CCMA Greenbrief November 15th: IRS Processing $4.7B Cash Payments from Cannabis Companies…Congress Plans for Cannabis Reform in 2019…Chula Vista Opens Door to Rec Cannabis Licenses…

CCMA Political  greenBrief

Thursday, November 15, 2018

Incoming House Rules Committee Chair Jim McGovern (D-MA) Anticipates Several Pieces Of Marijuana Reform Legislation To Move In The Democratic-Led House Of Representatives In 2019


“Attorney General Jeff Sessions has been an impediment to the growth of the regulated cannabis industry. We believe we are at a tipping point nationally in terms of voter sentiment as well as support from lawmakers on both sides of the aisle. With Pete Sessions being voted out of Congress and Jeff Sessions resigning, the corridor is now open to accelerate a states’ rights approach to regulating the cannabis industry.”
Derek Peterson, CEO Of Terra Tech, On The Departure Of Attorney General Jeff Sessions
“This just seems like common-sense stuff. Especially on the issue of medical marijuana — people who are opposed to that are just on the wrong side of public opinion, overwhelmingly. It’d be nice if, every once in a while, Congress acted in a way that people wanted. I know that may seem like a radical idea, but come on.”
Incoming House Rules Committee Chair Jim McGovern (D-MA) On Cannabis Reform

Proposed Rule Changes Could Have Big Impact On California’s Cannabis Businesses (CA – State Regulations)

Marijuana Business Daily (November 15, 2018) The newest draft of California’s permanent marijuana business regulations could, if adopted, produce financial fallout and a licensing logjam for a variety of cannabis companies – from edibles makers and retailers to delivery businesses and growers. It’s possible the three state agencies tasked with writing the final rules will alter them again, but they could choose to keep the regulations in place. Industry watchers will see how the final regs shake out on Dec. 3.


Santa Barbara County’s Cannabis Permitting Program Moving But Slowly (CA – Licensing)

Santa Maria Times (November 14, 2018) Santa Barbara County’s cannabis licensing and permitting process is picking up steam, but officials hope to convince operators to submit applications in order to avoid finding themselves out of compliance with state and county laws. That was one of the main points in the first quarterly update on the county’s cannabis regulatory process, enforcement actions and tax revenues delivered Tuesday to the Board of Supervisors by Dennis Bozanich, deputy county executive officer.


Microgrids For Energy-Hungry Cannabis Growers In California City (CA – Cannabis Developments)

Microgrid Knowledge (November 15, 2018) SALT Energy, a Maryland based developer of renewable energy and microgrid projects, has teamed up with Baker Energy Team of Roseville, Calif., to explore the development of microgrids to serve new businesses in California City, especially cannabis growing operations. A microgrid project could be in operation as soon as next summer.


Chula Vista Opens Doors For Recreational Cannabis Business (CA – Cannabusiness)

KUSI News (November 14, 2018) Chula Vista is poised to become the next city in San Diego County to allow marijuana businesses to operate legally. Voters gave their approval last week to Measure Q, calling for a marijuana sales tax. Last week’s passage of the cannabis sales tax allows the City of Chula Vista to take its first steps in issuing licenses to marijuana businesses in San Diego County’s second largest city. Under the ordinance approved by the City Council in March, the new industry will be tightly regulated.


Congress Is Going To Make Marijuana Moves (USA – Cannabis Politics)

The Hill (November 14, 2018) Despite majority public support in favor of marijuana legalization, and super-majority support in favor of medical cannabis access, members of Congress have nonetheless been reticent to move forward with any significant changes to federal pot policy. That is, until now. Following last week’s midterm election results, legislative leaders in both the House and Senate appear ready to take on the cannabis issue.


The DEA Just Got Scolded Over Its Marijuana Eradication Program (USA – Federal Program)

Marijuana Moment (November 14, 2018) The Drug Enforcement Administration (DEA) got a slap on the wrist from a federal watchdog agency over its management of a multi-million dollar marijuana eradication program. Just because it’s the DEA’s program doesn’t mean it’s the only agency dropping the ball on marijuana eradication efforts. In April, a report from the inspector general for the U.S. Department of Agriculture found that agents weren’t adequately cleaning up public lands after cannabis busts, which can pose threats to humans, animals and the environment.


