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Ukraine Delays Medical Cannabis Legalization Vote

Written by Marguerite Arnold on . Posted in Politics.

Government again pushes can down the road as top officials deliberately delay serious discussion on basic medical cannabis reform.

Cannabis reform in Ukraine is continuing to be painfully slow. The cabinet has again delayed a meaningful vote on reform after promising the same in April – and which, ultimately, is a bunch of legislative text with really no meaning. Certainly not for patients, much less the nascent industry that lies behind this.

There are several debates afoot in Ukraine right now and at high levels over cannabis – namely, whether synthetic drugs are better options – and whether to craft a market based solely on the same. At a deeper level, this discussion is about the right to grow cannabis at all – much use it in a form that is not pharmacized in some fashion – even for medical use.

The fight on the ground right now is one of the most contentious left in the world as a result. And this is over basic medical CBD access for child epileptics. When it comes to any form of THC, officials are referring to older, cannabinoid-containing drugs that are not only expensive but not as effective for a wide range of conditions as say, whole plant medication.

For all the advances, in other words, in certain parts of Europe if not the rest of the world, it is often easy to find reflections of a past world that no longer exists.

Given the spreading understanding of cannabis as medicine, who really, would convict a desperate parent for growing hemp in the basement to help their desperately sick child?

How Can Broader Cannabis Reform Be Promoted Globally?

The situation in Ukraine has been bubbling for some time – with German activists (in particular) if not members of the industry actively seeking some way to help those on the ground. 

Here is the good news. The world has changed, rather dramatically, in the last 14 months, and it is not going to just go back. Digital networks, education, and a sense of building a new kind of medicine if not medicine delivery is all now on the front burners of governments everywhere. Cannabis and cannabis reform features prominently in all these discussions.

In the meantime, those on the ground fight on, facing a familiar feeling if not battle. This time, however, the world is watching.

Be sure to book your tickets now to upcoming International Cannabis Business Conference events!

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Argentina Begins To Move Seriously On Medical Reform

Written by Marguerite Arnold on . Posted in Medical, Politics.

The world’s eighth-largest country moves forward on legislation to create a federal industry.

Here is the interesting thing about sovereign cannabis reform – It is rather unsurprisingly beginning to reflect the national cultures that allow the same. How that begins to impact the international discussion is still a conversation in progress.

Here is one thing to be sure of about the decision of Argentina to begin to formalize the medical cannabis discussion on a federal basis.

This is the country that created the first animated feature film, the one with the highest number of plastic surgeries in the world and the one with the highest number of psychologists per capita. It is also the one that eats gnocchi on the 29th of every month.

In other words, prepare to be surprised. While certain aspects of reform look the same just about everywhere now adays, there are still going to be interesting riffs on a theme.

The Drug War is finally over, including in Latin America – and the Spanish twist to this tango is about to add to the entire debate in a way that has not been seen (yet) – and will reverberate in other countries (starting with Spain itself).

The Argentine Specifics

While the law is still in draft form and being revised by several agencies, here is what is shaping up as important elements of the same: The country will create a formal, provincial medical cannabis laboratory, continue to develop its user registry and set up an advisory council to set standards and guidelines for the therapeutic use of cannabis.

The other aspects of all of this, namely a plan to industrialize the production of cannabis and further how to prioritize “free” distribution to those who are the sickest, but none have been decided yet.

Regardless, the fact that all of this is on the table means the discussion is not only moving seriously, but likely to impact cannabis conversations in several other countries. That includes intercontinental Exim throughout Latin America. It also almost by definition includes Canada and Europe.

Don’t Cry for Me…

The forward development of the reform question is a good sign – especially in a country which has taken the slow boat to this entire conversation over the last few years. The patient registry got started last fall. It is clearly now part of federal plans on a much broader scale. And while it won’t happen tomorrow, reform is clearly not only on the table, but rolling forward slowly.

Be sure to book your seats now for the International Cannabis Business Conference when it comes back to Germany in July.

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State Of The Cannabis Industry: Spring 2021

Written by Marguerite Arnold on . Posted in Business.

Green shoots and leaves are poking up all over the place as the industry figures out how to survive the Pandemic as well as other powerful forces.

