Policy – Page 74 – International Cannabis Business Conference

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Ontario’s Cannabis Industry Model Needs A Revamp

Written by Johnny Green on August 15, 2022. Posted in Business, Policy.

On August 5th a third-party distribution center in Ontario, Canada named Domain Logistics was subjected to a cyber attack that essentially crippled the company’s ability to deliver cannabis products to licensed retailers. Domain Logistics contracts with the provincial government in Ontario where all licensed outlets are required to purchase their cannabis from the government (Ontario Cannabis Store).

Had the cyber attack occurred in most other legal cannabis markets, it would have largely been an isolated incident and the fallout from the attack would have only affected a small percentage of cannabis businesses. However, being that every retailer must go through the Ontario Cannabis Store, and by extension, its vendors, the fallout from the cyber attack on August 5th spread across the province.

A Broken Monopoly Model

It is estimated that Ontario is home to roughly 1,333 licensed retailers. Some of the licensed outlets are part of large store chains while others are small, family-owned operations consisting of only one store. Of course, there are also cannabis companies that fall somewhere in between.

Regardless of their size, as previously mentioned in this article, every single licensed retail outlet has to go through the Ontario Cannabis Store since it has a monopoly on supplying inventory. Monopoly models rarely work, especially when the entity having the monopoly is the government and the product is cannabis which has to compete with an unregulated market.

In a monopoly cannabis model, it only takes one hiccup anywhere in the supply chain to largely bring the regulated cannabis industry in that market to a grinding halt. That is on full display in Ontario where licensed retailers received no cannabis product deliveries for roughly a week. Even with deliveries finally resuming, many retailers are still experiencing bare shelves.

The Need For Further Reform

The main lesson from this latest cyber attack in Ontario is that there need to be further reforms to help ensure that the regulated industry can effectively compete with the unregulated industry. The current model will always be vulnerable to all types of issues, not just cyber attacks, and it only takes one major issue to cause enormous damage to the regulated industry.

How many consumers and patients sought out unregulated sources for cannabis due to the halt in deliveries in Ontario? We may never know the actual number, however, it’s a safe bet that it was a considerable percentage of people that would have otherwise made their purchases from regulated sources, and that is unacceptable.

Regulated outlets have a hard enough time competing with the unregulated market being that the unregulated market requires considerably less overhead to operate. After licensing fees, facility rental fees, security costs, and everything else that goes into running a legal cannabis business regulated outlets are already at a distinct disadvantage compared to unregulated sources. Ontario keeping its current model, and the hiccups and issues that come with it, all but ensure that the unregulated market in Ontario will continue to thrive, and that’s unfortunate considering that things don’t have to be that way.

French Senators Tout Benefits Of Cannabis Legalization

Written by Johnny Green on August 15, 2022. Posted in Policy.

France, like every other country on planet earth, is home to adult-use cannabis consumers and medical cannabis patients. Whether the government in France regulates cannabis or not, people are still going to consume it. That is a point that is not lost on a group of Senators in France who recently published an op-ed in Le Monde calling for national legalization.

The op-ed’s text was provided by ‘a collective of 31 senators from the Socialist, Ecologist and Republican group, led by Gilbert-Luc Devinaz’ according to the subheadline of the article. The goal of the op-ed, as described in the same subheadline, is ‘to launch a consultation process in order to table a bill to legalize cannabis.’

What Legalization Provisions Are The Senators Calling For?

The Senators started their op-ed by citing statistics from a National Assembly ‘Recreational Cannabis Progress Report‘ regarding the rate of cannabis use in France. The report estimates that nearly 18 million people in France have tried cannabis at least once in their lives and that roughly 1.5 million people in France use cannabis ‘regularly.’ For reference, France is home to roughly 67 million people.

“In this context, we must get out of the lax trial regularly made to the proponents of an evolution of the legal framework. We, socialist senators, face reality: the situation is untenable. The French are ready to debate the consumption of so-called recreational cannabis.” the op-ed stated (translated from French to English).

The Senators describe prohibition as being “ineffective, inefficient and unjust.” The main crux of their proposal seems to hinge on regulating cannabis products to reduce the size and influence of the unregulated market and to help mitigate issues related to youth consumption. The op-ed briefly discussed decriminalization prior to declaring it insufficient and instead called for outright legalization.

