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Lebanon Passes Historic Cannabis Reform Measure

When it comes to cannabis reform, the Middle East is one of the toughest places to achieve a cannabis reform victory. The region is notoriously conservative when it comes to cannabis policy.

However, a significant victory occurred this week in Lebanon, where lawmakers passed a first-of-its-kind for the region cannabis reform measure. Per Al-Monitor:

Lebanon became the first Arab country to legalize cannabis farming in the hopes that sales from the plant will provide some relief to its debt-ridden economy.

Despite pushback from the Shiite Islamist group Hezbollah, the Lebanese parliament passed legislation legalizing marijuana cultivation for medicinal and industrial purposes. Recreational use of marijuana will remain illegal.

Estimates put the potential for Lebanon’s cannabis industry at roughly 1 billion dollars. For a country as poor as Lebanon, that amount of money would be a gamechanger.

According to the United Nations, Lebanon produces more ‘cannabis resin’ than any other country on earth other than Morocco and Afganistan, so it’s not as if the country is new to the cannabis trade. The new law will help members of Lebanon’s cannabis industry conduct their business legally.

It will be very interesting to see if other countries in the region follow Lebanon’s lead. The entire region is in desperate need of cannabis reform.

Mexico’s Supreme Court Extends Cannabis Legalization Deadline, Again

In 2018 Mexico’s Supreme Court determined that cannabis prohibition was unconstitutional. Since that time Mexico’s cannabis policy has remained in limbo while Mexico’s lawmakers work to pass legislation to implement cannabis legalization.

Initially, Mexico’s Supreme Court issued a one-year deadline for lawmakers to pass the legislation, and lawmakers failed to meet the initial deadline. The Court then issued an extension to the end of April 2020 for lawmakers to meet.

Due to various factors, not the least of which is the coronavirus pandemic, lawmakers are not able to meet the deadline extension. Thankfully, Mexico’s Supreme Court issued another extension, as reported by Marijuana Moment:

The new deadline for lawmakers to end prohibition is December 15—the end of the next legislative session. Politco.mx first reported the development.

Sen. Mónica Fernández, president of the Senate’s Board of Directors, thanked the court for approving the extension.

Although lawmakers conceded they would not be able to meet this month’s deadline, substantial progress has been made nonetheless on the cannabis legislation.

When the initial court ruling was issued, Mexico appeared to be on the fast-track to becoming the third country to implement an adult-use cannabis legalization policy. Uruguay and Canada are the only two countries to have implemented an adult-use cannabis legalization measure.

Many reports have come out of Mexico since late 2018 stating that ‘progress has been made’ on legislation, just for those reports to ultimately prove fruitless. Until legislation is a done deal, Mexico’s cannabis policy will remain in limbo and all reports of increased momentum towards success will need to be met with tempered expectations.

Tell Congress To Include Cannabis In The Next COVID-19 Relief Bill

In these truly difficult times, many small businesses in the cannabis industry are struggling. The fact of the matter is that if smaller cannabis companies in the United States close down during the coronavirus pandemic, they will likely never open again.

We cannot let that happen.

The National Cannabis Industry Association is spearheading an effort to get financial relief for the emerging cannabis industry in the United States. So far, stimulus packages have not involved assistance for the cannabis industry.

Below is an action alert from the National Cannabis Industry Association that we are encouraging everyone to participate in, even if you don’t own a cannabis company. We are all in this together, so please step up and do your part:

While we all continue to do our jobs to flatten the curve in the age of COVID-19, our lobbying team in D.C. has been hard at work on your behalf. We have been working every angle and are exploring any and all opportunities to provide relief for our industry.

The offices of Congressman Blumenauer (D-OR) and Senator Jacky Rosen (D-NV) have taken the lead on sending a letter to congressional leadership asking that they address the exclusion of state legal cannabis and ancillary businesses from the recently passed CARES Act. But now, we need your help.

In order for these letters to be seriously considered by congressional leadership, we need to get as many members of Congress to sign on as possible. Please consider calling your representative and Senators today and ask them to sign on to the appropriate letter. You can find your member of Congress and how to contact them here.

Here is a short script you can use:

“Hi, I am calling/writing today to ask that you sign onto Congressman Blumenauer/Senator Rosen’s letter to leadership. This letter asks that state-legal cannabis businesses have access to Small Business Administration programs to ensure they have the financial capacity to undertake the public health and worker-focused measures experts are urging businesses to take. This current lack of access will undoubtedly lead to unnecessary layoffs, reduced hours, pay cuts, and furloughs for the workers of cannabis businesses who need support the most. As your constituent, I ask and urge that you sign on to Congressman Blumenauer/Senator Rosen’s letter as soon as possible. Our industry, our businesses, and our employees cannot wait.”

