Ron Lanton 12/3/21 Ron Lanton 12/3/21

Congressional Cannabis Caucus Advocates for Medical Marijuana Access to Veterans

On December 1, 2021 the Congressional Cannabis Caucus composed a letter to the Secretary of Veterans Affairs regarding the Caucus’ advocacy for medical marijuana access for veterans.

The letter stated “As bipartisan Co-Chairs of the Congressional Cannabis Caucus, we are pleased to learn the Department of Veterans Affairs (VA) is considering a change in policy to allow for access to medical cannabis for VA patients. We implore your agency to act swiftly and implement this change as soon as possible.”

On December 1, 2021 the Congressional Cannabis Caucus composed a letter to the Secretary of Veterans Affairs regarding the Caucus’ advocacy for medical marijuana access for veterans.

The letter provides useful statistics and suggests benefits against certain disease states with the utilization of cannabis.

As time goes on we are seeing more opportunities for policy cooperation where cannabis is concerned, which means more marketplace opportunities for interested stakeholders.

Lanton Law is a national boutique law and lobbying firm that focuses on healthcare/life sciences and technology. Specifically we have expertise in cannabis and CBD related issues.

If you are an industry stakeholder with questions about the current landscape or if you would like to discuss how your organization’s strategic initiatives might be impacted by either Congress, regulatory agencies or legal decisions, contact us today.

Ron Lanton 6/25/21 Ron Lanton 6/25/21

Connecticut Has Enacted New Law Legalizing Adult-Use Cannabis

According to Governor Ned Lamont’s press release, the Governor has enacted a new law that legalizes and regulates adult-use cannabis in Connecticut. “The legislation Governor Lamont signed today is Senate Bill 1201. A proposal to legalize adult-use cannabis was initially put forward by Governor Lamont to the General Assembly earlier this year as Senate Bill 888. He also proposed similar legislation in February 2020 as Senate Bill 16.”

Key components of the new law include:

Possession: Possession of cannabis among adults age 21 and over will be legal in Connecticut beginning July 1, 2021. Adults cannot have more than 1.5 ounces of cannabis on their person, and no more than 5 ounces in their homes or locked in their car, truck or glove box.

Retail sales: Retail sales of cannabis aim to begin in Connecticut by the end of 2022. The sale, manufacture, and cultivation of cannabis (aside from home grown) requires a license from the state. Products that contain delta-8-THC, delta-9-THC, or delta-10-THC are considered cannabis and may only be sold by licensed retailers. Individuals who are not licensed by the state may gift cannabis to others but may not sell it. Individuals may not gift cannabis to another individual who has “paid” or “donated” for another product.

Homegrown: Patients who are participating in Connecticut’s medical marijuana program will be permitted to cultivate up to six cannabis plants (three mature, three immature) indoors within their homes beginning October 1, 2021. All adults age 21 and over will be permitted to grow a similar number of plants indoors within their homes beginning July 1, 2023. The law includes requirements to keep the plants secure from anyone else. Home grown of up to six cannabis plants is defelonized beginning July 1, 2021, and instead will result in infractions.

Erases prior convictions: Certain cannabis-related convictions that occurred between January 1, 2000 and October 1, 2015 will be automatically erased. Those seeking to erase cannabis-related convictions outside of that period will require petitioning.

Equity and investments: To start the necessary work of repairing the damage caused by decades of failed cannabis criminalization policies, the law implements equitable marketplace requirements under which at least half of all initial licenses are reserved for social equity applicants, targeting those communities that have been most negatively impacted by the so-called war on drugs. The Social Equity Council, which is created by this legislation, will launch programs and support for social equity applicants in the cannabis market.

Tax structure: The law enacts a tax rate structure on the retail sale of cannabis that includes a new source of revenue for municipalities. This includes (1) a 3% municipal sales tax, which will be directed to the town or city where the retail sale occurred; (2) the 6.35% state sales tax; and (3) a tax based on the THC content of the product, which will be 2.75 cents per milligram of THC for cannabis edibles; 0.625 cents per milligram of THC for cannabis flower; and 0.9 cents per milligram of THC for all other product types. This means that Connecticut generally will have about a 4% lower tax rate than New York and about the same as Massachusetts.

