After predictions that Colorado’s marijuana market was plateauing, the latest numbers for 2019 showed a huge jump in sales growth. Marijuana sales at medical and recreational dispensaries set a new record at $1.75 billion in 2019, according to data released by the Colorado Department of Revenue (DOR).

Colorado’s 2019 numbers saw a surge in cannabis sales, exceeding 2018 by more than $200 million, an increase of 13 percent. The state received more than $302.4 million in tax revenue–used to fund programs like public health and safety, drug education, law enforcement, school construction, and more.

From 2017 to 2018, cannabis sales increased by 2.5 percent. In 2018, the state saw $1.55 billion in cannabis sales, compared to $1.5 billion in 2017.

“To see it turn around in 2019 is a bullish indicator that price compression can’t keep the popularity of legal cannabis down,” said Tom Adams, the managing director at BDS Analytics. Adams told CNN that he attributed the increase in sales to the popularity in non-flower products like edibles, vapes, and concentrates. He said that recent BDS studies showed that the number of adults who reported consuming cannabis in the last six months was increasing, and more people were comfortable buying cannabis products.

“It’s just become a part of people’s lives more and more,” Adams said.

Truman Bradley, the newly appointed executive director of the Marijuana Industry Group, told The Denver Post that he attributed the increase in sales to the normalization of cannabis.

“People are moving from the unregulated market to the regulated market,” Bradley said. “As reefer madness goes away, as the stigmatism of cannabis reduces and people come over to the regulated market, I would expect that trend to continue.”

According to the DOR, Colorado dispensaries have sold nearly $7.79 billion in cannabis since recreational sales began in 2014, generating $1.21 billion in state tax revenue.

Higher Education: Colorado State University-Pueblo offers cannabis major

Starting this fall, CSU-Pueblo will offer a bachelor of science in cannabis biology and chemistry.

The degree program will offer students two tracks–a natural products track focused on biology or an analytical track that focuses on chemistry. Students will have to complete general biology and chemistry courses in addition to nine proposed cannabis courses to complete their degree.

This is Colorado’s first cannabis degree program, and one of the first cannabis degree programs in the country. Northern Michigan University and Minot State University in North Dakota offer bachelor programs in medicinal plant chemistry.

“We have been working on this particular degree program for over a year now, and the chemistry department and the biology department have put together a program that really emphasizes the science of cannabis,” said David Lehmpuhl, dean of the College of Science and Mathematics at CSU-Pueblo.

The Colorado Commission on Higher Education approved the program earlier this month. According to Lehmpuhl, there are plans to create more cannabis-related degree programs at universities in the state.

“We anticipate this is the first of several cannabis-related degrees and certifications that will be developed by Colorado institutions of higher education in the near-term,” Lehmpuhl said.

“It’s a challenge in a way because cannabis has both positive and negative connotations. We want to make sure that we are viewed as being not pro or anti-cannabis, but just looking at the science behind it,” Lehmpuhl said.

“To those of us who are scientists, this is really exciting.”

 

Kentucky gives medical marijuana another try

A bill to legalize medical marijuana passed in Kentucky’s House Judiciary Committee for the second year in a row. House Bill 136 would legalize medical marijuana and allow doctors to prescribe it. Qualifying medical conditions have not yet been spelled out but would be determined by a panel of eight doctors, four public advocates, and a pharmacist.

The bill passed in the House committee last year, but failed to receive a full floor vote. The bill is expected to pass in the House but faces an uphill battle in the Senate.

Senate President Robert Stivers (R-Manchester) said that he hadn’t seen sufficient research into medical marijuana, but there’s a “narrow path” to passing the bill in the Senate.

“It’s a balancing test of do the goods outweigh the bads,” Stivers said. “And we just haven’t had anything done on that.”

Advocates of the bill say that medical marijuana is a better alternative to addictive opioids.

“If House Bill 136, medical cannabis, were to pass in the Commonwealth of Kentucky, I would not be a criminal,” said Eric Crawford, who spoke before lawmakers. “I would not have to live in fear. I would not have to lay awake at night worrying about law enforcement coming to my home. I would not have to stress about going to jail, or losing my home, work or freedom.” Crawford has been in a wheelchair since being involved in a car accident in 1994.

If the bill were to pass in both the state House and Senate, it would create one of the more restrictive medical marijuana laws in the country. Smoking marijuana would be illegal, although flower would be available for other uses. Colorful packaging and gummies would be prohibited. Even THC may be a no-go under the bill, something that would be decided on at a later date by the Kentucky Cabinet of Health and Family Services.

90 percent of Kentuckians support legalizing medical marijuana, according to a recent poll by the Foundation for a Healthy Kentucky. That’s up from 78 percent support in 2012.

 

States with medical marijuana have fewer workers’ compensation claims

A new study found that in states with legal medical marijuana, there was a 6.7 percent decline in workers’ compensation claims.  Medical marijuana “can allow workers to better manage symptoms associated with workplace injuries and illnesses and, in turn, reduce need for workers’ compensation,” according to the study.

Researchers from the University of Cincinnati Ash Blue College and Temple University analyzed data from the Census Bureau’s Annual Social and Economic Supplement to the Current Population Survey. The data spanned from 1990-2013 and included survey interviews from 150,000 U.S. residents 15 and older.

“We think there is a lot of overlap between conditions for which medical marijuana can be used in managing symptoms and the types of illnesses that lead people to file workers’ compensation claims,” said study co-author, Catherine Maclean, an associate professor in the economics department at Temple University.