There is a sense within the industry these days that the long tail of the Pandemic might last for another couple of years, but this is no excuse for slowing down. Indeed, all over the continent, from business development meetings to organization of another kind, there is a sense of resolve that is evident. Namely, that while Covid might be still kicking ass, the industry is determined to power forward. After all, the veterans have seen bigger challenges go down (starting with any kind of legalization). Covid may be a global health emergency, but it is not the first that has helped shape the industry (starting with AIDS). 

For this reason, from the medical side to those on the CBD side of the discussion, those in the thick of business development are having a busy spring just about everywhere in Europe.

Things to Be Aware Of:

Here are a few big-ticket issues that are certainly making a difference:

  1. The CBD industry is certainly taking off and going mainstream in interesting ways – no matter the still existent hurdles (and they exist, starting with Novel Food).
  2. The medical industry is still in the nascent stages of formation – starting with compliant cultivation and production.
  3. The entire conversation is going to get far more interesting thanks to the recreational trials in Luxembourg and Switzerland. Namely, other European countries are going to be given a model to begin to follow or adapt in the face of tailwinds from a Pandemic where almost every form of economic development is on the table. This includes cannabis – and even in Germany. In the meantime, the medical conversation will continue to go forward, no matter how frustrating it can be from the front end of the trenches.
  4. Paths to market and accessibility will continue to improve, but behind all these developments is certification. Financing will become more and more dependent on the same (including going public). See the activity on the London Stock Exchange. 

The entire industry in other words, is pulling its proverbial socks up and getting ready for the next stage of development just about everywhere. Europe, certainly, is at a turning point.

The firms that will prosper in the next 24 months are those who can swiftly adapt and turn to changing market conditions.

Be sure to book your tickets now for the return of the International Cannabis Business Conference to Europe in July!

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US House Members Approve SAFE Banking Act

Written by Johnny Green on . Posted in Politics.

Once again The SAFE Banking Act received a vote in the United States House of Representatives, and once again it yielded bipartisan support and passed.

Access to the United States’ banking system by the cannabis industry is not as big of a problem as it once was, however, it’s still a major issue that countless state-legal cannabis companies have to deal with.

Below is more information about yesterday’s historic vote via a press release sent to the International Cannabis Business Conference from our friends at NORML:

Members of the House of Representatives voted today in favor of a stand-alone piece of legislation, The SAFE Banking Act, to remedy the ongoing inconsistencies between state and federal marijuana laws.

In a vote of 321-101, House members approved HR 1996, The SAFE Banking Act, which would create a legal safe harbor for financial institutions to engage in business relationships with state-licensed and regulated cannabis companies.

“For the first time since Joe Biden assumed the presidency, a supermajority of the House has voted affirmatively to recognize that the legalization and regulation of marijuana is a superior public policy to prohibition and criminalization,” said NORML Political Director Justin Strekal. “However, the SAFE Banking Act is only a first step at making sure that these state-legal markets operate safely and efficiently. The sad reality is that those who own or patronize the unbanked businesses are themselves criminals in the eyes of the federal government, which can only be addressed by removing marijuana from the list of controlled substances.”

To date, over 40 percent of Americans reside in a jurisdiction where transactions involving the sale of cannabis have been approved under state law, and the majority of Americans live in a state where medical cannabis sales are permitted.

Why NORML Supported Passage of HR 1996: The Safe Banking Act:

Federal law currently defines all marijuana-related endeavors as criminal enterprises, including those commercial activities that are licensed and legally regulated under state laws. Therefore, virtually no state-licensed cannabis businesses can legally obtain a bank account, process credit cards, or provide loans to small businesses and entrepreneurs.

In this environment, the rapidly growing multi-billion dollar cannabis industry must operate largely on a cash-only basis, which makes businesses more susceptible to theft and more difficult to audit. This ongoing federal prohibition also places the safety and welfare of these businesses’ customers at risk, as they must carry significant amounts of cash on their persons in order to make legal purchases at retail facilities. For these reasons, NORML has long advocated that federal lawmakers vote “yes” on The SAFE Banking Act.

A version of this bill first passed the House of Representatives on September 25th, 2019. Subsequently, it was included multiple times in various COVID relief packages that the House approved in the previous Congress. Ultimately, however, the language was not included in any of the enacted COVID stimulus bills.

