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Cannabis Retailers Can Automate Age Verification and Watch List Checks with Veridocs BrightTower Retail System

May 10, 2021 by CBD OIL

The legalization and taxation of recreational marijuana remains one of the hottest trends in state taxation. Currently, 16 states (Alaska, Arizona, California, Colorado, Illinois, Maine, Massachusetts, Michigan, Montana, Nevada, New Jersey, New York, Oregon, South Dakota, Vermont, and Washington) and the District of Columbia have passed bills or approved ballot measures that allow for the sale of recreational marijuana, and more states are poised to pass legislation this session. In total, actual recreational marijuana sales are happening in 11 states.

The Virginia legislature now has passed a bill that would legalize sales starting in 2024; legislators are currently working with Gov. Ralph Northam (D) to amend and finalize legislation. New Mexico lawmakers are very likely to pass legislation during an ongoing special session.

Voters in four states approved ballot measures in November, but only one state (Arizona) has established an operational marketplace. Vermont, which passed legalization back in 2018, has finally approved legislation, and the state plans to be operational starting in 2022. Recreational sales are delayed due to pending legal action in South Dakota and federal prohibition in the District of Columbia, although change is on the horizon in DC.

The unique legal framework under which marijuana use and sales operate—that of differing state and federal legality—means that every state market is essentially a siloed market. Marijuana products cannot cross state borders, so the entire process (seed to smoke, so to speak) must occur within state borders. This unusual situation, along with the novelty of legalization, has resulted in a wide variety of tax designs.

The following map highlights the states that have legal markets and levy taxes on recreational marijuana.

cannabis taxes map

The multitude of approaches makes any apples-to-apples comparison of rates difficult, but Washington state has the highest statewide retail-level excise tax, at 37 percent. New York, the most recent addition, is the first state to implement a potency-based tax by milligrams of THC.

As the table indicates, most states have applied a price-based (ad valorem) tax on retail sales of recreational marijuana. Levying the tax on retail sales allows for simplicity because there is a taxable event with a transaction, allowing for simple valuation. Although ad valorem taxation is simple, it is neither neutral nor equitable. In order to tax marijuana efficiently, the tax should be levied at a rate that corresponds to the societal costs, called externalities, associated with the product. These externalities share no association with the price.

A profitable new industry to tax is understandably enticing to many lawmakers, but an excise tax on recreational marijuana should be based on the following principles:

  • Tax rates should be low enough to allow legal markets to undercut, or at least gain price parity with, the illicit market;
  • Taxes should be designed to offer stable revenue in the short term regardless of potential price declines; and
  • Taxes should raise enough revenue to fund marijuana-related spending priorities and cover the societal cost related to consumption.

A tax system following these principles would be based on weight or potency, have relatively low rates, and allocate revenue to offset societal costs associated with recreational marijuana consumption.

Of the states that have passed legislation, all but Alaska, Colorado, Maine, Montana, and Oregon levy the general sales tax on marijuana sales in addition to excise taxes. Alaska, Montana, and Oregon do not levy a statewide general sales tax in the first place, and Maine and Colorado levy retail-level excise taxes in lieu of, and with higher rates, than their general rates.

One of the great challenges with tax design for recreational marijuana is the amount of product types available on the market. Today, consumers can purchase THC-containing products in many different shapes and forms. Anything from traditional pre-rolled joints and brownies to THC-containing sparkling water and the yet unknown products to come. Any tax system should either be nimble enough or updated frequently enough to capture new products as they enter the market.

There are still many unknowns when it comes to the taxation of recreational marijuana, but as more states open legal marketplaces and more research is done to understand the externalities of consumption, more data will be available.

For more discussion on the trade-offs of marijuana tax structures and general excise tax design, see the Tax Foundation’s recent report.

This article was originally published by the Tax Foundation. It is reproduced here with permission.

 

Filed Under: Cannabis News

How High Are Taxes on Recreational Marijuana in Your State?

May 10, 2021 by CBD OIL

Medical cannabis legislation was first introduced in the Alabama House of Representatives two decades ago. Eight years ago, it was the laughingstock of the lower chamber. Now, a medical cannabis bill has supermajority support.

After a nearly 10-hour filibuster Tuesday, House lawmakers reconvened Thursday and considered several floor amendments before passing the Senate-originated bill, 68-34, which would allow registered patients diagnosed with qualifying conditions to access cannabis. The legislation returned to the Senate for final consideration Thursday night, when the upper chamber voted, 20-9, to concur with the House changes.

The legislation, Senate Bill 46, now heads to Republican Gov. Kay Ivey’s desk. In a statement from Ivey’s office Thursday night, press secretary Gina Maiola said the governor looks forward to thoroughly reviewing the bill and providing the diligence it deserves, but did not say whether she would sign it.

If Ivey provides the ink, Alabama will become the 37th medical cannabis state, joining the likes of nearby Arkansas, Florida, Louisiana and Mississippi, according to reform organization Marijuana Policy Project (MPP).

“Passing the compassion act will allow seriously ill patients to finally get the relief they deserve,” said Karen O’Keefe, director of state policies at MPP. “Alabama is one of only 14 states in the country that continues to criminalize the medical use of cannabis, and while this bill is more restrictive than is ideal, it is a dramatic improvement from the status quo and would improve the lives of thousands of Alabamians. We urge … Gov. Ivey to sign it into law.”

The Alabama Senate has passed medical cannabis bills three years in a row, but this is the first time the House has passed legislation. Last year, pandemic-related circumstances derailed the lower chamber’s possibility of a vote.

Sponsored by Republican Sen. Tim Melson, S.B. 46 proposes implementing a medical program that would open the application process for potential patients by Sept. 1, 2022. Republican Rep. Mike Ball sponsored the bill in the House.