Mounting Pressure Along The Border

For many years the cannabis reform discussion in France largely took place inside a political vacuum. Those days are long gone. Multiple countries that share a border with France are actively pursuing meaningful cannabis reform, not the least of which is Germany. Lawmakers in France are facing the inevitable – pursue domestic cannabis reform measures or watch cannabis consumers go from France to Germany to make their legal cannabis purchases and miss out on the economic benefits that come with it.

Lawmakers in France would be wise to get things moving in a swift manner, as the country is already well behind Germany and other nations when it comes to crafting cannabis policies and industry regulations. Just as the Senators that published the op-ed pointed out, people are going to consume cannabis in France regardless of what the laws are.

The only real question that remains is whether their consumer and patient dollars will go into a regulated system in France or not, and the only way that consumers will ever make legal purchases in France is if lawmakers step up. If they choose to keep dragging their feet, France will likely miss out on a once-in-a-lifetime opportunity.

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Canada To Spend CA $200 Million Annually On Cannabis For Veterans

Written by Marguerite Arnold on August 15, 2022. Posted in Policy.

The Canadian government is reimbursing more than double the amount for veterans’ cannabis reimbursement than it did just three years ago

According to newly released data, the Canadian government is on track to spend CA $200 million this year on cannabis claims for vets. This is $50 million more than last year and double what it spent just three years ago.

While experts and advocacy groups cannot pinpoint the specific reasons for this surge in demand, there are some obvious answers. The first is full legalization. The second is increased understanding and education about the impact of cannabis on the health issues that veterans tend to face. These include PTSD and brain injuries as well as other physical ailments. The third is undoubtedly the Covid Pandemic, which has seen increased use no matter the local legality of the plant.

There is also a call for more studies to understand what veterans are using the drug to treat.

Regardless, it is a very good indicator that the United States will also see a surge in demand from the same population after full legalization. The issue of reimbursed coverage is a controversial topic everywhere.

A Brief History of Canadian Veteran Cannabis Reimbursement

The federal government of Canada began reimbursing veterans for medical cannabis in 2008. At this time, such reimbursements were extremely limited and hard to get approval for. However, the change in policy was based on court rulings that stretched back for 20 years.

In 2014, Health Canada relaxed its rules about reimbursement authorizations, but did not impose limits on either expense or amount consumed. That year, the government reimbursed 112 vets at a cost of $409,000. The next year, the number of vets increased to 600 patients, and the cost increased to $1.7 million. According to government data released last June, there are now 180,000 Canadian veterans who are part of the program, at a cost of $153 million annually. This despite a 2016 decision by the government to limit use to 3 grams a day under the program, and further to impose a cost cap of $8.50 per gram. To put this in direct comparison with the civilian population, there are now 345,000 private citizens whose private insurance covers the costs.

Implications for Other Insured Populations

There are several takeaways from this data. The first is that it is clear that cannabis is working – and that the news about its medical efficacy is spreading. The second, however, which will have implications in places like Germany and the United States, is that insurers (either government-backed or private) may not like paying the costs – but it will soon become accepted – simply because there are no alternatives.

Cannabis the wonder drug has arrived. But the question of who pays for it is still an open question that no country has answers for.

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Brittney Griner Sentenced To Over 9 Years Hard Labour For Cannabis Possession In Russia

Written by Marguerite Arnold on August 15, 2022. Posted in Policy.

The WNBA star, arrested at the airport in February with less than a gram of cannabis oil, is bringing global attention to the issue of continued cannabis criminalization

Just one week before Russia invaded Ukraine, Brittney Griner landed in Russia with the expectation of playing her next off-season. That hope was dashed almost as soon as she landed. Officials found a few vape cartridges containing less than a gram of cannabis oil in her luggage. For this “crime” she was promptly arrested. Her subsequent detention and now conviction and sentencing has made global headlines.

Griner is a medical cannabis user, despite the fact that it is still banned by the WNBA and has been certified medically as such in her home state of Arizona since 2013. She also testified in court that she had packed the vape cartridges by accident before she left the US and did not realize they were in her luggage.

A Global Call for Decriminalization

As a local Arizona man buys 6,500 Mercury tickets to support Griner and the WNBA held a moment of silence for her on Sunday, both the US State Department and the Biden White House are working to obtain her release. This, despite the fact that cannabis use is still federally illegal in the United States, where thousands of people remain in jail because of their own cannabis use and possession.

While it appears that she was deliberately targeted for political purposes that have nothing to do with cannabis reform by the Russian government, and her case was certainly mishandled, even under Russian law, it is clear that Griner’s plight has just added fuel to the fire for the cannabis legalization cause globally.