What’s Next?

Commenting on the next steps, NORML Political Director Justin Strekal said: “Today’s vote is another important mile marker on the road to repealing federal prohibition, yet much more action must still be taken by lawmakers in both chambers. In the Senate, we are still waiting on a comprehensive proposal promised by Senate Majority Leader Schumer and Senators Cory Booker and Ron Wyden and in the House, we anticipate additional efforts to move forward and pass comprehensive reform legislation like The MORE Act — which was approved in the previous Congress — in order to ultimately comport federal law with the new political and cultural realities surrounding marijuana.”

For reference:

In the previous session of Congress, the vote on SAFE Banking was 321 to 103 in favor of HR 1595. Two-hundred and twenty-nine Democrats and 91 Republicans cast ‘yes’ votes in favor of the measure.

This year, for HR 1996, amongst the Democrats, the vote was 215-0, and among the Republicans, the vote 106-101.

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Switzerland Begins To Define Its “Recreational Trial” For 2022

Written by Marguerite Arnold on . Posted in Politics.

As of May 15, 2022, Switzerland will begin a recreational cannabis trial

It is official. The Swiss have chosen a date and the trial parameters. Switzerland is going recreational as of next year.

Here are the parameters. 5,000 Swiss people will be able to legally smoke cannabis. They will be part of a trial in which will measure effects on users’ health and consumption habits. Participants, as a result, will have to accept a follow-up interview and to limit their consumption.

Those who might worry that the consumption level is a bit low? Do not. Trial participants will be able to buy cannabis at up to 20% THC. Each month, participants will be able to consume up to 10 grams of THC. To put this in perspective, patients in Germany right now are being prescribed half a liquid gram a month (to the whopping tune of about $400).

This amount, in other words, is enough to get the average user more than toasty on a regular basis. It is also enough to make sure that patients who fall through the cracks will be able to have at least some access to legal cannabis. The fact that the trial will mandate sales at pharmacies makes this even more convenient.

Why This Is Important

Luxembourg and Switzerland will, as of next year, begin to set the pace on recreational reform discussions, and not just in their own countries of course, but across Europe. From the get-go, both extracts and edibles will be in the discussion.

Beyond this, the trial is likely to have an important impact on the question of dosing and how much patients should be getting across Europe.

From the recreational side, look for important discussions about driving and working. Not to mention how long THC stays “active” in bodies long after the immediate “high” is over (when it happens).

There is another reason, however, why this trial is important. It will be the first organized attempt by the government to put cannabis on sale and study those who buy it. It is also a deliberate attempt to create a legitimate market.

It will be watched, intently, for this reason, across the region.

Be sure to book your tickets for Berlin! The International Cannabis Business Conference is returning as of July, 2021!

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South Africa Set To Legalize Recreational Use By 2023

Written by Marguerite Arnold on . Posted in Politics.

The country is looking to the industry to help revitalize an economy wrecked by Covid.

South Africa is lining up to join the list of recreational cannabis companies by 2023. The country is now considering a bill to legalize the possession, cultivation, and use of cannabis for recreational use with this date in mind.

The reason, besides the medical market and thriving underground black market? The country’s economy is suffering from the effects of the Pandemic.

This one factor is likely to be the driver in stepping up the plans in many countries – and far beyond Africa, in finally engaging the cannabis reform discussion at the recreational end of the discussion.

In South Africa’s case, this is also likely to have an impact not only on the domestic economy as well as exports, particularly to Europe, but other countries in Africa.

The Shifting International Recreational Picture

By 2023, at least two countries in Europe will be in the middle of a recreational trial. Holland’s recreational model will presumably have had time to bake, and France will be in the thick of its own medical experiment. Germany will also presumably have moved forward on its own cultivation plans.

That creates a lot of markets looking for certified product. Further, it begins to create a multi-use market where it is not only medical in the picture. And that all must come from someplace.

South African firms are beginning to export to Europe. The German market, however, by 2023, will not be the only one on the table. And that is potentially where enterprising South African firms might make a difference – especially given the slow pace of development of cultivation across the EU and that it has been slowed by Covid.

