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Author: Johnny Green

Canada Defends Cannabis Legalization To UN Commission

Canada was the second country to legalize cannabis for adult use, and the first G-7 nation to do so. Uruguay was the first country to legalize cannabis for adult use, however, many lawmakers and regulators across the globe keep a closer eye on what is going on in Canada because of how large the country’s economy is and the type of regulated system Canada implemented.

Whereas Uruguay’s legalization model limits legal purchases of adult-use cannabis in some ways, Canada has a robust industry in which adults can purchase adult-use cannabis all over the country (albeit sometimes only via online sales), and that includes legal purchases by tourists.

Many nations are exploring the idea of legalizing cannabis within their borders, however, a lot of countries are still hesitant to consider the public policy change. Earlier this week Michelle Boudreau, director general for Health Canada’s controlled substances department, defended Canada’s implementation of legalized adult-use cannabis to the UN Commission on Narcotic Drugs, as reported by Marijuana Moment:

In her remarks to the UN commission, Boudreau stopped short of encouraging other countries to legalize, which may have further rankled UN officials, but she pushed back against international concerns that legalization would endanger public health and young people.

“The illegal market has already lost 30% of its market share, and we have seen no corresponding increase in the overall size of the market,” Boudreau said, according to a written copy of her remarks. “This represents nearly $2 billion in sales that did not go to criminal organizations.”

She added that “initial data suggests that rates of cannabis use have not changed among youth and young adults,” nor has the country seen an increase in movement of cannabis across international borders.

For many years cannabis legalization was a ‘what if’ scenario, with cannabis opponents acting like the sky would fall if any country took the leap. When Uruguay legalized, cannabis opponents then shifted their arguments to try to paint Uruguay as a unique scenario, and that any success Uruguay’s legalization model experienced would not be replicated in developed countries.

Legalization in Canada is not perfect, however, it’s clearly a better public policy approach than prohibition, and the sky is still very much intact over Canada. As time goes on and improvements are made to Canada’s legalization model, things should improve and in the process, Canada will provide insight and lessons for other countries to learn from.

Banking Associations Demand Senate Vote On Cannabis Banking Reform

Current laws and regulations regarding cannabis industry banking in the United States are holding the cannabis industry back. Some companies are able to get banking accounts, however, many more are turned down when applying for accounts at financial institutions. Even those that receive approval still run the risk of having their accounts closed at a moment’s notice.

It’s a situation that can be very frustrating for cannabis companies to deal with. The problem is not isolated to the United States either. Leaders in Jamaica previously cited cannabis banking laws in the United States as having created problems for that nation’s cannabis industry.

The SAFE Banking Act, which would fix many problems currently contributing to the cannabis industry’s banking woes, was passed by the United States House of Representatives, yet stalled once it landed in the Senate. Recently banking associations from 49 states and Puerto Rico sent the following letter to the Senate Banking, Housing and Urban Affairs Committee urging the committee to take action:

Dear Chairman Crapo and Ranking Member Brown:

On behalf of the undersigned state bankers associations, representing banks of all sizes, we write to express our support for the SAFE Banking Act (S. 1200) and to encourage the Senate Banking, Housing and Urban Affairs Committee to markup and advance the legislation as soon as possible.

Although we do not take a position on the legalization of marijuana, our members are committed to serving the financial needs of their communities – including those that have voted to legalize cannabis. Currently, thirty-three states covering 68 percent of the nation’s population have legalized cannabis for medical or adult-use, and the issue could appear on as many as 10 state ballots this November. Despite this ever-growing voter preference, current federal law continues to prevent banks from safely banking these businesses without fear of federal sanctions. As a result, this segment of our local economies is forced to operate on an all-cash basis, which creates serious public safety, revenue administration, and legal compliance concerns in the communities we serve.

The impact on our local economies could also prove significant, as revenue paid to unrelated industries that provide products and services to state-authorized cannabis businesses such as law firms, accountants and contractors is technically money derived from illegal activities, and thus could be considered money laundering. This raises the significant question of whether financial institutions can bank these ancillary businesses, as such actions could likewise be considered violations of the money laundering laws. Without a change to federal law, that entire portion of economic activity in legal cannabis states may be marginalized from the banking system.