U.S. Cannabis Plant Seizures Spike, Arrests Fall In 2019 According To DEA

Cannabis prohibition started at the national level in the United States in 1937. Since that time the federal government in the U.S. has worked to eradicate cannabis crops across the country and arrest people that cultivate, possess, and/or distribute cannabis.

For many decades cannabis was prohibited across the entire U.S., however, in 1996 California voters passed the nation’s first medical cannabis legalization measure. Since that time a number of other states have followed suit and a growing list of states have also legalized cannabis for adult use.

As cannabis prohibition continues to erode in the U.S., it is important to remember that the federal government, and many states, continue to wage a war on the cannabis plant and those that consume it. The DEA released stats this week regarding cannabis plant seizures and cannabis arrests in the U.S. which is detailed in a press release by NORML that can be found below:

Federal law enforcement agents and their partners made fewer marijuana-related arrests in 2019, but seized a far greater number of plants than they did the year before, according to annual data compiled by US Drug Enforcement Administration.

According to figures published in the DEA’s Domestic Cannabis Eradication/Suppression Statistical Report, the agency and its law enforcement partners confiscated an estimated four million marijuana plants in 2019 – up from 2.8 million in 2018.

By contrast, marijuana-related marijuana arrests compiled by the DEA fell to 4,718 in 2019 – a decrease of 16 percent from 2018’s totals. It was the second-lowest number of arrests reported by the DEA in the past decade. In 2011, for instance, the DEA seized over 8.7 million marijuana plants and made over 8,500 annual arrests as part of its nationwide Eradication/Suppression activities.

Commenting on the longer-term trends, NORML Deputy Director Paul Armentano said: “Following the enactment of statewide adult-use cannabis legalization laws, both DEA-related marijuana arrests and seizures have fallen dramatically. That said, these totals affirm that targeting marijuana-related growing operations still remains a DEA priority, even at a time when most Americans have made it clear that they want cannabis policies to head in a very different direction.”

Much of the spike in plant seizures in 2019 was attributable to an increase in activity in California. In 2019, law enforcement eradicated 1,344 outdoor grow sites statewide — up from 889 in 2018, and seized nearly 3.2 million plants, nearly twice the previous year’s total.

In 2018, the same year that California began permitting licensed adult-use sales of cannabis, marijuana plant seizures fell nearly 30 percent from the prior year. In February 2019 however, the Governor announced the deployment of national guard troops to track down on illicit marijuana grow operations, an effort which may have played a role in the sudden uptick in seizures in 2019.

According to the DEA, “The DCE/SP began funding eradication programs in Hawaii and California in 1979. The program rapidly expanded to include programs in 25 states by 1982. By 1985, all 50 states were participating in the DCE/SP. … In 2020, the DEA continued its nation-wide cannabis eradication efforts, providing resources to support the 127 state and local law enforcement agencies that actively participate in the program.”

DEA data for 2019 is online here.

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NORML‘s mission is to move public opinion sufficiently to legalize the responsible use of marijuana by adults, and to serve as an advocate for consumers to assure they have access to high-quality marijuana that is safe, convenient, and affordable.

Find out more at www.norml.org and read our factsheets on the most common misconceptions and myths regarding reform efforts around the country at www.norml.org/marijuana/fact-sheets

Will Mexico Legalize Cannabis By The April 30th Deadline?

As of this blog post, there are only two countries that have legalized cannabis for adult use – Canada and Uruguay. Uruguay was the first country to legalize cannabis for adult use, and Canada was the first G-7 country to do so.

A court ruling last year in Italy struck down cannabis prohibition, however, lawmakers in Italy have yet to pass legislation to implement a cannabis legalization law. Prior to the court ruling in Italy, a similar court ruling occurred in Mexico, with Mexico’s Supreme Court not only ruling that cannabis prohibition was unconstitutional, but the Court also tasked lawmakers with passing legalization legislation by the end of 2019.

The initial deadline came and went, and Mexico’s Supreme Court issued an extension, with a new deadline being April 30th. That is obviously a month away still, yet with everything going on in regards to the coronavirus pandemic, it’s looking increasingly unlikely that Mexico’s lawmakers will be able to meet the new deadline.

Senate commissions in Mexico passed a legalization bill earlier in March, but there’s still a lot that needs to be done before the bill gets all the way through the political process in Mexico. The legislation still needs to go through the Mexico Senate plenary and the Chamber of Deputies before it goes to Mexico’s President for his signature.

Anything is possible, obviously, but the odds of Mexico’s lawmakers getting all of that done within a month are not good. That would be true even if there wasn’t a pandemic going on. With the pandemic still affecting operations all over the globe, including in Mexico, the legalization in effort could get frozen in Mexico for the time being.

