South Korea Becomes First East Asian Country to Allow Medical Cannabis, While Northeastern States in the US Push for Legal Potentiometer

As people continue to learn about the benefits of medical cannabis, countries are increasingly being forced to follow suit. Earlier this year, the United Kingdom was forced after public outcry to allow access to marijuana-based medicines, and the U.S. Food and Drug Administration approved the first cannabis-derived pharmaceutical for legal use nationwide. Now nation states with still-strict drug laws are evolving: South Korean lawmakers voted this week to allow regulated use of medical marijuana for conditions including cancer , HIV/AIDS , and epilepsy .
Legal weed sales have been ramping up on the West Coast in the U.S. , but 2019 could be the year the rush to green finally spreads to the Northeast. The first two East Coast shops just opened in Massachusetts , and consumer demand shows no signs of slowing down. This week, a legislative committee in New Jersey introduced an adult-use legalization bill along with two other cannabis reform measures, while Gov. Phil Murphy passed a bill to legalize hemp. Lawmakers in New York are drafting a legalization bill, and not to be outdone, Connecticut ’s new governor has said he will support legislative efforts to bring a legal pot to the Nutmeg State.
Yet disputes over the issue (and how best to legalize it) remain challenging. In Ohio , a judge ruled that reserving medical marijuana business licenses for minorities is unconstitutional, while national grow companies are trying to carve their way into Maryland ’s medical marijuana industry , despite state law banning such activity. Canada’s legalization is still causing friction with its southern neighbor, and a Canadian investor found himself permanently banned from the U.S. for attempting to attend a cannabis industry conference.
South Korea Becomes First East Asian Country to Allow Medical Marijuana:
South Korean lawmakers were reportedly considering a medical cannabis bill earlier this year , and lawmakers followed suit on Monday and voted to “approve amending the Narcotics Administration Act to allow non-hallucinogenic doses of medical cannabis prescriptions,” Marijuana Business Daily reports. That’s a sea change for a country that retains the power to sentence marijuana smokers to death, but where demand for medical marijuana products has steadily increased.
Lawmakers reportedly considered previous legislation that would have allowed marijuana to be approved in the UK or US, but the new amendment would have “provided a legal basis … for production,” while also raising questions about whether South Korea will soon have cannabis cultivation, as well as how neighboring regions might respond. Vijay Sappani, a cannabis venture capitalist, told Marijuana Business Daily that the move is “a significant step forward”: “The importance of Korea as the first country in East Asia to allow medical cannabis at the federal level should not be underestimated. It is now a question of when other Asian countries will follow South Korea.”
New Jersey Advances Several Cannabis Reform Proposals, Legalizes Hemp
After months of debate, New Jersey lawmakers just took the first step toward fulfilling Gov. Phil Murphy ’s promise to bring legal pot to the Garden State this year. A joint committee of the state legislature met this week to approve three cannabis-related bills, the most important of which would create a taxed and regulated legal pot program . The legislation allows for on-site consumption at licensed stores and delivery of weed, while also including provisions to bar out-of-state investors from dominating the market.
The committee also approved a bill to expand the state’s medical marijuana program by increasing patients’ monthly cap on cannabis purchases from 2 to 3 ounces, legalizing infused edibles, and expanding licensing for additional businesses. A third bill would have made it easier for former addicts to reintegrate, making it easier for them to have their records permanently erased. However, each bill must pass both chambers of the Legislature before going to Murphy’s desk for a signature, which could still face a challenge. Top senators from both parties still oppose the measures, and Murphy himself has disagreed with lawmakers over the proposed sales tax rate for legal sales.
As lawmakers debate the merits of recreational cannabis, the Garden State will soon be growing marijuana's non-psychoactive cousin (CBD)
Murphy signed a bill creating a pilot program that allows institutions of higher education to grow and research industrial hemp. The 2014 Farm Bill legalized hemp production under state-approved pilot programs, and New Jersey is now the 38th state to launch such an initiative. “ This pilot program is a win for local farmers who need a diversity of opportunities to compete in the global agricultural marketplace ,” Senator Declan O’Scanlon said in a statement.
Connecticut Pushes Legalization, Following Massachusetts' Lead
Legal weed has finally arrived on the East Coast, and Connecticut ’s new governor wants to make sure the Nutmeg State doesn’t lose business to its newly legalized neighbor (Massachusetts). Last week, Gov.-elect Ned Lamont told reporters that legalization is “something I would support, and I don’t want the black market controlling the distribution of marijuana in our state. I think that’s a terrible way to go about it.” Lamont said he expects lawmakers to begin debating a legalization bill next year, and a recent report from the Connecticut Office of Policy and Management suggested that “the state could benefit from new revenue streams from fledgling businesses, like…recreational marijuana!” according to Marijuana Moment .
Weed has only been legally sold at two stores on opposite ends of Massachusetts, but demand has already been incredible: On the first day of sales, customers drove all the way to New Hampshire to line up before the stores opened their doors. The numbers are insane: About 3,000 customers visited the two stores throughout the day, spending more than $440,000 on more than 10,000 products. At the current tax rate of 17%, the state has earned nearly $75,000 in tax revenue from the first day alone. Excitement has remained high throughout the week, with both stores continuing to deal with interminable lines.
