The younger generation has just figured out this old standby of a trick to reduce cannabis anxiety.
Cannabis anxiety is a common affliction for many marijuana smokers. This phenomenon — which tends to plague first-timers, people who smoke a different strain of weed, or who overindulge in THC — can quickly disturb an evening meant for relaxing. TikTok discovered a well-known hack for it: peppercorns.
TikTok user @transstender’s viral hack suggests chewing or sniffing on whole peppercorns or something acidic like lemons to help reduce the paranoia and anxiety that can occur when consuming THC. While this hack isn’t new for seasoned weed users, the TikTok video allows it to reach a new and wider audience.
The chemicals present in peppercorns and lemons help you relax by creating an effect that’s similar to the one produced by CBD. There’s some science to support this.
As we’ve reported before, peppercorns contain terpenes (aromatic compounds present in many plants) that are capable of interacting with the terpenes present in cannabis. The terpenes in peppercorn, called pinene and caryophyllene, are known to tone down THC’s psychoactive tendencies, preventing reactions like anxiety and paranoia.
Other foods high in terpenes include mangoes, which a lot of people use when consuming cannabis since they claim it produces a stronger high.
Cannabis is a pretty mysterious compound. While it’s been around for centuries, we’re only now beginning to understand all of the plant’s complexities, such as the way it works with our endocannabinoid systems and whether it interacts with other elements we ingest. Next time you start to feel some weed-induced anxiety, keep some peppercorns nearby. It doesn’t hurt to try.
Sources have confirmed that Senate Majority Leader Chuck Schumer is committed to trying to push through a more global legalization bill before pivoting to a smaller bill like the SAFE Banking Act.
The saga of cannabis legalization at the federal level is ongoing, as the Democratic-controlled House of Representatives continues to pass sweeping legalization bills that (to date) have gotten little traction in the divided U.S. Senate. (Link). The result has heightened speculation throughout the cannabis community, as activists, entrepreneurs and those with cannabis convictions wait for the federal government to act.
And while it’s impossible to say precisely what a final cannabis-reform bill will look like, those in the know (like the publishers of an unidentified cannabis-newsletter, for example) have gleaned some interesting things from the smoke signals coming from Capitol Hill.
Photo by Jonathan Ernst/Pool/Getty Images
Chuck Will Have a Lot to Say
As Politico recently wrote, “Chuck Schumer really likes to talk about weed.” (Link). Indeed, cannabis reform has become the cause celebre of the senior Senator from New York, as he continues to advocate for a sweeping legalization bill that could include everything from criminal justice reforms to provisions allowing plant-touching companies to access the U.S. capital markets.
Leaflet sources have confirmed that Schumer will be the gatekeeper of what ultimately goes to the floor (at least for now) and that he’s committed to trying to push through a more global legalization bill before he will pivot to a smaller bill like the SAFE Banking Act (more on that below). Schumer sees budget reconciliation — the bureaucratic process by which congress often passes budget-related legislation — as a potential vehicle for his preferred cannabis legalization bill and plans to bring his bill to the floor within the next few weeks.
The draft bill itself may be released in the coming days and is likely to begin its legislative journey with the Senate Finance Committee chaired by Washington Senator, Ron Wyden. If the bill fails (as many within Schumer’s own camp expect that it will), Schumer will likely pivot to Plan B — the SAFE Banking Act.
The Votes (May) Be There for SAFE Banking
The SAFE Banking Act passed the House in May 2020 and would prohibit federal regulators from penalizing financial institutions for doing business with state-legal cannabis businesses. It could also solve the cannabis industry’s Section 280E problem (check out our piece on that above if you missed it). (Link).
Photo by Kindel Media from Pexels
Several senators within the Democratic caucus have made it clear that eliminating Section 280E is of particular importance, and the version of the SAFE Banking Act passed by the House provides that revenues of a state-legal cannabis business are not the proceeds of an unlawful activity — allowing cannabis companies to take all the same ordinary business deductions their counterparts in other industries can take. However, some Capitol Hill insiders are skeptical that this particular provision of the House version has the necessary votes in the Senate.
