A Look at How Legalization is Going in Nevada

Voters in Nevada made their state one of the four to approve adult-use legalization in November 2016. The efforts there may not have gotten the media attention that California (because of its size) or Massachusetts and Maine (first victories for recreational legalization on the East Coast) did, but events in the state continue to show just how critical the vote was. With Nevada’s growing population, it means more people every year will have access to cannabis without needing a specific reason or special permission.

And while Nevada continues to fly under the radar somewhat when it comes to news compared to other states, that’s not necessarily a bad thing. With states like California making news due to shortages and weak supply and missing tax projections, and Maine being known for its relative lack of progress when it comes to getting adult-use sales off the ground at all, Nevada has made progress on many fronts. But that doesn’t mean all is well and that there is not still a lot more to accomplish.

“Nevada hit the ground running in 2017 with adult use and nothing has slowed down since,” Madisen Saglibene, the Executive Director for both the Las Vegas and Nevada chapters of NORML, told The Marijuana Times. “We rolled out the program extremely quickly, adopted amazing testing standards, and have great product availability overall. For consumers, there have been challenges though. The cost of product in Las Vegas is some of the highest in the nation and is then subject to a high tax rate also. For patients this has been a real problem, leading many back to the street market. Many great things have transpired since legalization, especially when it comes to tax revenue and business development, but Nevada consumers want to make sure that integrity is maintained by these cannabis businesses.”

Nevada is also somewhat unique in the U.S. due to the fact that tens of millions of tourists visit the state each year. When I asked Madisen about the impact legalization would have there over the next 5 years, she said it would likely be huge, especially after social use areas are allowed. “Casinos aren’t doing as well as they used to, nightclubs are also losing momentum, so I think Vegas is going to have to make that switch from an economic perspective,” she told us. “Unfortunately our laws don’t allow for any public consumption, so theoretically unless you live in Nevada, there’s nowhere you can legally smoke. This creates friction for tourists that need to be addressed. Social use lounges, other than those on Native American reservations, will not be permitted until at least 2021 per Nevada statute.”

Once people have the ability to travel to a place like Las Vegas, buy marijuana, and have multiple choices for where to consume said marijuana, there is no telling how many more tourists will pick Nevada as their destination. And if Nevada is still one of the very few places that offer this set of circumstances, they could have an advantage over other tourist spots for many years to come.

Louisiana industrial hemp program progress

The Louisiana Department of Agriculture and Forestry (LDAF) announced late last week it has submitted rules and regulations for the state’s industrial hemp program with the State Register’s office.

Louisiana was among a handful of remaining hemp holdout states until Governor John Bel Edwards signed off on HB491 in June this year, which became Act No. 164. Since that time, progress towards seeing the first crops sown legally in the state for decades has been swift.

“Our staff worked diligently to complete and file the industrial hemp administrative rules and regulations,” said LDAF Commissioner Mike Strain. “Our goal is to have everything in place and licenses issued in time for the 2020 planting season.”

Mr. Strain says while additional steps need to be completed before the production of industrial hemp in Louisiana can proceed, he’s confident his department is on track to meet the goal. However, the Department notes issues beyond its control could cause delays. One of those delays may come via the USDA, as Louisiana’s state plan for hemp will need to be approved.

LDAF has been charged with the task of adopting, administering and enforcing hemp rules and regulations. It will also be responsible for testing all industrial hemp crops prior to harvest to ensure THC levels do not exceed 0.3%. Testing will cost growers $250 per sample. LDAF is also the regulatory authority for the processing and transportation of industrial hemp.

The LDAF Industrial Hemp Program will start accepting license applications once the USDA gives its blessing and state rules have been adopted. There won’t be any limit on the number of hemp licenses issued –  all applicants meeting licensing requirements will be able to grow the crop and there won’t be any minimum acreage.

Even Louisiana residents will be able to grow the plant in their backyards if they wish – assuming they have a license. That mightn’t be particularly attractive given licenses will cost $500 and various hurdles need to be cleared.

The $500 and process will be chump change to commercial growers though, in particular those looking to tap into the CBD (cannabidiol) market. However, it’s not as lucrative as it once was. With so many states now permitting hemp cultivation and CBD production, prices for the cannabinoid have dropped significantly in recent months.

Louisiana’s proposed hemp rules and regulations can be viewed here.

Vapers may no longer pay less for Life Insurance than smokers

A major U.S. insurance company is planning to increase life insurance premiums for its customers who vape. The move by Prudential will bring rates for customers who use e-cigarettes into alignment with those charged smokers, the company said in a statement on Thursday.

“Prudential will reclassify users of e-cigarettes to treat them as smokers and in line with our cigarette smoking guidelines,” a company spokesman said. “Smokers typically will have higher-priced policies.”

