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U.S. Congress Passes Historic Cannabis Bill

In many ways the United States has historically served as ground zero for the war on cannabis. The U.S. is not the only country to prohibit cannabis at the national level, however, decades ago it largely led the charge in support of cannabis prohibition and wielded its international influence to make sure that prohibition became the law of the planet.

In recent decades the frost of cannabis prohibition in the U.S. has steadily started to thaw, particularly after Colorado and Washington State became the first in the nation to pass adult-use legalization measures in 2012 and subsequently launched adult-use sales in 2014.

Zoom forward to today and there are now 21 states that have passed adult-use legalization measures, in addition to Washington D.C. Gallup recently released its annual cannabis legalization poll results, and support remained at a record high of 68%. As I often point out, you will be hard pressed to find any other political issue in the U.S. right now that has that level of support.

Yet, despite that backdrop and growing momentum, cannabis reform within the United States Congress has lagged considerably. Various bills have come and gone over the years, with some seeing limited success in one chamber but not the other. That changed recently when both chambers of the U.S. Congress finally passed a stand-alone cannabis bill, with the bill currently awaiting the U.S. President’s signature.

The bill is called the “Medical Marijuana and Cannabidiol Research Expansion Act” and it would boost cannabis research efforts in the U.S. The legislation, which was originally introduced in July with bipartisan support,  passed the House prior to successfully making its way through the Senate.

“After working on the issue of cannabis reform for decades, finally the dam is starting to break. The passage of my Medical Marijuana and Cannabidiol Research Expansion Act in the House and Senate represents a historic breakthrough in addressing the federal government’s failed and misguided prohibition of cannabis.” stated Congressman Earl Blumenauer, who co-introduced the legislation in the House. Congressman Blumenauer has previously spoken at International Cannabis Business Conference events.

“As we have seen in state after state, the public is tired of waiting for the federal government to catch up. Nearly half of our nation’s population now live in states where adult-use of cannabis is legal. For far too long, Congress has stood in the way of science and progress, creating barriers for researchers attempting to study cannabis and its benefits. At a time when more than 155 million Americans reside where adult-use of cannabis is legal at the state or local level and there are four million registered medical marijuana users with many more likely to self-medicate, it is essential that we are able to fully study the impacts of cannabis use.” Congressman Blumenauer went on to say.

“The passage of this legislation coming just weeks after the change in President Biden’s posture towards cannabis is extraordinarily significant. We must capitalize on this momentum to move subsequent common-sense House-passed bills like the SAFE Banking Act, which finally allows state-legal dispensaries to access banking services and reduce their risk of violent robberies.” Congressman Blumenauer concluded.

Pilot Project In Switzerland To Import Cannabis From Canada?

Cannabis pilot programs are part of an interesting public policy concept that is springing up in Europe. Essentially, cannabis pilot programs provide for limited adult-use cannabis commerce in a designated area and research from the pilot programs provide insight to lawmakers for if/when they craft national cannabis laws and regulations.

A cannabis pilot program already exists in Copenhagen, Denmark and lawmakers there are trying to expand pilot programs to other cities in the European country. All cannabis for Copenhagen’s pilot program is domestically produced.

Two other European countries previously announced plans to launch their own pilot programs, the Netherlands and Switzerland, although both countries have experienced setbacks. For the pilot program in Basel, Switzerland specifically, domestic cannabis failing to meet stringent pesticide requirements has resulted in the program looking elsewhere to source it’s cannabis, particularly in Canada. Per SRF News:

Possibilities of importing hemp from neighboring countries were clarified. According to the health department, the focus was on Germany. But because no solution was found, the Basel company switched to imports from Canada. “Canada has individual suppliers who legally sell organic hemp products.”

The ball is now in the hands of the Federal Office of Public Health, which grants approval for the pilot test and must also approve the import. Investigations are ongoing. “Whether a possible import is eligible for a permit, we can determine if there is a corresponding application or after its examination,” says the Federal Office.

