2019 Cannabis Industry Developments: Tracking Cannabis Bills Part 2

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Cannabis Industry Developments

Welcome to my second cannabis industry developments of 2019!

In the second legislative roundup of 2019 we’ll look at the most significant cannabis bills that have been introduced in the following states: Colorado, California, Oregon, Nevada, Arizona, Michigan, Florida, Pennsylvania, and Massachusetts. Scroll down to see a summary, the current status (as of 4/11/2019), and any upcoming meetings/hearings for each bill.

Cannabis Industry Developments

COLORADO

HB19-1090: Publicly Licensed Marijuana Companies

HB 19-1090 removes the prohibition against publicly traded corporations from owning or investing in marijuana businesses.

Introduced: 1/14/2019

Status: Crossed Over to Senate, In Senate Committee Process

Recent Action: 3/29/2019 – Passed in House (54-11)

Upcoming: 4/18/2019 – Senate Finance Committee Hearing


HB19-1230: Marijuana Hospitality Establishments

This bill creates two new marijuana license types:

(1) Marijuana Hospitality Establishment License

(2) Retail Marijuana Hospitality and Sales Establishment License

A Marijuana Hospitality Establishment license allows businesses (restaurants, bars, tour buses etc.) to permit patrons to consume marijuana on the business premises. A Retail Marijuana Hospitality and Sales Establishment license allows businesses that sell marijuana to permit consumption on the premises. The bill requires local government approval to obtain a marijuana hospitality license.

Introduced: 3/08/2019

Status: In House Committee Process

Recent Action: 4/08/2019 – Hearing in House Finance Committee

Upcoming: No upcoming meetings scheduled


HB19-1234: Regulated Marijuana Delivery

HB19-1234 allows licensed medical marijuana centers, retail marijuana stores, and transporters to deliver marijuana products to customers. If the bill is passed, permitting for delivery of medical marijuana would begin January 2, 2020, and permitting for retail marijuana delivery would begin January 2, 2021.

Introduced: 3/12/2019

Status: In House Committee Process

Recent Action: 4/02/2019 – Referred to House Finance Committee

Upcoming: No upcoming meetings scheduled


SB19-224: Retail and Medical Marijuana Code Amendments

This bill makes a laundry list of changes to retail and medical marijuana regulations. Some of the changes in this 259 page proposal include updates to the license renewal process, a mandate to the MED to adopt equivalency standards for medical marijuana products and concentrates, and new provisions that allow retail marijuana stores and medical marijuana centers to sell industrial hemp products. Click here to see a more comprehensive list of the proposed changes contained in SB19-224.

Introduced: 3/29/2019

Status: In Senate Committee Process

Recent Action: 4/09/2019 – Hearing in Senate Finance Committee

Upcoming: No upcoming meetings scheduled

Cannabis Industry Developments

CALIFORNIA

AB 286: Reduce Excise Tax Rate, Suspend Cultivation Tax

This bill cuts taxes on consumers and cultivators for three years. The goal is to reduce the disparity in prices between legal cannabis sources and black market sources to encourage consumers to purchase from the legal market. The bill reduces the excise tax imposed on retail purchases of cannabis from 15% to 11% and suspends the cultivation tax ($9.25 per ounce of flower, $2.75 per ounce of cannabis leaf, $1.29 per ounce of fresh cannabis plant) until June 1, 2022.

Introduced: 1/28/2019

Status: In the Assembly Committee Process

Recent Action: 4/9/2019 – Assembly Business and Professions Committee Hearing

Upcoming: 4/23/2019 – Assembly Privacy and Consumer Protection Committee Hearing


AB 953: Paying State and Local Taxes with Cryptocurrency

AB 953 requires the Department of Tax and Fee Administration (by June 1, 2020) to establish a system to enable cannabis businesses to pay state cannabis taxes using a form of cryptocurrency called “stablecoins.” The bill allows cities and counties (after January 1, 2020) to establish methods for cannabis businesses to pay local cannabis taxes using stablecoins.

Introduced: 2/21/2019

Status: In Assembly Committee Process

Recent Action: 3/21/2019 – Referred to Assembly Banking and Finance Committee &

Revenue and Tax Committee

Upcoming: 4/22/2019 – Assembly Banking and Finance Committee Hearing


AB 1461: Manufacturers Arranging for Testing

Under current law, distributors are required to arrange for the testing of cannabis products and to conduct quality assurance reviews to ensure the cannabis products are labeled and packaged in compliance with state law. This bill authorizes manufacturers to arrange for the testing and to conduct the quality assurance review.