“When we get in politics, we get down here and we focus our attention on what it is we’re after; we tend to tunnel up and we don’t see the other side very well, and there’s so many aspects of this that has been so difficult,” Ball said on the House floor Thursday, after bearing the brunt of the filibuster, from opponents on his own side of the aisle, two days earlier.

“And, quite frankly, this has caused me to lose my appetite for politics in this whole process,” he said. “And the people who don’t see it, they’re not bad. They’re just not looking at it.”

Eight years earlier, a Democratic bill for medical cannabis that was introduced by former Rep. Patricia Todd won the 2013 “Shroud Award,” given to the “deadest” bill in the House that session, according to the Associated Press.

“They laughed at me,” Todd said, according to the AP. “I’m glad to see it passed. It’s long overdue.”

Final passage didn’t come without nearly three more hours of floor debate and amendment votes on Thursday. Democratic Rep. Laura Hall, 78, said she first introduced medical cannabis legislation to the House two decades ago.

“Twenty years ago, I brought [legislation to the House] in honor of my son, who had just died the year before I was elected, of AIDS,” Hall said. “And I did that with the idea thinking if I could have had access [to medical cannabis]. The only drug that was available to him was a drug called AZT. He could not take that. When he took that medicine, we would have to get up every four hours—that was the regimen to giving him the medication. And he had finally said, ‘Enough is enough. I may get my T cells back and I can function, but I can’t do it on this medication.’”

Azidothymidine (AZT) is an antiretroviral medication used to prevent and treat HIV/AIDS.

Later during the House’s session on Thursday, the chamber voted, 87-3, in favor renaming the legislation “Darren Wesley ‘Ato’ Hall Compassion Act,” as a tribute to Rep. Hall’s son.

While HIV/AIDS-related nausea or weight loss is one of more than a dozen qualifying conditions included in Alabama’s medical cannabis bill, two other conditions in the Senate’s original version of the bill were removed during an emending process in the House Health Committee—fibromyalgia and menopause or premenstrual syndrome (PMS).

That specific amendment was grouped with several other committee amendments as one package, which passed as a single vote Thursday on the House floor, 72-26.

“This amendment is so disappointing to me as a woman, that all of the issues that specifically impact women were taken out in the Health Committee, which is why I’m going to vote against this amendment,” Democratic Rep. Merika Coleman said. “I support [Rep. Ball] and support the concept, but this body sometimes is so disappointing.”

If enacted, S.B. 46 would create a 14-member Alabama Medical Cannabis Commission, which would determine the maximum daily dosages of tetrahydrocannabinol (THC) that caregivers could provide patients with each of the qualifying conditions—also including cancer, terminal illness, depression, epilepsy, anxiety or panic disorder, chronic pain, spasticity, autism, Tourette syndrome, post-traumatic stress disorder and others.

The new commission would also be responsible for issuing up to five licenses for vertically integrated operators, up to 12 cultivation licenses, no more than four processor licenses and no more than four dispensary licenses. Businesses awarded the dispensary licenses could operate up to three sites in different counties, while vertically integrated operators could have up to five dispensing sites in different counties, according to the bill’s text.

Other housekeeping items the commission would be responsible for include overseeing the patient registry, issuing medical cards and outlining regulations from seed to sale.

Some amendments that were rejected on the House floor were adding a THC dosing cap of 10 milligrams, enacting a zero-tolerance policy for diving under the influence, and revisiting the Alabama Medical Cannabis Commission’s authority to provide caregiver’s the right to distribute medical cannabis should the federal government reschedule cannabis, so that patients could instead receive their medical cannabis from pharmacies should federal prohibition end.  

“My concern in this issue, is if we create this large bureaucracy that we’re having, this large board that’s going to be there, that this will never go away,” Republican Rep. Matt Simpson said about the commission’s authoritative arm. “And you could have 49 other states that are going to be able to receive medical marijuana through a licensed pharmacist … but the state of Alabama would be required to go through these dispensaries based on this legislation you have.”

Meanwhile, the bill would prohibit the smoking or vaping of cannabis, as well as processing cannabis into a form that is attractive to or targets children, such as candy or baked goods. Instead, S.B. 46 would limit medical cannabis use to forms such as pills, gelatin cubes, oils, creams and topical patches. Patients could possess up to 70 daily doses of cannabis.

In addition, minors could not use—or be recommended—more than 3% THC. And employers could still drug test and prohibit employees from using cannabis.

Regarding social equity, depending on the business type, either at least one-fourth or one-fifth of all licenses are to be awarded to businesses with at least 51% ownership by individuals of African American, Native American, Asian or Hispanic descent, according to MPP.

Filed Under: Cannabis News

Reform Efforts Pick Up Speed in Alabama, Texas: Week in Review

May 7, 2021 by CBD OIL

Medical cannabis legislation was first introduced in the Alabama House of Representatives two decades ago. Eight years ago, it was the laughingstock of the lower chamber. Now, a medical cannabis bill has supermajority support.

After a nearly 10-hour filibuster Tuesday, House lawmakers reconvened Thursday and considered several floor amendments before passing the Senate-originated bill, 68-34, which would allow registered patients diagnosed with qualifying conditions to access cannabis. The legislation returned to the Senate for final consideration Thursday night, when the upper chamber voted, 20-9, to concur with the House changes.

The legislation, Senate Bill 46, now heads to Republican Gov. Kay Ivey’s desk. In a statement from Ivey’s office Thursday night, press secretary Gina Maiola said the governor looks forward to thoroughly reviewing the bill and providing the diligence it deserves, but did not say whether she would sign it.

If Ivey provides the ink, Alabama will become the 37th medical cannabis state, joining the likes of nearby Arkansas, Florida, Louisiana and Mississippi, according to reform organization Marijuana Policy Project (MPP).