How cannabis is sourced for adult-use commerce is tricky, which is being demonstrated by the ongoing effort in Germany to legalize adult-use cannabis sales. Germany is reportedly going to source all of the cannabis for its eventual adult-use market domestically. Apparently lawmakers and regulators seem to feel that while cannabis can be imported and exported for research and medical use, it cannot be imported for adult-use sales.

What is being proposed in Basel is somewhat interesting, in that someone could make a strong argument that the cannabis is indeed for research purposes, albeit to research whether adult-use sales can be properly regulated at a local level prior to being regulated at a national level. Only time will tell if the request in Switzerland is granted, and if so, what it would mean for other pilot programs.

The EU Is Deciding On More Than Just German Legalization

When it comes to cannabis reform activity, Germany is undeniably on center stage with the international spotlight placed directly on it. Part of that is due to the fact that German lawmakers are actively pursuing adult-use cannabis legalization and the launch of a regulated industry, and part of that is also due to how high the stakes are. Lawmakers from Germany are currently making their opening arguments to continental leaders, both on the supportive side and on the opposition side of the issue. Depending on which side succeeds, it could yield huge ramifications for the rest of Europe.

It’s quite possible that if German legalization efforts receive the blessing of the European Union, that it will be seen as the European Union (EU) giving the green light to any other country that wants to follow in Germany’s footsteps. After all, if Germany is allowed to do it, then why can’t other countries do the exact same? From that perspective, the gravity of what the EU is deciding extends well beyond Germany’s borders.

Lobbying Efforts Underway

Last week lawmakers in Germany started their efforts to educate and lobby the European Union in an attempt to yield their desired outcome. On the ‘pro’ side is German Federal Minister of Health Prof. Dr. Karl Lauterbach. Prof. Lauterbach was in Brussels last week to negotiate with EU leadership. The crux of Minister Lauterbach’s position seems to be, “protection against drug crime, legal safe consumption only for adults.”

Bavaria’s Health Minister Klaus Holetschek was also in Brussels last week. His reported intent was to achieve the opposite result compared to what is being sought by Germany’s Federal Minister of Health. Klaus Holetschek is calling on the EU to refrain from granting permission to Germany’s national legalization effort.

“The federal government’s planned cannabis legalization is not only hazardous to health, but I am convinced it also violates European law,” said the CSU politician on Wednesday according to Bild, after his meeting with the responsible general director, Monique Pariat, in Brussels. It’s unclear at this time what impact, if any, the dueling meetings had on the EU decision making process.

Framing Matters

The words used to describe the motivation behind Germany’s legalization effort will likely play a very big role in whether or not the EU grants its blessing, which was touched on by German cannabis policy expert Kai Friedrich Niermann in a previous article that I posted regarding German legalization and the EU. Kai and his law firm KFN+ advise major CBD and medical cannabis companies around the globe. Kai is also legal advisor to the European Industrial Hemp Association (EIHA), and a regular speaker at International Cannabis Business Conference events.

“In order to comply with its obligations under international drug treaties and EU law, Germany has opted for an interpretative declaration to the monitoring bodies of the UN treaties, referring to its own constitutional principles, the case law of the Federal Constitutional Court and the interpretative declaration already issued on the 1988 treaty. According to the German government, the plan to legalize cannabis in Germany is in line with the purpose and legal requirements of the conventions, as the focus of the reform is the protection of health and young people, and not the promotion of cannabis consumption.” Kai Friedrich Niermann communicated a few weeks ago after Minister Lauterbach’s presentation to the federal cabinet in Germany.

“I assume that preliminary talks have already been held with the European Commission, and that no fundamental reservations are to be expected in this respect. Particularly in view of the fact that a number of member states are also already making preparations for a reform of their national cannabis policies. Minister Lauterbach also assumes that if the EU Commission gives its approval in principle, lawsuits from other member states pursuing a more restrictive cannabis policy will have no chance of success.” he concluded.

