With Neither Candidate All Too Keen On Cannabis Reform, Where Does Marijuana Go Next?
Over the years and especially in recent months, both President Donald Trump and Democratic nominee Joe Biden have indicated their reluctance toward legalizing cannabis at the federal level. However, a…
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It’s Been Several Weeks Since Pride & The Peak Of The Protests — What’s Cannabis Doing Today?
The news cycle makes it so that a subject of interest tends to lose its momentum once the spotlight moves on. In some cases, as with trends or flavors of…
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Vermont’s cannabis market has seen modest growth as legal adult-use inch toward a legal framework, while medical market regulations favor patient access over revenue.
Vermont’s Medical Market At The Moment
The Green Mountain State generated $20 million in medical sales in 2018, according to data from BDS Analytics and Arcview Market Research. That figure is forecasted to dip to $17 million by 2024.
The adult-use market is expected to reach $91 million by that time.
Vermont’s medical cannabis market has been legal since 2004, but it still hasn’t seen full revenue potential either due in part to current regulations.
– Read the entire article at Benzinga.
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Lifelong New Yorker Kristin Jordan witnessed the Empire State’s shift in cannabis perception up close. The lawyer and real estate professional has also seen the change up close in Manhattan and her hometown upstate, as well as in her family and growing cannabis community.
With a wealth of expertise and a difficult to rival drive, Jordan is one of the few in the space who works on the frontlines of both New York state advocacy and one of the largest names in American cannabis. Now in her 23rd year of practicing law, Jordan continues to juggle several demanding roles. Often, she does so with the support of her cannabis community and the shared ethics it has instilled in her along the way.
Growing up in Syracuse, Jordan learned about community at an early age. The daughter of Clarence Jordan, who was Executive Director of the Rescue Mission Alliance for over 40 years, Jordan and her three siblings grew up serving those in need in a variety of ways. “We grew up with an understanding that it was incumbent on us to be part of the community and to help serve,” Jordan recalled.
Jordan, as well as all her siblings, are adopted people. Kristin and one other sibling were international adoptees, while the two others were born in the United States. Now under one roof, the family would be raised in an evangelical household. Needless to say, cannabis wasn’t much of a welcome topic growing up.
However, as she would mature, Jordan began to learn about the plant. From there, her own perception began to change. By 2015, the state had just passed the Compassionate Care Act. Kristin was being prodded by certain friends and colleagues to stop making money for millionaires and start something for herself. Just as she was turning 40 that year, and after previously representing clients in the hospitality industry as an attorney, she saw an opportunity.
Jordan had been volunteering with the international adoptee support nonprofit Also Known As. While using a friend’s law office for an Also Known As event, Jordan realized the license application process for cannabis ventures was similar to liquor licenses. “I presented them with the idea of doing medical marijuana license applications for the emerging industry here in New York.” From there, Jordan was on her way to understanding the complex cannabis community.
She would join Newman Ferrara LLP, a predominantly litigation and real estate firm, in April 2015. As the only one starting the practice’s cannabis services, Jordan sought out ways to raise her profile and educate herself.
Partnering with focused industry groups, the legal expert would hold monthly events at the law office. During one Q&A session, Jordan said a few men of color brought up the lack of black men and women leading cannabis companies. “It really is as naive as it sounds,” said Jordan of her oversight. “It really hadn’t occurred to me how important it was to recognize that the war on drugs had really decimated communities…and it ties back to this nascent industry.”
Out of this experience came a commitment to be part of the change for fair access and legislation. Jordan would become a founding member of the Cannabis Cultural Association (CCA) in 2016. Calling herself and the founders “a loose group of folks who were very value-aligned and like-minded”, the CCA aimed to help those most affected by the drug war. Jordan explained that the CCA focused on such communities by preparing citizens with knowledge on becoming patients and applying for business licenses and creating generational wealth.
In 2017, Jordan stepped back from the CCA to focus on other professional endeavors. After moving on, she saw a need not being addressed by the current direct-to-consumer groups. She saw a need to provide education to the masses.
Jordan explained, “What I didn’t see happening in New York was education for professions and professionals who would be supporting the cannabis industry,” said Jordan. They included her own expertise – real estate – as well as marketing and insurance.
To fill the gap with a solution, Jordan launched Mannada in 2018. The midsize series of conferences and networking events centers on industry education via panels and guest speakers. Events include the Cannabis Law Summit and the Cannabis Media Summit, which this writer took part in during 2019.
The name Mannada comes from Jordan’s birth culture, Korean, and serves as a bid to make cannabis more accessible to the Asian community. Jordan also chose the name for another reason tied to U.S. federal laws. “I chose a non-cannabis name because we were fearful about having our bank account closed because that had happened to me in the past when I had a hemp consulting company.”
Soon after Mannada launched, another venture would come into the picture. The Maze is a weekly event guide aimed at informing the cannabis community of advocacy and industry events in the New York and Boston areas.