In Germany, where recreational legalization is now slated to occur sometime in the next 24 months, the German press has covered the case with interest. It is clear, at least aus Deutschland that this is a global example of what happens when patients are unjustly prosecuted, although of course, German patients still face criminal charges when caught with “undocumented” cannabis.

What Happens Next?

It is very likely, given the increasing din domestically, that the White House will be on the hot seat until Griner is returned home. However, this incident is, tragically, not likely to move either the Senate or the White House to implement cannabis reform any time soon – even after the U.S. midterm elections which occur in the fall.

As such, Griner becomes “just” the next, if globally high-profile victim of a Drug War which has still not ended, no matter how much there appears to be a light at the end of the tunnel in several countries.

Minister Of Justice In Germany’s Largest State Expresses Support For Cannabis Legalization

Written by Marguerite Arnold on August 8, 2022. Posted in Policy.

Benjamin Limbach is the new Minister of Justice of North Rhine-Westphalia and has stated that he considers the legalization of cannabis to be a German “right”

In an encouraging development for the recreational cannabis discussion, Benjamin Limbach, the Green Party-affiliated Minister of Justice and member of the state cabinet as of June, has now publicly backed recreational reform. According to Limbach, he will help implement any law the Bundestag passes in Germany’s largest state.

This is encouraging news, particularly given the battles on the ground so far in the state also referred to as “NRW,” where the city of Dusseldorf was forced to reverse its ban on CBD just last year after losing in court.

Will There Be NIMBY Issues in Germany?

While politicians of all stripes are beginning to recognize that backing the legalization of cannabis is a winning issue, there is also no doubt that reform will also, like it has in other places, instigate more local backlashes to continue to ban the legal sales of adult-use cannabis. There may also be local bans on cultivation and manufacturing.

While cannabis legalization is increasingly popular with the public as a whole, there are still many who believe that this is not a positive development.

So far, of course, this issue has not been an issue in Germany, but that is because nothing has become concrete. In neighbouring Holland, local communities protested local cannabis cultivation farms after they had been selected in a national bid.

National Law, Local Regulations

One of the more interesting questions that has so far been left unanswered is whether local jurisdictions and municipalities will be able to ban either local production or sales once recreational reform becomes the law of the land. In California, for example, despite having a legitimate legal market since 1996 and a recreational one since 2016, there are still counties and municipalities that have banned dispensaries outright.

Given the highly emotional response to cannabis use that is still present everywhere, this is likely to become a political issue post-legalization. In the meantime, continue to expect high-ranking politicians who are in the ruling government coalition to publicly support the advance of the Traffic Light Coalition policy. For the very first time aus Deutschland at least, supporting recreational reform has become not only a political game-changer but an issue politicians will back to bolster their careers.

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UK’s Top Contender For Prime Minister Criticized For U-Turn On Cannabis Reform

Written by Marguerite Arnold on August 8, 2022. Posted in Policy.

In an increasingly bitter and close race, Tory rival for the top political job, Rishi Sunak has criticized Liz Truss for her flip-flop on cannabis reform

The current political battle in the UK to replace Boris Johnson has gotten increasingly nasty if not out of touch with the issues that most people are now facing. The top two rivals for the Prime Minister’s office, have been slugging away at each other’s policies for weeks now.

Given this, it was inevitable that the issue of cannabis reform would surface, in some form.

Now Rishi Sunak, dubbed “Dishy Rishi” by his detractors, who would become not only the first non-white Prime Minister but the first practicing Hindu to hold the office, has gone there. Specifically, he has attacked Liz Truss, his opponent, for once supporting cannabis reform – when she was a student at Oxford and the one-time president of the Oxford Liberal Democrats.

Interestingly, Sunak, who also spent time in California while attending Stanford University to obtain an MBA degree, is not taking a stand on cannabis reform, even of the medical kind. His criticism is that Truss is a politician who will flip flop to gain political advantage and holds no fixed beliefs. She currently opposes cannabis reform as a member of the Tory party.

It is the kind of campaign not seen (yet) in the United States or Germany – two countries where the issue of federal cannabis reform is now looming. It is also a sign of how far even medical cannabis reform still has to go in the UK – forget full legalization.