That last part of Kai’s statement, touching on potential lawsuits from prohibitionist EU member states, is likely to prove to be tremendously significant in the coming years. Several countries are likely to follow in Germany’s footsteps, including the Czech Republic where leaders are indicating that they will pursue legalization on the same timeline as Germany. It’s likely a safe bet that just as there will be countries trying to join Germany, there will also be countries trying to prevent the spread of legalization. With that in mind, what the EU is currently considering may be specific to Germany, however, the ramifications of the decision will spread throughout the continent, so the significance of the decision cannot be overstated.

Governments Need To Embrace Cannabis Tourism

A common misconception about cannabis reform is that once a jurisdiction’s lawmakers or voters initially approve an adult-use legalization measure, that there’s nothing left to do. In reality, that couldn’t be farther from the truth. The fact of the matter is that the push for reform continues well after a successful legalization vote. The effort behind pushing for sensible cannabis policies doesn’t change. Only the direction of where that effort is focused changes.

Immediately after an adult-use cannabis legalization measure is initially passed, the focus then shifts to more nuanced and granular aspects of cannabis policy. In the instances in which a jurisdiction’s legalization model permits legal sales, making sure that sensible regulations are adopted is extremely vital. One area of cannabis commerce that seems to often be overlooked, or at least is not properly embraced by governments, is cannabis tourism.

More Than Just Clubs And Lounges

Typically, when people think of cannabis-based tourism they think of coffeeshops, clubs, and lounges. While those are certainly valid examples of cannabis tourism, the sector of the emerging cannabis industry is much more complex these days, and evolving constantly. People still travel to Amsterdam to frequent the city’s historic coffeeshops, however, people now have far more options, and those options create additional opportunities for entrepreneurs and innovators.

Canada is home to the only nationwide, legal adult-use cannabis industry that is open to anyone of legal age. Uruguay also permits legal adult-use sales, however, they are limited to residents only. Malta passed an adult-use legalization measure late last year, and eventually the country will have cannabis clubs. However, no legal clubs are currently in operation.

Being that it’s a legal oasis to the world in many ways, Canada is a top international cannabis tourism destination. Consumption in public is still prohibited, so social use establishments like lounges play a vital role. Canada is home to a growing number of cannabis-friendly lodging choices, industry tours, and other ancillary cannabis tourism businesses, many of which do not ‘touch the plant’ directly.

A Growing Opportunity Cost

Some parts of the world are already established as top cannabis tourism destinations. It doesn’t take a cannabis historian to name some of them – The Netherlands, Spain, Jamaica, etc. For reasons that don’t quite make sense, very few of the current high-profile destinations seem to embrace cannabis tourism. That seeming lack of enthusiasm for cannabis tourism creates opportunities for other countries that want to fill the void.

For example, leaders in the Czech Republic have indicated that they want to follow Germany’s lead in passing an adult-use legalization measure, with a specific interest in becoming a cannabis tourism destination given the fact that current legalization plans in Germany do not appear to include cannabis clubs at this time.

“They do not have cannabis clubs that we are supposed to. I’m pretty sure I want to hold on to cannabis clubs until my last breath.” stated national anti-drug coordinator for the Czech Republic, Jindřich Vobořil in a post on his Facebook page.

People are going to travel to far off places for, among other things, cannabis experiences. This will be true even where cannabis remains illegal. Given that every country on earth needs increased public revenue, job creation, and boosts to local economies, cannabis tourism should be embraced by governments and not shunned. Any concerns about the sky falling if/when social use is permitted in a given jurisdiction are overblown, and the only people that claim otherwise are likely profiting directly off of prohibition.

Poll Finds Very Low Support For Prosecuting Cannabis Possession In Scotland

The Scottish government conducted a survey between the 21st of October 2021 and the 27th of March 2022, in which adults were asked “how much do you agree or disagree that people should not be prosecuted for possessing small amounts of cannabis for their own use?”

Cannabis is currently classified as a class B drug throughout the United Kingdom, including in Scotland. Anyone caught possessing cannabis could face jail time, a hefty fine, or both. According to a government report, 1.066 were prosecuted for illegal possession of cannabis in 2018-2019.