The SAFE Banking Act is a banking-specific solution that would address the reality of the current marketplace and allow banks to serve cannabis-related businesses in states where the activity is legal. It respects state sovereignty and does not facilitate cannabis sales in states that have chosen not to legalize the drug. Although there are admittedly broader public policy questions at play, we ask that you evaluate and address this pressing banking problem, which is within your power to resolve. Doing so will reap immediate public safety, tax and regulatory benefits while Congress continues to grapple with broader decisions about national drug policy.

Sincerely,

Alabama Bankers Association
Alaska Bankers Association
Arizona Bankers Association
Arkansas Bankers Association
California Bankers Association
Colorado Bankers Association
Connecticut Bankers Association
Delaware Bankers Association
Florida Bankers Association
Georgia Bankers Association
Hawaii Bankers Association
Idaho Bankers Association
Illinois Bankers Association
Indiana Bankers Association
Iowa Bankers Association
Kansas Bankers Association
Louisiana Bankers Association
Maine Bankers Association
Maryland Bankers Association
Massachusetts Bankers Association
Michigan Bankers Association
Minnesota Bankers Association
Mississippi Bankers Association
Missouri Bankers Association
Montana Bankers Association
Nebraska Bankers Association
Nevada Bankers Association
New Hampshire Bankers Association
New Jersey Bankers Association
New Mexico Bankers Association
New York Bankers Association
North Carolina Bankers Association
North Dakota Bankers Association
Ohio Bankers League
Oklahoma Bankers Association
Oregon Bankers Association
Pennsylvania Bankers Association
Puerto Rico Bankers Association
Rhode Island Bankers Association
South Carolina Bankers Association
South Dakota Bankers Association
Tennessee Bankers Association
Texas Bankers Association
Utah Bankers Association
Vermont Bankers Association
Virginia Bankers Association
Washington Bankers Association
West Virginia Bankers Association
Wisconsin Bankers Association
Wyoming Bankers Association

cc: Members of the Senate Banking, Housing and Urban Affairs Committee Members of the United States Senate

Paraguay To Issue First Medical Cannabis Production Licenses

Paraguay has become the latest South American country to announce that it will issue licenses for companies to cultivate medical cannabis. Medical cannabis is still prohibited in some countries on the continent, however, cannabis reform is sweeping across South America and tremendous business opportunities are being created.

Cannabis grows very well in many parts of South America, including in Paraguay. Medical cannabis could revolutionize the agriculture industry in the country. Initially, Paraguay intends to issue at least 5 licenses. Per ADN:

Arnaldo Guizzio, minister of the National Anti-Drug Secretariat (SENAD), said through his Twitter that the program will be coordinated with several government agencies.

The State will grant five licenses to those companies that meet all the requirements to carry out controlled planting and industrialization of medical cannabis.

The official said that in November there will be a documentary approval and once the licenses are awarded, they will have to verify if they comply with the security approaches to obtain the approval.

Paraguay is home to roughly 7 million people, with a per capita income of $9,826. Agriculture accounts for 20% of GDP and about 35% of employment in Paraguay, with the main crops being manioc (cassava), corn, cotton, tobacco, and sugarcane.

Cannabis could easily become one of the top cash crops in Paraguay eventually, however, that will take quite a bit of time if it happens. For now, the announcement of 5 licenses is a step in the right direction.

Cannabis Legalization Bill To Be Debated In Mexico This Week

Mexico has a long history with cannabis, and Mexico has served as a global source for illegal cannabis for many years. In late 2018 Mexico’s Supreme Court issued a landmark ruling in which the Court declared cannabis prohibition to be unconstitutional.

At the time of the decision, Mexico’s Supreme Court issued a deadline to lawmakers in Mexico mandating that they pass an adult-use cannabis legalization measure. The one-year deadline has come and gone, with an extension being granted. A legalization measure was circulated over the weekend, and this week the bill is expected to be debated by lawmakers, as reported by Marijuana Moment:

The 228-page document lists a series of proposed regulations for a legal cannabis model.