“Passing the compassion act will allow seriously ill patients to finally get the relief they deserve,” said Karen O’Keefe, director of state policies at MPP. “Alabama is one of only 14 states in the country that continues to criminalize the medical use of cannabis, and while this bill is more restrictive than is ideal, it is a dramatic improvement from the status quo and would improve the lives of thousands of Alabamians. We urge … Gov. Ivey to sign it into law.”

The Alabama Senate has passed medical cannabis bills three years in a row, but this is the first time the House has passed legislation. Last year, pandemic-related circumstances derailed the lower chamber’s possibility of a vote.

Sponsored by Republican Sen. Tim Melson, S.B. 46 proposes implementing a medical program that would open the application process for potential patients by Sept. 1, 2022. Republican Rep. Mike Ball sponsored the bill in the House.

“When we get in politics, we get down here and we focus our attention on what it is we’re after; we tend to tunnel up and we don’t see the other side very well, and there’s so many aspects of this that has been so difficult,” Ball said on the House floor Thursday, after bearing the brunt of the filibuster, from opponents on his own side of the aisle, two days earlier.

“And, quite frankly, this has caused me to lose my appetite for politics in this whole process,” he said. “And the people who don’t see it, they’re not bad. They’re just not looking at it.”

Eight years earlier, a Democratic bill for medical cannabis that was introduced by former Rep. Patricia Todd won the 2013 “Shroud Award,” given to the “deadest” bill in the House that session, according to the Associated Press.

“They laughed at me,” Todd said, according to the AP. “I’m glad to see it passed. It’s long overdue.”

Final passage didn’t come without nearly three more hours of floor debate and amendment votes on Thursday. Democratic Rep. Laura Hall, 78, said she first introduced medical cannabis legislation to the House two decades ago.

“Twenty years ago, I brought [legislation to the House] in honor of my son, who had just died the year before I was elected, of AIDS,” Hall said. “And I did that with the idea thinking if I could have had access [to medical cannabis]. The only drug that was available to him was a drug called AZT. He could not take that. When he took that medicine, we would have to get up every four hours—that was the regimen to giving him the medication. And he had finally said, ‘Enough is enough. I may get my T cells back and I can function, but I can’t do it on this medication.’”

Azidothymidine (AZT) is an antiretroviral medication used to prevent and treat HIV/AIDS.

Later during the House’s session on Thursday, the chamber voted, 87-3, in favor renaming the legislation “Darren Wesley ‘Ato’ Hall Compassion Act,” as a tribute to Rep. Hall’s son.

While HIV/AIDS-related nausea or weight loss is one of more than a dozen qualifying conditions included in Alabama’s medical cannabis bill, two other conditions in the Senate’s original version of the bill were removed during an emending process in the House Health Committee—fibromyalgia and menopause or premenstrual syndrome (PMS).

That specific amendment was grouped with several other committee amendments as one package, which passed as a single vote Thursday on the House floor, 72-26.

“This amendment is so disappointing to me as a woman, that all of the issues that specifically impact women were taken out in the Health Committee, which is why I’m going to vote against this amendment,” Democratic Rep. Merika Coleman said. “I support [Rep. Ball] and support the concept, but this body sometimes is so disappointing.”

If enacted, S.B. 46 would create a 14-member Alabama Medical Cannabis Commission, which would determine the maximum daily dosages of tetrahydrocannabinol (THC) that caregivers could provide patients with each of the qualifying conditions—also including cancer, terminal illness, depression, epilepsy, anxiety or panic disorder, chronic pain, spasticity, autism, Tourette syndrome, post-traumatic stress disorder and others.

The new commission would also be responsible for issuing up to five licenses for vertically integrated operators, up to 12 cultivation licenses, no more than four processor licenses and no more than four dispensary licenses. Businesses awarded the dispensary licenses could operate up to three sites in different counties, while vertically integrated operators could have up to five dispensing sites in different counties, according to the bill’s text.

Other housekeeping items the commission would be responsible for include overseeing the patient registry, issuing medical cards and outlining regulations from seed to sale.

Some amendments that were rejected on the House floor were adding a THC dosing cap of 10 milligrams, enacting a zero-tolerance policy for diving under the influence, and revisiting the Alabama Medical Cannabis Commission’s authority to provide caregiver’s the right to distribute medical cannabis should the federal government reschedule cannabis, so that patients could instead receive their medical cannabis from pharmacies should federal prohibition end.  

“My concern in this issue, is if we create this large bureaucracy that we’re having, this large board that’s going to be there, that this will never go away,” Republican Rep. Matt Simpson said about the commission’s authoritative arm. “And you could have 49 other states that are going to be able to receive medical marijuana through a licensed pharmacist … but the state of Alabama would be required to go through these dispensaries based on this legislation you have.”

Meanwhile, the bill would prohibit the smoking or vaping of cannabis, as well as processing cannabis into a form that is attractive to or targets children, such as candy or baked goods. Instead, S.B. 46 would limit medical cannabis use to forms such as pills, gelatin cubes, oils, creams and topical patches. Patients could possess up to 70 daily doses of cannabis.

In addition, minors could not use—or be recommended—more than 3% THC. And employers could still drug test and prohibit employees from using cannabis.

Regarding social equity, depending on the business type, either at least one-fourth or one-fifth of all licenses are to be awarded to businesses with at least 51% ownership by individuals of African American, Native American, Asian or Hispanic descent, according to MPP.

Filed Under: Cannabis News

Kansas House Approves Medical Cannabis Bill; Republican Leaders Suggest Senate Won’t Follow

May 7, 2021 by CBD OIL

Medical cannabis legislation was first introduced in the Alabama House of Representatives two decades ago. Eight years ago, it was the laughingstock of the lower chamber. Now, a medical cannabis bill has supermajority support.

After a nearly 10-hour filibuster Tuesday, House lawmakers reconvened Thursday and considered several floor amendments before passing the Senate-originated bill, 68-34, which would allow registered patients diagnosed with qualifying conditions to access cannabis. The legislation returned to the Senate for final consideration Thursday night, when the upper chamber voted, 20-9, to concur with the House changes.

