2022 Midterm Results & Next Steps: State Ballot Initiatives
So how did state cannabis ballot initiatives perform, what is in the cards for cannabis reform in the congressional lame duck session, and what can we expect in 2023? Let’s start with state reform initiatives.
2022 National Cannabis Voter Resource
With only weeks until election day Square Root Group, LLC is happy to share a few resources on pending state & local cannabis ballot initiatives, candidates, and the latest national polling numbers on cannabis reform. We urge you to get out and vote on or before November 8.
A Step Towards Ending the War on Drugs
While this action by President Biden represents a reasonably small step towards desperately needed comprehensive federal cannabis policy reform, it is a step that no Administration has taken in over forty years. And if you understand the history and impact of our nation’s failed War on Drugs, along with the potential for the legal cannabis industry to repair the damage caused by this deeply racist initiative, you will understand why this small step is such a big deal.
Photo by: Square Root Group, LLC
New Jersey Cannabis: “Hey, We’re Workin’ On It!”
The Garden State formally legalized adult-use cannabis on February 22, 2021 via New Jersey’s Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization (CREAMM) Act. The state’s adult use program is very young and still developing, and lawmakers and regulators are awaiting the preliminary results of the first full year of operation before making program changes. With this in mind, five months after the doors to New Jersey’s adult-use market officially opened, how are they doing?
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Cannabis and Economic Development?
California took down roughly $1.3 billion in cannabis taxes last year, and early-adopting states with smaller populations like Colorado and Washington secured $424 million and $560 million respectively in 2021. (Bieber, 2022) In fact, to date 37 states, the District of Columbia and four U.S. territories have reformed their cannabis laws. As a result, these states are generating new and ample revenue they can dedicate to supporting infrastructure, public safety, health and education programming, and investments in underserved communities. And they aren’t the only ones.
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Consumption Lounges - A Safe Place for Patients & Consumers
Why should we care about consumption lounges? First and foremost, consumption lounges provide patients with a safe and reliable space to consume their medicine. States are starting to understand that they need to pair protections with permission. For example, New York included language in the MRTA that prohibits employers from penalizing employees for the legal and private consumption of cannabis, and California has a similar bill moving through the legislature. But, while NY should be applauded, such policies are rare and housing protections are nearly non-existent. This means that for patients, sometimes consumption lounges are the only safe option.
Photo by: RODNAE Productions
New York, New Market
The MRTA does not limit the number of licenses that can be issued by the state. It does, however, establish a licensing system that limits the number and type of licenses a single entity can hold. As a result, operators cannot be vertically integrated, meaning a single entity has to choose between license categories as opposed to maintaining the operation of all license categories under one umbrella. This model enables small businesses to compete with industry titans, and prevents titans from using their abundant resources to gobble licenses and edge-out competition.
Photo by: Steve Richey
Emerging Markets - Texas
Legal cannabis in Texas is moving forward but at a slow pace, and down a long road. Texas first authorized medical access in 2015 through the enactment of the Texas Compassionate Use Act (TCUA), however patient qualifications (there was only one) and THC volumes (0.5% THC cap) were extremely limited. Only in recent years (2019 & 2021) has the Texas legislature voted to reduce enrollment requirements, expand patient eligibility, and increase THC volume from 0.5% to 1% by weight.
Photo by: Enrique Macias
Policy Matters: A 2022 California Policy Update
With only a week until the Legislature reconvenes to wrap up work for the year, it's a great time to review their progress on some of the most stubborn policy challenges in California cannabis. Persistent needs include reducing the burden of state taxes, narrowing the licensing gap between suppliers and retailers, and reducing the size of the illegal market. Fixing these issues to create a healthy and successful legal market is why #PolicyMatters.