“Over three in five people (66%) ‘agreed’ or ‘strongly agreed’ that people should not be prosecuted, while just under one in five (18%) ‘disagreed’ or ‘strongly disagreed’ that small amounts of cannabis possession should not be prosecuted,” Scotland’s government stated along with the published data from the 2021/22 Scottish Social Attitudes Survey.

“In 2001, 51% either agreed or strongly agreed that people should not be prosecuted for possessing small amounts of cannabis for their own use. By 2009, the proportion agreeing had dropped to 34%. However, in 2021/22, the proportion who either agreed or strongly agreed with this statement had almost doubled from 2009 to 66%.” the researchers went on to state.

A deeper dive into the survey results yields further insight. If a survey participant had previously tried drugs before, they were considerably more likely to think that people shouldn’t be prosecuted for personal cannabis possession.

Roughly 89% of people that indicated past drug use indicated in the survey that they do not support prosecuting people for cannabis possession, compared to 57% of people that indicated that they had not tried any illegal drugs in the past.

A similar trend was demonstrated when it involved survey participants that had a friend or family member that regularly used illegal drugs, with 84% of participants in that category agreeing or strongly agreeing that people possessing a small amount of cannabis for personal use should not be prosecuted.

“This figure was lower, but still considerable, at around six in ten (57%) for those who did not have any friends or family who had regularly used illegal drugs.” researchers stated regarding the results.

“When asked whether people possessing small amounts of cannabis for personal use should not be prosecuted, 43% of those who agreed or strongly agreed that most people with problem drug use only have themselves to blame, compared with 77% of those who disagreed or strongly disagreed, agreed that cannabis for personal use should not be prosecuted.” the researchers also concluded.

Thailand’s Health Minister Dismisses Calls To Re-Outlaw Cannabis

From a regional standpoint Thailand is leader in many ways when it comes to cannabis policy. Earlier this year Thailand implemented a very progressive change in cannabis policy that made it the most cannabis-friendly country in Southeast Asia.

Cannabis is legal for medical purposes in Thailand, however, it remains illegal for recreational use. All legal cannabis has to be below a .2% THC threshold. That threshold may not sound like much to some people, yet, a growing industry is built around low-THC cannabis varieties in Thailand now.

Leading up to the policy changes back in June, cannabis hardliners inside and outside of Thailand predicted doomsday scenarios for if/when cannabis laws became less harsh. Despite the sky still remaining above Thailand post-reform, opponents have continued to call for reversing course on cannabis policy. Fortunately, they are not getting a sympathetic audience from the nation’s health minster. Per Bangkok Post:

Public Health Minister Anutin Charnvirakul on Monday dismissed a plan to return marijuana to Type 5 narcotics status, saying that would fall under the remit of the Office of the Narcotics Control Board (ONCB).

According to Mr Anutin, the use of cannabis for medicinal purposes has, after much discussion and debate, already been decided upon.

Despite reassurances from Health Minister Anutin Charnvirakul, cannabis activists in Thailand are planning a rally this week to put pressure on a meeting of the Narcotics Control Board to help ensure that cannabis is not returned to Type 5 narcotics status.

“The attempt to return cannabis to a narcotic drug will affect millions of people who are planting it. Moreover, the remit would restrict people from accessing cannabis in the long term,” stated Prasitthichai Nunual, a representative of the People’s Network for Cannabis Legislation in Thailand, on Facebook according to The Bangkok Post.

Cannabis policy in Thailand can be confusing, with some people describing it as cannabis being legal in the Southeastern nation for recreational use. There’s quite a bit of confusion inside Thailand as to what is legal and what is not, which makes further reform and regulation necessary.

Committee Of Experts In Sri Lanka To Explore Cannabis Exports

Sri Lanka, an island nation located in the Indian Ocean, has experienced tremendous economic and political turmoil in 2022. A fuel and food crisis spread across the country earlier this year, which then led to national protests that resulted in the ouster of President Gotabaya Rajapaksa.