Introduced: 2/22/2019

Status: In the Assembly Committee Process

Recent Action: 3/28/2019 – Referred to Assembly Business and Professions Committee

Upcoming: 4/23/2019 – Assembly Business and Professions Committee Hearing


AB 1465: Cannabis Consumption Lounges

AB 1465 creates a new “consumption cafe/lounge license” which authorizes retail licensees to sell cannabis and cannabis products for onsite consumption.

Introduced: 2/22/2019

Status: In the Assembly Committee Process

Recent Action: 4/1/2019 – Referred to Assembly Business and Professions Committee

Upcoming: 4/23/2019 – Assembly Business and Professions Committee Hearing


AB 1530: Delivery in Local Jurisdictions

This bill authorizes a local jurisdiction to ban delivery of cannabis within its boundaries.

Introduced: 2/22/2019

Status: In the Assembly Committee Process

Recent Action: 4/9/2019 – Assembly Business and Professions Committee Hearing

Upcoming: No meetings scheduled


SB 51: Cannabis Limited Charter Banks and Credit Unions

SB 51 establishes cannabis limited charter banks and credit unions. These banks and credit unions could issue special purpose checks to cannabis businesses that would be valid for specified purposes like paying state and local taxes, paying rent, and paying contractors.

Introduced: 12/04/2018

Status: In the Senate Committee Process

Recent Action: 4/03/2019 – Passed Senate Banking and Financial Institutions

Committee (6-1), Referred to Senate Governance and Finance Committee

Upcoming: 4/24/2019 – Senate Governance and Finance Committee Hearing

Cannabis Industry Developments

OREGON

HB 2233: Consumption Lounges, Delivery to Hotels, Grow Facility Tours

HB 2233 allows the Oregon Liquor Control Commission to regulate and license marijuana consumption lounges but gives cities and counties the ability to opt-out. It allows retailers to deliver marijuana items to hotels (but not to dorms) and allows marijuana producers and marijuana processors to offer tours of their licensed premises to members of the public who are at least 21 years old.

Introduced: 1/14/2019

Status: In the House Committee Process

Recent Action: 3/13/2019 – House Economic Development Committee Hearing

Upcoming: No meetings scheduled


HB 2909: Marijuana Deliveries to Adjacent Cities, Counties

Currently, a marijuana retailer can only deliver to consumers located within the city or unincorporated areas of a county in which the retailer is licensed. HB 2909 allows marijuana retailers to deliver to consumers located in adjacent cities and counties, provided those cities or counties have adopted an ordinance allowing for such deliveries.

Introduced: 2/7/2019

Status: In the House Committee Process

Recent Action: 4/8/2019 – House Economic Development Committee Work Session

Upcoming: No meetings scheduled


HB 3169: Limited Charter Cannabis Financial Institutions

This bill allows banking institutions or credit unions to organize as limited charter cannabis financial institutions for the purpose of lending capital to cannabis businesses. It allows these institutions to issue special purpose checks to cannabis businesses to use to pay things like taxes and rent and to pay vendors for cannabis business-related goods or services.

Introduced: 2/28/2019

Status: In the House Committee Process

Recent Action: 4/8/2019 – House Economic Development Committee Work Session

Upcoming: No meetings scheduled


SB 382: Remove Medical Grow Site 20-Pound Transfer Limit

Under current law, a medical marijuana grow site can transfer a maximum of 20 pounds of marijuana to a recreational processor or wholesaler. SB 382 removes that limit, allowing a medical marijuana grower to transfer an unlimited amount of marijuana to the recreational market.

Introduced: 1/14/2019

Status: In the Senate Committee Process

Recent Action: 2/28/2019 – Senate Business and General Government Committee Hearing

Upcoming: No meetings scheduled


SB 582: Cross-Jurisdictional Coordination and Enforcement of Marijuana Businesses

Currently, marijuana businesses in Oregon are limited to selling marijuana within the state and cannot transfer any marijuana across state lines. SB 582 allows the Governor to enter into “cross-jurisdictional coordination and enforcement” agreements with bordering states to allow marijuana from Oregon to be transferred into those states.

Introduced: 1/14/2019

Status: In the Senate Committee Process

Recent Action: 4/3/2019 – Senate Judiciary Committee Passed with Amendments (5-2)

Upcoming: No meetings scheduled

Cannabis Industry Developments

NEVADA

AB 409: Marijuana Consumption Lounges

AB 409 establishes the requirements to operate a marijuana consumption lounge in Nevada. This bill allows consumption lounges to rent paraphernalia to customers, to sell food and nonalcoholic beverages, and to sell items like clothing, stickers, or other memorabilia.The bill requires local government approval to obtain a consumption lounge license.