And then of course there is the appeal of canna tourism. With a recreational market in full swing, the South African economy will potentially become a place where the entire discussion will take a new turn.

Regardless, no matter what direction the industry begins to morph into, the development is a positive one and promises many sunny returns, no matter how they begin to trickle in.

Be sure to attend the International Cannabis Business Conference this year in Berlin when it returns in July.

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Why Is It Taking So Long To Legalize Cannabis At The Federal Level In The US?

Written by Johnny Green on . Posted in Politics.

Cannabis prohibition is one of the worst public policies in human history. It goes well beyond the negative impact that is experienced by the person subjected to an initial prohibition-based penalty. The negative impact lingers well after the person has paid their fine and/or served their jail sentence.

They have to carry the ‘cannabis scarlet letter’ for years into the future in many cases, and for some people, the designation of being a ‘cannabis criminal’ is something that they have to deal with forever. The designation ruins the person’s life by preventing them from getting jobs, housing, and can even prevent them from obtaining volunteer positions in the future. 

It’s like an anchor that keeps them from moving on with their lives, and it’s happened to countless people for many decades, which is beyond unfortunate. Yes, people can get the cannabis offense expunged from their record, however, it only happens after a judge approves the request (which they do not have to do) and the individual has paid a substantial sum of money. 

For many folks convicted of a cannabis offense obtaining an expungement is simply not an option. The financial hurdle is too great, and they often decide to just endure the negative fallout from having a cannabis conviction on their record because there’s no other viable option to do otherwise. It’s one of many reasons why cannabis prohibition needs to end immediately across the United States to ensure that no further harm is needlessly inflicted on cannabis consumers, many of which being patients who rely on medical cannabis.

Reform Continues To Spread At The State Level

The United States is in the midst of a cannabis policy reform revolution at the local level, with 18 states and Washington D.C. having passed adult-use cannabis legalization measures either at the ballot box or via legislative action since 2012. Regulation is clearly better than prohibition, with state-level cannabis legalization succeeding by virtually every measure. 

Despite all of those victories, the harms of cannabis prohibition still linger in too many states as well as at the federal level in the U.S. Federal cannabis prohibition is becoming less tenable with every passing year. Just this year alone three states have passed legalization measures – Virginia, New York, and New Mexico. Obviously, the year is only roughly 1/3rd of the way over, and it’s quite possible that more states could legalize cannabis for adult use in the coming months. Unfortunately, which side of a state border you live on still determines your fate if/when you are caught with cannabis, and that makes no sense.

As it stands right now, well over 40% of people in the United States live in a state which has legalized cannabis for adult use. All except two states (Nebraska and Idaho) have passed some type of medical cannabis measure, ranging from CBD-only legislation to comprehensive medical cannabis reform. When it comes to cannabis policy in the United States, geography means everything because of federal prohibition. When will that change and every adult in the United States be allowed to possess a personal amount of cannabis?

Executive Action Or Congress?

When it comes to ending federal cannabis prohibition in the United States, there are two avenues that can be pursued. The first is via executive action, with President Joe Biden hypothetically taking it upon himself to initiate a bureaucratic process to get cannabis removed from the Controlled Substances list. The Biden Administration has made it clear that this is not a priority, so no one should hold their breath waiting for executive action.

The second avenue for achieving an end to federal cannabis prohibition is via Congress. If there was enough political will in Congress to pass a legalization bill, that’s all it would take to end federal cannabis legalization. It’s a far-more straight path to legalization compared to executive action. Unfortunately, it’s yet to happen for some reason, even though support for national cannabis legalization is greater now than at any other time in United States history.

With that being said, recent comments made by Senate Majority Leader Chuck Schumer are encouraging. “I want to make my arguments to him, as many other advocates will,” Schumer stated in a recent interview with POLITICO regarding President Biden. “But at some point we’re going to move forward, period.”

Senator Schumer seems to recognize the obvious fact that cannabis policy reform is an extremely popular political issue, which is something that appears to be lost on the Biden administration for reasons unknown. In addition to being the right thing to do, pushing for cannabis legalization is also politically viable, and one would think that federal politicians would push hard for legalization, if for any reason to help boost their chances of staying in office. 