In November 2019, Jordan would accept the role of Director of Real Estate with one of America’s largest cannabis companies, Acreage Holdings. Building out the company’s department is both exciting and quite challenging, according to Jordan. Explaining that the work changes each day, she said the responsibilities are much like managing a real estate portfolio. However, Jordan was quick to point out, “but unlike any other sort of portfolio that I’ve ever managed, we are a highly regulated industry with an ever-changing dynamic regulatory process in every state, down to the municipal level.
When asked, Jordan admitted that finding a balance between all the work can be difficult. “I am not sleeping very much. I, unfortunately, don’t get to see my husband as often as I’d like. But I’m fortunate in that I’ve been doing this for a long time.” Through that long time, she has obtained a wealth of industry connections and friends she considers “a wonderful network of support.”
That support extends to her family, which includes some of her siblings receiving their own medical cannabis cards. Before his passing, Jordan’s father took pride in her work, and her mother continues to do so to this day. “They appreciate that we are serving and care about the same communities,” she explained.
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Across the state, New York is losing its population. According to 2019 US Census data, the state saw a loss of nearly 77,000 citizens, or .4% of its population. In total, New York has lost almost 1.4 million citizens since 2010. During the same period, the state saw its domestic net migration fall by over 180,600 people, marking the second-highest decline, behind California.
Marking its fourth year of population decline, New York is outpaced only by Alaska, Illinois and West Virginia in dwindling population percentage rates.
People are leaving across the entire state. Nevertheless, be it the city’s notable status or just people’s desire to leave, New York City is a focal point of the issue. This is due to its own staggering loss reports. People are fleeing New York City at a record pace as of late. So much so that the city is seeing an average loss of 277 citizens per day, according to 2018 Census data on migration in America’s 100 largest cities.
Between July 2017 and 2018, the five boroughs lost nearly 200,000 people. The most affected district during the period was Queens, which lost 18,000 citizens. Brooklyn experienced the second-highest loss at 13,500. That said, the city did find some population balancing in the form of international migration, which brought 100,000 new citizens into the area.
The loss of people may affect New York in several ways, ranging from its talent pool to the upcoming federal legislative sessions. In the case of the latter, New York could lose two congressional seats by 2022. If that occurs, the state would be reduced to 25 representatives.
Why New Yorkers are Leaving
The continued loss is being chalked up to a myriad of issues.
One of the most glaring is the lack of job opportunities. State employment trends highlight the highest level of jobs on record in 2018, 4.55 million. However, others say that corporate hiring leaders left the area after scores of mergers, acquisitions and subsequent relocations.
Many believe that state politicians don’t have any plans to attract opportunities either. Critics point towards New York City mayor Bill de Blasio spending months on the campaign trail making an attempt at the White House.
Other knocks against the mayor are aimed at his 2017 New York Works plan, which aimed to create 100,000 “good-paying jobs” over the next decade. However, by 2019 local lawmakers in Queens were questioning just how many jobs had been created. It was stated that 3,000 jobs had actually been created. However, that figure received pushback when asked if the Economic Development Corporation (EDC) work that already existed was being rebranded as middle class jobs under the program.
With an alleged lack of care by lawmakers, many cite more prosperous opportunities for leaving. Some believe that New York City’s reputation as the must-be place to earn a reputation as a hustling business leader is eroding. Today, people don’t have to live in a significant market to run a viable business or establish themselves as a leader in their space. This is especially true in markets where New York once dominated, like media and fashion.
Those finding work aren’t all that satisfied either. New York City has a sky-high cost of living, 148% higher than the average for other U.S. cities in 2019, to be exact. This includes rent, which may or may not continue to have broker fees and an average per square foot cost of over $1,300.
Then, there is the commute. The city’s subway system is overextended and still recovering from the effects of Hurricane Sandy in 2012. In the years since, Mayor de Blasio and Governor Andrew Cuomo have repeatedly clashed on key issues. This includes repairing the vital L train line that connects a significant part of Brooklyn with downtown Manhattan. In January 2020, matters were made worse when Andy Byford left his role focused on reviving the MTA, throwing doubts into what progress will come to the city’s subways.
How Cannabis Could Play a Part
With economic growth and infrastructure plaguing the state, New York could use a solution. While not able to address all the concerns of the Empire State, a legal cannabis market may be a step in solving some of New York’s woes.
“May” being of the utmost emphasis. Legalization isn’t a fix-all cure in that it brings jobs and tax dollars to states once its permitted for sales. To create a thriving cannabis market, it is up to the state to implement proper legislation that tailors to the market and its consumers.
Deborah Tharp, a cannabis-focused political consultant, campaign manager and legal researcher for Nugg and NuggMD, pointed towards IZA Institute of Labor Economics data concerning Colorado. The IZA Institute‘s research comparing job growth post-legalization with numbers from 2005 to 2009 found that legalization increased in-migration by 11.4% and 19.7% in each year since 2011.
On the other hand, California’s ongoing issues with legislation, taxation and sticker costs continue. With concerns surrounding the market, job growth in the nascent sector isn’t enough to stop California from losing its citizens.
“While we here at NuggMD are still experiencing growth and a good substantial return on our business model, many California cannabis businesses are collapsing due to over-regulation,” explained Tharp. She elaborated on the side effects in the state. “This means less jobs, less tax funding that could go toward the citizens who are in need, and less economic growth for the state overall.”
