ON THE DOORSTEP OF LEGALIZATION
In our latest investor deck, we thought it was important to see movement on Cannabis reform in the first 100 days of the Biden Administration. Yesterday took us one step closer toward the real industry reform with the CEO of TCNNF, Kim Rivers, saying that she expected that the SAFE Act would be included in the House version of the American Recovery Act, noting that this piece of legislation has passed the house three times under Speaker Pelosi.
The bill ultimately failed three times in the Senate, under Republican control. With Democrats now in charge of both chambers, industry insiders and policy experts believe banking has a good shot at becoming law, a much better shot than comprehensive legalization legislation. Even the incoming ranking member on the Senate Banking Committee, GOP Sen. Pat Toomey of Pennsylvania, said he’s open to discussing the issue. We're not going to get full-scale legalization from this Senate, but we are clearly knocking on the doorstep of reform. Here is why we think Cannabis reform is likely to pass in the 117 sessions of congress:
The risk is that the Democrats focus on other priorities that have nothing to do with cannabis.
ARIZONA CLOSE TO REC SALES
Arizona’s operators are moving closer to the start of recreational sales. Some of the name with operations in AZ (CRLBF, CURLF, CCHWF, VERO, FFNTF, AYRWF)
The state could begin sales any day now, less than three months after voters backed legalization on Election Day. The consensus when around when AZ would start REC sales was the spring. If sales do indeed begin in the coming days, it will establish a new record for launching a recreational market following a referendum. The fastest turnaround to date was eight months in Nevada.
Why the quick pace?
Arizona legalized medical marijuana in 2010, with the Arizona health department saying it wants to expedite applications from existing medical operators, who get first dibs on rec licenses and presented applicants with a much simpler form than some expected. “The whole company's been focused on getting our employees through the fingerprint application process,” local operators explained.
What is the next step?
Arizona’s Department of Health Services had received 79 recreational license applications as of midday Thursday and has all the systems in place “to approve properly completed applications expeditiously,” according to the health department. Some dispensaries are ready to open and await the green light from the department.
CT INCHING TOWARD LEGALIZATION (CURLF, GTBIF, TCNNF, ACRGF)
Governor Ned Lamont of Connecticut is circulating a draft version of a bill to legalize marijuana. The governor said he supported legalization during his State of the State address earlier this month. “Sports betting, internet gaming, and legalized marijuana are happening all around us. Let’s not surrender these opportunities to out-of-state markets or, even worse, underground markets.” Wholesale flower would be taxed at $1.25 per gram, and trimmed plants would be taxed at $.50 per gram. The sales tax of 6.35% would apply in addition to a 3% surcharge. The House Speaker said if legalization did not pass, he would move to put a constitutional question on its 2022 ballot.
