Congressional Democrats decided this week to maintain a prohibition on cannabis sales in Washington, D.C. despite previous suggestions that they were prepared to lift the ban and begin allowing legal sales. 

A drafted spending bill that was unveiled on Wednesday by House Appropriations Committee Chair Rosa DeLauro, a Democrat from Connecticut, still included the so-called “Harris Rider,” which has precluded the District of Columbia from commercializing weed, despite the fact that D.C. voters legalized recreational pot use back in 2014. Tied up in this issue is the D.C. bid for statehood. 

Named for Republican Congressman Andy Harris of Maryland, the rider has been a fixture of every appropriations bill since the passage of that legalization initiative. (The U.S. Congress oversees all laws in the District of Columbia.)

So while D.C. adults aged 21 and older have been able to legally possess cannabis for the last eight years, the dream of a regulated market in the nation’s capital has not been fully realized for cannabis users.

Politico explained that “D.C. residents are allowed to consume, grow and ‘gift’ cannabis products.” (“Gifting,” wherein a business sells other items and then “gifts,” the customer cannabis has been a popular work-around for pot sellers in jurisdictions where sales are still illegal.)

The development will be seen as a major disappointment for cannabis advocates, who have long targeted the elimination of the Harris Rider as a policy objective. 

As Politico noted, the inclusion of the rider “came as a surprise to some advocates because it was not included in funding packages put forth by the House and Senate,”  although “President Joe Biden’s proposed budget did include the controversial provision.”

A year ago, with Democrats officially taking back control of Congress and Biden sworn in as president, the outlook for cannabis reform looked bright. However, that hasn’t necessarily proven to be the case today. 

Senate Democrats released a version of their appropriations bill in October, which notably did not include the Harris Rider.

D.C. Mayor Muriel Bowser applauded the omission.

“The Senate appropriations bill is a critical step in recognizing that in a democracy, D.C. residents should be governed by D.C. values,” Bowser’s office said in a statement at the time. 

“As we continue on the path to D.C. statehood, I want to thank Senate Appropriations Committee Chair, Senator Patrick Leahy, our good friend and Subcommittee Chair, Senator Chris Van Hollen, and, of course, our champion on the Hill, Congresswoman Eleanor Holmes Norton, for recognizing and advancing the will of D.C. voters. We urge Congress to pass a final spending bill that similarly removes all anti-Home Rule riders, allowing D.C. to spend our local funds as we see fit.”

Last week, more than 50 civil rights and cannabis advocacy groups urged Congress to remove the Harris Rider.

In a letter sent to House Speaker Nancy Pelosi and Senate Majority Leader Chuck Schumer, among others, groups like the Drug Policy Alliance and the American Civil Liberties Union noted that, because of its lack of statehood, D.C. “remains the only jurisdiction in the country that cannot regulate marijuana sales or fruitfully tap into the public health and safety benefits of legalization.”

“In one hand, Congress continues to make strides in advancing federal marijuana reform grounded in racial justice, while simultaneously being responsible for prohibiting the very jurisdiction that led the country in legalizing marijuana through this lens from being able to regulate it. This conflict and contradiction must end now,” Queen Adesuyi, Senior National Policy Manager for the Drug Policy Alliance, said in a statement.

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Sales of medicinal cannabis flower began in Minnesota on Monday, giving the state’s medical marijuana patients a new and more affordable option to access their medicine of choice. The Minnesota Department of Health announced in February that cannabis flower would be added to the state’s medical marijuana program, which until this week only permitted patients to use processed cannabis products such as extracts, distillates, capsules, and topicals.

Chris Tholkes, the director of Minnesota’s Office of Medical Cannabis, said that the addition of cannabis flower was made primarily to make medical marijuana products more affordable for patients. With manufacturing costs included in the cost of processed cannabis products, they are generally more expensive than dried and cured cannabis flower. Regulators expect the addition of cannabis flower to the medical marijuana program to result in a spike in the number of registered patients.

“It gives patients a much more affordable access point to the medicine that cannabis provides,” said Dr. Kyle Kingsley, the CEO of Vireo Health of Minnesota. “Many patients switching from our more standard products to flower will be able to save about 50 percent on a monthly basis to treat their various medical conditions.”