Overall, cannabis is proving to be a job creator. Leafly’s 2019 Cannabis Jobs Count report found that over 211,000 people earned a living from the marijuana industry. However, with the sector facing a downturn as of late, major players have laid off hundreds in bids to become profitable.
With such a risk in the market, cannabis can’t be relied on as a major job creator at this time. That said, the future does appear bright. New York could be one of many states to attract job seekers with an adequately implemented marketplace and regulations. That said, even if rolled out seamlessly, cannabis won’t solve issues like New York’s high taxes and crumbling infrastructure. While the plant is important and should see adult-use pass in the state this year, it is unlikely to do more than play a part in reviving the state’s ongoing population slide. Much more work beyond cannabis is required to fix the Empire State’s population concerns.
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Breaking Down New York’s Second Year at Attempting Adult-Use Cannabis Legalization
During his annual State of the State address, New York Governor Andrew Cuomo emphasized a need for legalizing adult-use cannabis this year. If that report sounds familiar, that’s because similar talking points were mentioned during the governor’s 2019 agenda. Now, in the second year of championing adult-use cannabis and criminal justice reform, Cuomo and his 2020 submitted budget hope to get legislation over the line as a number of states in the Midwest and Southwest, as well as fellow 2019 flameout New Jersey, push to do the same.
For New York, the governor sees cannabis legalization as an opportunity to address a few of the wrongs stemming from the decades-long drug war. In addition to expunging drug records, Cuomo touted marijuana as a potential financial shot in the arm for a state facing a $6 billion budget gap.
Comparing 2019 and 2020
Several issues collectively sunk New York’s bid to pass legislation in 2019. Such issues ranged from concerns over social equity parameters to moral conflicts about the plant. Meanwhile, others highlighted municipal opt-out clauses and legal buying ages as points of concern. Though, most of all, the blame appeared to center on the allocation of the forecasted $300 million generated in tax revenue.
In the end, lawmakers couldn’t get a law over the line by the end of the legislative year.
This time around, the governor and his administration revised the proposed bill to further address previous sticking points, such as taxes, law enforcement and road safety. Key points highlighted during the proposal’s rollout included:
- Access for those 21 and over.
- Reducing the impact of criminalization towards communities of color.
- Automatically sealing specific cannabis-related records.
- Installing quality control and consumer protections for public health efforts.
- Opt-out plans for counties and large cities.
- Generate roughly $300 million in tax revenue.
- Create jobs.
Additional details laid out by the Cuomo administration include the creation of the Office of Cannabis Management, which would oversee the adult-use, medical and hemp programs in New York. Social equity measures include “licensing opportunities, develop an egalitarian adult-use market structure and facilitate market entry through access to capital, technical assistance and incubation of equity entrepreneurs.” Efforts to address past harms for communities and individuals affected by the drug war were laid out without much detail at this time.
Additionally, on the heels of a regional governor’s summit on cannabis a few months back, Cuomo stated that New York’s plan will coordinate with those in nearby New Jersey, Connecticut and Pennsylvania.
The governor also used the January address to call on New York’s state colleges to conduct research on the plant and its effects. Saying that the U.S. government failed the public with opioids, Cuomo urged New York not do the same here. “We cannot allow that to happen with cannabinoids,” Cuomo proclaimed. In part of that effort, Cuomo aims to create the first-of-its-kind Global Cannabis and Hemp Center for Science, Research and Education with New York’s state colleges and “other expert partners” involved.
Some commentators voiced concerns over a lack of specificity concerning revenue allocation to the most affected communities. While Cuomo laid out specifics, like taxing cultivation and retail sales, how that money reaches communities remains uncertain. The same issue highlights one of the more glaring carryovers from Cuomo’s first attempt at legalization.
Industry Reactions
Respondents appeared to have mixed feelings over the proposal.
While believing the latest iteration makes positive strides, Madisen Saglibene, a cannabis lobbyist and the executive director of Nevada NORML, feels Cuomo didn’t address the disproportionate arrest rates that continue to plague people of color. The Rochester native and local NORML chapter member stated that further clarity is required in the proposal.
Calling the proposal “a mixed bag”, Saglibene touched on some of the other aspects of the Cuomo proposal she considered to be welcomed, including social and public use. The advocate told The Marijuana Times, “In a state like New York where there is heavy emphasis on tourism, especially in areas like the Finger Lakes Wine region, this is an exciting step in the right direction.” When concerning employee protections, Saglibene called the inclusion “an incredible example” that New York can set for other states to follow.
Saglibene also feels that Cuomo’s second proposal does address pushback from last year’s critics, including law enforcement and child advocates. “Cuomo’s proposal this time around makes explicit efforts to deter cannabis use by children and expecting mothers, as well as provide funding for drugged driving education.”
Bill Baskin, founder of the online hemp and integrative health publication PuraPhy, voiced concerns over the appointments of marijuana czars and possibly politically biased regulatory board members. While applauding drugged driving efforts, Baskin appeared uncertain of its enforcement.
