Michigan Tracker
Michigan sales were down 2.6% in September to $161 Million and up 52% YoY. The most significant YoY increases come from Shake/Trim and Vape cartridge categories. Recreational sales were down far less than medical sales sequentially. Medical sales were down 21% YoY, while recreational sales were up 110% as users switched to recreational usage rather than going through the process/expense to obtain a medical card. Hedgeye's estimate for the annual Michigan sales is $1.99 Billion.
PA Legalization
State Senator Mike Regan (R) has introduced a bill to legalize marijuana in Pennsylvania. Regan helped write the state's medical marijuana program in 2016 when he was a member of the state House of Rep. "I want to build off the success of that program while ensuring its continued viability for the industry and its patients. I also want to make sure that Pennsylvanians receive their fair share from the sale of adult-use marijuana, not the cartels and gangs whose profits are comparable to Fortune 500 companies," Regan wrote in his op-ed. According to the filing, taxes would benefit the PA state police and invest in roads and bridges. "We will proceed with caution," Laughlin, another Republican senator in support of legalization, said earlier this year. "It's going to take a lot of phone calls and emails to get moving through the committee process and to the floor for a vote."
More Act in House
The More Act was in the House Judiciary Committee yesterday after being postponed from the day prior. No significant changes are expected for the More Act during the hearing, given that it passed the House in December in a similar form. "I don't anticipate major changes. I had an opportunity to discuss it a little bit with [Judiciary Chairman Jerry Nadler], and I think they're on the right path," said Rep. Earl Blumenauer (D-Ore.) — the House's cannabis policy czar. The important things to watch are tax structure and social equity programs. Republicans may suggest the States Act as it does not deschuedule cannabis but provide certain protections to states that legalize it. However, even if the bill is approved through the House committee, it will likely go nowhere in the senate. This lack of bipartisan support for legalization bills always brings us back to one bill: The Safe Act. The Safe Act in the most recent vote had over 100 republican house yes votes which is greater than the number of republican no votes. According to our tracker, the Safe Act is the marijuana reform bill with the greatest probability of passing. We held a call with Hedgeye policy analyst JT Taylor last week discussing all the bills in congress currently.
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