In final hours of session, Colorado lawmakers fail to define public use of marijuana

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By The Associated Press

Colorado’s long debate over where people can smoke marijuana will continue for at least another year.

Wednesday night in the closing hours of the 2017 Legislature, the two chambers failed to reach a compromise on defining the prohibition on “open and public” marijuana consumption — a question that has been hanging over lawmakers since voters approved Amendment 64 legalizing cannabis in the state in 2012.

The House and Senate previously approved different versions of the legislation. A panel of negotiators met twice to discuss whether people could smoke pot on their front porches.

According to The Denver Post, the compromise reached allowed porch smoking as long as it involved only five people other than the residents of the home, a so-called “party of five” rule. But House lawmakers rejected the measure Wednesday, arguing it undermined voter intent and imposed an arbitrary limit.

“We’re talking about your own private property,” said Rep. Jovan Melton, D-Aurora according to the Denver Post. “And why the number five? Why did we arbitrarily land on that number? We are literally putting things into statute with no explanation.”

Earlier in the legislative sessions, lawmakers at considered legislation to authorize Amsterdam-style pot clubs. That proposal had bipartisan support because of complaints that tourists and people who don’t want to smoke pot at home are smoking weed in public.

But the club proposal was abandoned weeks ago in light of opposition from Gov. John Hickenlooper and some other lawmakers.

Information from John Frank and Brian Eason of the Denver Post.

Chile starts medical cannabis pilot program

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By The Associated Press

SANTIAGO, Chile — Chile has become the first country in Latin America to sell cannabis-based medicines at pharmacies.

The pilot program was launched Wednesday at two pharmacies in the Chilean capital, which will sell the T100 and TC100 chronic pain-relief medicines made in Canada.

The program is financed by an alliance between Chile’s Alef Biotechnology and Canada’s Tilray under the supervision of the Chilean National Health institute.

Alef Biotechnology President Roberto Roizman says the viability of the program will be evaluated in six months to determine if it can be produced in Chile and exported.

Tilray is a pioneer in the research, production and distribution of cannabis-based medicines.

Chile has been joining an international trend of easing restrictions on marijuana for medical or personal use.

Colorado marijuana sales top $131M, set record in March 2017

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By , The Cannabist Staff

The Colorado cannabis industry’s unbridled growth hasn’t waned — in fact, it’s still setting records.

The state’s licensed marijuana shops captured nearly $132 million of recreational and medical cannabis sales in March, according to The Cannabist’s extrapolations of state sales tax data made public Tuesday.

The monthly sales haul of $131.7 million sets a new record for Colorado’s relatively young legal marijuana industry, besting the previous high of $127.8 million set last September, The Cannabist’s calculations show. It’s the tenth consecutive month that sales have topped $100 million.

Sales tax revenue generated for the state during March was $22.9 million, according to the Colorado Department of Revenue.

March’s sales totals were 48 percent higher than those tallied in March 2016, according to The Cannabist’s calculations. The month closes out a quarter in which sales were up nearly 36 percent from the first three months of last year.

In 2016, the year-over-year quarterly growth rate ranged between 29 percent and 39.6 percent.

The Cannabist also found that March 2017’s year-over-year percentage growth outpaced much of what was seen on a monthly basis last year. Monthly growth rates from calendar year 2015 to 2016 averaged nearly 34 percent.

It was this continued rate of growth that caught the attention of some analysts and economists contacted by The Cannabist.

Andrew Livingston, director of economics and research for cannabis law firm Vicente Sederberg, separately calculated out the year-over-year monthly growth rate for Colorado cannabis sales and saw a trend emerge.

“The year-over-year rates of growth have continued at a steady pace, which to me indicates that we have not yet reached the point at which we are starting to cap out the market,” he said.

At that point, he added, the growth rates would start to decline.

If the current growth rates keeps up, April 2017 should be another record month, and the summer of 2017 should set new highs, Livingston predicted.

And by the end of the year, that could add up to an industry boasting $1.6 billion in sales, he said.

