The Path forward is murky
Two small victories for the industry in DC, but the path forward is still murky.
Yesterday, lawmakers scheduled the Marijuana Opportunity, Reinvestment and Expungement (MORE) Act for a Monday hearing in the House Rules Committee. The committee is an essential step toward the House floor since it's where a final decision gets made to advance legislation to a total House vote. The House Judiciary Committee approved the bill in September. The MORE Act would decriminalize cannabis by removing it from the Controlled Substances Act, which currently sits as a Schedule I drug. The bill would also expunge some federal cannabis-related criminal records and direct funding to some equity programs for the cannabis industry. The MORE Act, sponsored by House Judiciary Chairman Jerry Nadler (D-N.Y.), passed the House in a historic vote in December 2020 but was never taken up by the Senate. The bill passed primarily along party lines, with six Democrats defected to vote against the bill and five Republicans voted for the bill. This year, the bill has just one Republican co-sponsor, but many Republicans in the House support the idea of decriminalization. Unfortunately, the bill is considered DOA in the Senate because @SenSchumer is preparing to propose his CAOA with Wyden (D-Ore.) and Booker (D-N.J.) sometime in April.
Also, the Senate passed the Cannabidiol and Marihuana Research Expansion Act would require the Department of Justice to increase the number of researchers allowed to study marijuana and boost the quantity of marijuana produced for research. It also instructs HHS and NIH to submit a report within one year on the therapeutic potential of marijuana for various conditions, including epilepsy, and the impact on adolescent brains and the ability to operate a motor vehicle. The bill, sponsored by Sens. Dianne Feinstein (D-Calif.), Chuck Grassley (R-Iowa), and Brian Schatz (D-Hawaii), was also passed by unanimous consent in December 2020. The Senate and House passed research bills in 2020, but they were entirely different bills. The House has yet to put a research bill on the floor this Congress, and the bill that just passed the Senate does not yet have companion legislation in the House.
On this news, the POTX ETF, a basket of Canadian LPs was up 9.7%, while the MSOS, a basket of USA Cannabis companies, was up 0.9%. The sole reason for the disparity was the US companies ate traded on the pink sheets in Canada. We could be getting our opportunity to SHORT some of the Canadian LP's
NJ REC, still on hold, focuses on social equity.
Having listened to the New Jersey Cannabis Regulatory Commission meeting yesterday, it was unclear why the commission did not approve the eight licenses for approval of adult-use in NJ.
There is a lot of work to do on Social Equity and fighting the war on drugs, especially for communities harmed the most. Still, NJ delaying the inevitable hurts those legalizing cannabis is trying to help by denying the state much-needed tax revenues. The committee now has a special meeting scheduled for April 11, suggesting that sales can start by 3Q22 but could quickly fall into 4Q!
AZ to holD lottery for Social Equity licenses
Arizona is scheduled to hold a lottery to distribute 26 social equity marijuana licenses next month. azfamily.com