Baskin also cited struggles in heavily taxed markets, like California, as a point of concern in New York. “Overly abusive and aggressive taxation and regulatory cost has caused the black market to re-emerge in states that have legalized marijuana, forcing dispensaries to keep two sets of books to eek out a profit,” said the publication founder.
Next Steps
Respondents, despite their concerns, believe the bill will pass this time around. In addition to confidence over the bill, the governor has become an approved figure in advocacy circles. In late January of this year, Cuomo’s efforts earned him an “A” rating from NORML. The organization cited Cuomo’s pivot towards decriminalization in 2019 after the bill’s failure to pass as a key reason.
While legalization may come to New York, Cuomo’s plan is not assured to be the measure. In December of 2019, State Senator Liz Krueger of Manhattan introduced legislation of her own, the Marihuana Regulation and Taxation Act. The Krueger plan would call for a legal minimum age of 18 while you must be 21 to make a purchase. A $50 per ounce excise tax would also be applied under this measure, and while cities could opt out, New York City would require a community board approval to greenlight a ban.
The senator’s proposal also calls for removing criminal penalties for offenses under two ounces in total, while allowing public consumption and home cultivation – which is a sticking point for many advocates in New York.
Under Krueger’s plan, portions of tax revenue would be allocated to programs focused on prisoner re-entry, substance abuse programs and job training for communities suffering from low income and high unemployment. The proposal is currently in committee.
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In 2016, Ava Kingsley and Natasha Przedborski were Barnard College seniors in New York City. A conversation with their friend Hannah, a New York University senior, centered on women and cannabis. Namely, the three discussed the need and importance of safe access and consumption for women.
The conversation would lead to a name, PussyWeed, and a logo. With a few clever pen strokes, a minimalist, eye-catching logo was created. Shirts bearing the logo were soon produced. Selling out in less than a week, the burgeoning brand felt like it was onto something. “We had this feeling that there was something about this that people wanted to start talking about,” said Przedborski.
PussyWeed would continue to grow its line of merchandise. Advocacy remained a passion for the founders. Kingsley recalled how they discussed concerns in the cannabis community while the brand took form. Topics often discussed included ending the stigma around cannabis, creating safe spaces for women and ending the drug war, among others.
“The merchandise definitely felt like a vehicle to be advocates,” stated Przedborski. That said, early on, PussyWeed focused mostly on growing its line that now includes shirts, accessories, home goods and art. Over time, Kingsley and Przedborski began to shift the brand’s mission as they were exposed to the burgeoning cannabis space. There, they saw the corporatization of the plant, often with leadership being held by wealthy white men.
Meanwhile, in New York City, the plant remained illegal. The two would see friends arrested. They’d read about the ongoing plight minorities in the city faced, with disproportionate arrest rates persisting. While the line remained a focus, PussyWeed knew that it wanted to become more involved in creating change. In time, advocacy would take more of an interest. The group would advocate more online and while in attendance at legal and underground events. Advocacy work included urging other brands in the space to follow suit and being more vocal about reform topics.
PussyWeed’s logo and efforts would continue to earn the brand support and followers – many of whom now advocate for change as well. The founders take pride in creating this young group of advocates, which includes over 500 followers to its newsletter and an Instagram following in excess of 37,000. With the sizable group, the company now focuses much of its efforts on mobilizing young people. They hope to see followers become advocates, emphasizing a need to end the drug war without whitewashing cannabis history.
A growing number of companies have taken up the effort in the years since. It is now not uncommon to find brands advocating for change in and out of cannabis. Internally, calls for women and minority-owned ventures are rather frequent in many circles. Externally, the community has seen significant companies advocate federal lawmakers for human rights reforms, including record expungement for those affected by the drug war.
While the uptick in support is welcome, the founders worry that many fail to advocate beyond a few gestures. While this is a concern to Przedborski, she acknowledges the efforts made by each person and brand. She said,“It’s wild that now you’ll see big companies doing events in New York, and then they’ll donate the funds of the event to the Drug Policy Alliance.” She pointed out that this “is something that would not be happening two years ago.”
Przedborski says New York City feels as if it is currently in an era of information and advocacy. She highlighted other brands, such as Cannaclusive and Tonic, putting together effective outreach and advocacy programs. While these efforts have made an impact in the community, the co-founder wonders if the efforts fall on deaf ears when it comes to lawmakers.
Like many New Yorkers, the co-founders were optimistic New York would pass adult-use legislation in 2019. Now, they consider its future to be too unpredictable to call, though they remain confident that legislation will happen in the not too distant future. In the bill’s failure comes realization, according to Przedborski. “I feel like a lot of people started realizing the importance of federal legalization.”
Realization, she said, came during New York’s struggles as well as Illinois’ legalization efforts. While both states fought to pass laws and create a marketplace, the public became aware of unfair parameters for lower-income individuals. “People started realizing that you are not allowed to access and consume cannabis if you’re part of public housing or receive government subsidies,” Przedborski noted.
The shifting realization of the public coincides with much of what the women behind PussyWeed discovered along the way. While positive steps, statewide legalization or decriminalization efforts aren’t fix-all solutions, having such understanding helps reinforce the fact to the public that federal legalization is the only way real change can occur.
