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As a former investment accountant, Meghan knows how critically legal issues can impact a company’s bottom line. The emerging regulated cannabis industry has been a major focus for Meghan. She has been involved in all aspects of the industry, including working on rulemaking committees and drafting legislation.

Cannabis is a hot topic in the news. On October 17, 2018, our friends to the north made headlines when cannabis was officially legalized for adult use. As the November 6 midterm elections draw closer in the United States, we’ve compiled a round-up of ballot initiatives across the country that will ask voters to weigh in on a variety of marijuana and industrial hemp initiatives.

As you probably heard, Denver Police, along with several agencies including the Aurora Police Department, the Marijuana Enforcement Division and Denver Department of Excise and Licenses, closed 8 Denver-area marijuana centers and stores on December 14, 2017. The Department of Excise and Licenses suspended 26 licenses including retail stores, medical centers, cultivations and manufacturing (all

Edibles

The deadline for compliance with new edible restrictions and labeling requirements is fast-approaching. Infused product manufacturers (medical and retail) may no longer produce, transfer, or donate any edible marijuana products in the shape of a human, animal, or fruit or shapes that bear the likeness or contain characteristics of a realistic or fictional human,

On May 24, 2017 Vermont Governor Phil Scott vetoed legislation that would have begun the process of Vermont becoming the 9th state to legalize recreational marijuana. However, the legislation is not dead. Governor Phil Scott, referencing his libertarian streak, reiterated in a letter to the Senate he is not “philosophically opposed to ending the

Over the last few weeks, we have tried to glean what the direction of state and federal policy on marijuana may be. On May 5, Trump used a signing statement to signal his disagreement with provision 537, which prohibits federal funds from being used to prevent states from implementing their own laws that authorize the use, distribution, possession or cultivation of medical marijuana. This provision lists 44 states that have some form of medical marijuana legalization at the state level. (Indiana and North Dakota were not on the list but have enacted medical marijuana programs).

As these statements spur discussions, it seems people are relatively unaware of the current landscape of state marijuana policies. Numbers can fluctuate depending on how you classify marijuana and legalization, (some states only allow cannabidiol or CBD oil, others have laws allowing medical marijuana but it is inaccessible because the states lack infrastructure for the purchase, sale, and manufacturing). The below summary is done as a waterfall, so once it is in one category it will not appear in a subsequent category. (For instance, a state that allows recreational marijuana also allows medical or a state allowing medical marijuana may also decriminalize the possession of recreational marijuana). Below is a summary of state policies as of May 12, 2017.

Federal Policy

Cannabis is illegal at the Federal level. Under the Controlled Substances Act, Marihuana is classified as a level 1 drug, the same schedule as heroin. The DEA confirmed as recently as December, the level 1 classification covers all cannabiniods from marihuana and cannabis. This is vastly inconsistent with the majority of Americans’ views and state law definitions of marijuana. In fact, there is not a single state that penalizes an individual in the same manor for marijuana and heroin possession.

Some key points on the analysis – the analysis covers all 50 states and the District of Columbia. The population numbers used are from the U.S. Census bureau estimates on July 1, 2016, where the total U.S. population was 323,127,513.

Recreational

There are currently eight states and the District of Columbia that have passed legislation for legal adult-use (recreational/retail) marijuana. The states that currently offer licenses and have established legal frameworks are Alaska, Colorado, Oregon, and Washington. In November 2017, four more states approved adult-use marijuana and are developing a legal framework for licensing – California, Maine, Massachusetts, and Nevada. The District of Columbia allows you to possess and home grow marijuana but has not developed any legal structure for purchase, sale or manufacturing. That is 68.7 million people, or 21% of Americans live in a state (or district) that allows recreational marijuana.