“We’re surprised that sales continue to grow so quickly,” said Miles Light, an economist with the Marijuana Policy Group, a Denver-based financial, policy, research and consulting firm focused on the marijuana industry. “We are not surprised that almost all of the sales growth is in the retail marijuana space.”

Adult-use sales, which hit a new monthly high of $93.3 million, accounted for the lion’s share of the March totals. Medical cannabis transactions totaled $38.4 million.

Light and other economists have previously projected that Colorado’s marijuana market would eventually hit a ceiling as the draw from the black market becomes more complete, regular economic cycles take hold and other states implement adult-use sales.

It’s hard to predict when that plateau may occur, but the license and application fees in the March 2017 report were telling, Light said.

Ten months into Colorado’s fiscal year (the latest report for March sales show tax revenue remitted in April), the license and application fees for medical marijuana businesses and retail marijuana businesses were down 25.4 percent and 8.5 percent, respectively, according to the Colorado Department of Revenue report.

“This shows that fewer new firms are entering and, I believe, shows that … sales should be tapering off or declining,” he said.

Mark Bolton, marijuana advisor to Colorado Gov. John Hickenlooper, said the sales tax revenues tallying $185 million for the fiscal year-to-date are in line with expectations.

“We’re anticipating a significant increase (of marijuana tax revenue) this year,” he said. “I don’t think we’re anticipating any dramatic changes in the market. I guess we could potentially see some changes in the tourism market. We don’t anticipate any dramatic changes in our market with new states online.”

Sales stats for Colorado weed
A month-by-month look comparing sales of recreational and medical marijuana, as calculated by The Cannabist:
2017 Recreational total (3 months)
$257,574,083
2017 Medical total (3 months)
$109,154,798
2017: $366,728,881
2016 Recreational total (12 months)
$875,277,360
2016 Medical total (12 months)
$437,879,186
2016: $1,313,156,545

Alicia Wallace joined The Cannabist in July 2016, covering national marijuana policy and business. She contributes to the Denver Post’s beer industry coverage. In her 14 years as a business news reporter, her coverage has spanned topics such as the…

Delaware introduces marijuana legalization, but many critics remain

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By The Associated Press

DOVER, Del. — A bill that would legalize the recreational use of marijuana in Delaware was released Wednesday by a House committee and now goes to the full House for consideration.

The legislation, which seeks to regulate and tax marijuana in the same manner as alcohol, cleared its first legislative hurdle on a 10-2 vote in the House Revenue and Finance Committee.

While the bill would not allow people to grow their own marijuana, it would allow adults over age 21 to legally possess less than an ounce of marijuana for personal use.

Consumers would pay an excise tax of $50 an ounce, although the actual retail price would be set by a state marijuana commissioner.

Marijuana sales would not be allowed in establishments licensed to sell alcohol.

The legislation would create a commission to regulate, license and tax the marijuana industry, allowing licenses for up to 40 retail stores and 75 cultivation facilities. Those businesses, along with testing and product manufacturing facilities, would pay an application fee of $5,000 and a $10,000 licensing fee every two years.

Supporters of the bill said it would help reduce the black market for marijuana, and the associated crime that comes with it, while raising revenue for the state.

“Make no bones about it — people die because marijuana is still traded on the black market,” said James Spadola, a former Newark police officer who now runs a criminal justice reform group called Delaware Law Enforcement for Progress.

Opponents argued that the bill carries unknown health risks, and that it would lead to more drug addiction and homelessness, decreased school performance and productivity, and more impaired-driving traffic accidents. They also said there currently is no accurate test to determine whether a driver is impaired by THC, the primary psychoactive compound in marijuana.

Rep. Lyndon Yearick, R-Dover, said the bill could unleash a possible epidemic of drug use with unforeseen consequences.

“Once we cross this threshold, there’s no turning back,” he warned.

Groups opposing the measure include AAA Mid-Atlantic, the Delaware Police Chiefs Council, the Medical Society of Delaware, the Delaware State Chamber of Commerce, and the Delaware Healthcare Association, a trade organization that represents hospitals.

Camden Police Chief William Bryson, chairman of the police chiefs council, said Colorado and Washington have seen increased crime and increased black market sales since legalizing marijuana.

