteries, filters, and cartridges, are manufactured in China, Dumas de Rauly noted, and there are currently few alternatives for producing them. But the profit margin on such devices is only 10 to 15 percent, and that means companies will either have to find alternative sources, eat the hit to their bottom lines, or, more likely, pass the increases on to consumers.

And that will have an impact on the "entire cannabis consumption market -- including medical and recreational marijuana," Dumas de Rauly said.

It's not just consumers who will feel the impact, Dumas de Rauly warned. Higher prices mean decreasing sales and shrinking tax revenues and "25 percent of sales come from cannabis vaping products," he said.

The business press, which now actually treats the marijuana business as a real industry, found plenty of people who echoed Dumas de Rauly's sentiments. In an interview with Forbes, Brooke Davies, executive director of Cannabis Organization of Retail Establishments, a non-profit trade association representing cannabis retailers in Washington State, said that tariffs were already having an impact. Small growers there, already under pressure from dropping marijuana prices, will see profit margins shrink even further because the glass jars they buy from China to package their buds are being hit by tariffs.

"The Trump tariffs will undoubtedly hurt the rural parts of Washington State," Greg James, publisher of Marijuana Venture and Sun Grower magazines, told Forbes. "There could well be a snowball effect that results in the outdoor growing community having an even harder time selling their crop," he said.

It's not just growers or vaping companies taking a hit. "Any items essential to the day-to-day operations of a cannabis business, from construction equipment to cell phones, will likely increase in price," Kevin Hagan of the Princeton Public Affairs Group told Forbes.

Meanwhile, CNBC reported that unlike other sectors targeted for tariffs, such as imported steel, aluminum, solar panels, and washing machines, whose impacts are slower to show up (how often do you buy a washing machine?), the tariffs on vaping products will have an almost immediate impact. That means consumers will quickly see price increases and adjust their behavior accordingly.

But for some people -- medical marijuana patients -- marijuana isn't a luxury, but a necessity.

"For those who need it, they don't have a choice," Mary Lovely, a professor of economics at Syracuse University and nonresident senior fellow at the Peterson Institute for International Economics in Washington, D.C., told CNBC.

Maybe they can comfort themselves by reading Donald Trump's tweets. As he exclaimed in a tweet the same day as the Office of U.S. Trade Representative hearings, "Tariffs are the greatest!... All will be Great!"

This article was produced by Drug Reporter, a project of the Independent Media Institute.

Why Are California's Legal Marijuana Sales So Low?

California is on track to generate $1.9 billion in legal marijuana sales this year, according to new data from a financial analysis firm tracking the market. That's a lot of weed, but it's only half the amount the same firm previously estimated the state would rake in.

The estimates are from New Frontier Data, which crunches cannabis industry numbers, and are based on tax revenues from pot sales, which so far have fallen dramatically short of projections. According to New Frontier, the state collected $33.6 million in pot taxes between January 1 and March 31, which makes it extremely unlikely that tax revenues will meet original expectations of hitting $175 million in the first half of the year.

New Frontier had earlier estimated that the state would see $3.8 billion in marijuana sales this year, and this latest estimate slashes that number by a whopping 50%. The company also slashed its projections for the size of the legal industry by 2025. Instead of the $6.7 billion in sales it earlier estimated, it now says it thinks sales will only hit $4.7 billion, a hefty one-third reduction.

That's bad news not only for state tax revenues but also for an industry that is supposed to be coming in out of the cold. What happened? New Frontier has an idea.

"It is quite clear that the new adult use regulations have made it more difficult than anticipated for the legal market to get established and for consumers to transition to from the illicit market. Given the number of local government bans on cannabis businesses, we are not seeing the same kind of conversion rates that we have seen in other legal markets," said Giadha Aguirre De Carcer, New Frontier Data founder, and CEO.

State and local licensing fees for marijuana businesses can range from $5,000 to $120,000 per year, depending on the type and scope of the business. And complying with regulatory mandates, such as those around zoning, water usage, and lab testing, costs even more.

It's not just onerous -- and expensive -- regulation for those who want state licenses to grow, distribute, and sell marijuana that's the problem. There's also a serious lack of buy-in by a good portion of the state's cities and counties, and that means that a big hunk of the state has no access to local legal marijuana.

"If there's (no governmental support) locally, then there's no option for a state license, and that's why most people are being shut out at this point in time," California Cannabis Industry Association executive director Lindsay Robinson told the Marijuana Business Daily. "The process gave local authorities an option to kind of sit on their hands, and that's the biggest barrier that we're seeing."

According to CCIA spokeswoman Amy Jenkins, only about a third of the state's 540 local governmental entities have approved commercial marijuana activity. Lack of legal access is "forcing consumers to turn to the illicit market," she told the Los Angeles Times this week.

Or return to it. Or stay in it, if they never left. Humboldt State University economics professor Erick Eschker pegged the size of the state's pot market -- legal and illegal -- at about $7.8 billion. Of that, about $2.3 billion came from the medical marijuana market, leaving about $5.5 billion for legal, grey market, and black market pot sales. If the legal market is only accounting for $1.9 billion in sales, that suggests that grey and black market sales are still about twice the size of legal sales. These consumers don't get hit with stiff sales and excise taxes, and if they can still get it from the guy down the street, why pay those high, state-legal prices?

If California wants to eliminate the black market in marijuana, it's got a whole lot of work to do. And no matter what steps the state takes to deal with its internal black market, there's still the export black market to the non-legal states in the rest of the US. Ultimately, the only way to end the black market is to legalize it nationwide, but we're not quite there yet. In the meantime, California's transition to a legal marijuana regime is facing some unhappy realities.

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