That said, Leaflet sources have indicated that there may already be enough votes in the Senate to pass SAFE Banking in some form. And while this might leave some in the industry disappointed, it would nevertheless be a substantial step forward in the fight for increased (if not outright) cannabis legalization. It could also set the table for a more comprehensive cannabis bill in the months and years to come.
Rich Trotter is a litigation counsel at the New York-based law firm of FeuersteinKulick, one of the nation’s leading cannabis law firms.
This article originally appeared in Feuerstein Kulick’s monthly cannabis newsletter, The Leaflet, which you can subscribe to here. For more information you can contact Rich at rich@dfmklaw.com or at (201) 410-4737, or email The Leaflet at theleaflet@dfmklaw.com.
USPS has acknowledged that hemp and CBD products will not necessarily fall under the definition of Electronic Nicotine Delivery System (ENDS), which are banned under the PACT Act.
Last month, I discussed my optimism regarding the mailability of vape products that are used for the consumption of hemp and CBD, based on principles of statutory interpretation. This month, I am happy to report that the USPS published a guidance document in the Federal Register that indicates a likely exception for hemp-derived CBD and other products that are produced lawfully pursuant to the 2014 and 2018 Farm Bill legislation.
The April 19, 2021 notice indicated that the forthcoming ban on vaporizer products would likely contain an exception process whereby individuals could continue to ship products that are otherwise exempt from PACT (Preventing All Cigarette Trafficking) Act compliance. The notice highlighted several issues related to the PACT Act exception process, and first on the list is “CBD Products.”
The notice indicates that “mailers must retain, and prepare to make available upon request, records establishing compliance with all applicable federal, state, and local laws pertaining to hemp production, processing, distribution, and sales, including the [2014 Farm Bill] and [2018 Farm Bill]”. The notice says such records may include “laboratory test results, licenses, and compliance reports.”
The USPS guidance document indicates that ENDS (Electronic Nicotine Delivery Systems) products used in connection with marijuana, or cannabis plants containing greater than 0.3% THC on a dry weight basis, would be non-mailable if they are deemed to be drug paraphernalia for purposes of the Controlled Substances Act (“CSA”). This is not a surprise, given that such a ban exists notwithstanding the PACT Act, but the CSA prohibition on drug paraphernalia does not apply to “any person authorized by local, State, or Federal law to manufacture, possess, or distribute such items.”
Photo by Obi Onyeador via Unsplash
In the case of medical and recreational cannabis states that have removed criminal statutes penalizing drug paraphernalia used to consume cannabis, anyone who is shipping from one legalized state to another would technically fall under the paraphernalia definition exception, thus providing a legal basis for exception from the PACT Act requirements.
The USPS is still in the process of finalizing the ENDS-related exception application requirements with a focus on efficiency given that the USPS expects a tremendous volume of exception requests. However, the good news is that USPS has acknowledged that hemp and CBD products will not necessarily fall under the ENDS definition, even though some have speculated that “other substances” was intended to cover non-tobacco, non-nicotine-containing substances.
BOTTOM LINE
While we must wait for the issuance of the final rule to know what the PACT Act exception process will look like, it is a good idea to reach out to a regulatory attorney about the compliance process ahead of time in preparation of the forthcoming regulatory changes.
Emily Burns is a recognized expert on cannabis-related legal, regulatory, and policy issues, having worked with a wide range of individuals and entities in both the public and private sector. You can contact Emily at info@gl-lg.com or (503) 488-5424.
The best way to get high depends on your preference. Here are some options based on health, potency, and speed.
The more that cannabis is embraced, the more variety of products are introduced to the market. This is great for consumers, but can also be overwhelming for newbies who haven’t had experiences with weed and don’t know where to start. Is there a best way to get high? The answer depends on what you define as best.
Marijuana consumption should always be fun and relaxing, whether you’re getting high with friends or using cannabis for medical purposes. Depending on the method of consumption, you can consume it in a way that’s healthy, discreet, or simply very potent. Still, you want to eliminate as much harm as possible.