The legislation, Senate Bill 46, now heads to Republican Gov. Kay Ivey’s desk. In a statement from Ivey’s office Thursday night, press secretary Gina Maiola said the governor looks forward to thoroughly reviewing the bill and providing the diligence it deserves, but did not say whether she would sign it.

If Ivey provides the ink, Alabama will become the 37th medical cannabis state, joining the likes of nearby Arkansas, Florida, Louisiana and Mississippi, according to reform organization Marijuana Policy Project (MPP).

“Passing the compassion act will allow seriously ill patients to finally get the relief they deserve,” said Karen O’Keefe, director of state policies at MPP. “Alabama is one of only 14 states in the country that continues to criminalize the medical use of cannabis, and while this bill is more restrictive than is ideal, it is a dramatic improvement from the status quo and would improve the lives of thousands of Alabamians. We urge … Gov. Ivey to sign it into law.”

The Alabama Senate has passed medical cannabis bills three years in a row, but this is the first time the House has passed legislation. Last year, pandemic-related circumstances derailed the lower chamber’s possibility of a vote.

Sponsored by Republican Sen. Tim Melson, S.B. 46 proposes implementing a medical program that would open the application process for potential patients by Sept. 1, 2022. Republican Rep. Mike Ball sponsored the bill in the House.

“When we get in politics, we get down here and we focus our attention on what it is we’re after; we tend to tunnel up and we don’t see the other side very well, and there’s so many aspects of this that has been so difficult,” Ball said on the House floor Thursday, after bearing the brunt of the filibuster, from opponents on his own side of the aisle, two days earlier.

“And, quite frankly, this has caused me to lose my appetite for politics in this whole process,” he said. “And the people who don’t see it, they’re not bad. They’re just not looking at it.”

Eight years earlier, a Democratic bill for medical cannabis that was introduced by former Rep. Patricia Todd won the 2013 “Shroud Award,” given to the “deadest” bill in the House that session, according to the Associated Press.

“They laughed at me,” Todd said, according to the AP. “I’m glad to see it passed. It’s long overdue.”

Final passage didn’t come without nearly three more hours of floor debate and amendment votes on Thursday. Democratic Rep. Laura Hall, 78, said she first introduced medical cannabis legislation to the House two decades ago.

“Twenty years ago, I brought [legislation to the House] in honor of my son, who had just died the year before I was elected, of AIDS,” Hall said. “And I did that with the idea thinking if I could have had access [to medical cannabis]. The only drug that was available to him was a drug called AZT. He could not take that. When he took that medicine, we would have to get up every four hours—that was the regimen to giving him the medication. And he had finally said, ‘Enough is enough. I may get my T cells back and I can function, but I can’t do it on this medication.’”

Azidothymidine (AZT) is an antiretroviral medication used to prevent and treat HIV/AIDS.

Later during the House’s session on Thursday, the chamber voted, 87-3, in favor renaming the legislation “Darren Wesley ‘Ato’ Hall Compassion Act,” as a tribute to Rep. Hall’s son.

While HIV/AIDS-related nausea or weight loss is one of more than a dozen qualifying conditions included in Alabama’s medical cannabis bill, two other conditions in the Senate’s original version of the bill were removed during an emending process in the House Health Committee—fibromyalgia and menopause or premenstrual syndrome (PMS).

That specific amendment was grouped with several other committee amendments as one package, which passed as a single vote Thursday on the House floor, 72-26.

“This amendment is so disappointing to me as a woman, that all of the issues that specifically impact women were taken out in the Health Committee, which is why I’m going to vote against this amendment,” Democratic Rep. Merika Coleman said. “I support [Rep. Ball] and support the concept, but this body sometimes is so disappointing.”

If enacted, S.B. 46 would create a 14-member Alabama Medical Cannabis Commission, which would determine the maximum daily dosages of tetrahydrocannabinol (THC) that caregivers could provide patients with each of the qualifying conditions—also including cancer, terminal illness, depression, epilepsy, anxiety or panic disorder, chronic pain, spasticity, autism, Tourette syndrome, post-traumatic stress disorder and others.

The new commission would also be responsible for issuing up to five licenses for vertically integrated operators, up to 12 cultivation licenses, no more than four processor licenses and no more than four dispensary licenses. Businesses awarded the dispensary licenses could operate up to three sites in different counties, while vertically integrated operators could have up to five dispensing sites in different counties, according to the bill’s text.

Other housekeeping items the commission would be responsible for include overseeing the patient registry, issuing medical cards and outlining regulations from seed to sale.

Some amendments that were rejected on the House floor were adding a THC dosing cap of 10 milligrams, enacting a zero-tolerance policy for diving under the influence, and revisiting the Alabama Medical Cannabis Commission’s authority to provide caregiver’s the right to distribute medical cannabis should the federal government reschedule cannabis, so that patients could instead receive their medical cannabis from pharmacies should federal prohibition end.  

“My concern in this issue, is if we create this large bureaucracy that we’re having, this large board that’s going to be there, that this will never go away,” Republican Rep. Matt Simpson said about the commission’s authoritative arm. “And you could have 49 other states that are going to be able to receive medical marijuana through a licensed pharmacist … but the state of Alabama would be required to go through these dispensaries based on this legislation you have.”

Meanwhile, the bill would prohibit the smoking or vaping of cannabis, as well as processing cannabis into a form that is attractive to or targets children, such as candy or baked goods. Instead, S.B. 46 would limit medical cannabis use to forms such as pills, gelatin cubes, oils, creams and topical patches. Patients could possess up to 70 daily doses of cannabis.

In addition, minors could not use—or be recommended—more than 3% THC. And employers could still drug test and prohibit employees from using cannabis.

Regarding social equity, depending on the business type, either at least one-fourth or one-fifth of all licenses are to be awarded to businesses with at least 51% ownership by individuals of African American, Native American, Asian or Hispanic descent, according to MPP.