Introduced: 3/21/2019

Status: In the Assembly Committee Process

Recent Action: 3/21/2019 – Referred to Assembly Committee on Judiciary

Upcoming: No meetings scheduled


SB 238: Illegal Activity Hotline, Dual Licensee Inventory Tracking, Delivery Advertising

This bill requires the Bureau of Consumer Protection to establish a statewide hotline and website for complaints relating to unlicensed marijuana activity. The bill also allows a dual licensee to combine its medical and adult-use inventory for the purpose of maintaining its inventory control system and prohibits a medical dispensary or retail store from contracting with a third party to advertise delivery to consumers.

Introduced: 2/27/2019

Status: In the Senate Committee Process

Recent Action: 3/19/2019 – Senate Revenue and Economic Development Committee Hearing

Upcoming: No meetings scheduled


SB 437: Limited Charter Banks and Marijuana Credit Unions

SB 437 authorizes the creation of marijuana limited charter banks and marijuana credit unions. The bill allows these financial institutions to issue special purpose checks, which may be used only for the purposes of: (1) paying state or local taxes; (2) paying certain expenses related to the operation of a marijuana establishment; and (3) purchasing bonds, notes and other obligations issued by the State or a political subdivision of the State.

Introduced: 3/25/2019

Status: In the Senate Committee Process

Recent Action: 4/8/2019 – Referred to Senate Committee on Commerce and Labor

Upcoming: No meetings scheduled

Cannabis Industry Developments

ARIZONA

SCR 1021: Medical Marijuana Amendments

SCR 1021 establishes new regulatory oversight for medical marijuana businesses in Arizona. The resolution authorizes the Department of Agriculture to adopt rules related to testing of medical marijuana and to certify testing labs, requires designated caregivers, principal officers, agents, and employees of a medical dispensary to have valid fingerprint clearance cards, and requires the Department of Health Services to notify the public regarding inspection and compliance information for a dispensary. Click here for a more comprehensive list of the proposed changes. The concurrent resolution would have to be approved by voters to take effect.

Introduced: 1/22/2019

Status: Crossed Over to House, In House Committee Process

Recent Action: 3/14/2019 – Passed in Senate (18-12)

Upcoming: No meetings scheduled


SCR 1022: Legalize and Regulate Recreational Cannabis

SCR 1022 legalizes recreational cannabis businesses in Arizona and requires the state to adopt rules to implement the procedures for licensing, regulating, and taxing these businesses. The concurrent resolution would have to be approved by voters to take effect.

Introduced: 2/5/2019

Status: In Senate Committee Process

Recent Action: 2/5/2019 – Referred to Senate Rules Committee & Finance Committee

Upcoming: No meetings scheduled


SB 1494: Rules for Testing Marijuana

SB 1494 establishes rules for certifying independent testing labs to test medical marijuana and requires the Department of Health Services to adopt rules for testing medical marijuana before it is sold to patients/caregivers. Click here for a comprehensive list of the proposed changes.

Introduced: 2/5/2019

Status: Crossed Over to House, In House Committee Process

Recent Action: 3/6/2019 – Passed in Senate (30-0)

Upcoming: No meetings scheduled

Cannabis Industry Developments

MICHIGAN

HB 4126: Warning Labels and Safety Pamphlets

HB 4126 requires a pregnancy warning to be printed on all packaging of recreational marijuana sold through retailers or microbusinesses. It also requires retailers and microbusinesses to provide a pamphlet to every customer at the time of sale that includes safety related information and the poison control hotline number. HB 4127 imposes these same requirements for all medical marijuana sold through provisioning centers.

Introduced: 2/5/2019

Status: In House Committee Process

Recent Action: 2/5/2019 – Referred to House Judiciary Committee

Upcoming: No meetings scheduled


SB 203: Ownership Interests Subject to Background Checks

Under current law, the following individuals associated with an entity applying for a marijuana business license must be disclosed on the license application and undergo background checks: officers, directors, managerial employees of the applicant, and any person who holds any direct or indirect ownership in the applicant.

SB 203 amends the definition of “applicant” to require the following individuals to be disclosed on the application and undergo background checks: managerial employees and any person holding a direct or indirect ownership interest of more than 10%. The individuals who must be disclosed vary depending on the type of entity applying for a license (sole proprietorship, partnership, limited partnership, limited liability company, corporation, etc.). Click here to see a comprehensive list of individuals who must be disclosed on an application for each type of entity under SB 203.