Here are some of the best ways to get high:
When you don’t want to smoke a joint
Photo by Alessandro Zambon via Unsplash
A lot of seasoned cannabis users love to smoke their joints. The feel of smoking is relaxing and fast-acting, an itch that can’t be scratched by eating an edible. A pot brownie might be delicious, but it’s just not the same experience.
Sadly, we now know that inhaling any type of smoke is terrible for you and while an occasional joint won’t do much harm, regular smoking could harm your lungs and impair your lifestyle. Still, if you’re looking for that sensation of smoking, options like water pipes and bongs are great solutions. While not perfect, these methods are less harmful to your lungs.
When you want something strong
Photo by Margo Amala via Unsplash
If you have potency in mind, edibles should be your first choice. While not as fast-acting as joints, bongs, and vapes, what you lose in speed you definitely make up for in strength.
Edibles are powerfully effective. In fact, you should be a little wary when using them for the first time. Be patient and understand that your stomach lining is the one doing the absorption process and it’s much slower than your lungs. Still, by the time your edible affects you, you’ll be well aware of it and you’ll feel the effects for a good couple of hours.
When you want something strong and fast
Photo by Jason W Lacey/Getty Images
If you want something strong and fast, consider dabbing. This highly concentrated wax requires some pretty specific tools — a dab rig, a nail, a torch, some cannabis extract, and more items if you want — and provides a fast-acting experience that hits with a lot of potency.
Per the American Addiction Centers, wax is twice as strong as cannabis flower. It’s common for new dabbers to pass out after a hit because the strength of the THC makes their blood pressure drop. So, you know, take it easy. Dab in a place you’re comfortable in, with friends you trust.
WARNING: Cannabis may cause arrest in states that haven’t legalized it. So, find a good place to hide your weed when traveling.
Although the cannabis industry doesn’t seem to agree on when or if federal marijuana legalization will happen soon, the Democratic-controlled Congress plans to push a liberal pot policy later this year.
Senate Majority Leader Chuck Schumer says he wants to pass a comprehensive cannabis reform bill that allows small businesses to flourish nationwide while also preventing the deep-pocket scourge of Big Tobacco and Big Alcohol from swooping in and taking over.
Photo by Donny Jiang via Unsplash
One way or another, though, the legalization of marijuana at the federal level will change things for an industry that presently operates only under the rules and regulations set out by their respective states. It means we could see a time in coming years when cannabis is under the thumb of our good ol’ Uncle Sam, forced to obey stricter guidelines, the same as other legal substances.
There is little doubt this will bring the advent of federal warning labels on cannabis products. You know the ones:
SURGEON GENERAL WARNING: Smoking Causes Lung Cancer, Heart Disease, Emphysema, and May Complicate Pregnancy.
GOVERNMENT WARNING: According to the Surgeon General, consumption of alcoholic beverages impairs your ability to drive a car or operate machinery, and may cause health problems.
These warning labels are the federal government’s feeble attempt to caution consumers on the potential hazards of using these products. Some studies show that warning labels do dissuade use to some degree, yet hundreds of thousands of people across the nation still fall ill or dead from alcohol and tobacco every year. Although advocates swear that weed is safer than those products, cannabis won’t be an exception. Federal health agencies are destined to get serious about printing warning labels on cannabis smokes and edibles once weed is as legal as booze and cigarettes.
Presumably, a nation of pot smokers can expect weed warnings to sound something like this:
WARNING: Smoking Cannabis May Cause Lung Cancer, Heart Disease, And Complicate Pregnancy. Cannabis products of any kind impair your ability to drive a car or operate machinery.
But what if the average stoner was hired to write these labels? What would they look like then? Fresh Toast readers chimed in to provide us with the Surgeon General warnings the nation would undoubtedly see if cannabis consumers were responsible for their creation. We were quite amused.
These are some of our favorites.