It would allow adults 18 and older to possess and cultivate marijuana for personal use. Individuals could grow up to 20 registered plants as long as the total yield doesn’t exceed 480 grams per year. Medical patients could apply to cultivate more than 20 plants, however.

Personal possession would be capped at 28 grams, but possession of up to 200 grams would be decriminalized.

Activists in Mexico have expressed concern about the lack of changes in the current legalization measure compared to previous versions that failed to be passed. It’s unclear at this time what the odds are of the current bill passing.

Even when lawmakers express optimism of it passing, those types of statements should be met with tempered expectations because a lot of political optimism has been offered up since late 2018, yet the passage of a legalization measure has remained elusive.

Currently, cannabis is officially legal for adult use in Canada and Uruguay.

Alex Rogers – The Cannabis Edutainer

International Cannabis Business Conference is one of the biggest events worldwide regarding professional networking in cannabis. Attracting visitors from over 70 countries worldwide, the International Cannabis Business Conference is expecting over 2.500 visitors for the International Cannabis Business Conference Berlin event this year. krautinvest.de got to talk with Alex Rogers, founder of International Cannabis Business Conference, about his experience in the cannabis industry, his venture and what visitors can expect for this year’s Berlin show at the InterContinental Hotel Berlin.

krautinvest.de: Alex, this is the fourth International Cannabis Business Conference taking place in Berlin. You set-up events in five locations worldwide since you started. Can you tell us how you feel about this development? What did you expect when you started in comparison to where you stand now having grown one of the biggest cannabis industry events worldwide?

Alex Rogers: I really was not sure what to expect. About 6 years ago, I had an idea that cannabis reform would spread across the globe, therefore opening up the industry in multiple worldwide markets. It does not seem like an astonishing idea now, but 6 years ago, it was quite novel. Many of my friends and colleagues were skeptical, as cannabis was still a very underground industry in Europe. I booked the venue for our first International Cannabis Business Conference Berlin in May of 2016, to be held in April 2017. When I booked the venue, Germany had about 1000 medical cannabis patients and it did not look like that number was going to drastically change anytime soon. The famous court decision came soon after that, which set a court precedent for patients to be able to grow their own cannabis at home. This, in turn, prompted the German Health Ministry to finally put some more sensible regulations and rules together regarding cannabis patients’ access to medicine. The rest is history, as the new regulations came into play just a few months before our first Berlin event. I believe this set of circumstances really helped catapult us right out of the gate. Since then, we have seen Germany and most of Europe begin to liberalize their cannabis laws at a rapid rate, comparatively speaking.

krautinvest.de: What topic excites you most about the industry at the moment? How do you think Europe is different from other international markets? Where do you think global cannabis markets are heading?

Alex Rogers: I love seeing the industry boom in general, whether it’s the advances in tech, biotech, finance or lifestyle products. With these advancements, invariably, public and administrative policy follows. Implementation is 90% of the law. What excites me the most is the notion of freedom and liberty. From a US Constitutional perspective, It could clearly be argued that a state has the right to create a law against a drug, however, there is no constitutional allowance for federal drug laws, as it pertains to personal consumption. In other words, there is no true legal framework that justifies national legislators to be in the business of creating federal laws that control what we do in the privacy of our own homes. Cannabis is the perfect example and analog and the more the cannabis industry grows, the more this aforementioned postulation comes into question.

krautinvest.de: The International Cannabis Business Conference has built up a solid and massive industry-related online news channel. How important do you believe is a good mix of online and offline engagement with the people? Why did you put emphasis on that and how do you think does the content help shape opinion?

Alex Rogers: This is a good question. We decided at our inception that we wanted to create germane and relevant content and editorial that described what was happening in and around the international cannabis industry ecosystem. Again, when we started out, many of our articles were not so popular. Now, we have become one of the top sources for intl cannabis news. It has been astonishing. We get to help shape narratives and opinions. It is an immensely beneficial and powerful tool for us. Especially the mixture of online and offline brings a lot of people to our site and to the local events, which makes the topic even more tangible. It is a great tool to keep people informed and engaged so that they get the same quality of content between events and so they can read up and keep up-to-date on the developments that we are discussing offline and in real life on stage.

krautinvest.de: An important element of your event is entertainment. Why do you think this is such an important factor in the creation of the cannabis conversation? Which VIPs could you win for this year’s International Cannabis Business Conference on the 1st to 3rd of April?