Where Cannabis Reform Now Stands in Britain

The UK is now suffering from high inflation, post-Brexit woes, and a political discussion that has been warped beyond recognition because of the same. As literally millions of Britons are suffering from energy costs that have increased dramatically this year plus food and medicine shortages, the Tory leadership battle has focussed on esoteric issues that have little to do with the major problems now faced by the majority of the country.

In the meantime, the government is at a literal standstill under the lame duck tenancy of Boris Johnson, who was forced out by members of his own party after one too many scandals earlier this summer.

The issue of cannabis reform is, as a result, unlikely to become a political force on a national level in this kind of environment. Indeed, it has stagnated all over the country, even in places like the Channel Islands where local support had gelled for proceeding.

It is unlikely that the UK will be able to hold out forever, no matter who wins the current leadership contest. Indeed, it will be a potent political issue in the next national election, due to be held in the next several years.

Until then, however, look for the same old, tired excuses for failing to enact more comprehensive policies from the Tory party as cannabis patients continue to suffer and people are convicted of criminal charges even for small amounts of cannabis. There are currently an estimated 17,000 “legal” cannabis patients in Britain.

Leading Public Health Expert Calls For Slovenia To Embrace Cannabis Reform

Written by Johnny Green on August 7, 2022. Posted in Policy.

Slovenia is one of the most beautiful places on earth. Located in central Europe, Slovenia is bordered by Austria, Hungary, Croatia, and to the southwest by Italy. With so much going on in Europe on the cannabis industry and policy fronts, Slovenia may not be the first place that comes to mind when it comes to the emerging cannabis industry. However, the nation is home to a growing cannabis community and reform efforts there recently received a huge boost from a leading public health expert.

Cf. Dušan Nolimal, Ph.D. recently published an extensive op-ed via one of Slovenia’s largest media outlets, Delo, in which he called on lawmakers to pass a number of cannabis reform measures. Dr. Nolimal also urged lawmakers to take meaningful steps to create a policy and regulatory framework in Slovenia that is conducive to helping the nation become an international cannabis hub. It’s a very thoughtful and thorough op-ed that everyone should read. For more information regarding Dr. Nolimal, I suggest that you check out his bio at this link here.

The Economic Benefits Of Legalization

Slovenia is home to roughly two million people, with the major industries in the country being pharmaceuticals, automotive parts, electrical appliances, and food processing. The nation’s GDP ranks 29th in Europe and 82nd globally. Slovenia, like all countries, would greatly benefit from embracing the emerging cannabis industry and the economic boost that it creates, including boosts to local economies, job creation, and tax revenue generation. That is in addition to the government savings that would instantly be achieved by Slovenia no longer enforcing failed cannabis prohibition policies.

A large sector of Slovenia’s economy is based on food. According to World Atlas, “About 704 companies were registered in the sector in 2015 employing about 12,658 people. The income generated from the sector amounted to $2.27 billion. The sector is among the third largest employers in processing activities alongside the production of electrical appliances and metal working.”

Slovenia’s chemical and pharmaceutical sector employs roughly 26,000 people, with 72% of the sector’s sales coming from the export market. The food sector and the pharmaceutical sector may not seem like a logical combination to non-cannabis observers, however, people involved in the emerging cannabis industry will be quick to recognize the enormous demand for medical-grade cannabis edibles, and that the demand is only going to increase for the foreseeable future.

According to global data company Technavio, the global cannabis-infused edible product market is anticipated to grow by USD 25.27 billion from 2020 to 2025, and the sector will increase in size by roughly 21.74% annually. Slovenia is well-positioned to gain a sizable share of that specific sector, and it’s just one of the many examples of how a legalized and embraced cannabis industry in Slovenia can help bring jobs and economic benefits to the country. Other examples include, but are certainly not limited to: cannabis research, industry intellectual property development, ancillary industry equipment manufacturing, and raw material processing.

The Opportunity Costs Of Delaying

A major point that is highlighted in Dr. Nolimal’s op-ed is that time is not frozen while lawmakers in Slovenia drag their feet on reforming the nation’s cannabis laws. Countries across Europe are reforming their laws, creating regulations, and ramping up their cannabis industry efforts, not the least of which is Germany. And all the while people are consuming cannabis for medical and adult use in Slovenia every day, albeit not legally.

The longer that Slovenia waits, the farther behind it will be compared to other countries that embraced cannabis reform and the emerging cannabis industry earlier. It may also result in Slovenia having less input on what its future cannabis laws and public health strategies contain, as pointed out by Dr. Nolimal in his op-ed.

