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What is CBC and why don’t we hear about it?

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First off, what is CBC? CBC is a minor cannabinoid called cannabichromene (CBC). Being a minor cannabinoid is one of the reasons we don’t hear much about CBC. It is not found in very high percentages compared to other major cannabinoids such as cannabidiol (CBD). This can make the extraction costly, which is another reason you don’t hear much about it, but you should because CBC has many benefits and uses as a medicine.

The anti-inflammatory effects of CBC are of great benefit to people with pain and other ailments caused by inflammation, as well as people with autoimmune diseases that cause increased inflammation and several other inflammatory conditions. One study directly examined the pharmacological potential of CBC and found that CBC was effective “dose-dependent” anti-inflammatory effect“. [1]

Another study, published in Neurochemistry International, discovered that CBC was an excellent cannabinoid for brain health. It was even compared to CBD and CBG, and the results showed that CBC has beneficial effects on neural stem progenitor cells. These cells are essential for healthy brain function, and CBC increased their viability, making CBC a potential candidate for treating disorders related to brain cells and brain health. [2]

If that’s not enough to talk about CBC, what if you found out that CBC was shown to be effective in treating cancer? So effective in fact research Studying the effectiveness of several cannabinoids on anti-tumor activity in breast cancer may have found that CBD is the most effective at inhibiting tumor growth, but CBC came right behind it. This means that CBC can help stop tumors from growing. Maybe not as much as CBD, but enough to take second place. [3]

Despite these and many other medicinal benefits of CBC, there is a good chance it will take a back seat to better-known cannabinoids like CBD for the time being. As the science of cannabinoid medicine advances, other cannabinoids like CBC will gain ground to be better recognized and discussed as more of their true potential is discovered.

References:

1- DeLong, G., et al., Pharmacological Evaluation of the Natural Ingredient of Cannabis sativa, Cannabichromene and its modulation by Δ9-Tetrahydrocannabinol. Drug and alcohol addiction. 2010. 112, (1-2) 126-133. https://www.sciencedirect.com/science/article/abs/pii/S0376871610002073

2- Shinjyo, N., et al., The Effect of Cannabichromes on Adult Neural Stem / Progenitor Cells. Neurochemistry International. 2013. 63. (5) 432-437. https://www.sciencedirect.com/science/article/abs/pii/S0197018613002106

3- Ligresti, A. et al., Antitumor Activity of Plant Cannabinoids, Emphasizing the Effect of Cannabidiol on Human Breast Cancer. Journal of Pharmacology and Experimental Therapeutics. 318 (3) 1375-1387. https://jpet.aspetjournals.org/content/318/3/1375.long

Ohio Lawmakers Introduce Bill to Legalize Adult-Use Cannabis

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As it stands, the Cannabis Administration and Opportunity Act does not have enough votes to pass the Senate. That’s part of the reason why a final version of the legislation to end cannabis prohibition has yet to be formally filed in Congress.

In unveiling a preliminary draft of the federal cannabis bill on July 14, Senate Majority Leader Chuck Schumer, D-N.Y.; Senate Finance Committee Chairman Ron Wyden, D-Ore.; and Sen. Cory Booker, D-N.J.—the sponsors—are hoping to receive feedback from industry stakeholders between now and Sept. 1 as they fight to gain broader support among their colleagues in the upper chamber.

“This is going to be a process,” Schumer said during a joint press conference with Wyden and Booker on Wednesday, shortly after releasing their 163-page legislation.

RELATED: Senate Trio Unveils Federal Cannabis Legalization Draft With Provisions to Deschedule, Tax and Regulate

“This is a draft bill,” Schumer said. “We intend to show it to all of the stakeholders. We don’t have the votes necessary at this point. But we have a large majority of our caucus for it. We’re going to show it to the others and say, ‘Well, what don’t you like? What do you like?’ And we’ll see if we can get the support. We’re going to put our muscle behind it, our effort behind it, and we are going to get this done ASAP.”

Stakeholders aren’t shying away. By and large, early comments have been cautiously supportive—with much of the reaction underscoring the importance of social equity provisions in the proposal. 

Notably, restorative justice measures in the bill include the expungement of non-violent federal cannabis offense convictions, as well as restorative justice and opportunity trust funds reserved for certain reinvestment programs.

The social equity measures seen in states that have recently passed adult-use legislation—like New York, Virginia, New Mexico and Connecticut—aim to deliver a scale of justice to people who deserve it that goes unparalleled in American history.

Below are comments from various stakeholders and policy experts regarding the Cannabis Administration and Opportunity Act:

Hawkins

“It is time for cannabis prohibition to end, and we applaud the efforts of Senators Cory Booker, Ron Wyden and Senate Leader Chuck Schumer for their bold and necessary bill, the Cannabis Administration and Opportunity Act. The war on cannabis was engineered to target people of color when it launched in 1937, and we live with the disproportionate impact today. We view this historic bill as an essential step toward righting decades of inequitable wrongs. We implore Congress to consider the importance of this moment; in looking at the eight states that have legalized cannabis since the election last November, it’s clear that ending federal cannabis prohibition is the will of the American people. We should no longer delay. The United States Cannabis Council (USCC) stays committed to its mission of federal legalization that prioritizes access, removes barriers to an equitable industry and provides restorative justice to communities harmed by cannabis prohibition.” –Steve Hawkins, CEO of U.S. Cannabis Council, Executive Director of Marijuana Policy Project

Littlejohn

“This thoughtful and comprehensive draft represents an historic step on the path to federal cannabis legalization. Through this draft, Leader Schumer and Senators Booker and Wyden maintain their commitment to economic justice through cannabis reform by providing for reinvestment into the communities most impacted by cannabis prohibition and by creating pathways for or impacted individuals to participate in this burgeoning industry.” –Amber Littlejohn, Executive Director, Minority Cannabis Business Association

