This week, U.S. Senate Majority Leader Chuck Schumer announced his assemblage of a federal marijuana legalization bill that will enable states to make their own individual mandates on legalized marijuana. As part of that power, States will have the responsibility of direct a portion of tax revenues to those communities most heavily impacted by the negative effects of cannabis prohibition. In addition to those provisions that help communities largely made up of minorities, the bill seeks to ensure that corporations are not in a position to dominate the markets.
Since the Democrats have taken control of both houses of Congress, Social equity has become a key driver in new legislation. On the subject, Schumer asserted, “I don’t want to see these big tobacco companies coming in and shoving everyone out.”
As banks and investment firms speculate on the state of marijuana reform in the United States, the scenario has been described by one such investment banking firm, Stifel, as a “goldilocks” scenario. In their research note, released last Friday, Stifel said that the development, “could foreshadow the most important catalyst in the history of the US cannabis industry.”
While there are still many significant obstacles to overcome before any such legislation can be codified into law, firms remain optimistic. Stifel analyst Andrew Partheniou went on to explain, “We believe Sen. Schumer’s comments outline a bill that resembles the STATES Act, but includes social justice provisions, and could address obstacles (such as the onerous Section 280E tax provision) to have a significant positive impact on cannabis operators’ regulatory environment.”
Schumer submitted a bill to deschedule marijuana in 2018 that failed to pass. His latest attempt draws from several such bills that have made their way to the floor over the last several decades. This time around, Schumer has a strong bipartisan contingent of Democrat and Republican Senators working alongside him to improve this bill’s chances of success.
Al Harrington, former NBA basketball player and CEO of California-based cannabis company Viola Brands, met virtually with Schumer for an interview on Instagram to discuss key components of reform and spread the word that the Majority Leader’s position on the contentious issue.
As Schumer and his bipartisan contingent on marijuana reform continue to strive for a balance between the aforementioned STATES Act provisions and a more socially equitable approach, as seen in the Marijuana Opportunity, Reinvestment and Expungement (MORE) Act, it is expected the reform bill will become more palatable to both conservative and progressive lawmakers.
Private sector proponents of the bill urge Schumer and company to include minority representatives and business owners in the legislative process to ensure those socially equitable efforts remain in the forefront.
It’s no secret that Joe Biden has long been a proponent of the “War On Drugs”. There are an array of CSPAN recordings of impassioned speeches decrying the use of drugs and their impact on American communities.
However, over time it appears President Biden has softened his stance on one particular substance many believe to be mistakenly ranked among the worst offenders: Marijuana.
Currently, the nation’s views on drugs, namely the reclassification of marijuana to a level of legality or at least decriminalization, have never been more positive or shared such bipartisan support for reform.
Since the November 2020 General Election, the number of states where marijuana is fully legalized for adult and recreational use has reached 15 states. 36 states in the US have some form of medical marijuana legislation on the books, as well.
As previously staunch opponents warm up to the idea of regulated recreational marijuana, President Biden will be pressed to address his historically negative stance on drugs in America.
In his Primary campaign leading up to the general election, Biden remained an opponent of Marijuana legalization, characterizing cannabis as a “gateway drug”. However, he later withdrew from such a hard-line position and found himself in support of decriminalization and leaving it up to the States to make their own regulatory frameworks.
It’s important to consider Vice President Kamala Harris’ historical stance on the subject, as well. Harris had drawn a considerable amount of criticism regarding her prosecutorial record in pursuing low-level cannabis cases. Vice President Harris even campaigned against legalization in her home state of California.
In contrast, during her own run for the 2020 Democratic presidential nomination, VP Harris made a considerable push in arguing the case for legalized cannabis. Now that she has secured the position of VP within the Biden administration, Kamala Harris has stepped back her advocacy for legalization in favor of President Biden’s inclination toward decriminalization and the expunging of criminal records for low-level marijuana convictions.
In the wake of change-up in congress and the presidency to a democratically run “trifecta”, cannabis growers, retailers, and peripheral businesses as well as their supporters are optimistic the Biden administration of advancing positive legislation.
States with established legal cannabis industries have paved the way for others to capitalize on the momentum of marijuana reform. For example, cannabis sales in Colorado reached $2 billion for the first time, while revenue from sales in Oregon spiked by 40%.
Historically conservative states, such as Arizona, Montana, New Jersey, and South Dakota, advanced legalized marijuana legislation into law. As a result, many residents and business people are enthusiastic about the future of their communities.
With forward movement taking place at the federal level, other states’ residents and businesses in favor of legalization are hoping to ride the green wave’s momentum. One such example emerges in the state of Florida, where legalized cannabis is relegated to medical use only. One such medical marijuana provider, Trulieve, has seen a dramatic increase in demand for medical marijuana products. Trulieve CEO Kim Rivers states that “Companies are doubling [and] tripling in size so that they can keep up with demand.” On the topic of full legalization, Rivers remains guarded, stating, “At the end of the day, there’s still incredible opportunity, even if that doesn’t immediately translate into full federal legalization.”