“We’re going to have the same issue here,” he said. “Delaware law enforcement doesn’t need any extra work. That’s what this bill is going to bring to us.”

Chief sponsor Rep. Helene Keeley, D-Wilmington, said that if the bill were to pass and become law, Delaware would be the first state to legalize recreational marijuana while prohibiting people from growing their own.

“I believe truly that that will diminish the black market,” she said.

Keeley said she will move slowly on the legislation in an effort to address various concerns, and that it will not be voted on this month.

Democratic Gov. John Carney has said he does not support legalization at this time.

Currently Delaware has decriminalized marijuana possession of an ounce or less, resulting in a civil offense punishable by a fine of $100.

Vermont legislature first in nation to vote to legalize marijuana

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By The Associated Press

MONTPELIER, Vt. — Vermont’s Legislature on Wednesday became the first in the country to vote to legalize the recreational use of marijuana.

The legislation, which passed the House by a 79-66 vote, would allow adults to possess and use small amounts of the drug beginning next year. The bill was identical to one passed last week by the Senate that also sets up a commission to study the best way to regulate marijuana.

The bill now heads to Republican Gov. Phil Scott, whose spokeswoman said he’s not philosophically opposed to legalizing marijuana but must be sure the bill answers certain public safety and health questions.

“He’ll review the bill when received to determine if those questions are addressed,” spokeswoman Rebecca Kelley said after the vote.

If Scott signs the legislation it will become law on July 1, 2018.

Under the legislation, small amounts of marijuana would be legal to possess and grow for anyone over age 21. Larger amounts would remain illegal.

A nine-member commission will develop a proposal to tax and regulate marijuana, and the proposal will be presented to lawmakers next year.

Before Vermont’s vote, eight states and the District of Columbia had legalized the recreational use of small amounts of marijuana. The vote by Vermont lawmakers, however, was the first to legalize marijuana separate from a voter initiative.

The hour-long debate before the vote featured impassioned comments by some lawmakers who felt legalizing marijuana would lead to increased substance abuse, car accidents and other unintended consequences.

“This is voting for trouble. We’ve got a lot of problems, and this is only going to make it worse,” said Rep. Ben Joseph, a Democrat from North Hero.

But opponents’ arguments were countered by others who said that marijuana use is already prevalent in Vermont and passing the law could give the state a say in its regulation, end the black market and possibly increase state revenue.

“What is changing is the landscape of our region,” said Rep. Ruqaiyah Morris, a Democrat from Bennington, whose home is less than 10 miles from Massachusetts, where retail marijuana sales are due to begin in mid-2018. “This is going to happen. We can either be pro-active and be part of this conversation and ensure we are thinking about all these things, including some sort of a mechanism to address them, or we can just take a wait-and-see approach and deal with it next year.”

You can build your own tiny hemp home, he’ll show you how

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By , The Cannabist Staff

Pity poor, politicized hemp: guilty by association due to its cousin, marijuana.

Both hemp and marijuana are varieties of the species Cannabis sativa L. But unlike marijuana, hemp contains only trace amounts of the intoxicating chemical compound tetrahydrocannabinol (THC).

Hemp has been an agricultural crop for centuries, was grown in colonial America and had a U.S. revival during World War II.

But domestic production of hemp came to a standstill in the 1970s after marijuana was classified under Schedule I in the federal Controlled Substances Act and a federal permit was required to grow hemp.

But that’s been changing in recent years after the 2014 Farm Bill allowed states to approve limited production of industrial hemp. According to the National Conference of State Legislatures, as of August 2016 at least 16 states have legalized industrial hemp production for commercial purposes and 20 states have passed laws allowing hemp research and pilot programs.

Use of hemp as a construction material is also part of the revival, thanks to hemp entrepreneurs who are thinking big — and small.

“The reason I was attracted to industrial hemp to begin with was because … it does have the longer-range potential,” says John Patterson, founder of northern Colorado-based Tiny Hemp Houses, a firm that offers consulting services and workshops for prospective hemp home-builders.