The groundswell of support for legal cannabis has prompted some former opponents, including Rep. Joe Kennedy, to rethink their opposition: “One thing is clear to me: Our federal marijuana policy has changed dramatically, both to the benefit of the elderly cancer patient who marijuana can help and the young woman prone to substance use disorder who could harm her,” Kennedy wrote in a recent interview. The lawmaker added that the federal government must step in and “regulate marijuana thoughtfully” to end the confusion created by the current “patchwork of inconsistent laws.”
Ohio Court Finds Social Equity Quota for Cannabis Licenses UnconstitutionalWhile several states and cities have created programs to promote social equity in their legal industries, some of these initiatives have struggled to achieve their goals. In Oakland and San Francisco, two of the first cities to launch such programs, observers are finding that equity applicants are still struggling to complete their applications while big businesses thrive. Ohio’s attempt to shore up equality in its medical marijuana industry is now facing a similar challenge, as a local judge has ruled that the state’s social equity program is unconstitutional.
Franklin County Common Pleas Judge Charles A. Schneider just ruled against a state regulation that requires 15 percent of the state’s medical cannabis licenses to be reserved for businesses owned by “economically disadvantaged” individuals. Under the law, state regulators were awarding two of the twelve available licenses to minority-owned businesses, even though they scored lower on their applications than other “less disadvantaged” applicants.
Greenleaf Gardens LLC, a company that lost its bid to a lower-rated minority-owned company, sued the state over its rejection. Schneider sided with Greenleaf, saying minority stakes are only appropriate when there is a history of discrimination in an industry, and that there is no such history in the new cannabis industry. While state attorneys have pointed to disproportionate prosecution of African Americans and Latinos for marijuana-related crimes, Schneider insisted that evidence does not prove discrimination in the new industry. It is not yet known whether Greenleaf will receive an additional license, or whether the state will revoke any of the permits it granted under the equity program.
National cannabis companies are trying to buy Maryland's medical cannabis industry, contrary to state lawAfter years of battling legal battles and regulatory woes, Maryland’s medical marijuana industry is finally growing, and this hot new market has recently attracted interest from national cannabis conglomerates eager to get a piece of the pie.
State regulations specifically prohibit local MMJ businesses from consolidating with out-of-state corporate interests, but despite this rule, several national cannabis companies, including Curaleaf and MedMen, have told investors they are finalizing deals to relocate the industry to their local state.
“I don’t know how the [Maryland Medical Cannabis Commission] is allowing this to happen,” Del. Cheryl Glenn told the Baltimore Sun. “We are adamantly opposed to large out-of-state companies coming in and buying licenses.” State lawmakers have told reporters they plan to address the issue when next year’s legislative session reconvenes in January. “We’re going to see it again,” Sandy Rosenberg said. “This is an ongoing process. We need to respond to what people are doing in a way that advances our policy goals.”
Canadian Cannabis Investors Banned from US to Attend Marijuana Business Conference
Cannabis has been fully legal in Canada for over a month, but U.S. customs officials are doubling down on efforts to ensure that anyone indirectly involved in this burgeoning new industry stays off American soil. In the months leading up to legalization, U.S. Customs and Border Protection (CBP) announced that any Canadian citizen who admitted to smoking weed or working in any industry-related job could be banned from the United States for life.
Shortly after adult-use sales began on October 17, CBP issued another statement explaining that they would still allow Canadian cannabis workers into the country, as long as they were doing so for personal reasons, not business. Earlier this month, several Canadian investors traveling to the Marijuana Business Conference & Expo in Las Vegas found that Border Patrol was actively enforcing the latter aspect of that policy. One investor traveling from Vancouver to Las Vegas found himself permanently banned from the United States, and at least 12 others found themselves detained for hours while traveling to the same convention.
Despite recent assurances from CBP, immigration lawyers have reported that the number of clients seeking cannabis business advice is on the rise. “Despite all the warnings I’ve been giving for months and months and years and years and years, it’s still happening and it’s going to continue to happen until there’s a harmonization of federal and state laws in this country,” Washington-based immigration lawyer Len Saunders tells the Canadian Press . “Otherwise, you’re going to see it happen forever — and the only one who benefits is me.”
Even back home on Canadian soil, the country’s road to legalization is causing some headaches. Many legal details are still being ironed out in the grey areas, while Health Canada is set to revoke the business license of a Vancouver company that manufactures cannabis vape pens that are banned under Canadian law.
Scientists Discover Cannabis Genes Responsible for CBD and THC Production
A collaborative effort between Canadian and American scientists has finally uncovered the specific genes involved in THC and CBD production . Researchers first sequenced the 10-chromosome genome of the cannabis plant in 2011, but it still took seven years to separate the genes that produce cannabinoids from the “junk DNA” — genetic material that viruses have inserted into cannabis DNA over centuries of evolution. This viral DNA comprises between 70 and 75 percent of the plant’s genome, making it difficult for researchers to isolate the genes responsible for cannabinoid production.
“You can only manipulate a gene when you know where it is,” Harm van Bakel , a genomics expert at the Icahn School of Medicine at Mount Sinai and the study’s lead researcher, told The Toronto Star . “And you also have to know something about the rest of the genome sequence so you can uniquely target the gene and not be misled by … other things that look similar.” The finding could make it easier for marijuana growers to target specific strains that contain certain levels of THC or CBD, or a precise blend of the two.