7 minute read
Has covid 19 fast tracked public
Has COVID-19 fast-tracked public support for cannabis?
KORAL FRITZ FOR MICHIGAN GREEN STATE
any and all types of cannabis users into one look at some of the attitude and policy shifts category: good-for-nothing-criminal-drug that were noticeable in 2020. addicts. For decades in the United States, many people have viewed cannabis as a gateway drug, the devil’s lettuce, and a substance only associated with crime and unwanted immigrants. Cannabis went from being widely available and recognized for its medical value in the early 1900s to being outlawed in 1970. The anti-cannabis attitude has been entrenched in the culture and the laws of the United States for nearly one hundred years. Yet, in the midst of a pandemic and at a time defined by polarization and stress, people are stopping to smell the roses. Except this time somebody swapped the roses with cannabis flower. As fear developed around “habit forming” substances in the 1920s, it was easy for society to demonize cannabis. Many people learned to cast judgment on Mexican immigrants and their daily cannabis FRITZ While the virus has had a devastating impact on the country’s health and economy, it has certainly measured the country’s tolerance and support for cannabis reform. smoking likely because govern- The virus has put cannabis in the spotlight. ment officials are on record making racist From states declaring cannabis businesses comments towards Mexican immigrants and essential to Congress considering banking “degenerate races” for their “satanic music” reform, the country is dealing with and and violence that became associated with using cannabis in a way that harkens back to cannabis use. Society quickly created a pre-prohibition days. The pandemic, at least culture where upstanding citizens despised in part, seems to have spurred a change in and feared “marijuana.” This culture pushed public attitude towards cannabis. Here is a
When the pandemic began, Michigan’s legal recreational cannabis market was just getting rolling. In mid-November of 2019, Michigan’s Marijuana Regulatory Agency (MRA) issued the first recreational cannabis licenses and announced that recreational sales would begin on December 1, 2019. On opening day, customers waited in long lines that resembled those we once saw on Black Friday. With five recreational retailers open, Michigan reported over $1.6 million in recreational cannabis sales by December 8th. At the end of December, the monthly sales topped $6 million. The MRA’s monthly report indicates that sales reached $9.8 million for January alone. In February, just as concerns about a deadly virus were rising, Michigan’s recreational cannabis sales increased by 34%, hitting $14 million. Michigan’s first stay-at-home order took effect on March 24th and limited operations to only those workers, businesses, and services that were essential. Phones at law firms across the state started ringing off the hook as business owners frantically tried to determine if their businesses were essential. Several state agencies, including the MRA, published advice or guidance about which workers and activities were essential. The MRA’s Advisory Bulletin explained that licensed medical marijuana and licensed adult-use (recreational) marijuana establishments could remain open. Other states, including Illinois, Washington, California, Nevada, and Oregon also permitted cannabis businesses to operate despite stay-at-home orders. Other states, such as Massachusetts, permitted only medical cannabis businesses to operate during the shutdown. The decision to deem cannabis businesses essential in some states during the pandemic is an indication that citizens and leadership recognize the benefits that cannabis has to offer. This decision also signals a widespread shift in society’s attitude towards cannabis from stigma and rejection to understanding and acceptance.
CANNABIS BUSINESSES HAD THE OPPORTUNITY TO ROLL OUT CURBSIDE AND DELIVERY OPTIONS
The cannabis businesses that could operate despite state shutdown orders still had to adapt to new sales methods. Michigan provisioning centers and retailers that remained open had to close store lobbies and conduct sales through curbside service and delivery while maintaining social distancing. Some of Michigan’s medical cannabis retailers received authorization to institute delivery options in the spring of 2019. However, the recreational businesses did not have delivery options until the state began to react to COVID-19. With retail lobbies closed, customers could no longer walk into a store and peruse display cases to pick the products they wanted to purchase. Instead, customers relied heavily on retail websites to identify products, place orders online or by phone, and to set up deliveries or curbside pickups. This substantial change came just as recreational retailers were getting used to operating new stores and forced industry leaders to pivot quickly. Despite the unforeseen change, the new delivery rules provided cannabis businesses a lifeline. Authorizing delivery and curbside options indicates that states support cannabis businesses and have an interest in making sure patients and recreational consumers have safe access to cannabis. Reports indicate that consumers are using the new purchase options. Cannabis total sales in Michigan topped $30 million in March, $33 million in April, and $45 million in May, with sales continuing to grow over the summer months. Regulators fast response to the problems COVID-19 posed to the cannabis industry has shown that society is changing its tune on cannabis.
CANNABIS REFORM CONTINUED TO GAIN TRACTION
One year before the pandemic took hold, the United States House of Representatives began working on the Safe and Fair Enforcement Banking Act (SAFE). Representative Ed Perlmutter (D-CO) introduced HR 1595 in March 2019 with the goal of opening up banking opportunities for cannabis operations in the country. The House passed the SAFE Act in September of 2019, and the bill is now in review with the Senate Committee on Banking, Housing, and Urban Affairs. If you remember your School House Rock songs, you’ll know that this bill sitting in committee for over a year likely means it is dead (for now). Only a few months before the House passed the SAFE Act, Representative Jerrold Nadler (D-NY) introduced the Marijuana Opportunity Reinvestment, and Expungement (MORE) Act, HR 3884. The goal of the MORE Act is to decriminalize cannabis while also taxing sales of the substance and opening up banking and investment opportunities to cannabis businesses. The House bill also seeks to establish a process to expunge convictions related to federal cannabis offenses. After Rep. Nadler introduced this bill in July of 2019, the bill moved through committee before the House passed the MORE Act in early December of 2020. The Senate now has the chance to address the MORE Act and has referred the bill to the Committee on Finance as of December 7, 2020. While the House is not holding its breath waiting for Senate action on the MORE or SAFE Acts, the movement on these bills is indicative of the public’s support for cannabis reform. In fact, the latest Gallup Poll shows that 68% of American adults favor legalizing cannabis. That statistic is not overly surprising given the success that cannabis measures experienced in the November election. Despite a trying year with unfamiliar obstacles, five states overwhelmingly passed cannabis measures. Specifically, Arizona, Montana, and New Jersey legalized adult use while Mississippi legalized medical use. South Dakota became the first state to legalize adult use and medical use
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IS COVID-19 TO CREDIT FOR CANNABIS SUCCESS IN 2020?
The response to COVID-19 called on different localities to address cannabis rules and policies that may not have reached the roundtable this year. But for shutdowns and closures, states may not have considered or otherwise declared cannabis businesses essential. If some states had not declared cannabis businesses essential, then the industry may not have had the need or opportunity to develop an e-commerce presence or to roll out delivery and curbside operations as quickly as they have. Several state economies have benefitted from the function of cannabis markets during the last year, and it seems that the economic opportunity has opened federal legislators’ eyes to the need to legalize this market. Koral Fritz is a licensed attorney and Professor of Cannabis Business at Lake Superior State University
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