NATIONAL CANNABIS ROUNDTABLE (NCR) ASKS FOR BANKING
As we said in our recent Cannabis Deck, we need to see some movement or Cannabis reform in the Biden Administration first 100 days, or the group is at risk of a correction. Yesterday, two prominent industry CEO's (Charlie Bachtell, CEO Cresco Labs, and Kim Rivers CEO, Trulieve) representing the National Cannabis Roundtable wrote a letter to the leadership of the House’s moderate Democratic Blue Dog Coalition, asking them to push for cannabis banking language to be added to the “ American Rescue Plan.” In the letter, they note that the SAFE Banking Act, which passed the House in 2019 and has yet to be reintroduced in this Congress, would make it easier for financial institutions to offer services to the cannabis industry. The Blue Dog Coalition co-chairs Reps. Ed Case of Hawaii, Stephanie Murphy of Florida, and Tom O'Halleran of Arizona represent districts where many NCR’s member organizations have operations.
“You have demonstrated your commitment to fiscally responsible policies and to transcending party lines to provide economic opportunities for all Americans.”
“We hope that for the next round [of] economic stimulus, you will look to the cannabis industry to create jobs, simply by including SAFE Banking language in the bill.”
Retailers in Mass. sue over the delivery rules (AYRWF)
Marijuana retailers in Massachusetts filed a lawsuit against the state’s Cannabis Control Commission’s rules that allow only social equity applicants to deliver cannabis for the program’s first three years. The rules approved on December 1 allow a cannabis courier permit. A business would charge a fee to make deliveries from licensed retailers and dispensaries and a cannabis delivery operator license to allow a business to buy wholesale marijuana from cultivators and manufacturers and sell directly to customers. The Cannabis Control Commission said it would take roughly five weeks to begin the application process for the delivery operator permit. The delivery operator permit represents disintermediation around the retail license. It also brings cannabis deliveries into many of the municipalities that did not approve retail locations. Third-party technology platform providers will be allowed to contract with an unlimited number of delivery licensees and maybe the new rules' biggest beneficiary. Access to supply will be an issue for the delivery operators.
Arkansas poised for faster growth in 2021
Medical marijuana sales in Arkansas reached $175M in 2020. The Marijuana Business Factbook projects that the state’s medical marijuana sales will nearly double to $300-$365M in 2021. Vapes and edibles were approved for 2021. The market in Arkansas launched in May 2019 and finished the year with sales of $143M. The state started with 10 dispensaries in 2020 but ended with 32.