Revenue to support economic opportunities in targeted communities: Portions of the revenue obtained from retail sales of cannabis will be directed to communities that have been most negatively impacted by the war on drugs through the creation of the Social Equity and Innovation Fund. Funding from this account will be appropriated for use by the Social Equity Council to provide business capital, technical assistance for business start-ups and operations, workforce education, and community investments. These investments will not be limited to the cannabis market.

Revenue to support substance misuse prevention and recovery services: Portions of the revenue obtained from retail sales of cannabis will be directed to support substance misuse prevention, treatment, and recovery services through the creation of the Prevention and Recovery Services Fund. Connecticut’s health agencies, including the Department of Public Health, Department of Mental Health and Addiction Services, and Department of Children and Families will launch new programs and initiatives regarding prevention, treatment, and recovery in regard to cannabis.

Preventing underage use: This legislation adapts the state’s strong framework regarding preventing access to alcohol by minors in the context of cannabis. For example, it will be a Class A misdemeanor to sell or provide cannabis to a person under 21 years old. In addition, an individual allowing someone under 21 years old to loiter at a cannabis store will receive a $1,000 fine on the first offense with subsequent offenses as a Class B misdemeanor. It will be a Class D misdemeanor for a person under the age of 21 to lie about their age or use a fake ID in an attempt to buy cannabis. Delivery services will be required to use online ID and age verification.

Enforcement of safe driving: This law significantly strengthens Connecticut’s impaired driving statutes by requiring police to be trained in Advanced Roadside Impaired Driving Enforcement (ARIDE) and allows for Drug Recognition Expert (DRE) evaluations to result in license suspensions. This means that drivers who are impaired on any substance, whether cannabis or otherwise, will be more quickly taken off the roads.

Advertising: This law implements strong standards for advertising that exceed those for the tobacco and alcohol industries. All cannabis-related advertising will be banned on television, radio, internet, print, and billboards unless the advertiser has reliable evidence that more than 90% of the audience reached by the advertising is at least 21 years of age or older. Advertising of cannabis is restricted within 500 feet of a school. The advertising restrictions apply to all cannabis advertising, whether or not the advertiser is a state licensee.

Safe products: This legislation imposes strong requirements for product safety. Products will have to be lab tested and will have strict packaging and labeling standards. Edible cannabis products are limited to 5 milligrams of THC per serving, and most other products are subject to a potency cap. Products will be in child-safe packaging, and product types that appeal to children are banned.

Municipalities and zoning: Local officials will play an important role in the implementation of cannabis legalization. For example, local officials can control the number and locations of cannabis retailers through zoning. Municipalities can also determine where smoked or vaped cannabis can be consumed (e.g. in city parks or beaches, or on sidewalks or streets).

Employment: This legislation allows employers to continue to enforce drug-free workplaces, and respects the need for employers to maintain workplace safety and to remain in compliance with federal laws and contracts. As such, employers in certain industries, such as manufacturing and healthcare, are considered “exempt” from the employment provisions of this law. The law allows employers to take adverse actions against employees who are impaired at work. The law says that nonexempt employers may not prohibit the off-work use of cannabis or take adverse action against an employee or a potential employee for a positive THC test unless such employer has adopted employment policies stipulating as such. Generally, an employer may not take adverse action against an employee or potential employee for use of cannabis prior to applying for or working at such employer.

Medical marijuana program: The law protects Connecticut’s nation-leading medical marijuana program in many ways. For example, producers and dispensaries that currently operate in the medical marijuana program may expand or convert their licenses for adult-use cannabis, but they must prioritize serving the medical program. Medical marijuana users will soon be able to purchase medical marijuana from any dispensary rather than simply the one to which they are assigned.

State parks and beaches: Cannabis use is prohibited in state parks, state beaches, and on state waters.

Lanton Law is a national boutique law and lobbying firm that focuses on healthcare/life sciences and technology. Specifically we have expertise in cannabis and CBD related issues.

Ron Lanton 3/31/21 Ron Lanton 3/31/21

New York Enacts Legislation Legalizing Adult Use Cannabis

New York Governor Cuomo (D-NY) has signed (S.854-A/A.1248-A) which legalizes adult-use cannabis.