Patterson, 54, has spent most of his professional career as a carpenter, craftsman, woodworker and teacher. He’s also an advocate of sustainable building practices. Five years ago he immersed himself in the particulars of hemp-based construction after meeting with Ireland native Steve Allin of the International Hemp Building Association and learning his system for making and using hempcrete.

Hempcrete workshopA closeup of balls of hempcrete. (Ron Sweetin Photography)

As the name implies, hempcrete is a concrete-like construction material that uses the woody, inner core of the hemp plant mixed with water and lime, or powdered limestone or chalk. Hempcrete can either be molded into building blocks or, as Patterson prefers, it can be mixed on-site into a slurry and poured into frames in order to create hempcrete walls.

According to the National Hemp Association, hempcrete is not only a durable construction material but is both fire and pest resistant. Patterson also notes that it has a measure of flexibility (unlike concrete), doesn’t emit toxic fumes (like some mainstream construction materials) and is vapor permeable.

“One of its number-one qualities is its ability to breathe,” Patterson notes during a phone interview with The Cannabist.

One of the big problems with conventional home construction, he says, is that “we seal up homes so tightly nowadays, and then we create moisture from our breath and our cooking and things like that. That water sits on the surface of the wall and that’s where the molds and mildews grow. With a hemp-lime system, the house absorbs some of that moisture so it’s less likely you’ll have mold and mildew with the proper (hempcrete) recipe.”

John Patterson Tiny Hemp HousesTiny Hemp Houses founder John Patterson is shown at the site of a workshop with bales of imported hemp material to the right of the structure. (Ron Sweetin Photography)

Hempcrete is also a great insulator, according to Patterson. He says his walls tend to be a bit thicker than in standard construction but that he ends up with an R-22 insulation rating, or the equivalent of a slightly thinner wall insulated with fiberglass.

Currently all the hemp used by Patterson for his tiny home projects comes from abroad. Hemp industry officials say more than $500 million worth of hemp is currently imported into the U.S. annually due to the federal prohibition on cannabis.

Patterson says he imports the hemp as loose particles, in 30- to 33-pound bags from Europe. One of his tiny homes is usually about 120 to 400 square feet in size (For some perspective, the size of an average hotel room is 325-350 square feet). It takes about two tons, or approximately 125 bags, of hemp to build a tiny hemp house, but you can go full-sized too. A 1,500 square-foot house, or about the size of an average three-bedroom home, requires around 1,000 33-pound bags of hemp.

Patterson says he believes in building small, and works with municipalities and do-it-yourselfers to create these smaller living spaces.

“It’s not for everybody, but some people are looking for smaller,” he says. “It’s less expensive. The younger crowd, they don’t want to be tied to a mortgage and they realize they can live with less space. And if you organize that space better it’s amazing how much you can accomplish in a smaller home.”

Coming up May 12-14, Patterson is hosting one of his tiny hemp house/hempcrete workshops, his sixth so far.

As for the people who take part in his workshops John says it’s an eclectic mix. “We get some young people looking for opportunities in the hemp industry,” he says. “Then there’s people from green building or from traditional building, looking for something a little different. Or just people interested in building a hemp house.”

John Patterson Tiny Hemp Houses workshopWorkshop attendees pour hempcrete as part of the construction of the hemp house. (Ron Sweetin Photography)

Patterson says the hemp house movement and interest in using hempcrete has taken on a lot of momentum over the past three years.

“We kind of started the whole trend here in Colorado, but we’re (now) working with states that have nothing to do with marijuana: North Carolina, Kansas, Nebraska,” he says. “So we do have a national momentum going.”

And that national momentum toward hemp farming and hemp construction could end up having major economic benefits for agricultural parts of the U.S. – as well as the nation’s construction sector.

“Farmers across the nation are looking for alternatives,” says Patterson. “The tobacco industry in the South is going away. They really need the economic development to bring a valid crop back to their farmlands.”

As a crop, hemp is drought resistant, grows rapidly and requires relatively little pesticide or herbicide treatment. Industrial hemp, meanwhile, has an astonishing number of uses: from food to fuel to construction materials and clothing.

Bruce Kennedy is a veteran communications professional and multi-media journalist who has years of experience in international and business news. He started covering Colorado’s cannabis industry in…