Another lesson was learned in New York’s legislative failures, according to the co-founders. The missed opportunity served as a sobering reminder that the fight for legalization has been underway for decades. “I feel like we’re certainly closer now, more so than ever before,” said Kingsley. She added, “But that’s why organizations like NORML have existed for decades.”
The fight for legalization rages on. So too does the fight for equality concerning minorities and women in cannabis. In just a few short years, the goals of PussyWeed have shifted to be further a part of these fights. Looking back on that first conversation, the co-founders see a very different cannabis scene than they did when they were about to graduate college.
Despite the fight to end the drug war and its stigma ongoing, PussyWeed’s co-founders see positive signs for cannabis and women in the space. “I like to remind people that 2016 was a very different cannabis era than in 2019, where now it feels totally normal to be a group of women smoking weed,” stated Przedborski. “But in 2016, I only knew, maybe, two women who openly were consuming cannabis.”
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The conflict between federal and state cannabis laws continues to adversely affect the industry across the board. One such area impacted is payments.
The illegality of cannabis has not blocked all dispensaries and other cannabis businesses from using cards. That said, some have been able to find workarounds, such as using other merchant codes to process payments for cannabis, which does not have its own code. Other options businesses have tried include creating shell companies and delving into cryptocurrency.
Either lying, starting a side venture, or just going cashless have primarily been the only choices the cannabis industry has had to work with so far. In June of 2019, multi-state operator (MSO) Columbia Care rolled out a credit card specifically made for purchases at their participating locations. The CNC Card, as it’s called, became the first card of its kind, aimed at curtailing the long-running problem in the cannabis space.
The large-scale roll out came after a successful pilot program of the card in New York in 2018, where basket and purchase sizes increased by 20%.
The cannabis-only CNC Card remains in its infancy. However, its success could serve as a stop-gap solution for an industry so desperately in need of one. The card works just as any credit card would, in large part. Cardholders are subject to annual percentage rates (APR) on purchases between 15.99% and 24.99%, and the card comes with a $38 fee for late payments.
Adam Goers, Columbia Care’s Vice President of Corporate Affairs, explained that the creation of the closed proprietary system CNC Card was so that patients and customers could make easier purchases in-store. Making purchases easier for delivery customers was also a prime focal point as well, he explained.
The VP added that the card aims to provide patients with better access to their treatments. Goers painted a scenario in one of their active states, like New York, where its average patient is a 57-year-old woman. Goers said, “The ability for that patient not to have to use cash, to be able to go forward with this in a delivery situation so that it can be processed before that delivery is made, means that we’re able to give patients better access to their medicine.”
When discussing the CNC Card’s creation, Goers also told The Marijuana Times that it was created in-house and operates on a private network. The card is compliant and is in the process of receiving approval for use in each state.
The CNC Card has already received approval and is available in states like Arizona, California, Delaware, Illinois, Maryland, Massachusetts and New York. When Goers spoke with The Marijuana Times on January 10, 2020, he noted that Florida was in the process of receiving approval as well. During that conversation, he anticipated that the card would launch in the Sunshine State within the next two weeks.
To help bring banking solutions to the industry, Goers said that Columbia Care plans to further the discussion on normalizing bank payments. This may be done through the passage of the SAFE Banking Act, however, its outcome is far from certain. With its doubt on Capitol Hill, Goers believes the CNC Card could provide a potential solution for many in the space looking for a reliable and safe payment option.
Even if the SAFE Banking Act were to pass, Goers forecasted that major credit cards like Visa and Mastercard may hold off on working with the industry right away. As such, the CNC Card could be used for several years to come.
Additional Options
The CNC Card is one option making an attempt at resolving the industry’s long-standing payment problems. Another option, LeafLink Financial, aims to provide licensed retailers with a compliant credit management solution. Doug Gordon, head of LeafLink Financial, told The Marijuana Times that by the close of 2019, their payment solution processed over $60 million in annualized transactions across three territories.
“We are focused on scaling the service across the country to make wholesale cannabis transactions easier and safer for our clients and the industry,” Gordon said of growth plans for this year.
Compliance is Key
Regardless of the method chosen, compliance is critical in maintaining proper relationships with banks and regulators. Braden Perry, a regulatory and government investigations attorney with Kennyhertz Perry, LLC, considers compliance and transparency as keys to maintaining relationships between cannabis companies and traditional banking institutions.
While Perry did not have details on the CNC Card, the attorney touched on the precarious relationship between cannabis ventures and banks, where any infraction can end a relationship. Perry expanded on how a company can build trust with a banking institution. “Independent compliance audits of the company either by a third party or someone not actively involved in your compliance management system will add the trust the bank or credit union has with the company.”
Any rapport building can still lead to nothing due to federal regulations, Perry explained. “But it’s important to remember that [cannabis] still is federally illegal, and the Bank Secrecy Act makes even the state-chartered banks subject to money laundering issues and can make banking a federally illegal substance difficult, if near impossible.”