Vermont may become the 9th state to allow recreational marijuana and the 1st state to do so via legislation. Last Wednesday, the Vermont house approved a bill 79-66 which would create a regulatory structure for the cultivation, processing, sale and use of recreational marijuana by July, 2018. The Vermont Senate previously passed the

The House is not slowing down on the push for legalization of marijuana. There have been five bills introduced in the United States House of Representatives since the beginning of the 115th Congress (2017-2018). In addition, CO Representative, Jared Polis, has stated he will introduce his “Regulate Marijuana Like Alcohol Act” again this year. Four of the five bills were introduced by Republicans and one by Democrats, showing marijuana legalization is a bipartisan issue. All five bills are aimed at loosening federal restrictions on marijuana.

HR – 1227, titled “Ending Federal Marijuana Prohibition Act” was introduced on February 27, 2017 by Representative Thomas Garrett a Republican from Virginia. The text is the same as the Senate Bill introduced in 2015 (S. 2237) by Senator Bernie Sanders. The purpose is to remove “marihuana” and “tetrahydrocannabinols” from Schedule I of section 202(c) of the Controlled Substances Act (CSA). In 2017, Rep. Garrett’s bill is co-sponsored by six house members: Tulsi Gabbard (D-HI); Scott Taylor (R-VA); Jared Polis (D-CO); Earl Blumenauer (D-OR); Don Young (R-AK); Justin Amash (R-MI).

HR – 975, titled “Respect State Marijuana Laws Act of 2017” was introduced on February 7, 2017 by Representative Dana Rohrabacher a Republican from California. Rep. Rohrabacher introduced a “Respect State Marijuana Laws Act” in the 2013-2014 and 2015-2016.   The purpose is to amend the CSA for any provisions as related to marihuana.  The provisions shall not apply to any person who produces, possesses, distributes, dispenses, administers, or delivers marijuana in compliance with state law.  In 2017, Rep. Rohrabacher’s bill is co-sponsored by 14 house members:  Steve Cohen (D-TN); Don Young (R-AK); Mark Pocan (D-WI); Ted Yoho (R-FL); Earl Blumenauer (D-OR); Tom McClintock (R-CA); Dina Titus (D-NV); Duncan Hunter (R-CA); Jared Polis (D-CO); Justin Amash (R-MI); Barbara Lee (D-CA); Thomas Massie (R-KY); Mike Coffman (R-CO); Peter Welch (D-VT).

On February 17, 2017 four Congressmen announced a bipartisan “Congressional Cannabis Caucus”. Republican representatives Don Young (AK) and Dana Rohrbacher (CA) joined democrats Earl Blumeanauer (OR) and Jared Polis (CO) as co-chairs of the new caucus.  In a press conference, they each outlined the importance of the caucus to their individual states and to the country.  Representative Rohrbacher started by outlining the changes to the country’s outlook on marijuana, as 44 states now have laws permitting marijuana at varying levels.  He noted the economic benefits and the importance of continuing to make progress on this issue.  Representative Blumeanauer outlined four critical areas that need to be addressed 1. Not allowing the Federal government to prevent marijuana research; 2. Gaining access to marijuana for veterans, (VA hospitals are not allowed to prescribe medical marijuana); 3. Removing IRS code 280E which prohibits marijuana businesses from deducting business expenses on their federal tax returns; and 4. Ending the banking prohibition.

Representative Don Young of Alaska further explained the impact of the banking prohibition. (Marijuana businesses have difficulty getting bank accounts, potentially making it an all cash business.) When there is a great amount of surplus cash, Rep. Young has seen it “cause lots of sideline problems”. He wants to ensure these businesses are able to be run as businesses.  Marijuana businesses should be able to utilize banks for loans and depositing cash.  However, Representative Young’s primary interest in this caucus comes from his belief in state’s rights.  During Q&A Mr. Young pointed out the hypocrisy of a conservative stance against legalization, “you can’t be a conservative and say we can pick and choose, you have to be for state’s rights or against state’s rights…”  Alaska voters “voted to legalize it…pretty large margin” and Mr. Young is a representative of those people.