Monthly Cannabis Industry Wrap-Up by Herban Planet
- Posted by Herban Planet
- On February 28, 2019
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For the cannabis industry, 2019 has started off with a bang, delivering plenty of exciting news and breaking stories around the country. For cannabusiness owners, there’s no doubt that it’s a thrilling time to be a part of this dynamic, ever-evolving industry. From changing regulations to breakthroughs in new products and services, the past few weeks have been packed with industry news you should know about.
Here’s a quick breakdown of all the most important cannabis news stories that have the industry talking:
Access to Cannabusiness-Friendly Banking Takes a Step in the Right Direction
It’s no secret that banking is one of the biggest challenges for cannabis business owners, with most finding that their ability to access banking services has been severely limited due to their industry of choice. This has led to serious challenges that are completely unique to the cannabis industry, creating obstacles that are unheard of in other sectors. Often, cannabusiness owners resort to running a cash-only operation, which can present an array of challenges including increased crime risks, complicated payroll and taxes, and limited ability to secure loans.
While some credit unions have demonstrated their willingness to work with cannabis companies, most large financial institutions are still extremely hesitant. Due to legal, regulatory, and even reputational risks, many banks refuse to work with cannabusinesses until congressional action eliminations restrictions. Recently, Reps. Ed Perlmutter (D-Colorado) and Danny Heck (D-Washington) successfully led the Secure and Fair Enforcement (SAFE) Banking Act to a hearing in front of the House Financial Services Committee, making progress on their efforts that have spanned several years.
Gatineau’s Hexo, Molson Coors to Unveil Cannabis-Based Beverages in the Fall
With American consumers drinking less beer than ever, beverage companies have elected to modernize their product selection by formulating variations of cannabis-infused beverages. One of the most well-known companies to take this exciting step is Molson Coors Brewing Co., seeking to recapture declining profits and connect with a brand-new, niche market of consumers.
The federal legalization of edibles is expected mid-October, paving the way for Molson Coors and other beverage companies to take the leap into the cannabis market. Truss, a joint venture headed by Molson Coors and the Gatineau-based Hexo Corporation, are expected to debut a portfolio of cannabis-centric beverages sometime this fall.
Shopify Moving into Cannabis: COO
The hugely-popular e-commerce platform Shopify is announcing their plans to move into the cannabis market, prompting experts to forecast meteoric growth for the company as it takes smart advantage of the financial potential of marijuana. As legalization for cannabis continues to spread, it’s not surprising that more big-name companies are shifting their approach to include consideration of the growing marijuana industry. However, Shopify’s decision marks big step in the e-commerce sector. The cloud-based commerce platform is known for hosting an array of hugely popular brands and high-end companies, including Fashion Nova, Kylie Jenner’s Kylie Cosmetics, LeSportSac, and more, already taking a leading position with its massive success.
The legalization of marijuana in Canada, along with the growing number of U.S. states legalizing cannabis, is presenting major growth opportunities for Shopify and other companies like it. Currently, Shopify’s stock has jumped more than 25 percent in the past year, and experts believe it will continue to grow as it strengthens its connection to the cannabis industry.
Marijuana Legalization Bill Clears First Legislative Hurdle in New Mexico
New Mexico cannabis advocates celebrated as House Bill 356 was successfully approved by the state’s House Health and Human Services Committee on February 9, 2019. The bill was first introduced in late January by Democratic lawmakers, seeking to regulate and tax recreational cannabis sales for adults aged 21 and older. Specifically, House Bill 356 outlines a plan to allow the legal possession of two ounces of cannabis and as much as 16 grams of cannabis extracts, also permitting individuals to cultivate as many as six plants for private use. It also features an expungement provision and sets up a nine percent tax on all commercial cannabis sales. Counties and cities would have the option of opting out of the cannabis market, which advocates have offered up as a big-picture compromise.
While it’s expected that passage in the Senate will be a significantly more challenging feat, many cannabis advocacy leaders are optimistic. Because of changing political trends in many of New Mexico’s surrounding states, it’s believed that the law has a very good chance of becoming law.
Legislation Would Make Marijuana Legal in Illinois, Treating It ‘How We Treat Alcohol’
Illinois State Representative Carol Ammons (D) has debuted a bill that’s driving excited conversation in the cannabis community, suggesting the possibility of a far more flexible, legalized pot industry than initially hoped for. Referred to as the Cannabis Legalization Equity Act, Ammons’ bill suggests categorizing marijuana under the same legal umbrella as alcohol, including its legalized use and regulation.
The Cannabis Legalization Equity Act would allow adults 21 and older to purchase and sell marijuana, as long as they were in possession of valid identification. It notes that sales will only be conducted by “legitimate” business people, ensuring the safety and security of all involved. Under the proposed legislation, it would be legal to possess up to 224 grams (about half a pound) of cannabis at a time, as well as grow up to 24 plants in a private home for personal consumption. Measures are included for the licensing of retail dispensaries and cultivation facilities, requiring that at least 51 percent of the licenses be issued in at-risk communities.
Like current alcohol regulations, the act maintains that driving under the influence of marijuana would be considered a crime. Further, the bill allows medical researchers to conduct cannabis-based studies with participants over the age of 21. Finally, a 10 percent tax on the sale or transfer of marijuana would generate revenue for the state, with 30 percent of the revenue going towards the state’s Common School Fund.
Medical Marijuana Bill Introduced in Georgia General Assembly
Georgia’s General Assembly recent heard proposed legislation that would expand the state’s current medical marijuana law, focusing on allowing for the production and sale of cannabis oil low in THC. At present, Georgia’s medical marijuana law allows residents to be in possession of cannabis oil, as long as it’s been prescribed by a doctor. However, it does not permit for in-state production or growth of cannabis for the oil, which has created a challenging situation for the thousands of patients who are registered as medical marijuana users.
If the legislation passes, it would be a life-changing measure for these patients, many of whom either travel out of state to obtain their cannabis oils or attempt to produce it at home using street-purchased marijuana.
Make Sure You Stay in the Loop with Herban Planet
For all the latest cannabis industry news and trends, be sure to make Herban Plant a regular part of your daily browsing. Every month, we round up all the important cannabis news, putting them into one easy-to-read guide that saves you valuable time. Forget spending hours combing the Internet, trying to stay on top of the constantly breaking stories and developments – Herban Planet has you covered with our monthly industry wrap-ups.
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