Filed Under: Cannabis News

GrowGeneration Continues Acquisition Spree – Cannabis Business Times

May 7, 2021 by CBD OIL

The Alabama Senate has passed medical cannabis bills three years in a row, but the state’s House of Representatives continued to stall those efforts late Tuesday night.

Republican opponents filibustered the Senate-passed legislation during nearly 10 hours of debate on the floor of the lower chamber, before the House adjourned shortly before midnight without a vote, according to the Associated Press. The House is scheduled to reconvene at 8 a.m. May 6, when the bill is expected to return to the chamber’s floor.  

Alabama’s Senate Bill 46, which was amended and cleared by two House committees last month, would allow registered patients diagnosed with a qualifying condition to access cannabis, making it the 37th medical cannabis state if passed, according to Marijuana Policy Project.

The Senate’s effort to enact medical cannabis laws collided with COVID-19 last year when pandemic-related circumstance derailed the possibility of a vote in the House. The House has until May 30 to act this year—when the state’s legislature adjourns out of session.

Sponsored by Republican Sen. Tim Melson, S.B. 46 proposes implementing a medical program that would open the application process for potential patients by Sept. 1, 2022.

In addition, the legislation would create an Alabama Medical Cannabis Commission, which would determine the maximum daily dosages of tetrahydrocannabinol (THC) that caregivers could provide patients with each of more than a dozen qualifying conditions. Some of the conditions include: cancer, terminal illness, depression, epilepsy, anxiety or panic disorder, chronic pain, spasticity, autism, Tourette syndrome and post-traumatic stress disorder. 

The new commission would also be responsible for issuing up to five licenses for vertically integrated operators, at least four cultivation licenses, no more than four processor licenses and no more than four dispensary licenses. Businesses that are awarded those licenses could operate up to three sites in different counties, according to the Senate bill’s text.

Other housekeeping items the commission would be responsible for include overseeing the patient registry, issuing medical cards and outlining regulations from seed to sale.

The bill would prohibit the smoking or vaping of cannabis, as well as processing cannabis into a form that is attractive to or targets children, such as candy or baked goods. Instead, S.B. 46 would limit medical cannabis use to forms such as pills, oils, creams and topical patches.

Melson, an anesthesiologist who now works in medical research, said medical cannabis can provide relief to patients where other drugs have failed, adding, “It’s the last choice to be used by a doctor. So, if there is an illness where everything else has failed, why not let them try it,” as quoted by the AP.

Although Republican opponents filibustered the House’s effort to vote on the bill Tuesday, the lower chamber’s members voted, 69-31, to bring the legislation to the floor for debate with 45 Republicans in favor of the motion.

The Senate passed the bill, 21-8, in February. If the amended measure passes the House, it will have to go back to the Senate for final passage.

Filed Under: Cannabis News

Alabama Legislature Passes Medical Cannabis Bill

May 7, 2021 by CBD OIL

Medical cannabis legislation was first introduced in the Alabama House of Representatives two decades ago. Eight years ago, it was the laughingstock of the lower chamber. Now, a medical cannabis bill has supermajority support.

After a nearly 10-hour filibuster Tuesday, House lawmakers reconvened Thursday and considered several floor amendments before passing the Senate-originated bill, 68-34, which would allow registered patients diagnosed with qualifying conditions to access cannabis. The legislation returned to the Senate for final consideration Thursday night, when the upper chamber voted, 20-9, to concur with the House changes.

The legislation, Senate Bill 46, now heads to Republican Gov. Kay Ivey’s desk. In a statement from Ivey’s office Thursday night, press secretary Gina Maiola said the governor looks forward to thoroughly reviewing the bill and providing the diligence it deserves, but did not say whether she would sign it.

If Ivey provides the ink, Alabama will become the 37th medical cannabis state, joining the likes of nearby Arkansas, Florida, Louisiana and Mississippi, according to reform organization Marijuana Policy Project (MPP).

“Passing the compassion act will allow seriously ill patients to finally get the relief they deserve,” said Karen O’Keefe, director of state policies at MPP. “Alabama is one of only 14 states in the country that continues to criminalize the medical use of cannabis, and while this bill is more restrictive than is ideal, it is a dramatic improvement from the status quo and would improve the lives of thousands of Alabamians. We urge … Gov. Ivey to sign it into law.”

The Alabama Senate has passed medical cannabis bills three years in a row, but this is the first time the House has passed legislation. Last year, pandemic-related circumstances derailed the lower chamber’s possibility of a vote.

Sponsored by Republican Sen. Tim Melson, S.B. 46 proposes implementing a medical program that would open the application process for potential patients by Sept. 1, 2022. Republican Rep. Mike Ball sponsored the bill in the House.

“When we get in politics, we get down here and we focus our attention on what it is we’re after; we tend to tunnel up and we don’t see the other side very well, and there’s so many aspects of this that has been so difficult,” Ball said on the House floor Thursday, after bearing the brunt of the filibuster, from opponents on his own side of the aisle, two days earlier.

“And, quite frankly, this has caused me to lose my appetite for politics in this whole process,” he said. “And the people who don’t see it, they’re not bad. They’re just not looking at it.”

Eight years earlier, a Democratic bill for medical cannabis that was introduced by former Rep. Patricia Todd won the 2013 “Shroud Award,” given to the “deadest” bill in the House that session, according to the Associated Press.

“They laughed at me,” Todd said, according to the AP. “I’m glad to see it passed. It’s long overdue.”

Final passage didn’t come without nearly three more hours of floor debate and amendment votes on Thursday. Democratic Rep. Laura Hall, 78, said she first introduced medical cannabis legislation to the House two decades ago.

