IS this another DC head fake?
Thre is some positive momentum coming from in DC! It will all be another head-fake if the discussion does not shift to what is possible to get done in this Congress versus what Democrats dream they could accomplish.
Politico was reporting the CAOA will be out today. Yesterday, Cannabis stocks were strong on the news of a Senate hearing to discuss the federal decriminalization of marijuana. The Senate Judiciary Subcommittee on Crime and Terrorism, chaired by Sen. Cory Booker (D-NJ), is expected to meet on Tuesday, July 26, @ 2:30 for the discussion. The meeting titled "Decriminalizing Cannabis at the Federal Level: Necessary Steps to Address Past Harms" is expected to take up a long-anticipated measure that Senate Democrats planned to introduce this week to legalize marijuana at the federal level.
CLICK HERE for a live video link for the hearing.
While the CAOA is an essential framework for legalization, the votes aren't yet there to pass the bill on Capitol Hill. Many lawmakers from states with legal markets don't yet support substantial changes to federal law. Democratic Sen. Jon Tester from Montana says he does not support federal decriminalization. A handful of other Democrats told POLITICO that they are against legalization or are undecided, including Sens. Jeanne Shaheen (D-N.H.), Joe Manchin (D-W.Va.), and Bob Casey (D-Pa.). Schumer would need all Democrats, plus ten Republicans, to get the bill over the finish line. Cannabis legalization advocates have succeeded in the past, framing it with Republicans as a states' rights issue. Still, some pro-decriminalization Republicans will likely be unhappy with the bill's expungement of cannabis-related criminal convictions. Further complicating matters is that the House has twice passed its sweeping marijuana legalization package, known as the Marijuana Opportunity, Reinvestment, and Expungement (NORE) Act. That legislation does not include much of the regulatory structure of the Senate bill and has a different tax rate.
Where do we go from here?
We believe it's more likely that the Democrats (maybe some Republicans) will come together for a pared-down cannabis bill later this year to see one or more provisions from the CAOA added to the SAFE Banking Act. That plan is still in the backroom discussion stage, and nothing formal has been decided. With Democrats facing the possibility that they will lose the House in this year's midterm election, it now seems some lawmakers are looking to cannabis for help and are trying to find a bill that can pass this year.
RESTAURANTS & CONSUMER STAPLES Q&A
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CLICK HERE at the time of the event for the live webcast and materials. |
We will explore the following topics:
- Recent trend changes in consumer spending.
- Discuss the pushback and feedback from our recent Black Book calls.
- Discuss the most common and noteworthy inbounds we have received in the past month.
- Revisit changes to our Position Monitors.
- Discuss our expectations for Q2 earnings season.
- Provide updates on some of our best ideas.
Texas cowboying up.
Texas Agriculture Commissioner, Sid Miller, came out in support of medical marijuana and citing that access to the plant is a fundamental freedom. Mr. Miller is a Republican whose seat is up for election this November. Texas is one of 13 states where medical cannabis is not fully legalized without low-THC restrictions. They do have a program that puts a 1% THC cap on medical cannabis and a 0.3% THC cap on hemp products. “In a free society, the government should only make something illegal for a powerful reason or set of facts,” he wrote in a July 15 editorial. “The freedom of the people to make their own choices and decisions is a fundamental [principle] of a true democracy. “As I look back, I believe that cannabis prohibition came from a place of fear, not from medical science or the analysis of social harm,” he wrote. “Sadly, the roots of this came from a history of racism, classism, and a large central government with an authoritarian desire to control others. It is as anti-American in its origins as could be imaginable.” These shifts we are seeing across the country at the state level are very promising as we approach the midterms when many states will have cannabis legislation on them.
