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Colorado Leads Submits Public Comment in Support of Federal Rescheduling

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Colorado Leads submitted a public comment in support of the Department of Justice’s proposed rule to transfer marijuana from schedule I to schedule III of the Controlled Substances Act.

As the leading marijuana business association in the nation’s longest- running state-regulated marijuana market, we are uniquely positioned to help inform DOJ’s analysis. We also felt it was imperative that we participate in the rescheduling process since it will directly and substantially impact our businesses, our industry as a whole, and our state and local communities.

Our comment begins by explaining how Colorado’s experience and public policies support HHS’s conclusions that:

  • marijuana has a currently accepted medical use in treatment; and
  • marijuana has less potential for abuse than substances in schedules I and II, as well as alcohol, which is an unscheduled substance.

DOJ specifically solicited comments on the economic impact of the proposed rule, recognizing it may significantly affect a substantial number of small entities, including state-regulated marijuana businesses that would no longer be subject to section 280E of the Internal Revenue Code. It could also impact entities that engage in marijuana research, which may be subject to different protocols set by the DEA.

Colorado Leads surveyed its membership regarding the impact they expect it could have on their businesses, and we offered some of the insights that were shared, along with our analysis of the impact rescheduling could have on our industry, state, and local communities. We also reached out to leaders of Colorado’s marijuana research community to get their thoughts.

Read Colorado Leads’ full public comment.

Cannabis by the Numbers

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Despite the pandemic, there has been a lot of positive cannabis news in the last couple of weeks.

From research advancements to increases in industry employment numbers to an infusion of millions of dollars of tax money to the State of Colorado, the cannabis industry has a lot to be proud of.

By the numbers:

The cannabis industry’s
projected economic impact
by 2024.

Projections show cannabis employment growth could increase 50% in 2020. That would be more than the number of the nation’s computer programmers. Chart: US cannabis employment could climb nearly 50% in 2020, surpassing computer programmers

The year marijuana was hailed as a miraculous treatment for “general debility” and “nervous excitement.” Since then, there hasn’t been much scientific research on cannabis, but Colorado is one of the states trying to lead the way with controlled, peer-reviewed studies.

Put a $ in front of it and it’s $167 million. That’s the tax revenue generated by the Colorado cannabis industry from January through June of 2020. Since legalization, the state has received nearly $1.4 billion in cannabis taxes and fees.

Here’s how Denver spends it’s
tax revenue.

Here are the 35 most influential womenin cannabis, according to Green Entrepreneur. Notables include soccer star Megan Rapinoe, and in Colorado, CEO of Simply Pure Dispensary, Wanda James, Shannon Donnelly, CEO of Healthy Honeys, and Nancy Whiteman, CEO of Wana Brands.

That is how much of an increase in the rates of crime in states bordering Colorado and Washington, according to a study published in the Journal of Drug Issues. In fact, researchers found “a substantial reduction in certain types of crimes, such as property crime, larceny, and simple assault in border counties in the Colorado region.”

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It is far too early to determine what the long-term effects of the coronavirus will be on the cannabis industry. So far, the industry as a whole appears to have fared relatively well. But questions remain as to what happens when unemployment benefits run out and whether the local economies in Colorado and other states are forced to shut down again due to the pandemic.

Listen: From ‘Illegal’ To ‘Essential’: How The Pandemic Has Affected The Budding Cannabis Industry

Read:

In Colorado, a new study has launched to measure the effects of COVID-19 on workers in the cannabis industry. The goal of researchers at the University of Colorado Department of Anthropology, who are leading the study, is to learn more about worker exposure to coronavirus, hazardous working conditions, lack of personal protective equipment (PPE), and lack of social distancing in the workplace.

Check out these women leaders in cannabis 

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In honor of International Women’s Day, Vice looks at eight female leaders in the cannabis industry. They are  pretty amazing. 

Read More »

Photo credit: Jennifer Skog/MJ Lifestyle

Colorado Leads Members: In their own words 

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Bob Eschino

President of Medically Correct, LLC

What do you/your company specialize in? 

We are one of the country’s largest infused edible manufacturers and extract companies. We specialize in quality, consistent edibles using multiple delivery methods and cannabinoid ratios for patients and customers in need.

What prompted you to enter the cannabis industry?

I watched cannabis work for my grandmother when pharmaceuticals had failed her.  It helped with her pain, appetite and sleep.  Seeing cannabis work as medicine compelled me to figure out a way to get quality medicine to patients in need.  Since that time, we have worked to get easier, safer access to cannabis for patients.  We have been on the forefront of accurate and clean product manufacturing and legitimate health alternatives.

What do you consider to be your most significant business accomplishment?  

We sell over one million products a year in Colorado alone to patients and I’m proud that we are able to help so many people.  We also employ over 100 people in Colorado and help contribute to the local economy.  We also provide assistance to our local schools and shelters, giving back to our community where we can.

What do you consider to be your most significant business failure? 