Introduced: 3/13/2019

Status: Crossed Over to House, In House Committee Process

Recent Action: 3/21/2019 – Passed in Senate (28-9), Referred to House Judiciary Committee

Upcoming: No meetings scheduled


HB 4440: June 1 Deadline for Medical Marijuana Businesses

HB 4440 requires medical marijuana businesses to obtain a state license by June 1, 2019. The businesses who do not obtain a license by that date would be ineligible to get a license for one year.

Introduced: 4/9/2019

Status: In House Committee Process

Recent Action: 4/10/2019 – Referred to second reading

Upcoming: No meetings scheduled

Cannabis Industry Developments

FLORIDA

HB 557: Reciprocity for the Medical Use of Marijuana

HB 557 allows medical patients/caregivers outside of Florida to purchase medical marijuana in Florida. It provides that qualified patient/caregiver identification cards issued by another state have the same force and effect as medical marijuana use registry identification cards issued by the Florida Department of Health.

Introduced: 1/24/2019

Status: In House Committee Process

Recent Action: 2/6/2019 – Referred to House Health Quality Subcommittee; Health Care

Appropriations Subcommittee; Health and Human Services Committee

Upcoming: No meetings scheduled


HB 1117: Legalize and Regulate Recreational Marijuana

HB 1117 legalizes recreational marijuana in Florida. It provides for the licensure and regulation of recreational marijuana establishments.

Introduced: 2/26/2019

Status: In House Committee Process

Recent Action: 3/4/2019  – Referred to House Criminal Justice Subcommittee; Government

Operations and Technology Appropriations Subcommittee; Judiciary Committee

Upcoming: No meetings scheduled


SB 154: Licensing of Medical Marijuana Retail Facilities

SB 154 requires the Department of Health to issue licenses to medical marijuana retail facilities and prohibits medical marijuana treatment centers from owning or operating these retail establishments. The bill requires the Department of Health to identify applicants with strong diversity plans and implement training and other educational programs to enable certain minority persons and enterprises to qualify for licensure.

Introduced: 12/14/2018

Status: In Senate Committee Process

Recent Action: 1/10/2019 – Referred to Senate Health Policy Committee; Appropriations

Subcommittee on Health and Human Services; Appropriations Committee; Rules Committee

Upcoming: No meetings scheduled


SB 1116: Marijuana Limited Charter Banking and Credit Unions

SB 1116 authorizes the creation of marijuana limited charter banks and marijuana credit unions to provide banking services to Medical Marijuana Treatment Centers.

Introduced: 2/18/2019

Status: In Senate Committee Process

Recent Action: 2/28/2019 – Referred to Senate Banking and Insurance Committee; Innovation,

Industry, and Technology Committee; Rules Committee

Upcoming: No meetings scheduled

Cannabis Industry Developments

PENNSYLVANIA

HB 50: Legalize and Regulate Recreational Cannabis

HB 50 legalizes recreational cannabis in Pennsylvania. The bill requires the Department of Health to issue up to 50 grower/processor permits and up to 100 dispensary permits (3 locations allowed per permit) to serve the adult-use market.

Introduced: 2/6/2019

Status: In House Committee Process

Recent Action: 2/6/2019 – Referred to House Health Committee

Upcoming: No meetings scheduled

Cannabis Industry Developments

MASSACHUSETTS

H. 3521: Continuity in Approval of Marijuana Facilities in Cities and Towns

H. 3521 establishes continuity in the local approval process for marijuana facilities by requiring all cities and towns to adhere to the same process for approving Host Community Agreements with marijuana businesses.

Introduced: 1/22/2019

Status: In Committee Process

Recent Action: 1/22/2019 – Referred to Joint Committee on Cannabis Policy

Upcoming: No meetings scheduled


H. 3532: Using Pesticides on Cannabis

H. 3532 requires the state to authorize the use of pesticide products on hemp and marijuana that are considered appropriate for organic farming- provided that the EPA allows application of the product’s active and inert ingredients on food and tobacco crops and has not established a federal tolerance limit.

Introduced: 1/22/2019

Status: In Committee Process

Recent Action: 1/22/2019 – Referred to Joint Committee on Cannabis Policy

Upcoming: No meetings scheduled


S. 1125: Social Consumption Establishments in Cities and Towns

Currently, the only way a city or town can authorize on-site consumption at a marijuana facility is through a local ballot measure. S. 1125 authorizes a city or town to bypass the ballot measure process and authorize on-site consumption through ordinance or by-law.

Introduced: 1/22/2019

Status: In Committee Process

Recent Action: 1/22/2019 – Referred to Joint Committee on Cannabis Policy

Upcoming: No meetings scheduled


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