As of right now, federal legalization appears closer than it has since prohibition was first enacted in 1937, yet there’s no clear date for when it will finally happen. A significant amount of positive comments are being thrown around by federal politicians, however, actions speak louder than words. While we continue to wait for Congress to get their act together make sure to contact your federal officials and urge them to support sensible cannabis laws. Do your part!

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German Federal Hemp Tea Case Decided

Written by Marguerite Arnold on . Posted in Business.

A hemp tea seller from Braunschweig was charged with federal narcotics violation charges – but just released after a German federal court decided that they were not trying to “intoxify” anyone. The question is, what does this case really mean?

Here is the headline. The German Federal Court of Justice (BGH) has just annulled drug trafficking charges against hemp tea purveyors in Braunschweig. The district court sentenced the defendants to several months in prison but then placed them on probation. The federal court, however, dismissed the case not on the narcotics charge (in other words it did not disagree with the initial charge), but dismissed instead on the intent of the defendants to cause intoxication by distributing parts of the plants.

And here is the new confusion. According to some in the industry, this is a huge step forward – and on several fronts. Namely, if you are selling hemp flower and parts in Germany, with no intent to intoxify, even if you come in slightly “hot” on the THC side of the equation, are you set free from the restrictions of the German Narcotics Act? 

Technically, legally, no. That is where the many problems lie, no matter the other intriguing legal interpretations now floating in the blogosphere. This also has implications for all food products in the market.

According to the court decision, generally, per the opinion of some industry insiders, the more important case here is still the European Commission’s decision last fall. Namely that CBD is not a narcotic. Indeed, many in the German industry, including the company directly involved in this case, are calling for the removal of hemp from the German Narcotics Act, generally.

Until that happens, however, while the general market is absolutely going to be affected, it is not all clear sailing for the hemp and CBD industry.

What Are the Current Regulations to Watch?

When it comes to hemp, there are several big issues still in the room in Germany alone, let alone the rest of Europe. That is why harmonization of the standards across the region is so important. There has yet to be a “Farm Bill” in Europe for example, although again, the EC’s decision of last year has been a big step forward.

Beyond the discussion of “narcotic” or not, much less intent to intoxify, there are still processing and labeling discussions that fall under Novel Food, and which have also certainly not been finally addressed.

The most definitive silver lining in other words?  Hemp tea sellers are not going to get charged with drug trafficking charges again any time soon, if ever again, aus Deutschland. The rest is still evolving. Watch this space.

Sign up now for the return of the International Cannabis Business Conference to Berlin this summer!

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U.S. Cannabis Tax Revenue Tops $3 Billion In 2020

Written by Johnny Green on . Posted in Business.

Cannabis legalization in the United States at the state level has been a smashing success by virtually every measure. With New York, Virginia, and New Mexico having passed legalization measures via legislative action in 2021, the number of legal states is now up to 18. Washington D.C. has also legalized.

Obviously, not every state has fully implemented its legalization reform measure that was passed by voters or lawmakers. However, several have, with Colorado being the first state to allow legal adult-use sales starting in 2014.

2020 was a banner year for cannabis tax revenues in the United States, with total revenue topping $3 billion. Below is more information about it from our friends at NORML via a recent news release:

Tax revenue from state-legal cannabis sales rose significantly in 2020, according to an analysis by the Institute on Taxation and Economic Policy.

Authors reported, “Powered by an expanding legal market and a pandemic-driven boost in cannabis use, excise and sales taxes on cannabis jumped by more than $1 billion in 2020, or 58 percent, compared to a year earlier. In total, these taxes raised more than $3 billion last year, including $1 billion in California alone.”

Transactions specific to the commercial market in California were responsible for over one-third of the nation’s total cannabis tax growth in 2020. Year-over-year, cannabis tax revenue rose some 40 percent in the state.

Significant growth in revenue also occurred in 2020 in states with more established markets, such as Colorado and Washington.

Overall, the report acknowledged that cannabis-related tax revenues still comprise only a small percentage of states’ overall budgets. However, authors emphasized that these tax revenues are among “states’ fastest growing revenue sources.”

Full text of the ITEP analysis is online. Additional information is available in the NORML fact sheet, “Marijuana Regulation: Impact on Health, Safety, Economy.”