NDAA TRACKER
Technically hope is still alive for SAFE to make it into the NDAA, but the (5%) decline in the MSOS yesterday and the (12%) decline over the past month suggest incremental cannabis reform is not happening in 2021. Here is the AM update from JT Taylor, head of Hedgeye MACRO policy on the NDAA:
NATIONAL DEFENSE AUTHORIZATION ACT
The NDAA bill that Hoyer and Schumer are referring to would be a compromise between the House and Senate versions even though the Senate has not yet passed its bill and there has been no formal conference committee convened to work out differences. Schumer has been trying for days to find agreement on which amendments can be offered to the Senate bill. Still, disagreements with Republican Senators, notably Senator Marco Rubio (R-FL), have blocked a path forward.
To speed up the process, key Democrats and Republicans from the House and Senate are crafting what they hope will be the final version of the NDAA. There is speculation that this compromise version could be released early this afternoon, clearing the way for a House vote soon. The House plans to use a previously passed Senate bill dealing with an unrelated topic as the vehicle for the NDAA language. This maneuver will allow the House to send the measure to the Senate as "a message," which, in turn, will provide a way for Schumer to get around Rubio's objections. The bill will still need 60 votes to clear parliamentary hurdles, but the Senate hopes to move quickly once the House passes the new version. However, the House may not be able to vote as quickly as planned due to the sticky matter of the debt limit. As of midnight last night, there were still no signs that the SAFE Banking Act was included in the final draft, but hope springs eternal with the cannabis crowd, and there's still a sliver of hope that it would get slipped in at the last minute.
BRADY COBB INTERVIEW
We are very appreciative of Brady Cobb for taking the time to speak with Hedgeye at an important moment in his efforts to push for incremental Cannabis legalization, as he has spent years on the hill trying to end the war on drugs. We will be releasing the conversation we had with him yesterday at 2 PM today. Our conversation covers several issues:
- His family's history with cannabis and where his passion for reform came from
- Why a Premium Cannabis strategy is the way forward
- What is his take on the competitive trends in FLA, and what the future of Cannabis in FL looks like
- What does building a Cannabis "Moat" mean to Brady
- SAFE and the NDAA process (interesting moment around 20 minutes into the interview given what happened to the MSOS yesterday)
- Who has better "FLOWER" Florida or California?
- and much more
Click Here for access to the webcast at the time of the event.
Click Here for an Outlook calendar invite.
Ohio Legalization Bill
Two Republican representatives in Ohio filed a bill to legalize marijuana. Representatives Jamie Callender and Ron Ferguson introduced the "Ohio Adult Use Act." The bill would allow adults 21+ to purchase and possess cannabis and allow gifting of up to 25 grams. Cannabis products would be taxed at 10 percent. This tax revenue would be distributed as follows: 50 percent to the state general fund, 25 percent to combat illicit drug trafficking, and 25 percent for substance misuse treatment programs. Regulators would be limited to approving one retail dispensary license per 60,000 residents. This would allow approximately 185 dispensaries in the state at maximum capacity. The Republican-led legislation does not include provisions to promote social equity or expunging prior cannabis convictions.
Ohio Tracker
Ohio Sales have remained consistently strong in November. November sales average $8.05 Million per week, a 48% increase YoY. Similar trends are seen in plant material sold and units of products. The annual run rate for Ohio is $407 Million.