New York Governor Cuomo (D-NY) has signed (S.854-A/A.1248-A) which legalizes adult-use cannabis. According to the Governor’s press release the “bill signing comes after the Governor, Senate Majority Leader Andrea Stewart-Cousins and Assembly Speaker Carl Heastie announced this past Sunday, March 28, that an agreement had been reached on the legislation. The bill establishes the Office of Cannabis Management to implement a comprehensive regulatory framework that covers medical, adult-use and cannabinoid hemp. The bill also expands New York State's existing medical marijuana and cannabinoid hemp programs. The legislation provides licensing for marijuana producers, distributors, retailers, and other actors in the cannabis market, and creates a social and economic equity program to assist individuals disproportionately impacted by cannabis enforcement that want to participate in the industry.”

Lanton Law is a national boutique law and lobbying firm that focuses on healthcare/life sciences and technology. Specifically our cannabis practice helps all supply chain entities from growers, financiers, suppliers, dispensers to ancillary services.

Ron Lanton 3/29/21 Ron Lanton 3/29/21

New York Reaches Agreement To Legalize Adult-Use Cannabis

According to Governor Cuomo’s press release, the Governor, “Senate Majority Leader Andrea Stewart-Cousins and Assembly Speaker Carl Heastie announced an agreement on legislation (S.854-A/A.1248-A) to legalize adult-use cannabis.

The bill would establish the Office of Cannabis Management to implement a comprehensive regulatory framework that would cover medical, adult-use and cannabinoid hemp. The bill would also expand New York State's existing medical marijuana and cannabinoid hemp programs. The legislation provides licensing for marijuana producers, distributors, retailers, and other actors in the cannabis market, and creates a social and economic equity program to assist individuals disproportionately impacted by cannabis enforcement that want to participate in the industry.”

The New York State Cannabis/Marijuana Regulation & Taxation Act address the following issues:

Establish the Office of Cannabis Management
Medical Cannabis
Adult-Use Cannabis
Cannabinoid Hemp
Adult-Use Cannabis Tax Revenue
Municipal Opt-Out
Traffic Safety
Personal Possession and Home Cultivation
Criminal Justice and Record Expungement
Protections for the Use of Cannabis and Workplace Safety
Public Health and Education Campaign

Ron Lanton 3/26/21 Ron Lanton 3/26/21

SAFE Banking Act introduced Into the U.S. Senate

U.S. Senators Merkley (D-OR) and Daines (R-MT) have introduced the Secure and Fair Enforcement (SAFE) Banking Act, to ensure that legal cannabis operators have access to banking services. The bill can be viewed here.

According to the press release, the proposed bill prevents federal banking regulators from the following:

Prohibiting, penalizing or discouraging a bank from providing financial services to a legitimate state-sanctioned and regulated cannabis business, or an associated business (such as an lawyer or landlord providing services to a legal cannabis business);
Terminating or limiting a bank’s federal deposit insurance solely because the bank is providing services to a state-sanctioned cannabis business or associated business;
Recommending or incentivizing a bank to halt or downgrade providing any kind of banking services to these businesses; or
Taking any action on a loan to an owner or operator of a cannabis-related business.

Furthermore, the press release states that bill also:

Creates a safe harbor from criminal prosecution and liability and asset forfeiture for banks and their officers and employees who provide financial services to legitimate, state-sanctioned cannabis businesses, while maintaining banks’ right to choose not to offer those services. The bill also provides protections for hemp and hemp-derived CBD related businesses.
Requires banks to comply with current Financial Crimes Enforcement Network (FinCEN) guidance, while at the same time allowing FinCEN guidance to be streamlined over time as states and the federal government adapt to legalized medicinal and recreational cannabis policies.

The House version has already been filed for this Congressional session. Additional background on this bill and issue can be found on Congressman Perlmutter’s website.

Ron Lanton 2/6/21 Ron Lanton 2/6/21

Cannabis Reform Legislation Anticipated in 117th Congress

We at Lanton Law have been closely monitoring cannabis policy developments as we fully anticipate federal action on this issue in 2021. How much activity remains to be seen.