Photo by Graham Hughes/EyeEm/Getty Images
WARNING: Cannabis may cause the munchies. Don’t be surprised to find yourself in the kitchen at one in the morning mixing up all sorts of bizarre concoctions (Ramen Wrapped Hot Dogs, SpaghettiOs Pizza, Peanut Butter and Pickle Sandwich) with whatever leftovers you have in the refrigerator.
WARNING: Cannabis may cause expanding waistlines. The Surgeon General cautions that while studies show stoners may opt for healthier food choices to tame the munchies, most will still order pizza and tacos later when they realize that turkey sandwich, an apple, three oranges and a pound of grapes didn’t cut it.
WARNING: Cannabis may cause… Ah, just forget it, man. Look at the pretty lights.
WARNING: Cannabis may cause forgetfulness. Wait, what was I supposed to be writing?
WARNING: Cannabis may cause paranoia. Don’t look out the window. Seriously, just don’t!
WARNING: Cannabis may cause you to misplace stuff. Things like your keys, wallet, phone, children and home may be invisible one second and reappear the next. Don’t ask us how this happens.
WARNING: Cannabis may cause arrest in states that haven’t legalized it. So, find a good place to hide your weed when traveling. No, not there, you dummy. That’s the first place they’ll look. Not there either!
WARNING: Cannabis may cause you to hear voices. Like the nagging one inside your head right now as you read this warning label high. What are you really doing with your life? Is this the best you can do? Why did you even get up this morning? Get it together, man, or else. – Uncle Sam.
No doubt, life in these strange times would be so much better with y’all running the show.
This new study suggests that working out during this time is best when it comes to treating your metabolic health.
Before you head outside to enjoy a morning run in the summer sun, a new study found that evening exercise might be the most effective way of improving metabolic health. Researchers discovered that exercise performed during this time were able to better moderate the negative side effects of a greasy diet, something that morning exercises weren’t able to do.
The study, published in the journal Diabetologia, narrowed its focus on sedentary and overweight men. Unlike other studies where workout timing is introduced and the important health data is gathered, these researchers also controlled participants’ meals.
Participants only consumed a diet made up of fatty foods, which were sent to their homes through delivery. After five days of following the diet, they returned to the labs to have their vitals taken and began their workout sessions, scheduled in the mornings or evenings depending on the group they were put in.
For all groups, results were not that great after consuming fatty meals for five days straight. But the group that worked out in the mornings had the same high cholesterol and molecular patterns in their blood that suggested cardiovascular and heart disease. The evening group had far better results.
After five days of workouts, they had lower cholesterol levels and showed better cardiovascular health in their bloodstream. They also developed better blood sugar control in the evenings, something that neither the control group nor the group that worked out in the morning experienced.
In short, evening exercise was capable of reversing some of the harms of a fatty diet, while morning exercises didn’t.
This exercise was conducted on a limited pool of subjects, under highly controlled situations. It doesn’t suggest that working out in the morning is bad (any type of workout is better than no workout) but it does suggest that evening workouts are capable of affecting the meals you consumed that same day, especially if they’re fatty and harmful for your cholesterol.
The fate of legalization will largely hinge on the ruling Socialists. The government, led by Prime Minister Pedro Sánchez, has demonstrated a lack of enthusiasm for even medical cannabis legalization.
On May 13, the health committee of Spain’s Congress of Deputies approved a proposal to create a subcommittee that will consider other countries’ experiences with medical cannabis. The subcommittee’s findings could pave the way for medical cannabis legalization in Spain. According to a recent poll, approximately 90% of Spaniards would favor such a move.
Spain currently lacks a medical cannabis program at the national level. Two cannabis medications, Sativex and Epidiolex, have been approved by the regulator, but only for specified ailments; use to treat other conditions must be approved by a medical tribunal, subject to variations among localities. Moreover, costs can be prohibitive.
Photo by Henrique Ferreira via Unsplash
The proposal to establish the subcommittee was tabled by the PNV (Basque Nationalist Party), which has emerged as a curious standard-bearer for medical cannabis. In keeping with its reputation as a conservative party, it is not calling for adult-use cannabis legalization, insisting on a focus on health issues.