Patricia Gates was one of the first patients to purchase cannabis flower at the Green Goods medical dispensary in downtown Minneapolis on Monday. She agreed that the new option is much more affordable, saying the change will significantly impact her monthly budget.

“So this is going to save me probably upwards of 400 or more,” Gates told local media. “So I see this as a huge blessing … huge blessing!”

Gates had a shingles infection in her ear in 2017 that resulted in Ramsy Hunt syndrome, a condition that causes her constant pain and has left half of her face paralyzed. Before beginning treatment with medicinal cannabis oil and tablets two years ago, she was taking 18 daily prescriptions. Cannabis is much more effective, but a full month’s supply cost $800, an amount unaffordable for Gates. As a result, she often had to make do with less.

“This particular chemical has literally saved my life every day since June of 2019 when I was certified on the registry,” said Gates.

“This is really exciting for cannabis patients,” she added. “I’m not even kidding—this is, like, huge!”

Minnesota Patient Roster Expected to Spike

Based on the experience of other states with legal cannabis, the health department said last month that it expects patient enrollment in the medical marijuana program, which currently stands at about 30,000 patients, to likely double or even triple. The agency cited an October 2021 survey of registered patients in which 71 percent of respondents said they were either very likely or somewhat likely to try smokable cannabis flower if it was made available.

“We did a price point study in 2019, and the average cost for a patient in a month is a little over $300,” said Tholkes. “I think we’re going to see a very sharp increase now that we have lowered the cost for folks.”

Under the new regulations, medical dispensaries will offer pre-packaged, dried cannabis flower and pre-rolled joints in a variety of strains and cannabinoid potency levels. Registered patients will be able to purchase up to a 90-day supply of cannabis at one time. Before purchasing cannabis flower, however, patients must first complete a consultation with a medical dispensary pharmacist to change the type of cannabis they receive. Patients have the option of either in-person or virtual consultations to satisfy the requirement.

“In preparation for the change, registered patients interested in smokable cannabis can make an appointment for a consultation with a medical cannabis dispensary pharmacist beginning February 1, so they will be pre-approved to buy pre-packaged dried flower and pre-rolls once available,” the department of health wrote in its statement from last month’s announcement of the change. 

Smokable cannabis flower will only be available to patients and caregivers aged 21 and older who are registered with the state’s medical cannabis program. Minnesota Commissioner of Health Jan Malcolm urged patients who are considering switching to cannabis flower to seek the advice of a health care professional before making the change.

“Patients need to weigh the risks of smoking medical cannabis, including those related to secondhand smoke and lung health, with any potential benefits,” said Malcolm. “Smokable cannabis may not be right for everyone; patients should have a conversation with their health care practitioner for guidance.”

The Minnesota Department of Health also announced last month that medical patients will have another new option later this year, noting that edible cannabis products including gummies and chews will become available on August 1. The change in regulations was made last year during an annual petition and comment process that the MDH uses to solicit public input on potential additions to qualifying medical conditions and cannabis delivery methods.

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Privately owned cannabis dispensaries in Alberta, Canada will be able to accept online orders for cannabis products for home delivery to customers under new provincial regulations that go into effect next month. 

Under new regulations passed by the legislature last year, the Alberta Gaming, Liquor and Cannabis (AGLC) will stop accepting online orders for cannabis products on March 8. At the same time, privately owned licensed dispensaries will take over online cannabis sales throughout the province. But before online sales can begin, dispensaries must first upgrade their license for online sales and the AGLC must approve e-commerce websites before they go live.

AGLC spokesperson Karin Campbell said that cannabis ordering websites must have a “robust” system for verifying the age of customers placing orders. Additionally, purchasers who appear to be less than 25 years old at the time of delivery will be required to show identification to the driver. So far, no retailer has received an endorsement from the AGLC for its website, Campbell noted, although she said that several companies have indicated that they will be prepared to begin taking online orders on March 8.

Dispensaries Preparing for Launch

To prepare for the change, brick-and-mortar dispensaries are busy preparing their websites and developing their infrastructure to make home deliveries. High Tide, a company that operates 58 Canna Cabana stores in Alberta and already sells cannabis online in the provinces of Ontario, Manitoba, and Saskatchewan, is working with the AGLC to put the finishing touches on its plan for online cannabis sales and home deliveries to begin on the March 8 launch date.