“If the Ministry of Health delays until cannabis is approved by other European countries, foreign commercial entities will be able to have a very significant influence on the determination of national legislation regarding cannabis in our country.” Dr. Nolimal stated in his op-ed piece.

“This could be a major problem, as the commercial interest in cannabis may be diametrically opposed to the interests of the public health profession, which should already be advocating a zero-tolerance policy for young and vulnerable groups and moderate use and risk reduction for adults.” Dr. Nolimal went on to state.

Cannabis reform is spreading across Europe, and once Germany launches its legalized adult-use industry it will no doubt result in a tidal wave of reform within the European continent as well as elsewhere on the planet. It would be very wise for Slovenia’s lawmakers to heed Dr. Nolimal’s advice and reform the nation’s cannabis laws as soon as possible, and build a regulated cannabis industry that harnesses the skills, talent, and resources that are already in Slovenia, and with it, create once-in-a-lifetime economic opportunities for Slovenia’s citizens.

Are Banking Concerns Really Delaying Cannabis Reform In Belize?

Written by Frank Schuler on August 7, 2022. Posted in Policy.

Lawmakers in Belize previously passed the ‘Cannabis and Industrial Hemp Control and Licensing Bill 2022.’ The measure passed both chambers of Belize’s Parliament and was set to become law.

However, cannabis prohibitionists, particularly church leaders, were able to successfully stall the passage of the bill and divert it into Belize’s referendum process.

A vote was initially set for later this year on September 4th. That vote is now being delayed, with no future vote date set from what I can tell. The reasoning for the delay? ‘Concerns’ about banking. Per Caribbean National Weekly:

The Belize government has confirmed that concerns raised by the banking community have led to the Cannabis and Industrial Hemp Control and Licensing Bill 2022 being temporarily shelved despite going through all the states in Parliament.

Home Affairs and New Growth Industries Minister, Kareem Musa, was asked by reporters to comment on his reluctance to admit that banking sector concerns would present a roadblock to the bill.

“Cannabis legalization is taking place all across the Caribbean. Like the rest of the Caribbean, Belize always has correspondent banking concerns. As you recall with the offshore sector, we had to make certain regulations and adjustments to comply with the European Union so that we were not blacklisted.”

To many cannabis industry and policy observers around the globe, the excuse offered up for delaying the referendum vote seems to be a stretch. After all, many countries engage in the emerging legal cannabis industry, including nations in the European Union.

There seems to be a lot of rhetoric being tossed around on this topic, but not a lot of real-world examples of it actually happening. Hopefully cannabis reform can get back on track in Belize sooner rather than later.

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Cannabis Purchasing Habits Continue To Shift In British Columbia

Written by Frank Schuler on August 7, 2022. Posted in Business, Policy.

British Columbia has long been home to a vibrant and robust cannabis community. People have flocked to British Columbia for cannabis tourism purposes for several decades now.

International cannabis industry and policy observers have kept a close eye on Canada, and British Columbia specifically, to gauge consumer and patient cannabis purchasing habits in the post-legalization era.

Consumers and patients have more well-established, unregulated cannabis sourcing options in British Columbia than in most other parts of the world. It was unclear leading up to the launch of adult-use legalization what percentage of people making purchases may transition to making purchases via regulated outlets.

There’s new data out regarding purchases made in 2021, and it appears that the number of people making regulated purchases is increasing. Per Global News:

More British Columbians are using cannabis since legalization, but appear to be doing so in a responsible way and getting it more often from licensed retail stores, according to a recent survey.

The 2021 B.C. Cannabis Use Survey asked just under 25,000 British Columbians about their cannabis use and found 32 per cent of adults aged 19 and older reported using cannabis at least once in the past year, an increase from 28 per cent prior to legalization. Around four per cent of people said they tried cannabis for the first time since legalization in 2018.

“Like many provinces and territories, cannabis use has gradually become more prevalent in B.C., with nonsmoking methods of use increasing in popularity,” the report states.

One thing that the report seemed to spend a lot of focus on involved whether people were consuming cannabis ‘responsibly’ or not. That is obviously a subjective measurement.

Ultimately, the report seemed to measure this by a combination of things, including DUI data, reported frequency of use by consumers, and various other data points.

The data seems to back up what many of us already know – that cannabis legalization works and the doomsday predictions by prohibitionists leading up to national legalization in Canada have proven to be unfounded.