Meanwhile, it is expected that the leftist Unidas Podemos will soon unveil a cannabis bill. Consistent with Podemos‘ platform, it is expected that the draft legislation will provide for recreational cannabis legalization, under extensive government supervision.
Going forward, the fate of legalization will largely hinge on the ruling Socialists. The government led by Prime Minister Pedro Sánchez has demonstrated a lack of enthusiasm for even medical cannabis legalization, affirming that “available evidence is insufficient to recommend widespread use [of cannabis] by patients with specific conditions.”
However, at regional levels of government, Socialists appear more inclined to support legalization, at least with regard to medical cannabis. Moreover, a recent poll suggests that 50% of Spaniards are in favor of legalizing adult-use cannabis, at least under some conditions. It is reasonable to assume that the figure amongst Socialist voters is higher. As such, we may yet see the Socialists throw their support behind a legalization bill.
Fred Rocafort is a former diplomat who joined Harris Bricken after more than a decade of international legal experience, primarily in China, Vietnam, and Thailand. This article originally appeared on the Canna Law Blog and has been reposted with permission.
Without question, Majority Leader Chuck Schumer needs to get tougher on McConnell if he wants this time in control to be as productive as possible.
The word on the street is that Senate Democrats are losing their patience with Republicans. They’ve spent months trying to work out bipartisan deals, but leadership realizes the party might be on their own when it comes to passing touchier legislation.
Earlier this week, Senate Majority Chuck Schumer, who keeps promising to introduce a comprehensive marijuana bill, told the press that he wants the parties to work together, but isn’t at all afraid to proceed without them. “We always hope that our Republican friends will work with us on things. We hope to move forward with Republicans, but we’re not going to let them saying ‘no’ stand in our way,” said Schumer.
Photo by Sarah Silbiger/Getty Images
Right now, there is no public fight between the two parties over whether marijuana should be legalized nationwide. But things are heating up in Congress with respect to the Democratic agenda that may show us more about how Senate Republicans will react once pot legislation is made official. Democrats, who have majority rule in Congress this session, are first trying to hash out President Biden’s infrastructure deal and establish a commission on the January 6 attacks on the Capitol. Then they’ll presumably toss in pot reform at some point. But make no mistake, they desperately need some Republican support to be successful in their pursuits.
Marijuana is a bipartisan issue, but just barely. All the Republican support is from the same old pro-pot crew as years back. Still, Schumer seems to think there is enough support from across the aisle to get a pot-related bill pushed through. Last year, Schumer was already confident in his ability to get Republicans on his side. “If I become majority leader, I put this [marijuana bill] on the floor, and it’s likely to pass,” he told Green Enterprise. However, Schumer failed to mention the filibuster and how it was the scythe held by the self-proclaimed grim reaper of Capitol Hill. Enter Mitch McConnell.
Photo by Tom Brenner-Pool/Getty Images
The nation rejoiced earlier this year when the Georgia runoff election established that longtime Senate Majority Leader Mitch McConnell was getting a demotion. Since the Democrats won the two seats sealing the majority, Schumer was to step in as Majority Leader while McConnell would be knocked down to the minority level.
Cannabis advocates were jazzed about this development since it meant that McConnell could no longer stand in the way of federal marijuana legalization. But the celebration was premature. Advocates failed to see that McConnell was only getting a demotion in title and that he was (and still is) the most powerful politician on the Hill. The bulk of his power is fueled by the filibuster rule, which demands a 60-vote supermajority.
Americans haven’t heard much about the filibuster being a problem for Democrats this session, mainly because it hasn’t. Not yet. Republicans haven’t needed it. All the deals the Democrats have passed over the past few months have been through budget reconciliation, entirely bypassing Republican input.
But concepts like the capitol riot commission, which also has bipartisan support, is when the filibuster is expected to come out with a vengeance to snuff out all the Democrats’ hopes and dreams. To make matters worse, McConnell has complete control over his colleagues. Last month, McConnell said during a press conference that “one hundred percent of our focus is on stopping this new administration.”