Alex Rogers: In my previous life, before becoming a serial entrepreneur in cannabis, I was in the music business, as well as a performer. It is important for me to attach some deeper meaning to what we all do in our regular day to day lives. Music and art have always provided humanity with this great catharsis. After a long day at the conference, networking and learning, which, however productive, can be quite a cerebral and tedious affair. It is nice to unwind in a different atmosphere that can also be conducive to a more intimate type of networking.

I am excited to have Jim Belushi coming to Berlin. I have a few more dignitaries that will be announced in the weeks to come. I also have a very big name I am about to announce for the after-party performance.

krautinvest.de: The International Cannabis Business Conference always manages a well-balanced and well-curated programme. What are the main topics this year? What topics get you the most excited from a personal perspective?

Alex Rogers: All of International Cannabis Business Conference’s events are very individual and matched to the location. Germany, in comparison to other of our events, has a stronger focus on medical cannabis since this is the main focus of the industry in Europe at the moment. On the first day of this year’s International Cannabis Business Conference Berlin the programme will focus more on the medical cannabis and market development, whereas the second day’s programme will focus more on hemp, global drug policy and market innovation. I think the thing that gets me the most excited is the dynamic and the traction the topic has gained in the meanwhile. At International Cannabis Business Conference, we bring together the makers and shakers of this industry, so I am almost more excited about the impact of the discussion that takes place at and after the event. On stage, we are not only discussing single markets anymore, but we are heading in the direction of a global cannabis industry. This is going to be an exciting year for cannabis worldwide.

krautinvest.de: We believe so, too. Thank you for the interview.

About Alex Rogers:

Visionary entrepreneur and political activist, Alex Rogers, is the founder and CEO of three thriving ancillary cannabis businesses. Cutting his teeth as an activist in the early nineties under the tutelage of Jack Herer, Alex has a deep proprietary knowledge of the industry. He has played a key role in professionalizing and mainstreaming the cannabis industry, building one of Oregon’s most popular medical marijuana clinics in a matter of a few years, and the first-ever to advertise medical marijuana on network TV in America. He also founded and runs the Oregon Marijuana Business Conference (OMBC), the state’s biggest and longest-running cannabis business conference. Living in five different countries throughout his life, and able to communicate in all respective languages, Alex considers himself an international citizen, thusly spawning his latest creation, the International Cannabis Business Conference. A Magna Cum Laude graduate in Political Science, he has used his knowledge of law and politics to push cannabis policy forward all over the world.

***

This interview was first published at: https://krautinvest.de/alex-rogers-der-cannabis-edutainer – syndicated with special permission

Tax On Cannabis Is Repealed In Switzerland

The cannabis industry is booming in Switzerland, where low-THC cannabis products have increased in popularity and availability in recent years. Since 2011, low-THC cannabis products have been legal in Switzerland for adults. ‘Low-THC’ is defined in Switzerland as having less than 1% THC. High-THC products are still prohibited in Switzerland.

Switzerland is at the forefront of a floral hemp industry that is growing in size at an exponential rate. Often billed as a ‘tobacco alternative,’ low-THC products have generated quite a bit of revenue for the government of Switzerland, however, a recent court ruling will send at least some of that back to certain companies, as well as potentially prevent future types of taxation. Per Swiss Info:

The Swiss Federal Court has ruled that cannabis – the legal, low-THC version – should not be subject to the tobacco tax.

Responding to the complaints of three cannabis production companies, the court found that there was no legal basis for a 25% tobacco tax on the sales price of cannabis. The tax will be dropped immediately.

In Switzerland, cannabis with a tetrahydrocannabinol (THC) content of less than 1% is legal. It is sold as oil, tea or directly in its flower form. Cannabis blossoms are not explicitly mentioned in tobacco tax legislation, the Federal Court stated in its ruling, which was announced on Tuesday.