“We’ve done a pretty good job that we can operate online sales and home delivery in a safe, secure manner,” chief revenue officer Andy Palalas told the CBC. “It’s a big part of our strategy for addressing the illicit market.”

On Tuesday, High Tide announced that it was rolling out its new cannabis delivery on demand program at select Canna Cabana stores in Ontario, Manitoba, and Saskatchewan, with plans to expand the service to Alberta when regulators allow. Under the new program, customers will be guaranteed delivery of all online orders from participating stores within two hours of their order being placed, or at an hourly time slot chosen by the customer outside of the two-hour window.

“In addition to creating a fantastic delivery experience for our customers, this initiative also represents a proactive and thoughtful approach to competing with and drawing consumers away from the illicit cannabis market, which we know remains resilient in part due to their offering of unregulated delivery services,” High Tide CEO Raj Grover said in a statement from the company. “We plan on introducing this program in all provinces where we operate as soon as possible, and I look forward to seeing the growth and success of this program as we roll it out across Canada.”

Dank Cannabis in Alberta is also preparing to take online orders for home delivery of cannabis products beginning on next month’s launch date. Currently, customers can place orders on the dispensary’s website for pickup within a few hours. A Dank Cannabis spokesperson said that the beginning of online ordering for delivery will streamline cannabis purchases for its customers.

“Now with the landmark ruling in Alberta, cannabis connoisseurs will be able to enjoy their marijuana from the comfort of their homes,” the spokesperson told Digital Journal. “You can pick and choose to your heart’s delight on our carefully designed, feature-rich website and watch your favorite products arrive at your doorstep with no extra effort.”

Not all Dispensaries will be Ready

Some cannabis retailers, however, are not sure if they will be ready to begin taking online orders for home delivery on March 8. Matthew Anderson, vice-president of legal, business affairs, and compliance with cannabis retailer Fire & Flower told reporters he does not believe the retailer’s 42 dispensaries in Alberta will begin accepting online orders for home delivery on launch day.

“We’re down to the wire in terms of timing, and based on the responses I’ve received so far, I’m not optimistic that March 8 will be the day that we first deliver in Alberta,” said Anderson.

Not all of Alberta’s licensed dispensaries are keen to begin taking online orders for home delivery, however. Catherine Hill, the owner of the It’s 420 Somewhere dispensaries in High Level, Alberta, and Hay River, Northwest Territories said that she expects Alberta’s cannabis delivery market to be saturated with competition.

“Everybody’s going to be doing it,” she said.

Instead, It’s 420 Somewhere will focus on providing an engaging store experience for its clientele. 

“A lot of people also just love going in and speaking to their local budtender,” Hill explained.

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The state of Colorado is reporting a new record amount of revenue collected during 2021, including update sales data in overall tax and fee revenue collected since 2014 when legal sales began.

The Colorado Department of Revenue (DoR) announced on January 11 that the state has made a new record with total annual cannabis sales. “New record alert! In 2021, Colorado collected over $423 million in revenue from marijuana sales (compared to the previous record of over $387 million in 2020). Colorado also surpassed $2B in tax and fee revenue and $12B in marijuana sales to date,” the agency wrote on its social media pages.

A detailed press release shared that monthly data for December 2021 reached $30,609,563 in tax and fee revenue (with a total of $423,486,053 between January and December 2021) and $2,018,933,005 since February 2014.

Similar in cannabis sales, the latest data revealed $158,462,549 was collected in November (with a total of $2,060,952,959 collected between January and November 2021) and a massive total of $12,039,747,032 collected since legal sales began in January 2014.

These figures are based off of the state sales tax (2.9 percent), cannabis retail sales tax (15 percent) and retail cannabis excise tax (15 percent). The DoR notes that for cannabis sales data, the official sales figures won’t be released until sometime in February 2022.

Sales data from October, November and December were reported to have decreased, with both cannabis sales and prices dropping below the usual rate. The price of smokeable flower per pound in the last three months of 2021 dropped by 28 percent ($1,316 to $948, according to Westword) in reference to the average market rate (AMR). In comparison, the AMR for the end of 2020 reported $1,721 in price per pound.

