Washington State Tavern Suspended For Cannabis Use & COVID-19 Violations

Emergency Suspension Issued for Loggers Inn, Sultan WA
Suspension due to repeated public safety violations

WASHINGTON: The state Liquor and Cannabis Board (LCB) today issued an emergency suspension of the license for Loggers Inn for repeated public safety violations of state COVID-19 guidelines and a violation for allowing cannabis use on premises.

Licensee: Loggers Inn, 215 Main St. Sultan, WA 98294

The Loggers Inn has had four violations since Dec. 2019; three related to COVID-19 violations and one violation for allowing cannabis to be consumed on the premises.

  • Violation issued on Dec. 14, 2019:  Cannabis use on the premises
  • Violation issued on Aug. 28, 2020:  COVID-19 violations
  • Violation issued on Sept. 25, 2020: COVID-19 violations
  • Violation occurred on Oct. 24. 2020: COVID-19 violations

On multiple occasions, LCB officers provided education to the licensee about compliance with state law. While the licensee informed officers on at least two occasions he would comply with the state COVID-19 order, follow-up visits showed they were not complying. During an LCB visit on Oct. 24, 2020 officers observed approximately 30 customers and two employees not wearing masks and no social distancing was in effect. Prominent signage notified customers that the business was not following or requiring adherence to the requirements of health or other authorities regarding masks or social distancing. For these reasons the Board voted unanimously to authorize an emergency suspension of the Loggers Inn license.

The LCB educates licensees to reach compliance and enforces Washington’s liquor, cannabis, vape and tobacco laws and regulations. The WSLCB is mandated to ensure that licensees in Washington State follow state laws and regulations. When licensees fail to comply with state law, the Board, under state authority can take action including the issuance of suspensions to ensure public health and safety.

Pritzker Administration Announces Fourth Month Sales Totals For Illinois Adult Use Cannabis

State’s new adult-use cannabis industry generated more than $37 million in sales in April

ILLINOIS: The Illinois Department of Financial and Professional Regulation has announced preliminary numbers show statewide adult-use cannabis sales in April totaled $37,260,497.89. Dispensaries across the state sold 818,954 items over the 30-day period. Sales to Illinois residents totaled $29,735,650.41, while sales to out-of-state residents totaled $7,524,847.47. These figures do not include taxes collected. A portion of every cannabis sale will be reinvested in communities harmed most by the failed war on drugs.

Medical and adult use cannabis dispensaries remain open as part of the essential businesses and operations named in Governor Pritzker’s executive order signed on March 20, 2020. Both sides of the cannabis industry were included to ensure the cannabis supplier industry protects medical cannabis patients during the COVID-19 pandemic. Additionally, the revenue generated by adultuse cannabis sales funds the important social justice and equity goals at the core of Illinois’ adult-use law.

“Our top priority is to ensure consumers are safe when they go to a dispensary to purchase cannabis,” said Toi Hutchinson, Senior Advisor for Cannabis Control to Gov. Pritzker. “The steps we’ve taken to increase social distancing at dispensaries are accomplishing that, while also enabling this new industry to continue to grow. As such, curbside pickup will remain an option for medical cannabis users to obtain the product they need through May 30.”

Dispensaries are permitted to sell medical cannabis outside of their limited access area on their property or on a public walkway or curb adjacent to the dispensary. Medical cannabis patients will be able to continue to utilize their designated caregiver to purchase medicine for them. However, dispensaries may not deliver medical cannabis to a patient or caregiver’s home. These rules do not apply to adult-use cannabis sales; those must still take place inside the limited access area. A complete list of the rules extended may be found here.

U.S. House Of Representatives Approves Cannabis Banking Reform In Larger COVID-19 Relief Package

Lawmakers voted 208-199 (23 not voting) in favor of coronavirus “HEROES” relief package

DISTRICT OF COLUMBIA: On Friday evening (5/15/20) lawmakers in the United States House of Representatives passed additional coronavirus relief legislation to provide continued economic and government support to the country. The Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act includes the language of the SAFE Banking Act, which would prevent federal financial regulators from punishing financial institutions that provide services to state-legal cannabis businesses.