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New York’s Recent CBD Bill Fails to Address Edibles, Falling In Line with Other States
The rise of CBD met a wall in 2019 when a slew of cities began halting businesses from selling infused foods or drinks. The prohibition came on the heels of a December 2018 U.S. Food and Drug Administration (FDA) ruling that declared infused foods or beverages as unlawful.
The edibles ban reached New York City in February 2019, causing a momentary panic among businesses in the five boroughs. With little warning time, smalls businesses feared losing their product and revenue. Eventually, the city relented, imposing a window before the ban would subsequently take place.
Little additional clarity came in the months after. Later that summer, lawmakers urged the FDA – as well as the Department of Health and Human Services (HHS) – to release its rules. So far, little has materialized. The most notable federal level movement since then has been the U.S. Department of Agriculture’s draft version of its domestic hemp production program.
In New York, Governor Cuomo provided the Empire State with additional clarity via a December 2019 bill that contained further details on the state’s CBD market. The bill addressed sales and production of CBD. The bill’s regulations have been described as one of the most comprehensive CBD laws in the U.S., and it has been touted for its strict testing and labeling regulations. Other areas of the market the legislation addressed included licensing for hemp growers and processors.
The Governor’s press office directed The Marijuana Times to a press release of the announcement. In the statement, the Governor is quoted as saying:
“The hemp industry in New York is exploding and with that growth comes a responsibility to regulate the industry in a way that helps ensure its long-term viability and protects consumers,” Governor Cuomo said. “By establishing a regulatory framework for producing and selling hemp and hemp extract we can set the industry on a path to continued growth in a smart, safe way that empowers both farmers and consumers.”
While Cuomo spoke of continued growth for the market, some highlighted the exclusion of edibles from the bill. Without addressing the matter, Cuomo continues to leave the state’s edibles producers and retailers in limbo.
The restrictive coverage of the law has left some wondering: Exactly what the next steps will be? And more so, questioning when a ruling can be expected. Just like last winter, when the ban was first announced, the industry is back to waiting on when the next morsel of information will be thrown their way.
Abe Cohn is the managing partner of Cohn Legal, PLLC, in Manhattan. The cannabis attorney explained that New York’s law reflects the FDA’s concern that CBD is medicinal in nature. Cohn said that CBD “…must, therefore, be subjected to rigorous testing by the FDA to determine safety levels before allowing its introduction into food items.” He added, “As these tests have not yet taken place, at least not sufficiently to satisfy the FDA, food items cannot include CBD.”
Tyler Russell runs a hemp practice in North Carolina and lobbies on behalf of the Hemp Roundtable. The Remedy Review legal writer explained that New York’s decision falls in line with most other states. Russell explained, “State lawmakers and regulators across the country have shown a general unwillingness to outpace the FDA on these issues and, instead, many are choosing to wait and see how (or if) the FDA will ultimately address the food and beverage sector of the market.”
Dr. Jeffrey L. Reynolds runs a Long Island-based community nonprofit, with services including abuse prevention and addiction care. Echoing Governor Cuomo’s recent State of the State address, Reynolds noted the importance of cannabis legalization during this session. Reynolds, who served on Governor Cuomo’s marijuana workgroup tasked with drafting last year’s legislation, said the current debate centers on more substantial focuses.
Reynolds explained, “Most discussions right now seem to be focused on the macro issues associated with recreational marijuana legalization, especially the handling of potential tax revenues given the state’s sizable budget deficit.”
While he believes that CBD-infused edibles are being overshadowed by the legalization debate at the moment, infused items should receive its time for consideration soon enough. Reynolds predicted that “as lawmakers get back to work and start introducing bills, I wouldn’t be surprised to see proposed CBD legislation that’s either wrapped into a larger package or done on a standalone basis.”
It isn’t clear just how much – or if at all – the CBD uncertainty has had on the market. That said, some growing cannabis ventures are steering clear to avoid any potential frustrations. Matt Aaron is the co-founder of CBD-infused coffee brand Crazy Calm. The Austin, Texas-based brand avoids the Empire State due to current legal grey areas, said Aaron.
“Ambiguity in regulation makes planning our wholesale expansion very difficult,” Aaron said. Currently, Crazy Calm sells its products in Texas, South Carolina, Wisconsin, Illinois and Arizona.
Aaron added that his discussions with people in the industry lead him to believe that no one is truly sure where state-to-state regulation will shake out at this time.
In New York, Cohn believes that New York won’t see any amends to the edibles restriction in future bills. Until the FDA leads with new guidance, he doesn’t forecast any change. “Ultimately, with the passing of this bill, the future of CBD-infused edibles is bleak indeed for New York companies,” he said.
Such a bleak outlook may extend across the country. As legal expert and writer Tyler Russell stated, “The FDA has promised it will develop a pathway forward for CBD. But, so far, it has delayed development and implementation of meaningful regulatory guidance for CBD products.” He added, “That continuing delay does a disservice to the industry and to the general public.
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Andrew Ward, KahliBuds, 420GrowLife
Growing up in Westchester and Somers, New York as a first-generation Ecuadorian-American, Nelson Guerrero’s earliest memories with cannabis weren’t fond. “I grew up in a household where anything referring to cannabis was always considered very negative,” he detailed of his early life in a traditional Ecuadorian household.
