The House postpones MORE Act vote until after the elections
Per a House Democratic member and several Democratic aides, the MORE Act will not receive a House vote next week. Confirming this development, the legislation did not appear in next week's floor schedule posted by House Majority Leader Steny Hoyer (D-MD). Lawmakers and aides have said that voting on the bill will likely happen after the elections.
The MORE Act would federally deschedule marijuana by removing it from the Controlled Substances Act, establish a process to expunge past marijuana-related convictions and levy a 5% sales tax designated for a trust fund to support communities impacted by the war on drugs. While the announcement was exciting for the cannabis industry, even if the bill were to pass through the Democratic-controlled House, it seemed likely to be DOA in the Republican-controlled Senate.
The bill had been the target of political attacks by Senate Republicans, who accused Democratic lawmakers of prioritizing marijuana reform over COVID-19 aid.
More medical marijuana dispensaries come to New Jersey (CURLF, TRSSF)
Yesterday, Garden State Dispensary opened the 12th medical marijuana dispensary in New Jersey. With a population of 8.9M, the state's medical-marijuana program is still in its infancy with just over 85,000 patients. Only 18 medical marijuana dispensaries are currently allowed in the state. TerrAscend, MPX NJ, Harmony, and Curaleaf plan to open new dispensaries, which would bring the state total to 16.
Curaleaf's operates the state's largest medical cannabis dispensary and more than 51,000 square feet of cultivation and processing space in Bellmawr, NJ, through its integrated license. In accordance with the recently adopted state regulations, Curaleaf plans to open two additional New Jersey dispensary locations, as well as an additional cultivation and processing operation,
Recreational marijuana is on the ballot this November and is widely expected to pass. According to a poll conducted by a Brach Eichler LLC, a cannabis law practice, and DKC Analytics, close to 7 in 10 New Jersey voters would support adult-use cannabis legalization. In another poll by Monmouth University, 6 in 10 registered voters in NJ indicated they would support the measure this fall.
Ohio has a record month in July
Ohio's medical marijuana program had sales of roughly $20.7M in July; it is highest figure since medical sales began in January 2019. As of August 31st, 168,678 recommendations have been given out in Ohio, and there is a total of 131,654 registered patients in the program. The state has generated $120.1M in medical marijuana sales in 2020 YTD, already more than double the total 2019 sales of $56M.
However, medical marijuana operators complain that the state is constraining market growth, a concern that appears valid when Ohio's program is compared to Pennsylvania's. The neighboring states have similarly sized populations with Pennsylvania at 12.8M and Ohio at 11.7M, and their medical marijuana sales began within five months of each other. However, Pennsylvania has almost double the number of registered patients, and the state permits 150 dispensaries. Ohio has only 57 so far.
Another issue in Ohio is the exceptionally high prices of the medical marijuana program. In a study conducted by Ohio State University's Drug Enforcement and Policy Center, roughly 62% of respondents were "somewhat dissatisfied" or "extremely dissatisfied" with the program. The study also found that Ohio's average price per gram is double that of the illicit market and even of several states, like neighboring Michigan. At an Ohio dispensary in 2019, the average price per gram was $18.47, while in 2020, the price is still elevated at $18.18. A gram on the illicit market costs, on average, $8.42, while in Michigan, the average price is $9.38. The prices are so prohibitive that there have been numerous reports of Ohio marijuana cardholders crossing state lines to purchase their marijuana products in Michigan.
Unlocking Ohio's market potential will require state regulation to change. The state has some of the highest marijuana business licensing fees in the country, and dispensaries must pay many fees to maintain regulatory compliance. The higher cost of production made by adherence to all the regulatory requirements is passed on to the consumer.
