Issue 46: News in New England
NH's Governor suddenly pivots in favor of cannabis reform, but does anyone like his actual proposal? Plus, RI finally names its three cannabis regulators, but some aren't happy with one pick.
Welcome in, readers! It’s been an eventful week in my neck of the woods, so let’s dive into some New England cannabis news.
New Hampshire’s Governor Suddenly Supports Legalization
Q: When is it “time” to legalize marijuana?
A: When you’re about to launch a presidential campaign and you need to differentiate yourself from your drug warrior opponents.
Congratulations to New Hampshire for (apparently) ending their opioid crisis! Governor Chris Sununu has long used this crisis as a lame excuse to oppose legalizing cannabis, but now that he’s apparently running for the 2024 republican nomination, he’s suddenly decided that blaming marijuana for opioid abuse is no longer a wise political strategy.
He’s now insisting he’s okay with the idea of legalizing weed, but there’s a caveat: He wants state government to run the dispensaries.
If this concept is turned into law, New Hampshire would be the first state to attempt to implement a government monopoly on weed sales. This model is fairly common around the world for sales of hard liquor, but has so far only been tried for cannabis in a few Canadian provinces.
It’s difficult to know exactly what state run stores would look like without a current bill to examine, but last year’s proposed legislation gives us a few clues at how this concept could play out. The state’s Liquor Commission said at the time that passage of the bill would likely result in the creation of ten retail stores, none of which would be co-located with New Hampshire’s famous highway-side state-run liquor stores. Consultants would also be brought in to teach the state’s employees how to sell weed.
Government-run stores bringing in all the profits from sales would allow for cannabis to be sold “tax-free,” potentially letting the state undercut sales in surrounding states.
He’s also in favor of giving municipalities the right to ban or regulate cannabis businesses in an attempt to avoid “marijuana miles,” i.e., areas in certain towns where there’s a bunch of weed-related businesses bunched together.
(If you ask me, municipal control is actually the exact reason we end up with marijuana miles, but hey what do I know..)
Does Anyone Actually Like This Idea?
Even putting the potential flaws in Sununu’s logic aside, there doesn’t seem to be a whole lot of enthusiasm for this idea within the New Hampshire legislature.
In fact, you’ll be hard pressed to find anyone who is vocally agreeing with Sununu’s call for government-run weed stores. Business-backed legalization proponents like the Marijuana Policy Project have already criticized the concept of state-run stores, and Sununu’s repeated references to “fentanyl-laced cannabis” (which almost certainly doesn’t exist) is highly likely to turn off other drug policy reform organizations who otherwise might have supported his efforts.
The likely lack of meaningful carve-outs for small businesses or people who have been disproportionately impacted by the War on Drugs could also push away progressives.
It’s also unlikely that anti-cannabis groups are ever going to support any sort of policy change that involves legal cannabis sales, particularly a model that allows for-profit companies to produce all of the products.
When you also consider that New Hampshire leads the country in alcohol consumption by a shockingly wide margin, I’m not really sure there’s much of an argument to be made that handing over cannabis sales to the Liquor Commission is going to be any sort of public health victory.
We’ll see if this announcement actually leads to any policy changes anytime soon. The New Hampshire Senate voted yesterday to assemble a study to examine the topic of state-run stores, while the House is working on a compromise bill that would allow a mix of government-run and private retailers. Sununu’s comments didn’t really leave much room for any private retailers being involved, so I’m not sure if he’s going to find this compromise acceptable.
Rhode Island (Finally) Names Its Cannabis Regulators
After about a year of delay, Rhode Island Governor Dan McKee has finally named his three picks for the state’s Cannabis Control Commission:
Kimberly Ahern (Chair): The current deputy chief of staff for Governor McKee, Ahern has previously served as former Gov. Gina Raimondo’s deputy counsel. She also spent nine years as a special assistant to RI’s attorney general.
Robert Jacquard: A former cop from Cranston, Jacquard also served from 1993-2021 as a state representative. Jacquard did not cast a vote for or against decriminalization back in 2012, but he did vote to expand access to medical marijuana the same year. He was recently a lobbyist for one of the state’s existing cannabis businesses (more on that below).
Layi Oduyingbo: Currently an attorney specializing in personal injury and employment law, Marijuana Moment reports that Oduyingbo previously handled compliance and government matters as a corporate council.
These picks still need to be confirmed by the RI Senate, although I haven’t see any indication that they’ve taken issue with any of these selections (yet).
Questions About Jacquard’s Appointment Loom
Jacquard's selection has been criticized by Common Cause Rhode Island, who pointed out his lobbying efforts for Greenleaf Compassionate Care and the fact that he was recommended by RI's House Speaker, whose office recently had a pretty scandalous cannabis-related controversy.
Jacquard told WPRI news that he will abstain from any decisions pertaining to Greenleaf.
(The Portsmouth-based vertically integrated company has both medical and adult use licenses, and was set to be bought out by Acreage Holdings in 2019 before that deal fell apart.)
While it’s not that unusual for cannabis regulators to abstain from certain policy and licensing votes due to past ties or possible perceived conflicts of interest, the fact that Rhode Island’s commission only has three members means any member abstaining will have a pretty significant impact on the voting process.
Given the small size of Rhode Island’s market, you could also argue that pretty much every vote by the Commission is going to have a unique impact on Greenleaf.
The company has already benefited from the lack of a commission; the absence of an active licensing process has allowed them to be one of only seven recreational stores operating in the state.
I still can’t shake the feeling that something bigger is going on with this appointment and the lengthy delay that preceded it. I’m going to keep poking around, but drop me a line if you happen to have an inside scoop.
