ETF Performance
Perlmutter’s last Stand
"All I want is an up or down vote" - (D) Rep from Colorado, Ed Pearlmutter.
The Democratic Rep from Colorado, Ed Pearlmutter, will try one more time to get SAFE passed (a bill that has 40 co-sponsors, including ten republicans) before he retires. On Friday, the Democratic Senator attached the SAFE Act to the America COMPETES Act. On December 7, 2021, when talking about the SAFE and the NDAA process (WATCH HERE), he said, "it's still a mystery as to why the Majority leader is opposed to SAFE." Our current assumption is that @SenSchumer will be opposed to this amendment too. If America COMPETES passes the House and SAFE is in it, there is no reason to think Schumer will approach this any different than the NDAA in the Senate because he takes his "Cannabis cues" from Senator Cory Booker, who says SAFE is too narrow in scope. To that end, it would likely be down to reconciliation on the bill and/or Perlmutter forcing a holdup by throwing "procedural wrenches into everything" as he threatened but played nice during the NDAA process.
There are multiple pieces of cannabis reform legislation working their way through Congress right now, but SAFE is the only one that can pass. The Cannabis Administration and Opportunity Act would end federal cannabis prohibition once and for all but has zero chance of passing. The MORE Act would decriminalize cannabis at the federal level, reinvest in communities targeted by the war on drugs, and expunge criminal records for certain cannabis-related offenses. The States Reform Act would decriminalize cannabis and protect veterans' access to cannabis. The HOPE Act would allow states to follow through on their pledges to expunge cannabis convictions. Lastly, the best chance for incremental reform is SAFE Banking, which would help small cannabis businesses access financial institutions and offer secure cashless transactions to customers.
Our "dual-track" theory is now officially in play with Pearlmutter's move on Friday. My takeaway from watching the video above is that Rep Pearmutter will do whatever it takes to get SAFE over the finish line. He played "nice" on the NDAA process, and now it is reasonable to assume heading into retirement, he will throw "procedural wrenches into everything" until SAFE passes! The compromise will be allowing SAFE to pass (Track 1) and (Track 2) is melding of the other pieces of the Cannabis Bill to get broader Cannabis reform on the table for discussion.
Politico - Mississippi medical marijuana bill heads to governor's desk
Mississippi could soon legalize medical marijuana after both legislative chambers last week overwhelmingly passed authorization legislation for the second time with slight changes.
The legalization bill cleared the Senate by a 46-4 vote, with one member voting present. It then passed the House on a 103-13 vote. Gov. Tate Reeves has been harshly critical of the bill, but both Republican-dominated chambers have more than enough support to override a potential veto. According to Politico, the governor's office did not respond to a request for comment about whether he will sign the legislation, let it become law without his signature, or veto it. The bill's latest version reduced the amount of flower that medical patients can purchase each month from 3.5 ounces to 3 ounces, a tweak designed to assuage the Republican governor. He has expressed concern that the state would be flooded with excess product. In addition, the Mississippi Department of Agriculture and Commerce's oversight responsibilities for the medical marijuana market were removed, following fierce criticism of the bill from Ag Commissioner Andy Gipson. Instead, the Mississippi Department of Health will have those duties. Finally, cultivation and processing operations will be allowed in areas that are zoned for commercial enterprises, as well as in industrial and agricultural areas. However, in response to criticism from the Mississippi Municipal League, that provision was tweaked so that county or city officials would approve any weed businesses in commercial areas. Mississippi voters overwhelmingly backed a medical marijuana legalization referendum in 2020. But in May, the Mississippi Supreme Court ruled that the petition was unconstitutional and invalidated the results. That led to months of negotiations between lawmakers on legislation to establish a medical program. "We're veto-proof on both sides," GOP Sen. Kevin Blackwell, the chief sponsor of the bill, said at a press conference on Tuesday, "but we hope the governor signs it."
