Arizona schedules mandatory class for social equity applicants
Registration is now available for training required by Arizona Department of Health Services for those seeking licenses to own and operate adult-use marijuana businesses under the state’s voter-approved social equity program.
The free virtual educational program was held live on September 20-21 and will be offered as recorded sessions with live Q&A on October 12-13. To offer additional flexibility for prospective applicants, the Department of Health Services will offer computer-based training from mid-October through mid-December.
New Frontier: Legalization act falls short of goals
A new report from New Frontier Data finds the federal cannabis legalization legislation proposed by Senate Majority Leader Chuck Schumer wanting, calling it a “narrow perspective” with a tax plan that is “unnecessarily complicated and problematic for industry growth,” even while noting it is a “pivotal moment” in history and for the industry.
Released in draft form on July 14 by Schumer (D-NY) and Senators Cory Booker (D-NJ) and Ron Wyden (D-Ore.), the Cannabis Administration and Opportunity Act represents one of the first efforts to not only remove cannabis from Schedule I of the Controlled Substances Act but establish a framework for regulation of the industry on the national level. However, according to New Frontier, it may not go far enough in addressing several issues.
“Senator Schumer’s proposed measures address both the legality of cannabis and the social inequities stemming from nearly a century of prohibition, but the legislation lacks clarity, leaves critical issues unaddressed and could very well restrict the growth and vitality of a burgeoning, complex industry,” reads the opening letter from New Frontier founder Giadha A. DeCarcer.
Written by Josh Adams with additional analysis from Noah Tomares, the “Up In Smoke?” report also states that while the law includes three grant programs designed to fund initiatives providing for some degree of restorative justice for those impacted by the War on Drugs and expungement of prior cannabis conviction, many would be disappointed in the lack of social equity provisions.
The report also calls the proposed taxation plan “fairly burdensome” and cites a proposed 25% tax on a per-ounce or per-milligram-of-THC basis the “most problematic for growth,” calling it “needlessly complicated” and saying it fails to understand the reasons beyond THC that people use cannabis. In a similar vein, it notes that the law makes no differentiation between the medical and recreational markets.
New Frontier says the proposed law contains elements likely to enable the illicit market, from the tax rate to its “federalist approach,” which allows states to continue to prohibit cannabis sales in their borders. The report also notes that the law’s requirement for a federal license prior to operating under state laws could restrict growth, particularly from an administration opposed to legalization.
“Using the example of the enforcement of the 1937 act (Marihuana Tax Act), it is not hard to imagine a prohibitionist administration electing to slow or stop the issuance of new cannabis business licenses to constrain industry growth,” it says.
The report says the bill also does not address hemp-derived THC products like delta-8 or delta-9 produced from CBD, as well as other derivatives, nor does it provide clarity about the Food and Drug Administration’s role in regulating the industry.
The public comment period for the draft legislation ended September 1.
— Brian Beckley
Applications for the state’s social equity ownership program will be accepted from December 1-14 and a random drawing will be held to award the 26 licenses available.
The Department of Health Services training is the only instruction that meets program requirements for those eligible to seek social equity licenses, and prospective applicants should be wary of other entities that falsely claim to offer approved training.
The classes, taught by industry experts, will include two days of content and education focused on a number of aspects of operating an adult-use marijuana business, including legal requirements, business practices, regulatory compliance and fundraising, as well as marketing and strategic growth.
In addition to these required classes, the agency will offer one-on-one support and clinics to help potential licensees with the application process and the chance to meet with instructors to get questions answered.
To qualify for the program, retailers must have a majority owner who has: (a) resided three of the past five years in communities disproportionately impacted by prior marijuana laws; (b) had household income of less than 400% of the federal poverty level in three of the past five years; and/or (c) been personally negatively impacted by prior marijuana laws through a plea, conviction or imprisonment, or who is the spouse, parent, child or sibling of a person who has.
According to the Arizona Department of Revenue, the state is on track to break $1 billion in cannabis sales in 2021.
— Brian Beckley
Retail and Dispensary Expo Postponed due to COVID concerns
With the continued uncertainty of the COVID-19 pandemic, Marijuana Venture has decided to postpone this year’s Retail and Dispensary Expo, originally scheduled for November in Seattle, until it can better ensure the safety of exhibitors and guests.
“We were excited to welcome folks back to the RAD Expo this fall, but this summer’s surge in COVID cases, led by the highly contagious delta variant, forced us to reconsider hosting an event that brought together people from all around the country,” said Marijuana Venture publisher Greg James. “So out of an abundance of caution, we decided the right move was to postpone this event.”
Marijuana Venture resumed its Interchange events in April 2021, with a spring event in the Seattle area and a summer event in Spokane, Washington, and show organizers were already taking every recommended precaution the RAD Expo, including scaling back the number of booths for this year’s show. But with increasing restrictions on indoor gatherings and the potential for additional safety measures that could cancel or alter the event, the decision was made to cancel the event.
James also urged everyone to get vaccinated so events like the RAD Expo can return.
— Brian Beckley