President Rajapaksa temporarily fled the country in July, months after Sri Lanka defaulted on its estimated $50 billion external debt and declared bankruptcy. A multi-billion dollar loan from the International Monetary Fund has helped to some degree, however, the nation is in desperate need of any economic boost it can find.

One idea that has gained traction lately is to cultivate medical cannabis and export it. The emerging legal cannabis industry is spreading across the globe and already providing economic boosts wherever it is permitted to operate. A group of experts is being assembled to explore how Sri Lanka can get in on the action. Per News 1st:

Sri Lanka is proposing to explore the possibility of exporting marijuana.

President Ranil Wickremesinghe delivering the 2023 Budget speech said that a committee of experts will be appointed to explore the possibility of cultivating marijuana in Sri Lanka ONLY for export purposes.

Cannabis policy is complicated in Sri Lanka, but views regarding cannabis prohibition are evolving within the nation’s borders, just as they are elsewhere throughout the region ever since Thailand started to lead the way.

Sri Lanka is in a rough spot, in that it doesn’t share a land border with any other nation, which limits economic opportunity in some ways. Fortunately, the cannabis industry can operate in some form anywhere on earth, including in Sri Lanka.

The faster the reported committee of experts can come up with a viable plan, the better, as other countries are not waiting around for Sri Lanka to get things in gear. The opportunities for exports today will not be the same in a year as the legal international cannabis industry becomes more crowded and more competitive every passing month.

German Cannabis Legalization Would Obviously Benefit Public Safety Efforts

Late last week an article was published by Frankfurter Allgemeine in which the Vice President of the Federal Criminal Police Office (BKA) seemed to imply that law enforcement in Germany did not believe that adult-use cannabis legalization would result in a reduction in ‘drug-related crime.’

“Only a competitive offer could lead to the black market being reduced.” BKA Vice President Martina Link was quoted as saying in the article (translated from German to English), seeming to suggest that claims about adult-use cannabis legalization’s ability to boost public safety will not materialize in Germany. The comments made by Vice President Link were coupled with statistics about seizures of other substances (cocaine, heroin, and methamphetamines) as well as horror stories involving organized crime activity in other countries.

If you have advocated for cannabis reform for as long as I have, then you know that Vice President Link’s tactics are standard anti-cannabis propaganda. Law enforcement downplaying the benefits of legalization as they pertain to public safety is as predictable as law enforcement trying to spread isolated horror stories in an attempt to scare voters and lawmakers. It’s a tactic that has been used by cannabis opponents for decades. However, unfortunately for prohibitionists in Germany, there’s direct evidence to now point to in other jurisdictions that refute law enforcement’s claims.

Reductions In Crime

One thing that I hope is obvious to everyone, and directly contradicts law enforcement claims in Germany, is that when cannabis is legalized for adult-use and consumers are no longer treated like criminals, that in itself results in a reduction in crime rates. Cannabis consumers that would have otherwise been subjected to the criminal justice system are now allowed to proceed with their lives as normal. Using Canada as an example, in 2015 alone it’s estimated that roughly 49,000 cannabis charges were applied by law enforcement. Many, if not all, of those types of cases simply do not happen now, and that in itself is enough of a boost to the criminal justice system for law enforcement to get on board with legalization in Germany, as all of that frees up law enforcement to work on actual crime.

We now know from data out of another legal state in the U.S., Oregon (where I live), that clearance rates for violent crimes improved after adult-use legalization, presumably because law enforcement had more time to dedicate to fighting those types of crimes. Oregon voters approved a legalization measure in 2014.

“The finding largely aligns with the argument made by the proponents of marijuana legalization that legalization would improve police effectiveness in addressing serious crimes, and as a result would increase clearance rates and generate a crime deterrence effect.” the researchers concluded. The findings in that Oregon study are similar to determinations made in a separate study involving Washington State, which approved a legalization measure in 2012.