10 Cannabis Executives Predict How AG Jeff Sessions’ Retirement Will Affect the Marijuana Industry (USA – Cannabis Politics)

Entrepreneur (November 13, 2018) When Attorney General Jeff Sessions tendered his resignation on November 7th, the cannabis industry took notice. As one of the most vocal marijuana opponents in the highest level of U.S. government, his resignation could pave the way for federal legalization. With Matthew Whitaker set to take Sessions’ place, the industry could be poised for significant change in the near future. How do cannabis industry insiders feel about this news? Will it be as groundbreaking as many hope?


Cannabis Companies Are Paying Federal Taxes In Cash And It’s Giving The IRS A Headache (USA – Cannabis Banking)

Quartz (November 14, 2018) Marijuana is now legal, in one form or another, in 33 US states and the District of Columbia. To the federal government, pot is still a drug classified no differently than heroin or cocaine. Yet cannabis businesses are still required to pay federal taxes. The government collected an estimated $4.7 billion in taxes from legal cannabis companies last year on nearly $13 billion in revenue. Unlike most American businesses, which pay electronically or by check, most of these marijuana-product firms were forced to pay their federal taxes in cash.


From Drug War To Dispensaries: An Oral History Of Weed Legalization’s First Wave (USA – Legalization)

Intelligencer (November 14, 2018) On November 6, the total number of cannabis-friendly states rose to 33, as voters in Michigan passed a bill allowing recreational marijuana use, and Missouri and Utah — Utah! — legalized medical weed. It’s a far cry from the years leading up to 1996, when Californians helped precipitate a social revolution by passing Proposition 215, the medical-marijuana ballot initiative that marked the beginning of the national legalization movement as a credible entity.


Canada’s Cannabis Advantage Is Going Up In Smoke As The U.S. Moves In (USA – Cannabusiness)

The Growth Op (November 14, 2018) Canada’s competitive advantage in cannabis is disappearing. Half of the 10 biggest marijuana companies trading in Canada are now U.S. based, including MedMen Enterprises Inc. of Los Angeles, Curaleaf Holdings Inc. of Wakefield, Mass., and Green Thumb Industries Inc. of Chicago. Quincy, Florida-based Trulieve Cannabis Corp. and Boulder, Colorado-based Charlotte’s Web Holdings Inc. are among the top 10.


What You Need To Know About Cannabis And Breast Cancer (USA – Medicinal Cannabis)

The Growth Op (November 14, 2018) Breast cancer is the second most common cancer in women; one in ten will be affected by it at some point. There are a variety of highly successful chemical, radiological, and surgical treatment options. But they’re not particularly pleasant. Moreover, some tumors are resistant and prone to relapse. The big breakthrough in breast cancer came in 2007, when Dr. Sean McAllister showed that CBD, the gentle, non-intoxicating sibling of THC, fights the most malignant forms of the disease by switching off the ID-1 gene.


For A Buck And Sometimes A Buzz, Brewers Are Putting Cannabis Into Cans (USA – Cannabis Products)

The New York Times (November 15, 2018) For more than two decades, SweetWater Brewing Company’s best-seller has been its floral 420 Extra Pale Ale, the numerals slyly nodding to the beer’s April 20 birth date and the brewery’s fondness for marijuana: 420 is drug-subculture slang for cannabis. As state regulations on marijuana have relaxed and recreational use has become legal in several places (most recently Michigan and Canada), breweries have been looking for ways to use cannabis or its derivatives in beverages.


Canopy Growth CEO: ‘For Sure There’s A Marijuana Bubble’ (Canada – Cannabis Market)

Yahoo! Finance (November 14, 2018) Canopy Growth Corporation saw its shares fall 13% on Wednesday after reporting disappointing earnings that included a revenue decline. Analysts had expected better results from Canopy after Canada launched legal recreational marijuana sales on Oct. 17. But Canopy’s (CGC) shares are still up 30% this year. And its cannabis industry peer Tilray is up 360% this year. The frenzy over weed stocks continues. Many have called it a bubble.


Pot Stocks: Still ‘Better At Growing Their Bank Accounts Than Growing Cannabis’ (Canada – Cannabis Investments)

CNBC (November 14, 2018) It could be a $146 billion sector in less than a decade, but for investors whose interest has been piqued by cannabis stocks, there is still no reason to rush into the publicly traded companies. For the first time since Canada legalized recreational cannabis, pot stocks are reporting earnings. While cannabis company revenue is up, share prices continue to come down. Long-term investors should not be convinced that it is time to buy on the dip. And the dips have been big.