Photo by Chip Somodevilla/Getty Images
Translation: We’re not working with Democrats. Not on infrastructure. Not on immigration. Not on police reform. And not on marijuana.
It’s the reason that Democrats must destroy McConnell – the political figure who has prevented marijuana legalization from being heard in the Senate for years — if they want an honest chance at pot reform. And the only way they can cripple the grim reaper is to eliminate the filibuster once and for all.
So far, Democrats haven’t gotten too serious about rallying the support needed to end the filibuster and, with it, McConnell. But many members understand that it’s necessary. “He believes that he should have a veto over anything that the president of the United States and the majority elected to Congress want to do. It’s wrong,” Senator Elizabeth Warren said, according to Politico.
Still, some Senate Democrats argue that now is not the time to press the issue. Flexing too hard could ruin the party’s chances of achieving even a sliver of its mission. “They have been careful to not have any major confrontation on the filibuster yet in this session of the Senate, but inevitably as we get into more difficult issues, we may have to face it,” Senator Dick Durbin told The Hill.
Photo by Darren415/Getty Images
Schumer said months ago that a comprehensive marijuana reform bill was a priority in the Senate. It’s conceivable that it’s being kept at bay a while longer as Democrats try to feel out which Republicans are willing to abandon McConnell on the pot issue. Schumer understands that for him to get a marijuana bill to go the Congressional distance, he will need a solid 60 votes. Yet, he can’t even be sure that it’ll attract full support from his own party.
Without question, Schumer needs to get tougher on McConnell if he wants this time in control to be as productive as possible. McConnell’s camp hasn’t indicated any plans for retirement until somewhere around 2023.
While more research is needed, there are some promising results indicating that patients affected by Alzheimer’s and dementia may benefit from using medical cannabis.
For anyone going through the aging process, the thought of forgetting their life or precious memories associated with loves ones can be debilitating. But new studies on dementia and Alzheimer’s disease (AD) are finding surprising new ways to raise quality-of-life in the later years and what medicines can help patients experiencing the debilitating disease — right now. In a 2015 study, researchers in the Czech Republic found that while dementia and Alzheimer’s do have a link, there was another stage in the process that was a precursor to memory loss: mild cognitive impairment (MCI) found to be a “boundary area between normal aging and dementia,” the stage before memory loss could hold the key to the development of the disease.
Photo by GDJ via Pixabay
Even more interesting, while cannabis and CBD were both being studied for Alzheimer’s disease, a 2020 study on dementia and cannabis opened the door to more knowledge. Lakewood Medical Health Clinic, a holistic medical marijuana practice located in Ohio, shared that, “In recent years, researchers have begun to study how medical marijuana could be used to treat Alzheimer’s and dementia. While more research is needed, there are some promising results indicating that patients affected by these two conditions may benefit from using medical cannabis.”
A 2019 study, published in the American Journal of Geriatric Psychiatry, found during a 14-week randomized double-blind crossover trial, nabilone, (a synthetic form of THC) had a positive effect on the patients, paving the way for more studies to occur, including a 168-individual study which is already underway by study author Dr. Lanctot, who stated: “Nabilone treatment was associated with a clinically and statistically significant reduction in agitation over six weeks, compared to the six weeks on placebo.”
Last year, The Fresh Toast shared how CBD can boost memory function, proven in a study published in the Journal of Psychopharmacology. An April 2020 study, published in the The American Journal of Clinical Nutrition, found that higher flavonoids (often found in berries, tea and apples) had a direct effect on lowering the risk of memory-loss disease.
Where is dementia and THC research going? With studies like this one from Canada, the sky is proving to be the limit.
Sources say it’s too early to tell if municipal opt-outs will remain an option for reluctant municipalities, with many uncertain how they will shake out in the future.
Although 16 U.S. states and Washington, D.C. have legalized adult-use cannabis, numerous municipalities, towns and cities are declining to participate in their state’s legal marijuana programs. One of the results of these opt-outs is that residents needing or wanting cannabis are obliged to travel to surrounding areas to obtain it.