Since the onset of the COVID-19 pandemic, cannabis businesses across the country have been deemed essential and continue to operate. However, many of these businesses still lack access to the same financial services that are granted to every other industry in the United States. Because it is possible that coronavirus can be transmitted on currency — placing private industry and government workers at risk when handling large amounts of cash — allowing the cannabis industry to access banking services is now more crucial than ever. This policy change would also ensure that small and minority-owned businesses can access the financial assistance designed for them in many state programs.

The HEROES Act, which includes provisions to allow banks and financial institutions to provide services to the cannabis industry without fear of criminal prosecution, will now head to the Senate for consideration. In September 2019, the House of Representatives voted in favor of the SAFE Banking Act, but the legislation has since stalled in the Senate.

Statement from Steve Hawkins, executive director at the Marijuana Policy Project:
“I’m encouraged that the House recognizes the urgency of this issue and has taken this strong and necessary position. We thank Chairwoman Maxine Waters and Rep. Ed Perlmutter for their leadership on the issue.

“Continuing to exclude the cannabis industry from accessing basic and essential financial services during this time will result in more harm than good. Not only will it make the country’s economic recovery that much harder, but the provisions intended to help minority-owned businesses would continue to be absent within the industry.”

Statement from Don Murphy, director of federal policies at the Marijuana Policy Project:
“In light of the public health and public safety benefits of this specific change in policy, the Senate has good reason to pass this language into law. This is a change in policy that the banks are asking for even more than the cannabis companies. We urge the Senate Banking Committee to adopt the SAFE Banking provisions to ensure financial institutions can provide basic banking services to businesses that are compliant with state law.”

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Senator Harris, Colleagues Call On Congressional Leaders To Ensure Cannabis Small Businesses Can Access Emergency SBA Loan & Grant Programs

DISTRICT OF COLUMBIA: U.S. Senator Kamala D. Harris (D-CA) on Wednesday joined Senators Jacky Rosen (D-NV) and Ron Wyden (D-OR), and 7 of their Senate colleagues in sending a letter to Congressional leadership calling for forthcoming COVID-19 relief legislative packages to allow state-legal cannabis small businesses and indirect cannabis small businesses to access loan and emergency grant programs administered by the U.S. Small Business Administration (SBA).

In the letter, the Senators highlight the failings of current regulations that exclude small businesses with “direct” or “indirect” products or services that aid the use, growth, enhancement, or other development of cannabis from SBA-backed financing, including the Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL). These outdated regulations have left taxpaying, state-legal cannabis small businesses behind during this crisis.

“The cannabis industry supports more than 240,000 workers in the United States, spanning 33 states and the District of Columbia. Some of these jobs have already been lost due to the COVID-19 pandemic and the resulting economic crisis, and there is significant risk of greater job loss in the coming months. Many cannabis businesses are small-to-medium size operators, and some have been ordered to close to comply with state public health safety measures without having access to the same support systems in place as other small businesses in different sectors,” wrote the Senators.

“Given the nature of the global COVID-19 pandemic, we must ensure that every American small business has the capacity to protect the health and economic wellbeing of their community and workforce. Therefore, we ask Senate Leadership to include in any future relief package provisions to allow state-legal cannabis small businesses and the small businesses who work with this industry to access the critical SBA support they need during these challenging and unprecedented times,” concluded the Senators.

In addition to Harris, Rosen, and Wyden, the letter was signed by Senators Catherine Cortez Masto (D-NV), Jeff Merkley (D-OR), Kirsten Gillibrand (D-NY), Bernie Sanders (D-VT), Ed Markey (D-MA), Elizabeth Warren (D-MA), and Michael Bennet (D-CO).

The full text of the letter can be found here and below:

Dear Majority Leader McConnell and Leader Schumer:

Thank you for your ongoing efforts to address the needs of the American people during the COVID-19 crisis. We write to ask that forthcoming COVID-19 relief legislation allow state-legal cannabis small businesses and indirect marijuana small businesses to access emergency loan and grant programs administered by the U.S. Small Business Administration (SBA). Access to the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program will allow these small businesses to keep their workers on payroll and prevent further job losses that are devastating the economy. The coronavirus crisis demands relief for all workers and businesses, no matter the sector.