The states of Washington and California, however, have collected $3 billion and $3.1 billion in tax revenue, compared to Colorado’s newly achieved $2 billion. Of course, Washington’s sales tax is up to 46 percent in certain regions, and California’s sales tax reaches up to 38 percent. Colorado’s tax percent is the third highest in the country.

According to Marijuana Policy Project Policy Director Karen O’Keefe, Colorado’s cannabis industry is more consistent, which leads to steady flow of funds for the state. “When you have that kind of funding, economists say you have what’s called a multiplier effect, where you not only have the initial investment in the stores, the jobs and the tax revenue, but then that money is in people’s pockets who spend it again,” O’Keefe told Westword. “So it’s as if each dollar is two or three dollars, which is the way economists usually look at it.” She also notes that this long-term investing has led to the creation of 40,000 jobs and over 1,000 Colorado businesses.

“Some of the more recently taxed states are focusing on specifically investing a good chunk of the revenue in communities that have borne the brunt of marijuana prohibition and that have had disproportionate marijuana arrests,” O’Keefe continued. “You’ll just continue to see more tax revenue, more people working in the cannabis industry, operating cannabis businesses.”

Colorado’s cannabis industry is thriving in many other ways overall as well. At the beginning of the year, Governor Jared Polis signed an executive order to pardon 1,351 cases relating to cannabis possession convictions of two ounces or less. Psychedelic decriminalization is also ramping up in Colorado, with two potential ballot measures being proposed through New Approach PAC. One bill proposes legalization of multiple different psychedelic substances such as ibogaine, DMT, mescaline, psilocybin and psilocin, whereas the other bill focuses just on psilocybin and psilocin.

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The first year of legal cannabis sales in Illinois was a roaring success, but it turns out the second year was even better. 

Twice as good, in fact.

A report from the grimly named Illinois Department of Financial and Professional Regulation (IDFPR) showed that adult-use cannabis sales in the state totaled $1,379,088,278.61 in 2021––more than double the figure from the opening year of sales in 2020, which were roughly $669 million. 

The figures released by the IDFPR provide insight into the quantity of cannabis products sold, and when customers were buying them. 

The biggest month for pot sales in 2021 came at the very end of the year, with $137,896,859.11 generated in December. That was also the case in 2020, when the $86,857,898.27 worth of cannabis sales made December the highest-grossing month of that year. 

The IDFPR’s report also details the source of the money. Last year, $943,013,285.67 of the cannabis sales came from Illinois residents, while $436,176,093.93 came from out-of-state residents.

A total of 30,342,937 cannabis items were sold last year––up from 14,485,704 in 2020. 

Illinois’ recreational cannabis market opened for business on New Year’s Day 2020, a milestone that was met with long lines outside the states’ newly opened dispensaries. The first day of sales alone generated more than $3 million, and many of the shops ran out of weed during the opening week.

The figures continued to climb, giving the administration of Illinois Governor J.B. Pritzker, who signed the bill legalizing recreational cannabis in 2019, a reason to take a victory lap.

In June of 2020, Pritzker’s then-senior adviser for cannabis control Toi Hutchinson, who has since been hired as the Marijuana Policy Project’s president and CEO, said that the “successful launch of the Illinois legal cannabis industry represents new opportunities for entrepreneurs and the very communities that have historically been harmed by the failed war on drugs.” 

“The administration is dedicated to providing multiple points of entry into this new industry, from dispensary owners to transporters, to ensure legalization is equitable and accessible for all Illinoisans,” Hutchinson said. 

To that end, the economics have only been one facet of Illinois’ new marijuana law. As with other states that have legalized cannabis, there has also been a concerted effort by policymakers to redress previous convictions of marijuana offenders. 

When legalization took effect in Illinois, Pritzker heralded the occasion with more than 11,000 pardons for nonviolent cannabis offenders.

“We are ending the 50-year-long war on cannabis,” Pritzker said at the time. “We are restoring rights to tens of thousands of Illinoisans. We are bringing regulation and safety to a previously unsafe and illegal market. And we are creating a new industry that puts equity at its very core.”

Pritzker did the same to kick off 2021, issuing more than 9,000 pardons for low-level cannabis offenders and expunging more than 490,000 pot-related arrests.

“Statewide, Illinoisans hold hundreds of thousands low-level cannabis-related records, a burden disproportionately shouldered by communities of color,” Pritzker said in a statement released at the time. “We will never be able to fully remedy the depth of that damage. But we can govern with the courage to admit the mistakes of our past—and the decency to set a better path forward.”