The change will go into effect for customers applying for individual life insurance policies. Smokers typically pay about 50% more per year than nonsmokers, according to quotes from online insurance sites. The difference could add up to an additional $350 to $800 per year, depending on the health of the applicant and other factors.

The move by Prudential, a Fortune 500 company that provides insurance and other financial services in more than 40 countries, comes in the midst of the ongoing bout of serious lung injuries that have been linked to the use of e-cigarettes and other vaping devices. As of this week, at least 1,100 cases of the severe lung illnesses associated with vaping and 23 deaths have been reported by the Centers for Disease Control and Prevention.

“Increased attention on vaping over the past few months and linkages to a few deaths and multiple illnesses, have resulted in warnings from the FDA, federal government and some states banning the use of flavored e-cigarettes,” the spokesman said.

Risks of Vaping Unknown

Loretta Worters, the vice president of the Insurance Information Institute, said that the risks of vaping are not yet known.

“There hasn’t been enough statistical data to say whether or not they’re as bad as traditional cigarettes. Let’s not forget that it took 20 or 30 years before that connection was made,” said Worters. 

“Before you pick up that e-cigarette, people should ask themselves, ‘Is it worth the risk?’ “she added.

The federal government and several states have announced that they will ban flavored e-cigarettes while Massachusetts has gone even further, banning all vaping devices.

But Gregory Conley, the president of the American Vaping Association, an industry trade group, said that the rash of lung illnesses is being unfairly attributed to legal nicotine e-cigarettes, leading to headlines critical of the industry.

“They are the result of so many governmental officials spreading misinformation and doubt about nicotine vaping products,” he said. “Those illnesses and deaths are almost exclusively caused by the use of illicit and contaminated THC (marijuana) cartridges.”

Although the lung illnesses have been associated with vaping, the exact cause continues to elude health officials. Many patients who have been treated have reported that they had vaped cannabis, although some have said their use of vaping devices was limited to nicotine products.

Efforts to determine a cause continue, and have so far focused on the use of vitamin E acetate and other additives in vape carts, potential chemical contamination, and the cartridges themselves.

Texas suddenly stops issuing permits for new medical marijuana dispensaries

Medical cannabis entrepreneurs are looking for answers after the Texas Department of Public Safety unexpectedly shut down its application process for new dispensary permits on Wednesday. The window was originally intended to last through November 1.

No reason was given for the abrupt termination of the application window, which had been announced as a month-long period, and was pulled after only a week. “The department will continue to assess dispensing capacity requirements, along with the need for any additional licenses, as we work through recent legislative changes to the program,” a spokesperson from the department commented to a local news site.

The closure of the application process is of particular concern because the geographically enormous state’s access to medical marijuana is fairly limited. Last year, only three dispensaries (Surterra Texas, Cansortium Texas, and Compassionate Cultivation) saw their applications approved—the minimum number that the state was required to authorize. 43 businesses submitted applications to the agency.

The dearth of licensed dispensaries means that Texan patients have little options when it comes to where they can get their cannabis. Supply is so low that law enforcement officials have expressed concern that residents may cross state lines to get their meds illegally. That worry was multiplied when a New Mexico judge ruled that out of state individuals could qualify to buy medical cannabis at local dispensaries.

Executive director of the Texas chapter of NORML, Jax Finkel was caught off guard by the news of the closure of the application process. “I find it concerning that a week into the application process it’s suspended with no notice and no clear communication with doctors, patients or the general public,” he said.

Medical Marijuana in Texas

In June, Governor Greg Abbot signed into effect House Bill 3703, which expanded qualifying conditions for the state medical cannabis program past its previous limitation to individuals with intractable epilepsy. Now, multiple sclerosis, Parkinson’s disease, ALS, terminal cancer, autism, and certain seizure disorders are included as qualifiers.

The state representative who sponsored that legislation, Republican Stephanie Klick of Fort Worth, told reporters that she expected the moratorium on applications to be lifted soon, and that its causes were due to the change in qualifying conditions spurred by the department’s fact-finding sessions on which incurable neurodegenerative disorders should qualify for medical cannabis treatment in the state.

“Hang tight for now,” Klick commented. “This is likely just a temporary delay until we know which of the incurable neurodegenerative conditions are appropriate to be included on the list.”

Though medical access has expanded incrementally, Texas continues to have an uneasy relationship with its marijuana policy. Many lawmakers—among them Governor Greg Abbott — were dismayed when a recent bill authorizing the cultivation and sale of hemp made it untenable to prosecute many marijuana possession cases. At issue is the state’s ability to do lab tests distinguishing between non-psychoactive hemp and marijuana. Lacking the necessary technology, many county prosecutors have announced that they will not be pursuing many marijuana possession cases.

Earlier this year, a cannabis decriminalization bill passed the Texas House of Representatives, but withered on the vine when it arrived at the state Senate.