Opt-outs, while nothing new, are impacting even major markets like California, where only 161 of the state’s 482 municipalities have chosen to join the adult-use program that began in 2019.
Photo by Bulat Silvia/Getty Images
In Michigan, over 500 towns have prohibited cannabis operations since the state voted to legalize in 2018. In addition, Detroit is involved in a lawsuit over a disputed 15-year residency stipulation for social equity applicants that could result in the Motor City saying no to cannabis sales.
Why Opt-Out?
The motivation varies according to legal experts and executives of several cannabis companies.
Michael McQueeny, attorney at Foley Hoag‘s cannabis practice, honed in on New Jersey.
Municipalities are obligated to decide their cannabis status within 180 days of a legalization bill’s enactment, he said, and some fear lawsuits against local police, citing legislation that includes an increased risk of police liability regarding cannabis arrests.
Several New Jersey towns appear open to the idea of growing and manufacturing, McQueeny noted, but not to pot shops and dispensaries. “They are operating under the mistaken belief that if they ban dispensaries, they would decrease police involvement in pot-possession issues.”
Douglas E. Mains, a partner at Detroit’s Honigman LLP, said the ongoing evolution of laws and lawsuits may be holding some municipalities back in Michigan. His law firm is part of the residency-based lawsuit in Detroit.
Photo by Photo copyright SNWEB.ORG Photography, LLC./Getty Images
While noting many people in Michigan people support marijuana legalization, “those same people may not necessarily want cannabis businesses next to the coffee shop they frequent or on the same street as the school their children or grandchildren attend,” Mains said. “I think that there is also a large degree of NIMBYism involved.”
Though Mains sees the idea of opt-outs changing as regulation takes shape and municipalities see the financial benefits of cannabis sales.
Dina Rollman, SVP of government and regulatory affairs for Green Thumb Industries Inc. (OTC:GTBIF), cited a persistent education gap.
“More education is needed so that communities can shift their thinking and realize the positive impact a dispensary can bring,” Rollman said.
David Farris, VP of sales and marketing for Planet 13 Holdings Inc. (OTC:PLNHF), said a town’s decision to opt-out could have financial implications. “Depending on where their city is as far as jobs and financials, [opting out] puts them in a position where they really have to take a hard look at it.”
Photo by Anton Petrus/Getty Images
Revenue loss for municipalities could be staggering. Data compiled by The Motley Fool noted that 2020 saw legal adult-use markets generate anywhere from over $23 million (Alaska) to over $1 billion (California) in revenue.
Businesses bear the brunt of the ban, explained McQueeny, who noted that to be approved for a business license at least 51% of the operation must be located in the town where it intends to operate.
Towns and cities that opt our, he added “have often killed the opportunity of local entrepreneurs to reap the benefits of this specific license class, one which is designed for newer and smaller market entrants.”
Cannabis supports 321,000 full-time equivalent jobs, according to the 2021 Leafly Jobs Report. Though towns and cities often benefit from cannabis sales, Mains said the impact on the state budget is likely more negligible. He noted that taxes often benefit state projects, including infrastructure and K-12 education. “As more municipalities allow cannabis businesses, sales will presumably increase, meaning those pots of money will grow,” he said.
Photo by gradyreese/Getty Images
Mains noted that each license application in Michigan includes a $6,000 fee and that annual fees range from $4,700 to $28,000 for medical operators and $3,000 and $50,000 for adult use.
Will It Last?
Sources say it’s too early to tell if municipal opt-outs will remain an option for reluctant municipalities, with many uncertain how they will shake out in the future.
“My guess would be that they’ll always be some kind of opt-out,” said Cresco Labs Inc. (OTC:CRLBF) chief communications officer Jason Erkes.
Erkes highlighted that Cresco stores emphasize hiring standards, marketing and other parameters that demonstrate the market’s viability. “All those things are reflective of a normalized and professionalized cannabis industry.”
Still, some towns could remain holdouts as long as opting out remains an option.
Rollman of Green Thumb called the situation a mixed bag.
“Some municipalities simply want to wait until other communities work out the kinks, and then they opt-in,” she said.