While most other states have legalized cannabis through the ballot process, Illinois became the first to do so through the legislature in 2019, something Pritzker touted at the time of the bill signing.

“As the first state in the nation to fully legalize adult-use cannabis through the legislative process, Illinois exemplifies the best of democracy: a bipartisan and deep commitment to better the lives of all of our people,” said Pritzker.

“Legalizing adult-use cannabis brings an important and overdue change to our state, and it’s the right thing to do. This legislation will clear the cannabis-related records of nonviolent offenders through an efficient combination of automatic expungement, gubernatorial pardon and individual court action. I’m so proud that our state is leading with equity and justice in its approach to cannabis legalization and its regulatory framework. Because of the work of the people here today and so many more all across our state, Illinois is moving forward with empathy and hope.”

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A Connecticut state official said on Wednesday that regulators working to implement the state’s legalization of cannabis still have many details to work out before accepting applications for business licenses and hinted that the launch of legal recreational marijuana sales may be delayed. 

Connecticut became the fourth state to legalize adult-use cannabis in 2021 with the signing of legislation by Governor Ned Lamont in June. The law became effective on July 1, with lawmakers originally anticipating that legal sales of recreational marijuana to begin in the summer of 2022. 

However, Michelle Seagull, the commissioner of the Connecticut Department of Consumer Protection, said this week that the launch would likely come later.

“We’ve been suggesting that there will likely be sales by the end of 2022, and we’re still aspiring for that,” Seagull told local media. “Obviously, we have to see how things play out in the next few months.”

Seagull told the audience at a “Business of Cannabis” breakfast held by the Eastern Connecticut Chamber of Commerce on Wednesday morning that state regulators are still ironing out some of the details of legalization. One issue still being discussed is how to protect the existing market for medical marijuana, which began operating in 2012. Connecticut now has 18 licensed medical cannabis dispensaries across the state, all of which will be permitted to apply for a license to sell recreational cannabis, as well.

“It’s really important to us that we preserve the medical marketplace that currently does exist,” Seagull said. ‘It’s important to us that that market, which is working well and helping a lot of people, doesn’t get swallowed up.”

Many Decisions Left To Social Equity Council

Seagull also noted that many decisions still to be made, including what documentation will be necessary for social equity applicants, will be the responsibility of a social equity council appointed by Lamont and lawmakers. The 15-member panel met for the first time last month.

When asked about “large corporations trying to circumvent rules” to obtain social equity licenses, Seagull said that decision will be made by the social equity council, which will “need to take a look at ownership and corporate documents to understand who truly controls the business.”

An audience member, Matthew Ossenfort, said that he was considering a change in careers to the cannabis industry after 18 years in fashion. He asked if the criteria for social equity applicants could be expanded to include race, gender and sexual identity in order to more expressly prioritize participation in the cannabis industry by members of diverse groups.

“I hope the commissioner takes that question seriously, because my biggest fear is that if they only look at qualifications based on income, a bunch of licenses are going to go to people who can’t afford to actually get these businesses up and running, and the other licenses will all go to millionaires,” Ossenfort said. “The middle class should have a way into this industry, too.”

Kurt Smith, a panelist at the business breakfast who works as a consultant assisting cannabis businesses with licensing, planning, licensing and design, told the audience that legalization will affect many business sectors in Connecticut outside of the marijuana industry.

“They’re creating an entirely new industry that’s going to reach all of the businesses in this room,” Smith said. “The capital-intensive nature of this business makes it difficult for these companies to start up and have all of their own infrastructure, like HR and IT departments, so I think the ancillary business market is going to see that there is a lot of opportunity here.”

Smith is also a co-founder of Four Score, a licensed cannabis cultivator and retailer in Massachusetts. He suggested that Connecticut follow that state’s lead by making funding available to social equity applicants, noting that “many of the people who get social equity licenses won’t just have $20,000 sitting around to hire an architect.”

Smith also advised that rolling out Connecticut’s adult-use cannabis market will require patience and people should not expect regulations to be drafted right away.

“It’s going to take longer than everybody thinks,” Smith said. “It’s not going to happen on that timetable, because it always takes extra time to get these things right.”

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