The cannabis industry supports more than 240,000 workers in the United States, spanning 33 states and the District of Columbia. Some of these jobs have already been lost due to the COVID-19 pandemic and the resulting economic crisis, and there is significant risk of greater job loss in the coming months. Many cannabis businesses are small-to-medium size operators, and some have been ordered to close to comply with state public health safety measures without having access to the same support systems in place as other small businesses in different sectors.

SBA’s current regulations exclude small businesses with “direct” or “indirect” products or services that aid the use, growth, enhancement, or other development of cannabis from SBA-backed financing, including PPP and EIDL. Consequently, small business owners in states with some form of legal cannabis must choose between remaining eligible for SBA loan programs, or doing business with or in a rapidly-growing and legal industry.

Workers at state-legal cannabis small businesses are no different from workers at any other small business—they show up to work every day, perform their duties, and most importantly, work to provide for their families. This lack of access to SBA assistance for cannabis small businesses will undoubtedly lead to unnecessary layoffs, reduced hours, pay cuts, and furloughs for the workers who need support the most. The COVID-19 outbreak is no time to permit outdated federal policy to stand in the way of the reality that state-legal cannabis small businesses are sources of economic growth and financial stability for thousands of workers and families.

Given the nature of the global COVID-19 pandemic, we must ensure that every American small business has the capacity to protect the health and economic wellbeing of their community and workforce. Therefore, we ask Senate Leadership to include in any future relief package provisions to allow state-legal cannabis small businesses and the small businesses who work with this industry to access the critical SBA support they need during these challenging and unprecedented times.

Thank you for your consideration of this request.

Sincerely,

Wyden, Merkley Call For SBA To Accept Loan Application From Cannabis Business In Cannabis-Legal States

Oregon senators: “SBA loans would be especially helpful to cannabis small businesses because they would fill gaps left by the private sector.”

DISTRICT OF COLUMBIA: U.S. Sens. Ron Wyden and Jeff Merkley today announced they are requesting that the Small Business Administration (SBA) be prohibited from denying loan applications to cannabis small businesses in states like Oregon that have legalized cannabis use.

In the Oregon lawmakers’ letter to Senate colleagues overseeing SBA appropriations, they urged language prohibiting the SBA loan denials to cannabis businesses by noting the clear shift in public opinion toward supporting legal cannabis and the tax revenues these businesses generate for states.

“States collected an estimated $1.3 billion in tax revenue from legal cannabis sales in 2018,” Wyden and Merkley wrote. “However, SBA’s current policy excludes small businesses with ‘direct’ or ‘indirect’ products or services that aid the use, growth, enhancement, or other development of cannabis from SBA-backed financing. Consequently, small businesses in states with some form of legal cannabis must choose between remaining eligible for SBA loan programs, or doing business with a rapidly-growing and legal industry.”

The SBA’s loan programs provide financial assistance in the form of loans and loan guarantees to small businesses who cannot easily access capital, a problem disproportionally faced by minority entrepreneurs.

“Currently, most banks are reluctant to serve cannabis businesses due to conflicts with federal law, meaning that these businesses often are forced to operate using purely cash, creating an unsafe operation,” the senators wrote. “SBA loans would be especially helpful to cannabis small businesses because they would fill gaps left by the private sector. Access to these SBA loan programs could ensure that small businesses – especially those led by our minority, women, and veteran entrepreneurs – can raise money for their ventures and support job creation.”

The letter comes in addition to legislation sponsored by Wyden and Merkley that would make cannabis businesses eligible for SBA assistance, forbid Small Business Development Centers and Women’s Business Centers from declining to serve those businesses, establish the Cannabis Opportunity Program for SBA microloans and provide grants to minimize barriers for under-represented groups to participate in cannabis businesses.

In addition to Wyden and Merkley, other co-signers of the letter led by U.S. Sen. Jacky Rosen (D-NV) include U.S. Sens. Tammy Duckworth (D-IL), Michael F. Bennet (D-CO), Kirsten Gillibrand (D-NY), Bernard Sanders (I-VT), Edward J. Markey (D-MA), Cory A. Booker (D-NJ), Robert Menendez (D-NJ) and Kamala D. Harris (D-CA).

A copy of the entire letter is here.