“Twenty years ago, I brought [legislation to the House] in honor of my son, who had just died the year before I was elected, of AIDS,” Hall said. “And I did that with the idea thinking if I could have had access [to medical cannabis]. The only drug that was available to him was a drug called AZT. He could not take that. When he took that medicine, we would have to get up every four hours—that was the regimen to giving him the medication. And he had finally said, ‘Enough is enough. I may get my T cells back and I can function, but I can’t do it on this medication.’”

Azidothymidine (AZT) is an antiretroviral medication used to prevent and treat HIV/AIDS.

Later during the House’s session on Thursday, the chamber voted, 87-3, in favor renaming the legislation “Darren Wesley ‘Ato’ Hall Compassion Act,” as a tribute to Rep. Hall’s son.

While HIV/AIDS-related nausea or weight loss is one of more than a dozen qualifying conditions included in Alabama’s medical cannabis bill, two other conditions in the Senate’s original version of the bill were removed during an emending process in the House Health Committee—fibromyalgia and menopause or premenstrual syndrome (PMS).

That specific amendment was grouped with several other committee amendments as one package, which passed as a single vote Thursday on the House floor, 72-26.

“This amendment is so disappointing to me as a woman, that all of the issues that specifically impact women were taken out in the Health Committee, which is why I’m going to vote against this amendment,” Democratic Rep. Merika Coleman said. “I support [Rep. Ball] and support the concept, but this body sometimes is so disappointing.”

If enacted, S.B. 46 would create a 14-member Alabama Medical Cannabis Commission, which would determine the maximum daily dosages of tetrahydrocannabinol (THC) that caregivers could provide patients with each of the qualifying conditions—also including cancer, terminal illness, depression, epilepsy, anxiety or panic disorder, chronic pain, spasticity, autism, Tourette syndrome, post-traumatic stress disorder and others.

The new commission would also be responsible for issuing up to five licenses for vertically integrated operators, up to 12 cultivation licenses, no more than four processor licenses and no more than four dispensary licenses. Businesses awarded the dispensary licenses could operate up to three sites in different counties, while vertically integrated operators could have up to five dispensing sites in different counties, according to the bill’s text.

Other housekeeping items the commission would be responsible for include overseeing the patient registry, issuing medical cards and outlining regulations from seed to sale.

Some amendments that were rejected on the House floor were adding a THC dosing cap of 10 milligrams, enacting a zero-tolerance policy for diving under the influence, and revisiting the Alabama Medical Cannabis Commission’s authority to provide caregiver’s the right to distribute medical cannabis should the federal government reschedule cannabis, so that patients could instead receive their medical cannabis from pharmacies should federal prohibition end.  

“My concern in this issue, is if we create this large bureaucracy that we’re having, this large board that’s going to be there, that this will never go away,” Republican Rep. Matt Simpson said about the commission’s authoritative arm. “And you could have 49 other states that are going to be able to receive medical marijuana through a licensed pharmacist … but the state of Alabama would be required to go through these dispensaries based on this legislation you have.”

Meanwhile, the bill would prohibit the smoking or vaping of cannabis, as well as processing cannabis into a form that is attractive to or targets children, such as candy or baked goods. Instead, S.B. 46 would limit medical cannabis use to forms such as pills, gelatin cubes, oils, creams and topical patches. Patients could possess up to 70 daily doses of cannabis.

In addition, minors could not use—or be recommended—more than 3% THC. And employers could still drug test and prohibit employees from using cannabis.

Regarding social equity, depending on the business type, either at least one-fourth or one-fifth of all licenses are to be awarded to businesses with at least 51% ownership by individuals of African American, Native American, Asian or Hispanic descent, according to MPP.

Filed Under: Cannabis News

All-Risks Insurance Brokers and Senses Cannabis Group Launch Industry Leading Retail Cannabis Store Insurance Program

May 6, 2021 by CBD OIL

The Alabama Senate has passed medical cannabis bills three years in a row, but the state’s House of Representatives continued to stall those efforts late Tuesday night.

Republican opponents filibustered the Senate-passed legislation during nearly 10 hours of debate on the floor of the lower chamber, before the House adjourned shortly before midnight without a vote, according to the Associated Press. The House is scheduled to reconvene at 8 a.m. May 6, when the bill is expected to return to the chamber’s floor.  

Alabama’s Senate Bill 46, which was amended and cleared by two House committees last month, would allow registered patients diagnosed with a qualifying condition to access cannabis, making it the 37th medical cannabis state if passed, according to Marijuana Policy Project.

The Senate’s effort to enact medical cannabis laws collided with COVID-19 last year when pandemic-related circumstance derailed the possibility of a vote in the House. The House has until May 30 to act this year—when the state’s legislature adjourns out of session.

Sponsored by Republican Sen. Tim Melson, S.B. 46 proposes implementing a medical program that would open the application process for potential patients by Sept. 1, 2022.

In addition, the legislation would create an Alabama Medical Cannabis Commission, which would determine the maximum daily dosages of tetrahydrocannabinol (THC) that caregivers could provide patients with each of more than a dozen qualifying conditions. Some of the conditions include: cancer, terminal illness, depression, epilepsy, anxiety or panic disorder, chronic pain, spasticity, autism, Tourette syndrome and post-traumatic stress disorder. 

The new commission would also be responsible for issuing up to five licenses for vertically integrated operators, at least four cultivation licenses, no more than four processor licenses and no more than four dispensary licenses. Businesses that are awarded those licenses could operate up to three sites in different counties, according to the Senate bill’s text.

Other housekeeping items the commission would be responsible for include overseeing the patient registry, issuing medical cards and outlining regulations from seed to sale.

The bill would prohibit the smoking or vaping of cannabis, as well as processing cannabis into a form that is attractive to or targets children, such as candy or baked goods. Instead, S.B. 46 would limit medical cannabis use to forms such as pills, oils, creams and topical patches.