Not being able to effectively navigate the banking regulations to allow us to grow at a quicker pace.  Not having access to capital has slowed the companies growth at times.

What is your next business goal?  

To continue to help shape cannabis regulations not only in Colorado, but at the federal level as well.  I want to see the industry become federally legal, so we can help patients across the globe.

In the News

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Member in the News: 

Bob DeGabrielle, CEO of Los Sueños Farms, talked to Westword about the problems cannabis growers face when hit with severe and unpredictable weather. Growers aren’t allowed under Colorado law to move plants off the property during a weather emergency.  

“From a bud product prospective, we felt like we lost about $7 million last year,” he said.

There is a bill in the state House of Representatives that would require the MED to create regulations allowing outdoor marijuana growers to make contingency plans when extreme weather threatens their plants.

Read More »

Amen 

Cannabis entrepreneurs are flocking to the Bible Belt because of its low taxes.

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More taxes? 

Newly elected Aurora Mayor Mike Coffman supports a cannabis tax increase to fund city programs.

Read More »

Another first for Colorado 

The state’s first licensed cannabis R&D firm is set to study marijuana’s effect on Alzheimer’s disease. MedPharm Holdings is the only company in the state that holds a marijuana research and development license. 

Read More »

Move to overturn the will of the voters 

Initiative 282 would repeal Amendment 64 and remove language permitting recreational use of cannabis in the state constitution.  Title Board hears the case today. 

Read More »

Taking stock 

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The Motley Fool looks at four catalysts that could help make or break cannabis stocks this year. 

Read More »

Sales of adult-use cannabis in Colorado eclipsed $1.4 billion in 2019, a new record.

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The jump is being attributed to new customers entering the market.

So who are these new customers? The data suggests newbies are coming from Generation Z – those born in 1997 and later – and consumers who continue to transition out of the illicit market and into the regulated, legal industry.

 

View the Marijuana Business Daily Article and Graph »

And they’re off!

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This year’s legislative session isn’t expected to have as many cannabis bills – or the drama (well, maybe) –  as last year. But five new bills ranging from prohibiting employers from firing employees for using marijuana during off-hours to reducing felonies for criminal marijuana possession have been introduced.  And bills addressing diversity in cannabis-industry ownership and statewide expungement of former marijuana crimes are expected in the near future. 

Highlights of proposed legislation are below. For more detailed info on all cannabis-related bills, go here.  

  • HB 1080. Removes the requirement that managers and employees of a medical marijuana business or a retail marijuana business with day-to-day operational control must be Colorado residents when they apply for licensure. 
  • HB 1089. Prohibits an employer from terminating an employee for conducting off-duty activities that are lawful in Colorado even if those activities are not lawful under federal law. 
  • More info here »
  • SB 016. Adds providing alcohol and the sale, dispensing distribution or transfer of marijuana or marijuana concentrates by an employee to a student to the parent notification requirements by schools.  

“High time” to legalize cannabis, says New Mexico Guv 

During her State of the State, New Mexico Gov. Michelle Lujan Grisham told lawmakers that legalization of marijuana provides a lucrative economic opportunity for the state and is supported by a vast majority of state residents.  

New Mexico only has a 30-day session, so lawmakers need to hustle if they want to be the 12th state  in the country to legalize cannabis for adult use. 

And yes, she really did say that. 

Where is the federal banking bill? 

U.S. Rep. Ed Perlmutter and three other congressmen who’ve been pushing to give cannabis businesses access to banking services sent a letter to the Senate Committee on Banking, Housing and Urban Affairs to address the chairman’s concerns about the Secure and Fair Enforcement (SAFE) Banking Act and urging him to take action. 

The chairman, Mike Crapo of Idaho, recommended adding public health and safety requirements to the bill, including potency disclosures and a possible 2% THC limit on products before banks could do business with cannabis companies.

The representatives said they are hesitant to expand the scope of the bill, saying “we should exercise caution before adding limitations on the legislation’s safe harbor that impose unworkable burdens on financial institutions.”

Colorado Attorney General Phil Weiser and five other attorneys general also weighed in a separate letter to the U.S. Senate, stating “the SAFE Banking Act is a narrowly tailored solution that would provide immediate public safety benefits without supporting expansion of the existing cannabis industry.”

Read More »

What are the chances something happens this year?

Industry observers say it’s unlikely the Republican-controlled Senate will pass a major piece of marijuana reform this year, but they expect the momentum to continue.

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One example of why the cannabis industry needs banking 

The number of break-ins at Denver marijuana businesses hit a three-year high in 2019, according to the Denver Police Department. 

“We probably won’t see any relief in these kinds of robberies until these businesses aren’t forced to deal only in cash,” said John Goutell, general counsel for Frosted Leaf.

The hot streak continues

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Cannabis monthly sales reached the highest monthly total ever in August, according to the Colorado Department of Revenue. In the first eight months of 2019, Colorado has reported over $1.15 billion in dispensary sales – indicating that the industry is on track to eclipse last year’s overall sales of $1.55 billion.

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