A lack of tax will help the industry thrive even more than it already was in Switzerland. Without the tax, products can be sold for cheaper to consumers, and that will presumably make products more enticing for customers.

The downside of the court decision is that it will obviously lower government revenues generated by the cannabis industry. It will be interesting to see if legislation is passed to impose a cannabis-specific tax to replace the incorrectly applied tobacco tax.

Cannabis is not the same as tobacco. Studies have found cannabis, especially low-THC forms of cannabis, to be much safer than tobacco. Also, as noted in the court’s decision, not all forms of low-THC cannabis are meant to be smoked. Many products in Switzerland are topical rubs, among other smokeless options.

Why Is Cannabis Content Being Blocked In Singapore?

Recently Netflix revealed the instances in which it removed or blocked content due to government demand. In the 23 years that Netflix has offered its services, the company has only removed or blocked content as part of a government demand in 9 instances. One of those instances involved cannabis content.

Singapore reportedly demanded that Netflix block cannabis content to users located in the country back in 2018. Specifically, the country demanded that Netflix block ‘a California-based cannabis cooking sitcom,’ citing cannabis prohibition in Singapore as justification for the demand. According to the report, Singapore has made three demands in total, involving 5 pieces of content. New Zealand, Vietnam, Germany, and Saudi Arabia all made one demand each.

Entertainment is a common source for people’s first exposure to cannabis. In decades past that was a very bad thing because of the way that cannabis was portrayed in the media at the time. At the very birth of cannabis prohibition in the United States, the media was manipulated to help form negative opinions about cannabis among the population. Consumers were literally shown taking one hit from a joint, then jumping out of windows or harming those around them. Because the media can reach such a wide audience, propaganda born in the United States was spread far and wide and greatly influenced perceptions about cannabis around the world.

In more recent decades cannabis consumption was portrayed in the media as being the cause of laziness and contributing to lower IQ scores. It was a less extreme portrayal of cannabis consumers, yet it was still very inaccurate and unfair. Cannabis consumers were portrayed as deadbeats that were incapable of contributing to society, which is obviously ridiculous. Fortunately, that has started to change in recent years.

Platforms like Netflix have allowed producers to create content that is much more realistic and accurately reflects what cannabis consumers look and act like, with cannabis consumers coming from all walks of life and socioeconomic backgrounds. People at all levels of society consume cannabis, and it’s important that people know the truth about cannabis (the good and the bad).

Cannabis consumers in many areas don’t know what the best practices are when it comes to consuming cannabis responsibly. What is a good starting dosage? What is the difference between smoking cannabis versus eating food infused with cannabis? Those are great questions for a cannabis cooking show to tackle in a comprehensive way, which is why Singapore’s approach to blocking cannabis content is ridiculous (among many other reasons).

Prohibiting cannabis while working to prevent objective cannabis media coverage and blocking educational cannabis content falsely assumes that such a strategy will result in people completely refraining from consuming cannabis and/or seeking out cannabis information. Obviously, history has clearly demonstrated that people are going to obtain cannabis regardless of if it’s legal or not, and some will consume cannabis in an irresponsible way because they simply don’t know any better.

Government officials in Singapore likely know that if they can keep a stranglehold on cannabis content, they can control the narrative, a narrative that is largely built on fear and intimidation. Singapore is home to some of the harshest cannabis laws on the planet, with come offenses carrying the death penalty. Even personal possession can result in a decade in prison, and can even result in the offender being caned, so it’s not entirely surprising that Netflix cannabis content is blocked in Singapore, although it is still a very sad situation.

Ontario Officials Accepting Public Comments On Cannabis Consumption Venue Licensing

The Ministry of the Attorney General in Ontario, Canada recently announced that it is seeking public input regarding licensing social cannabis use venues and events. Social cannabis use venues such as cannabis lounges and cafes are currently prohibited in Ontario. Consumption at public events is also currently prohibited.

“Ontario continues to take a responsible approach to cannabis retail sales across Ontario, allowing private sector businesses to build a safe and convenient retail system to combat the illegal market while keeping our kids and communities safe,” said Attorney General Doug Downey in a press release. “We are asking Ontarians to share their feedback as we explore certain expanded cannabis-related business opportunities as part of our responsible approach to protecting families and communities. What we hear from the public and expert groups will help to inform possible next steps.”