Melson, an anesthesiologist who now works in medical research, said medical cannabis can provide relief to patients where other drugs have failed, adding, “It’s the last choice to be used by a doctor. So, if there is an illness where everything else has failed, why not let them try it,” as quoted by the AP.

Although Republican opponents filibustered the House’s effort to vote on the bill Tuesday, the lower chamber’s members voted, 69-31, to bring the legislation to the floor for debate with 45 Republicans in favor of the motion.

The Senate passed the bill, 21-8, in February. If the amended measure passes the House, it will have to go back to the Senate for final passage.

Filed Under: Cannabis News

Gibraltar Growing and Processing Companies Unify as Prospiant, Inc.

May 6, 2021 by CBD OIL

The Alabama Senate has passed medical cannabis bills three years in a row, but the state’s House of Representatives continued to stall those efforts late Tuesday night.

Republican opponents filibustered the Senate-passed legislation during nearly 10 hours of debate on the floor of the lower chamber, before the House adjourned shortly before midnight without a vote, according to the Associated Press. The House is scheduled to reconvene at 8 a.m. May 6, when the bill is expected to return to the chamber’s floor.  

Alabama’s Senate Bill 46, which was amended and cleared by two House committees last month, would allow registered patients diagnosed with a qualifying condition to access cannabis, making it the 37th medical cannabis state if passed, according to Marijuana Policy Project.

The Senate’s effort to enact medical cannabis laws collided with COVID-19 last year when pandemic-related circumstance derailed the possibility of a vote in the House. The House has until May 30 to act this year—when the state’s legislature adjourns out of session.

Sponsored by Republican Sen. Tim Melson, S.B. 46 proposes implementing a medical program that would open the application process for potential patients by Sept. 1, 2022.

In addition, the legislation would create an Alabama Medical Cannabis Commission, which would determine the maximum daily dosages of tetrahydrocannabinol (THC) that caregivers could provide patients with each of more than a dozen qualifying conditions. Some of the conditions include: cancer, terminal illness, depression, epilepsy, anxiety or panic disorder, chronic pain, spasticity, autism, Tourette syndrome and post-traumatic stress disorder. 

The new commission would also be responsible for issuing up to five licenses for vertically integrated operators, at least four cultivation licenses, no more than four processor licenses and no more than four dispensary licenses. Businesses that are awarded those licenses could operate up to three sites in different counties, according to the Senate bill’s text.

Other housekeeping items the commission would be responsible for include overseeing the patient registry, issuing medical cards and outlining regulations from seed to sale.

The bill would prohibit the smoking or vaping of cannabis, as well as processing cannabis into a form that is attractive to or targets children, such as candy or baked goods. Instead, S.B. 46 would limit medical cannabis use to forms such as pills, oils, creams and topical patches.

Melson, an anesthesiologist who now works in medical research, said medical cannabis can provide relief to patients where other drugs have failed, adding, “It’s the last choice to be used by a doctor. So, if there is an illness where everything else has failed, why not let them try it,” as quoted by the AP.

Although Republican opponents filibustered the House’s effort to vote on the bill Tuesday, the lower chamber’s members voted, 69-31, to bring the legislation to the floor for debate with 45 Republicans in favor of the motion.

The Senate passed the bill, 21-8, in February. If the amended measure passes the House, it will have to go back to the Senate for final passage.

Filed Under: Cannabis News

Medical Cannabis Bill Filibustered on Alabama House Floor

May 5, 2021 by CBD OIL

Last week was eventful for cannabis reform in Texas, as the House of Representatives approved three legislative proposals, which would expand the state’s medical cannabis program, reduce penalties for concentrates and decriminalize possession.

The state’s current medical cannabis program is limited to patients with the qualifying conditions: intractable epilepsy, terminal cancer, seizure disorders, multiple sclerosis, spasticity, amyotrophic lateral sclerosis, autism or an incurable neurodegenerative disease; however, the House approved House Bill 1535 in a 134-12 vote on April 28, which would expand the qualifying conditions in the program to include cancer, post-traumatic stress disorder (PTSD) and chronic pain, The Texas Tribune reported.

The bill would also permit the Department of State Health Services (DSHS) to add additional qualifying conditions through administrative rulemaking, The Texas Tribune reported.

The National Organization for the Reform of Marijuana Laws (NORML) recognizes Texas’ current program as a “medical cannabidiol (CBD) program” rather than a proper medical cannabis program due to the program’s emphasis on utilizing CBD over tetrahydrocannabinol (THC) for medicinal use, according to The Texas Tribune.

But H.B. 1535 would also raise the THC limit in medical cannabis from 0.5% to 5% and make it possible for those in the program to access higher doses than what is currently available.

Heather Fazio, director of Texans for Responsible Marijuana Policy, said while increasing the THC limit in medical cannabis is “a step in the right direction,” it still hinders doctors from prescribing proper patient doses.

“There’s an incredibly restrictive cap on THC,” Fazio said. “Low levels of THC will work for some people, but it doesn’t work for others. And so, what we think is that doctors need to be the ones making these decisions, not lawmakers.”

Fazio also said that H.B. 1535 would help bring more patients to the medical cannabis program, as there are currently about 3,500 registered patients out of over two million people eligible; however, she expressed that the bill still “leaves patients behind who desperately need access to this medicine.”

In addition to the state’s medical cannabis program, lawmakers also passed two bills that would reduce the penalties for adult-use cannabis.

H.B. 2593 cleared the chamber by a 108-33 vote on April 28. The bill would slightly lower the penalties for possession of some cannabis concentrate and reduce the penalty for controlling up to 2 ounces of concentrates to a Class B misdemeanor, The Texas Tribune reported.

And in an attempt to lower the criminal penalties for cannabis possession throughout Texas, the House passed H.B. 441 in an 88-40 vote on April 30, The Texas Tribune reported. 