Yet another study found that lower crime rates likely go beyond the legal jurisdiction’s borders. A study conducted in 2020 found that, “the property crime rate and larceny rate experienced substantial decreases in the border counties in neighboring states relative to nonborder counties following the legalization in Colorado.” Colorado passed a legalization measure in 2012. Based on the available evidence, legalization is good for public safety efforts, which should seem logical to people examining the issue objectively.

Regulation Works

Coupled with some of the reefer madness talking points, Vice President Link also expressed a strong desire to combat organized crime, announcing that new positions would be created to address the issue. I would imagine that I am not the only person to see the irony in that stated position. It is no secret that when cannabis sales are prohibited, organized crime fills the void. It is also no secret, as is being demonstrated in real-time in the Western Hemisphere, that if regulated adult-use sales are permitted then some amount of consumers will make their purchases via regulated channels, and that, in turn, directly hurts organized crime’s bottom line.

If law enforcement officials in Germany truly believe that organized crime benefits from unregulated cannabis sales, which it sure seems that they do, then they should be leading the calls for regulated sales to launch. No, the unregulated cannabis market will never be eliminated, just as unregulated alcohol and tobacco sales are not eliminated in Germany. However, that is not to say that legalization should be scrapped as a result. Some amount of adult-use purchases being made in a regulated system will always be better than no amount of adult-use purchases being made in a regulated system.

Law enforcement in Germany, taking their concerns at face value, should be making the argument that German legalization needs to be constructed in such a manner that it keeps regulated prices as low as reasonably possible in order to compete with the unregulated market in a meaningful way. Instead, sadly, they seem to be making the claim that if 100% of the unregulated market can’t be eliminated, then legalization shouldn’t be pursued at all, which is not sensible.

Cannabis legalization is good for public safety for a multitude of reasons, and one of the primary beneficiaries of legalization is law enforcement. Cannabis prohibition is a failed public policy that uses up limited law enforcement resources – resources that would be better focused elsewhere. Any minute that law enforcement spends investigating a cannabis offense is a minute that could be used to investigate violent crime. Courts should be conducting hearings for actual crime, not cannabis activity. Adult-use legalization in Germany will make things easier on both of those fronts, and anyone that claims otherwise is likely benefitting financially from prohibition.

Limited Legalization Bill Expected To Be Introduced In Ireland

Cannabis is illegal for adult-use purposes in Ireland, although, there is a distinction in Ireland’s current law that provides for a different penalty path for personal possession versus selling unregulated cannabis, with personal possession often resulting in a fine versus jail time for selling unregulated cannabis.

The binding law, the Misuse of Drugs Acts, provides for a fine of €1,000 in the District Courts for first and second offenses involving personal possession. Larger fines can be handed down in some instances. If someone commits the offense of personal possession and it’s their third or greater offense of its type, the offender can be sentenced to up to one year in prison.

The Criminal Justice Act in Ireland mandates that courts must consider giving a community service penalty in place of a prison sentence, and that affects some cases. A bill is expected to be introduced in the near future in Ireland that would somewhat mimic the adult-use legalization legislation that was passed in Malta late last year. Per The Journal:

The Dublin Mid-West TD told The Journal it is a relatively short bill, and will amend the current legislation on possession of cannabis, which is the Misuse of Drugs Act.

The amendment doesn’t reference the cultivation of cannabis. It’s anticipated that if the bill is approved by the Dáil – which means it requires the approval of the government parties – then changes regarding cultivation of cannabis could be added at committee stage.

What is reportedly being proposed in Ireland involves allowing people to possess up to seven grams of cannabis. Malta has a similar provision involving the permitted possession of up to seven grams of cannabis when away from the person’s home, with a separate allowance of up to 50 grams within the person’s home. From that standpoint, what is reportedly being proposed in Ireland is different from Malta’s law.

Furthermore, whereas what is reportedly being proposed in Ireland does not involve home cultivation, adult households in Malta can cultivate up to four plants. With all of that being said, even limited legalization in Ireland would be better than what is currently in place. It’s unclear at this time what the chances are of a legalization measure passing in Ireland, although, it will be very interesting to watch the discussion unfold given what is going on elsewhere in Europe on the cannabis policy front.