Social cannabis use reform provides a number of benefits. The most obvious one is that it will create new types of businesses that cater specifically to providing spaces for people to consume cannabis. Just as people frequent clubs, bars, taverns, and pubs for the purpose of consuming alcohol in a social environment, so too will cannabis consumers be able to do the same in Ontario sooner rather than later.

Another benefit of social cannabis use reform is that it will help mitigate public consumption, which can be considered to be a nuisance by some members of the public, similar to many people’s desires to avoid tobacco smoke. Public consumption would likely not be eliminated entirely in Ontario if/when social use reform is implemented, but it will help address the issue to some extent.

An interesting benefit being touted by regulators in Ontario is that legalizing social cannabis venues and event licensing will help further combat the unregulated cannabis industry in Ontario. Consumers may be able to make legal purchases, however, not all of them have a place to safely consume the cannabis that they purchase. It’s an issue that affects tourists, individuals in low-income housing, as well as patients in care facilities.

Presumably, some portion of people in those situations prefer to purchase cannabis from unregulated sources simply because the individual that they are making the purchase from will let them consume cannabis where they are located. Social consumption reform would provide regulated alternatives, which is a good policy move for Ontario as long as it is implemented properly.

Ontario is one of many jurisdictions in North America that is seeking to allow regulated social cannabis consumption at establishments and at events. Valid concerns exist regarding social cannabis use reform, not the least of which is mitigating impaired driving and keeping cannabis out of the hands of children. However, those concerns can be properly addressed with sensible policies and regulations.

If venues can serve alcohol in a responsible manner, the same can be achieved with serving cannabis and/or allowing people to bring their own cannabis for consumption. The same is true for concerts, plays, and other events. Some jurisdictions, such as Denver, Colorado and the Bay Area of California, have already successfully implemented social use reforms, which is something that regulators in Ontario can no doubt learn from.

New Poll Results Have New Zealand Cannabis Legalization Measure Losing On Election Day

Voters in New Zealand will get the chance to vote on a cannabis legalization measure on Election Day. New Zealand’s election will be held on September 19, 2020. So far only two countries have legalized cannabis for adult use – Canada and Uruguay. Court decisions in Mexico and Italy have established case law for legalization, however, measures have yet to be implemented on the public policy side of the equation.

It is the hope of cannabis advocates everywhere that New Zealand’s legalization measure passes. Unfortunately for the cannabis reform movement in New Zealand and elsewhere, a recent poll shows that support for the measure is currently well under the required majority threshold for it to win. Per 1 News:

New Zealanders are more likely to vote against legalisation of cannabis in the upcoming referendum, according to the latest 1 NEWS Colmar Brunton Poll.

Those polled were asked, ‘At this stage, do you think you will vote for cannabis to be legalised, or for cannabis to remain illegal?’

Remain illegal – 51%
Legalise cannabis – 39%
Will not vote – 1%
Don’t know / refused – 9%

The poll found that the most opposition was found among people that self-reported as being ‘Asian New Zealanders, National Party supports and people aged 55 and over.’ Younger people were more likely to support the legalization measure. Below are some of the provisions of the referendum that New Zealand voters will see on Election Day:

  • A minimum purchase and used age of 20;
  • Ban on all marketing and advertising of cannabis products;
  • Requires harm minimization messaging in the retailing of cannabis;
  • Prohibits consumption in public places and limits use to private homes and specifically license premises;
  • Limits sale of cannabis to specifically licensed physical stores (not online or remote sales);
  • Strict controls and regulations on the potency of cannabis;
  • Establishes a state licensing regime that all stages of the growing and supply chain are licensed and controlled by the Government, and will limit the amount of cannabis that is allowed to be grown.

There’s a lot of time between now and Election Day, so hopefully the numbers will trend upwards as the vote approaches. It’s also quite possible that the poll results are misleading due to a phenomenon in which people don’t want to admit that they support legalization out of fear, yet ultimately plan on voting for legalization when given the chance to do so in private.