Guerrero was raised being told that marijuana was only used by lazy people. The word marijuanero was thrown around often. Like others, Guerrero believed the hype and abstained from marijuana for much of his early life. The anti-drug sentiments would only be heightened by his commitment to amateur sports, like wrestling and basketball. There, he was told cannabis would affect everything from his speed to recovery times.
Like other teens, Guerrero’s view on the plant changed over time. He would consume an edible as his first experience during his senior year in high school. The following year, as a wrestler at Stevens Institute of Technology in New Jersey, he realized how prevalent cannabis use was amongst his fellow athletes. Soon enough, he was using cannabis to treat knee pain and other body parts after matches and tournaments.
By 2013, he was attending City University of New York’s Herbert H. Lehman College, studying Business Administration and minoring in history. For his senior thesis, Guerrero asked what would California’s legal market look like if its original legislation had been approved. He went out to the Golden State to speak with those in the medical space to learn the ins and outs of the market.
It was then he realized the impact the plant would have on California and beyond. Back in New York, he hoped to attend that year’s National Cannabis Industry Association (NCIA) conference, but lacked the funds to do so as a recent college grad. Guerrero decided to try his hand at getting in through other means. He found success by reaching out to NCIA Executive Director Aaron Smith. Smith connected Guerrero with other members at the association, leading to a volunteer role at the event.
He remarked, “That’s when it really was an eye-opener of what the industry can be.” Guerrero also saw the downside, explaining that, “It was also my first experience [with] the lack of diversity in the cannabis space.” He added, “I was definitely the only Latino in the room that day.”
After the conference, Guerrero continued to attend events in and around the city. Not long after, he would meet Jake Plowden, who was active in organizations like Students for Sensible Drug Policy. Over the next few years, the two would work together and separately in the cannabis space, coordinating events around topics from inclusion to entrepreneurship to justice reform.
In 2015, cannabis and Guerrero’s family would come together for the first time under unfortunate circumstances. That year, his grandfather, or abuelo in Spanish, discovered that his prostate cancer had aggressively returned. Treatment would be required. Meanwhile, doctors only gave him six months to live. However, Guerrero’s abuelo, Jorge Gavilanes, opted not to undergo chemotherapy.
Guerrero remembers his grandfather not eating or sleeping during this period. He believed that cannabis may be helpful for his abuelo. The grandson began discussing the sensitive topic with his family. “It was probably the most difficult conversation I had with my abuelitos,” he recalled.
The sensitive family talks paid off. Discussions in 2015 led to action in early 2016, as Jorge began using cannabis tinctures. The family, despite past and possible present reservations, rallied behind cannabis as a treatment option. Guerrero said the results were “amazing”.
The results have sustained thus far. During our call in mid-October 2019, Guerrero said that his grandfather turns 81 later in the month. He had also just attended several soccer games the night before. Guerrero reported that his abuelo is “living the best life possible for [someone with] stage four metastasized prostate cancer.”
As it turned out, 2016 would also be the year that Guerrero and Plowden would take their combined passion for cannabis advocacy to the next level. That year, the two would co-found the Cannabis Cultural Association (CCA), a 501c3 nonprofit organization aimed at supporting disenfranchised communities by getting into the legal cannabis and hemp spaces. For both New Yorkers, they wanted to give back after seeing how destructive the war on drugs had been.
Launching its first event in June 2016, the CCA saw reluctance in communities like Guerrero’s. Held at conservative spaces like churches, Guerrero said he’s been labeled by some as “a mini Pablo” trying to push drugs to the community. That said, the CCA preserved, continuing to educate all ages in both Spanish and English. In 2017, it received its 501c3 nonprofit status.
Today, the CCA is a near ever-present fixture in the New York City community. They include events like December 2019’s Tri-State Cannabis Equity Summit in New York City. However, the duo may be most known for taking part in the 2017 lawsuit against then-Attorney General Jeff Sessions over medical cannabis legalization.
“It’s been really inspiring to work along with my co-founders, to do the work that we’ve been doing here in New York and abroad as well,” said Guerrero of his work so far.
Guerrero’s international cannabis efforts extend to his ancestral home in Ecuador. Both he and Jorge, the elder holding dual citizenship, are active in reshaping the country’s view on medical cannabis and the plant in general. Back home, their advocacy efforts caught the attention of local news and shared Jorge’s story as one of the nation’s first medical cannabis patients. In a country where shame is still brought onto consumers, his story captivated the public and lawmakers alike.
Guerrero says that support continues to grow in both countries. “What we saw in Ecuador recently was just how a wave of people who have been anti-cannabis for many years are now being some of our biggest supporters.”
Despite the progress, Guerrero points to struggles in the Latin community that continue to hinder further participation and support for cannabis. He cites a myriad of longstanding hurdles, from the Catholic church and the uncertainty of working with marijuana after the effects of the war on drugs.
Guerrero hopes that he can continue to educate others through a series of efforts. They include sharing Jorge’s story with the masses. His story is now told in the documentary CannAbuelo: The Jorge Gavilanes Story, which will be released in 2020. The Spanish-language, English subtitled documentary details Jorge’s journey of 20 years with a cancer diagnosis and how cannabis affected his life.