When workers did file claims, they were for shorter periods of time, on average, after medical cannabis was legalized.

“Our findings add to the small, but growing, literature on the effects of MMLs (medical marijuana laws) on labor market outcomes. On net, the available findings suggest that MML passage may increase work capacity among older adults, reduce work absences, improve workplace safety, and reduce WC (workers’ compensation) claiming and the pain and suffering associated with workplace injuries.”

The U.S. Department of Agriculture (USDA) announced last week that they would not be making changes to the allowable THC limit for legal hemp. While the 2018 Farm Bill passed by Congress legalized hemp, it came with the requirement that THC content must be under 0.3%, and any hemp found to exceed that amount must be destroyed. The USDA says that it’s up to Congress to make changes.

“The Farm Bill set forth these requirements,” Bruce Summers, acting administrator of USDA’s Agriculture Marketing Service, said on a call with reporters. “Any changes to these requirements require legislative action.”

“To go from 0.3 to one percent would have to be a statutory change,” he said. “In other words, Congress would have to take action. We couldn’t do that by regulation.”

While the THC limit will remain the same for hemp, the USDA is open to other changes to their rules. The USDA says it will use the 2020 growing season as a chance to “test drive the interim rule to help guide any adjustments that are made in the final rule.” After the 2020 harvest, the USDA will open a second public comment period before final regulations are set. The interim final rule will expire Nov. 1, 2021, after which the USDA will then deliver the final regulations.

One potential change could involve the disposal practices for “hot hemp.” Hemp that tests above regulated THC levels cannot be sold and must be destroyed. According to Summers, “there’s probably some flexibility there, and we hope to get some additional guidance on that out shortly.”

“Hot hemp” is ineligible for federal crop insurance programs, including the two new federal hemp insurance programs the USDA announced earlier this month.

Summers also said that there could be changes to the requirement that testing facilities must be certified by the Drug Enforcement Administration (DEA). Hemp farmers have been concerned that there are too few certified labs, which will cause backlogs and delays in hemp testing.

“It’s something we’ve heard loud and clear. It’s something we’re dealing with and something we’re hoping to have more information out about shortly,” Summers said about the lab shortages.

The Farm Bill gives states the right to submit their own proposed hemp regulations. The Colorado Senate has urged the USDA to loosen some of its hemp regulations.

“As presented by the U.S. Department of Agriculture…members, there will not be a hemp industry in Colorado,” said Colorado Sen. Don Coram (R-Montrose). “The rules and regulations are so onerous that we as farmers cannot comply, and the state cannot afford to comply.”

The state Senate adopted a resolution in January, pledging their support for regulatory revisions.

“Colorado has been a national leader in developing public policies that support hemp production, protect farmers and consumers, and treat hemp as an important agricultural product and not a controlled substance,” the resolution reads. “The State’s written comments on the interim rule present thoughtful and compelling recommendations on how the USDA’s rules could be improved to allow for greater flexibility and equity in state regulation of hemp production in a manner that protects farmers and consumers and promotes growth of the industry.”

On Monday, Colorado Governor Jared Polis (D) announced a “Roadmap to Cannabis Banking & Financial Services” aimed at increasing access to banking for the state’s marijuana and hemp industries. Polis announced the plan in conjunction with the Colorado Department of Regulatory Agencies (DORA).

“As the first state to establish a legal marijuana industry and one of the first to implement an industrial hemp program, Colorado has become a national economic leader in the cannabis industry,” said Governor Jared Polis in a press release. “We are excited to release a bold, forward-thinking roadmap to provide much-needed guidance, clarity and support to state-chartered financial service providers that work with or are interested in working with the state-legal cannabis industry.”

The plan includes “seven primary areas of focus,” including:

Cannabis is legal in eleven states plus Washington, D.C., but both state and federal laws aimed at providing guidance and protection for the financial industry haven’t made much headway. The House of Representatives passed the SAFE Banking Act last year with bipartisan support, but it’s unclear when or if Senate Majority Leader Mitch McConnell (R-KY) will bring it to the floor for a vote.

“The lack of federal clarity creates a level of uncertainty and apprehension for our Colorado state-chartered banks and credit unions to provide basic financial services to legal cannabis-related businesses,” said DORA Executive Director Patty Salazar. “This roadmap is designed to lay out a path whereby our state-chartered financial institutions can explore whether or not they are in a position to provide services to this industry.”

Limited or no access to banking services means that many cannabis businesses, especially those that touch the plant, operate entirely in cash.

“Unbanked cannabis businesses often operate solely in cash, creating a significant risk to public safety,” said Treasurer Dave Young. ”By providing essential banking services to cannabis businesses, Colorado can lead the way in protecting public safety and promoting financial transparency.”

Congressman Ed Perlmutter (D-Lakewood), who was the lead sponsor of the SAFE Banking Act joined Gov. Polis at the announcement of the roadmap.

“Too many Colorado businesses, employees and communities have been targets of assault, robbery and other crimes due to the conflict between state and federal law when it comes to cannabis banking. I appreciate Governor Polis and his team working to improve access to the financial industry for Colorado cannabis and cannabis-related businesses. However, it is critical that Congress acts, including by advancing the SAFE Banking Act. Only by aligning state and federal law can we fully resolve the issues necessary to get cash off our streets and improve public safety in our communities,” said Perlmutter.