We were encouraged by the joint statement issued by Senators Booker (D-NJ), Wyden (D-OR) and Schumer (D-NY) on comprehensive cannabis reform legislation in the 117th Congress. The statement in full reads:

“The War on Drugs has been a war on people—particularly people of color. Ending the federal marijuana prohibition is necessary to right the wrongs of this failed war and end decades of harm inflicted on communities of color across the country. But that alone is not enough. As states continue to legalize marijuana, we must also enact measures that will lift up people who were unfairly targeted in the War on Drugs.

“We are committed to working together to put forward and advance comprehensive cannabis reform legislation that will not only turn the page on this sad chapter in American history, but also undo the devastating consequences of these discriminatory policies. The Senate will make consideration of these reforms a priority.

"In the early part of this year, we will release a unified discussion draft on comprehensive reform to ensure restorative justice, protect public health and implement responsible taxes and regulations. Getting input from stakeholder groups will be an important part of developing this critical legislation.”

The promise of possible Congressional action on this issue is stronger this session than it has even been.

Lanton Law is a national boutique law and lobbying firm that focuses on healthcare/life sciences and technology. Specifically we have expertise in cannabis and CBD related issues.

Ron Lanton 11/4/20 Ron Lanton 11/4/20

November Election Yields Gains for Marijuana Legalization

The result of a few November 3, 2020 election ballot measures have yielded additional gains for marijuana.

New Jersey: In New Jersey voters approved Question 1, which legalized recreational marijuana.

Arizona: Voters in Arizona approved Proposition 207 which legalizes possession and use of marijuana for adults, age 21 years or older, in Arizona and permits individuals to grow up to six marijuana plants in their residences.

South Dakota: The state has legalized marijuana possession and use for adults 21 and older. It also allows individuals to grow up to three plants if they live in a jurisdiction with no licensed marijuana retailers. It allows distribution and sales, with a 15 percent tax. Additionally, the state legislature would have to pass legislation legalizing medical marijuana and the sale of hemp by April 1, 2022.

Mississippi: Initiative 65A was passed, which restricts medical marijuana to terminally ill patients and would require pharmaceutical-grade marijuana products to have oversight by licensed physicians, nurses, and pharmacists.

Montana: Montana has passed two constitutional amendments regarding marijuana. CI-118 allows for the state legislature or a ballot initiative to set a legal age for marijuana use. Additionally, I-190 allows for marijuana possession use and growing for adults 21 or older. The measure allows for the creation of a regulatory scheme around growing and selling cannabis and imposes a sales tax on these goods.

Lanton Law’s Cannabis practice is more than prepared to assist cannabis stakeholders. Whether you are a public or private cultivator, processor, distributor, dispensary, or an ancillary service related to the medical and/or adult-use cannabis business, we can help.

Lanton Law assists our cannabis clients with the following services:

Offer strategic advice on the federal and state outlook
Contract and lease drafting
Corporate formation & governance
Shareholder agreements
Administrative representation
Trademarks and copyrights
FDA, USDA and FTC regulatory compliance
Banking and finance
Licensing
State and local permits
Lobbying
Investor & early stage company issues
Mergers and acquisitions
Non-Compete and Non-Disclosure agreements
Labor and employment
General counsel services

Ron Lanton 10/9/20 Ron Lanton 10/9/20

Lanton Law Opens Cannabis Practice

Lanton Law believes that the cannabis market will continue to evolve and expand. Notwithstanding this market potential is the fact that medical and adult-use cannabis operations are confronted with a complex patchwork of state and federal laws and regulations that we assist a variety of businesses with.

Whether you are a public or private cultivator, processor, distributor, dispensary, or an ancillary service related to the medical and/or adult-use cannabis business, we can help.

Lanton Law assists our cannabis clients with the following services:

Offer strategic advice on the federal and state outlook
Contract and lease drafting
Corporate formation & governance
Shareholder agreements
Administrative representation
Trademarks and copyrights
FDA, USDA and FTC regulatory compliance
Banking and finance
Licensing
State and local permits
Lobbying
Investor & early stage company issues
Mergers and acquisitions
Non-Compete and Non-Disclosure agreements
Labor and employment
General counsel services