The success of the CCA and his abuelo’s sustained health has validated Guerrero’s efforts back home as it long has in the cannabis space. Today, he reports that his entire family backs his endeavors and next steps. “It’s been an amazing transition to see.”
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via www.KahliBuds.com
Andrew Ward, KahliBuds, 420GrowLife
What Happens to New York Now That New Jersey is Voting on Legalization?
After months of discussing the likely outcome, New Jersey lawmakers in the Senate and Assembly approved the inclusion of adult-use cannabis on its 2020 ballot. If approved, adults over the age of 21 would be able to participate in the legal marketplace. However, the vote would then turn the legislating back to lawmakers who struggled to put together a passable bill the year prior.
Turning the decision over to the people may warrant some praise, if it weren’t coming off the heels of one of the most public political rebukes of cannabis the country has seen since the green rush took off.
Incoming Governor Murphy campaigned heavily on legalizing adult-use cannabis within the first 100 days of his term. Murphy did live up to his promise to champion the cause, but fell severely short in gaining the support in the state Senate. Opposition resistance made the matter trying, while fighting within the party further fractured any promise of legislation moving forward in 2019. The vote would eventually be pulled by Senate President Stephen Sweeney after it became apparent the measure didn’t have the 21 votes needed for the upper house.
Recent polling out of Monmouth University suggests that voters support cannabis, at more than 6 in 10 people. However, polling has been shown to not always be accurate. And with certainty already out the door in the Northeast when it comes to cannabis, we’ll have to wait and see. Across the river, New York continues to ponder its legalization future, as does some of its neighboring states.
With all the latest developments, and after being linked on the issue for so long, how does New Jersey’s decision to vote on adult-use affect New York?
New York Lawmakers Appear Hopeful
Evan Nison, a cannabis entrepreneur who has worked as a lobbyist, believes New York should be able to pass a bill this time around. “With Democrats holding a safe majority in the New York Senate, passing a bill should be doable,” said Nison. He added, “If the governor gets behind it and encourages the legislature to make it a priority, I foresee a cannabis industry appearing in New York before New Jersey.”
Governor Andrew Cuomo supporting and encouraging the legislature seems plausible enough, and lawmakers believe so as well. This is a far cry from the Cuomo who once opposed legalization just a few years ago. In recent weeks, Cuomo hired Norman Birenbaum, who is regarded for helping advance legalization efforts for Rhode Island Governor Gina Raimondi.
Some influential state lawmakers now believe 2020 is the year. This includes Assembly Majority Leader Crystal Peoples-Stokes of Assembly District 141, which includes Buffalo. In December, Peoples-Stokes expressed her belief that the measure would pass in 2020.
State Senator Diane Savino told The Marijuana Times that New Jersey punting the decision to the voters removes the pressure on New York to act promptly. That said, Savino believes the process will roll out, with Gov. Cuomo including a new version of the bill in this year’s state budget once again.
“Building on the increased public opinion polls that show growing support for a legal market, coupled with the recognition that New Yorkers are jeopardizing their own health by using vape products, there is a feeling that we can overcome the objections of last year,” said Sen. Savino.
Ryan Lepore, Deputy Director of NYC NORML and a board member for Empire State NORML, wasn’t as certain of any outcome just yet. “New York has been traditionally reactive to outside catalysts opposed to proactively in control of its priorities. This shows us anything can happen next.”
Lepore added, “We can expect to see the good, the bad, and the ugly here in New York.”
Meanwhile, in New Jersey, Evan Nison finds irony in the whole situation. The cannabis entrepreneur with experience lobbying for legalization himself highlighted Governor Murphy for kickstarting the conversation in the tristate area. However, now Nison expects New Jersey to lag. He explained, “Due to the Senate Majority Leader not being able to get enough votes in the Senate, New York will likely now lead on this issue.”
Looking Ahead
It appears that both New York and New Jersey have bright prospects for legalizing adult-use measures this time around. While much remains in doubt, it is certain: New York won’t head to a vote like New Jersey.
Unlike the Garden State, New York is not an initiative and referendum state. As such, the measure can not be punted to the voters. Sen. Savino explained the only way this could go to the voters would be for a constitutional amendment to pass two consecutive sessions of the legislature before it could be put up for a vote. “However, there is no constitutional issue to be amended. If so, we would have had to do it for the passage of medical cannabis,” Savino elaborated.
Instead, Savino said the Senate and Assembly will also introduce an amended version of the Krueger/People-Stokes bill, which enacts cannabis tax and regulations.
In New Jersey, Nison believes the vote will pass, but remained frustrated by the outcome of it all. “By sending this issue to voters, the legislature is delaying the repeal of prohibition by years in a state that still criminalizes possession.”
Under the new path of legalization in the state, Nison forecasts a long road to implementation when the market is booming around them. “Legislators accomplish nothing by exercising such extreme political caution, rather than going through the proper law-making procedures and passing a statute themselves now.”
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Andrew Ward, KahliBuds, 420GrowLife