Mexico’s lower chamber suspended most functions on March 20th, with no firm date set to resume all operations. With that being said, presumably, Mexico’s Supreme Court will issue another extension, which will allow Mexico’s lawmakers more time to build consensus around a comprehensive cannabis legalization measure.

What the new date would be is anyone’s guess at this point.

Cannabis Legalization Associated With Increased Home Values According To Study

Since the dawn of cannabis prohibition, the cannabis plant was demonized along with the people that used it, regardless of what the purpose was for the use. Even suffering patients with a bona fide health condition were ridiculed, subjected to negative stigma, and in some cases arrested because they possessed and/or cultivated cannabis.

Cannabis opponents warned of terrible and imminent dangers that would occur if cannabis were to become legal in any form. Leading up to what would eventually prove to be successful legalization efforts in various parts of the world, cannabis opponents often described doomsday scenarios and warned cannabis supporters to be careful about what they wished for.

Obviously, legalization models are not perfect no matter what part of the world they are found in or at what level of government they were implemented at. However, legalization is an undeniably better public policy compared to prohibition. A recent quantifiable example of that can be found in the results of a recent study in which researchers looked at house pricing data before and after cannabis legalization. Per Marijuana Moment:

Economists at the University of Oklahoma attempted to tease out the impact of adult-use cannabis legalization by examining listings on Zillow.com and tracking them against legalization in Colorado and Washington State. Their findings suggest legalization “has beneficial spillover effects at both the state and local levels,” casting doubt on the parade of horribles sometimes warned of by law enforcement and other critics.

“Concerns about the potential effect on crime rates and the difficulty in policing impaired driving have been cited as reasons to slow-walk the path to full recreational legalization,” the study’s authors write. “This research contributes to the discussion, providing evidence that recreational marijuana legalization (RML) has large positive spillover effects on the local housing market.”

The results of the study demonstrate that the benefits of cannabis legalization go well beyond just the consumer experience and entrepreneur perspective. Higher home values benefit every homeowner in the geographical area involved, whether that homeowner consumes cannabis or not.

Cannabis legalization is good for communities. In addition to increased home values, the local economic boost, job creation, and tax revenue generation, cannabis legalization also frees up law enforcement resources so that cops can focus on fighting real crime, rather than enforcing failed public policy and wasting tax dollars.

United Nations Pushes Back Cannabis Discussion Again

The United Nations, rather unbelievably in the face of the Covid-19 pandemic, is again delaying its decision on medical cannabis reclassification. Coronavirus is, like AIDS and SARs, a retrovirus. Indeed many of the early treatments now being considered for those who develop symptoms may come from HIV drugs already tested for use in the SARs epidemic at the beginning of the century.

However antivirals are tough to take on their own, and further, patients have fairly routinely found that non-smoked cannabis, in particular, helps them deal with the not insignificant side effects of these treatments. That is also why, as of the early 1980s, Dronabinol, or synthetic cannabis, was approved for medical use.

The first country to visibly protest the decision to delay the UN reclassification was the U.S. but it is likely that this decision was also not popular in Europe, where the entire medical discussion and scheduling is in the room in a big way right now as countries move to incorporate cannabis as a prescription drug. One of the reasons that law enforcement in the U.S. at least wants a focus on this topic now is that the U.S. is also still in the throes of an opioid epidemic.

The World Health Organization (WHO) recommended that cannabis be moved to the least restrictive “Schedule I” or least restrictive schedule under the 1961 Single Convention on Narcotic Drugs. Cannabis is currently classified as a Schedule IV medication.

The UN Commission on Narcotic Drugs (CND) considered rescheduling cannabis last year in March. This was delayed for a year, but at the beginning of March 2020, the committee again voted to push this to the end of the year.

Is Cannabis Actually A “Narcotic” Drug At All?

One of the larger questions in the room is whether the plant itself can be discussed in terms of a “narcotic” – especially when it is used as an antiviral rather than to help pain patients. This conversation, as a result, is likely also to see the descheduling of low THC plants like hemp. However, beyond this, the outdated science of prohibition is in the room on the viral discussion in a big way.

Of course, healthy people who consume this drug can become “high.” This is the first reason that cannabis was classified as a “narcotic.” However, patients who consume THC long term, particularly for pain caused by spasticity and viral conditions like AIDS, also report that this effect goes away with longer-term use.

All of these issues are now up in the air as the world grapples with the worst public health crisis of a generation. But cannabis, again, is undoubtedly in the room.

Be sure to join the International Cannabis Business Conference in Europe this year, starting with the rescheduled International Cannabis Business Conference in Berlin at the end of July for updates on a changing international drug schedule!

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