H.B. 441 would lower the possession of 1 ounce of cannabis or less in Texas from a Class B misdemeanor to a Class C misdemeanor, which requires no jail time and is punishable by a fine of up to $500, the article states. The bill would prevent those who possess 1 ounce or less from losing their driving privileges or being arrested.

According to the article, a Class C misdemeanor would allow for record expungement and eliminate a person from acquiring a criminal record.

Fazio said the bill would help keep young people from suffering criminal consequences, as the penalties themselves have caused more harm than consuming cannabis ever could.

In 2019, the House approved a similar bill to reduce penalties for adult-use cannabis, but it was declared dead in the Senate; however, the interest from Texans to legalize adult-use cannabis has increased over the years, as 60% of respondents supported legalization—compared to 49% in 2014—according to the University of Texas and The Texas Tribune February 2021 polls.

“There’s a significant shift happening now, and it’s so wonderful to see,” Fazio said. “To see the shift in the way that this issue is perceived, the seriousness that is given at the legislature and now increased support—it’s very rewarding. It’s such an exciting time to be an advocate.”

Filed Under: Cannabis News

Lab Shopping: Highlighting the Need for Checks and Balances in Cannabis

May 5, 2021 by CBD OIL

Cannabis, we have a problem. Legalizing adult use cannabis in California caused the demand for high-potency cannabis to increase dramatically over the last several years. Today, many dispensary buyers enforce THC minimums for the products that they sell. If smokeable flower products don’t have COAs proving the THC levels are above 20% or more, there is a good chance many dispensaries won’t carry them on their shelves. Unfortunately, these kinds of demands only put undue pressure on the industry and mislead the consumer.

Lab Shopping: Where the Problems Lie

Lab shopping for potency analysis isn’t new, but it has become more prevalent with the increasing demand for high-potency flower over the last couple of years. Sadly, many producers submit valid, certified COAs to the California Bureau of Cannabis Control (BCC), which show two to three times the actual potency value.

At InfiniteCAL, we’ve purchased products from dispensary shelves and found significant discrepancies between the analysis we perform and the report submitted to the BCC by the producer. So, how can this happen? Several factors are creating the perfect storm in cannabis testing.

Problems with Potency

Many consumers still don’t understand that THC potency is not the only factor in determining quality cannabis, and they are unwittingly contributing to the demand for testing and analysis fraud. It is alarming for cultivation pioneers and ethical labs to see producers and profit-hungry testing facilities falsifying data to make it more appealing to the unaware consumer.

Basically, what’s happening is growers are contacting labs and asking, “I get 30% THC at this lab; what can you do?” When they see our COA reporting their flower tested lower than anticipated, they will go to another lab to get higher test results. Unfortunately, there are all too many labs that are willing to comply.

I recently saw a compliant COA that claimed that this particular flower was testing at 54% THC. Understanding cannabis genetics, we know this isn’t possible. Another product I reviewed claimed that after diluting an 88% THC distillate with 10-15% terpenes, the final potency test was 92% THC. You cannot cut a product and expect the potency to increase. Finally, a third product we reviewed claimed 98% total cannabinoids (while only looking at seven cannabinoids) with 10% terpenes for a total of 108% of the product.

These labs only make themselves look foolish to professionals, mislead laymen consumers and skirt under the radar of the BCC with basic mathematical errors.

The Pesticide Predicament

Frighteningly, inflating potency numbers isn’t the most nefarious testing fraud happening in the cannabis industry. If a manufacturer has 1000 liters of cannabis oil fail pesticide testing, they could lose millions of dollars – or have it retested by a less scrupulous lab.

Photo: Michelle Tribe, Flickr

As the industry continues to expand and new labs pop up left and right, cultivators and manufacturers have learned which labs are “easy graders” and which ones aren’t. Certain labs can miss up to ten times the action level of a pesticide and still report it as non-detectable. So, if the producer fails for a pesticide at one lab, they know four others won’t see it.

In fact, I’ve had labs send my clients promotional materials guaranteeing compliant lab results without ever receiving a sample for testing. So now, these companies aren’t just tricking the consumer; they are potentially harming them.

An Easy Fix

Cannabis testing is missing just one critical factor that could quickly fix these problems – checks and balances. The BCC only needs to do one of two things:

Verifying Lab Accuracy

InfiniteCAL also operates in Michigan, where the Marijuana Regulatory Agency (MRA) has already implemented a system to ensure labs are maintaining the highest testing standards. The MRA will automatically flag all COAs which test above a certain percentage and require the product to be retested by multiple labs.

labsphotoLabs are required to keep a back stock of material. So, when test results come back abnormally high from Lab A, then Labs B, C and D are commissioned to retest the material to compare data. If Lab A reports 40% THC, but the other labs all report 18%, then it’s easy to see Lab A has made an error.

Secret Shopping

By simply buying products off the shelves and having them blind-tested by other labs, it would be simple for the BCC to determine if the existing COA is correct. They already have all the data in Metrc, so this would be a quick and easy fix that could potentially solve the problem overnight.

For example, at InfiniteCAL, we once purchased 30 samples of Blue Dream flower from different cultivators ranging in certified COA potencies from 16% to 38%. Genetically, we know the Blue Dream cultivar doesn’t produce high levels of THC. When we tested the samples we purchased, nearly every sample came back in the mid-teens to low 20% range.

Labs Aren’t Supposed to Be Profit Centers

At InfiniteCAL, we’ve contacted labs in California where we’ve uncovered discrepancies to help find and flush out the errors in testing. All too often, we hear the excuses:

  • “If I fix my problem, I’ll lose my clients.”
  • “I’m just a businessman who owns a lab; I don’t know chemistry.”
  • “My chemist messed up; it’s their fault!”

If you own a lab, you are responsible for quality control. We are not here to get rich; we are here to act as public safety agents who ensure these products are safe for the consumer and provide detailed information about what they choose to put in their bodies. Be professional, and remember you’re testing for the consumer, not the producer.

Filed Under: Cannabis News

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