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New England
UMASS’ RELATIONSHIP WITH MARIJUANA ( Jada Vazquez | Massachusetts Daily Collegian)
Yet with rules and policies in place, UMass campus continues to have clubs advocating marijuana usage, such as the Psychedelic Club and the UMass Cannabis Education Coalition.
According to the group’s description on the Campus PULSE, “CEC is an organization that seeks to end prohibition and stigmatization of cannabis.”
Founded in 1981, the Cannabis Education Coalition supports safe marijuana usage and spreads awareness, facts and history about cannabis.
ANALYSIS: It’s incredibly impressive that the Cannabis Education Coalition has been around at UMass almost 42 years now. They’ve proven that cannabis-focused activism orgs can continue to thrive even after the local fight to end prohibition has ended.
SMOLDERING CONFLICT ROILS CHARLOTTE CANNABIS OPERATION (Liberty Darr | VT Digger)
Another neighbor, Jen Banbury, said that although she is “in favor of cannabis legalization, Vermont is blessed with an abundance of open spaces. There is no reason to have cannabis cultivation in the midst of a residential neighborhood. It would be to the benefit of residents and growers to operate in places where there will be no conflict.”
ANALYSIS: Whether it’s this story or a recent report from Worcester about backlash to a church-based homeless shelter, “progressive” New England is quickly proving itself to be the NIMBY capital of the world.
Rest of U.S / National
LICENSED CANNABIS TRANSPORTERS SAY ILLEGAL DELIVERIES ARE HAPPENING WITHOUT CONSEQUENCE (Charlie De Mar | CBS 2 Chicago)
Legally in Illinois, marijuana is supposed to be transported in a vehicle with cameras, GPS, and no rear windows or markings.
But illegal deliveries are allegedly happening by those without licenses in minivans and other noncompliant vehicles – with little consequence.
In a new lawsuit against the Illinois Department of Agriculture, more than a dozen licensed cannabis transporters accuse the state of failing to regulate how marijuana is being moved – despite strict and expensive regulations in place.
ANALYSIS: If I had to do the Hemingway thing and write the saddest possible story about the cannabis industry in four words, I’d say: “Strict regulations, loosely enforced.” This story from Illinois seems to be the latest example of this.
CALIFORNIA POT INDUSTRY FACING 'EXTINCTION EVENT' (Lester Black | San Francisco Gate)
Over 13% of California’s retailers, or 265 pot shops, failed to make any tax payment by the May 1 deadline, according to the California Department of Tax and Fee Administration. Those businesses are now facing a 50% penalty on the taxes they owe, which could be a death blow to many shops.
ANALYSIS: I think overdue tax bills are going to be one of the biggest stories in cannabis in 2023. The real question is: Who is this going to impact the most? Are large companies going to continue to “lengthen their federal tax payment cadence” (a.k.a. refusing to pay their tax bill so they can use that money elsewhere) while smaller operators lose their licenses for owing state-level taxes?
GROUPS PUSH SENATORS TO ADD MARIJUANA BUSINESS STOCK EXCHANGE ACCESS TO BANKING BILL (Kyle Jaeger | Marijuana Moment)
The idea of giving small marijuana businesses access to those federal services may be more easily viewed as an equity contribution, whereas the ability of the industry to list on major stock exchanges is a tougher sell that could receive pushback from advocates who are generally skeptical of any incremental reforms that principally benefit corporate interests.
ANALYSIS: It’s time to ask a very uncomfortable question: Why is it that Minorities for Medical Marijuana is consistently advocating for policies that benefit large cannabis conglomerates? It’s getting nearly impossible to believe that it’s not a result of their cozy relationship with Trulieve and TILT. I’m hardly the only person to notice this.
PYRRHUS, POT, AND THE STATE OF POSSIBILITIES [OPINION] (Mike Doyle | Cannabis Insider) 🔒
It is important to remember, however, that the dream is still subject to the hard and fast rules of business. There will be aggressive competition. The whims of supply and demand still apply. And, worst, it is the wild west. The rules of the game are fluid and what is law one day may not be so the next.
ANALYSIS: I’ve done some work with Mike in the past, and thought this piece was a good read featuring some important advice for prospective cannabis business owners. If you’re a subscriber to NY Cannabis Insider, check it out.
International
SINGAPORE HANGS 2ND CITIZEN IN 3 WEEKS FOR TRAFFICKING CANNABIS (AP)
Singapore on Wednesday hanged another citizen for trafficking cannabis, the second in three weeks, as it clung firmly to the death penalty despite growing calls for the city-state to halt drug-related executions.
Analysis: My home country doesn’t have much of a leg to stand on when it comes to criticizing other countries for use of the death penalty, but it would still be nice to hear someone in the Biden Administration criticize this obvious human rights violation. On the off-chance you happen to be doing business with a Singapore-based business, you should stop.
Welcome Distraction
Drew Magary wrote an entertaining piece about attending a game at the Oakland A’s increasingly decrepitated and empty stadium as the team prepares to move to Vegas. Personally, I’m envious of anyone who gets to see Major League quality baseball for the price of a minor league ticket, even if you have to worry about being mauled by an angry opossum as you walk to the restroom.
Cat of the Week
People keep telling me that this newsletter has more reach than I realize, but I have yet to convince any of you to adopt a cat… yet. Maybe that will change with Sheldon, who’s currently available at Baypath.
Special Bulletins
BLUNT BANTER, the new cannabis news podcast hosted by Ravon Williams and myself, is now available on Spotify! You can also check out the latest episode on Youtube.
If you’re in the Massachusetts area, be sure to check out the High Times for Heroes event in Peabody this weekend! Grab your ticket here.
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