Democrats winning control of the Senate puts federal cannabis reform within sight.
Democrats Jon Ossoff and Raphael Warnock have won the Georgia runoff elections for the Senate against their Republican challengers, giving the Democrats control of the Senate and the three government branches. With a 50-50 split in the Senate, Vice President-elect Kamala Harris will have the deciding vote in the event of a tie. With outgoing Senate Majority Leader Mitch McConnell (R-KY) no longer dictating legislation, meaningful cannabis reform on the federal level can pass.
Sen. Chuck Schumer is anticipated to become the new majority leader of the Senate. In an interview in October, Schumer stated that if Democrats won control of the Senate, he would prioritize marijuana legalization legislation. The MORE Act, which Schumer first introduced back in 2018, would federally deschedule cannabis, reinvest tax revenues into communities impacted by the drug war, and financially support efforts to expunge prior cannabis records. Vice President-elect Kamala Harris has been a lead sponsor of the Senate’s companion version of the House-passed MORE Act.
The SAFE Banking Act, which has stalled in McConnell’s Senate, could be passed in the new 117th Congress. The legislation, which would provide cannabis businesses with access to banking services, passed the House in 2019 with bipartisan support.
Yesterday, shares of both Canadian LPs and US MSOs surged following the news.
AG nominee Merrick Garland’s stance on cannabis
President-elect Biden has reportedly nominated Merrick Garland, a former federal appeals court judge, as his attorney general. Public information on Garland’s stance on cannabis is scarce. However, in 2013, Garland sided with the DEA in a federal appeals case concerning descheduling. A medical marijuana advocacy organization, Americans For Safe Access, pushed to reschedule cannabis to further medical research on cannabis. In articulating his support for the DEA as they fought against the case, Garland said, “Don't we have to defer to the agency? We're not scientists. They are." At the time, some marijuana advocates commended Garland’s deference to science. This instance, unclear as it is, appears to be the only public information available on Garland’s stance on the plant.
However, with both Biden and Harris voicing support for various form of cannabis legislative reform, it would seem likely that Biden’s nominee for attorney general would be more agreeable to the cannabis industry than not.
NY Gov. Cuomo announces a proposal to legalize and create an adult-use cannabis program.
NY Gov. Cuomo (D) has formally announced a proposal to legalize and create a comprehensive system to oversee and regulate cannabis in New York as part of the 2021 State of the State. Under the Governor's proposal, a new Office of Cannabis Management would be created to oversee the new adult-use program and the State's existing medical and cannabinoid hemp programs. Additionally, an equitable structure for the adult-use market will be created by offering licensing opportunities and assistance to entrepreneurs in communities of color who have been disproportionately impacted by the war on drugs. Once fully implemented, legalization is expected to generate more than $300 million in tax revenue.
At a press briefing, Cuomo commented, “For years I’ve tried to pass it, but this is a year where we do need the funding and a lot of New Yorkers are struggling, so I think this year will give us the momentum to get it over the goal line. Everyone knows, Massachusetts has legalized marijuana. New Jersey is going to legalize marijuana. So, what are we really talking about at this point?”
In his past two annual budget requests, NY Gov. Andrew Cuomo (D) has included proposals for adult-use legalization, however, failed negotiations between his office and the state legislature have stalled those efforts. Adult-use legalization coming to NY increasingly appears possible with bipartisan support from the state government's highest levels, the pandemic’s economic fallout pressuring state tax revenues, and New Jersey green lighting legalization this past November.