Altieri

“The days of federal prohibition are numbered. These actions by Senate Majority Leader Schumer and Senators Booker and Wyden reflect the fact that the supermajority of Americans are demanding that Congress take action to end the cruel and senseless policy of federal prohibition. It is time for legislators to comport federal law with the laws of the growing number of states that have legalized the plant, and it is time for lawmakers to facilitate a federal structure that allows for cannabis commerce so that responsible consumers can obtain high-quality, low-cost cannabis grown right here in America without fear of arrest and incarceration.” –Erik Altieri, Executive Director, National Organization for the Reform of Marijuana Laws (NORML)

Havens

“While the bill would direct the attorney general to remove cannabis from the Controlled Substances Act, it wouldn’t legalize cannabis everywhere. Thus, it’s more appropriate to say that the bill would end the federal prohibition on cannabis, rather than legalize it. States would still be able to prohibit cannabis growing, manufacturing, distribution, sale and consumption within their borders. However, they wouldn’t be able to stop transportation of cannabis through their states (e.g., from one legal state to another legal state, via a state where it’s illegal). Schumer, Booker and Wyden know the bill is a longshot. My view is that they are introducing it to let the caucus know where they stand, and more importantly, to start the conversation and hopefully pave the way for incremental reform. Given the current makeup of the Senate, incremental reform is much more likely than a sweeping proposal like this.” –Jonathan Havens, Co-chair of the Cannabis Law Practice and Chair of the Food and Beverage Practice, Saul Ewing Arnstein & Lehr

Castille

“Today’s press conference was historic and is yet another sign that cannabis prohibition is on its way out the door—but it is critical that this bill and other federal cannabis legislation start to connect the dots between social justice and economic justice. It’s not enough to stop arresting folx. We must provide a pathway to economic liberation and a chance to build generational wealth. Without an equitably functioning cannabis industry, we risk perpetuating the same racial wealth gaps that already exist.” –Kaliko Castille, President, Minority Cannabis Business Association

Perez

“We have been clear from day one that any federal marijuana reform bill must be equally comprehensive to the devastation that has been caused by prohibition, particularly in Black, Latinx and Indigenous communities. And we are grateful to see Senators Booker, Wyden and Schumer heeding that call by including language directly from the MORE Act—centering social equity, reparative justice and reinvestment—that we championed in the House, in the Senate bill, and we look forward to working with them to make marijuana justice a reality this session.” –Maritza Perez, Director of the Office of National Affairs, Drug Policy Alliance

Strekal

“Our main priority is to ensure that Americans who choose to responsibly consume cannabis are no longer discriminated against under the law. With one in eight Americans choosing to consume on a semi-regular basis, including nearly one in four veterans, we must end the practice of arresting over 500,000 Americans every year and denying countless others employment, housing and other civic rights if we are truly to be the ‘Land of the Free.’ The federal government can take great strides toward rectifying this situation by advancing the Cannabis Administration and Opportunity Act through the legislative process.” –Justin Strekal, Political Director, National Organization for the Reform of Marijuana Laws (NORML)

Kovler

“Cannabis continues to be disproportionately weaponized against communities of color, and we are thrilled that the Cannabis Administration and Opportunity Act has proposed expungement and community reinvestment measures to address the damage perpetuated by the failed war on drugs. While the bill leaves some questions unanswered, we believe it provides a tangible pathway to true federal legalization.” –Ben Kovler, Founder/CEO, Green Thumb Industries

Whiteman

“We applaud the introduction of legislation that would federally decriminalize cannabis. The introduction of legislation that would federally decriminalize cannabis would have implications far beyond banking. For starters, it will expand the opportunities for minority populations that have been disproportionately targeted during the war on drugs. Federal decriminalization would also enable manufacturing and then shipping across state lines, which would greatly benefit brands like Wana. Supply chains will become more efficient and cost-effective as plants would be grown in appropriate outdoor climates and other materials could be sourced across markets. For a company like Wana, it means that we would be able to manufacture and ship out of regional or national facilities instead of recreating the wheel in every market.” –Nancy Whiteman, CEO, Wana Brands

Perrone

“Today’s new cannabis legalization plan from Senators Schumer, Wyden and Booker is an important first step, but more must be done to address the challenges cannabis workers face and the need to make sure the industry supports good-paying union jobs our families need. Cannabis worker safety and apprenticeships must be a top priority and any federal legislation needs to dedicate funding to further research for these priorities. Congress must also ensure this cannabis legislation respects current state laws while also preventing the industry from moving high-wage union jobs from one state to low-wage agricultural jobs in another state. As America’s largest cannabis workers union, UFCW welcomes this new proposal and urges members of Congress—both Republicans and Democrats—to build on this framework and pass a strong bipartisan bill that establishes a national cannabis policy that ends outdated approaches holding so many communities back.” –Marc Perrone, President, United Food and Commercial Workers (UFCW) International

Caltabiano

“The introduction of the Cannabis Administration and Opportunity Act is imperative to address the disparate impact of the war on drugs and right the wrongs created by decades of injustices perpetrated by disproportionate enforcement against minorities. In addition, the opportunity to address safe access to cannabis and robust reforms needed for cannabis banking and tax policy is long overdue. While this bill is an essential step in the right direction, it is a big ask and I’m a realist. It will take a lot to get this bill through Congress and signed by the president. I remain hopeful and enthusiastic for the passage of the Act, but I believe that even incremental actions such as the passage of the SAFE Banking Act would be a tremendous accomplishment for this Congress and the current administration.” –Joe Caltabiano, CEO of Choice Consolidation Corp., Co-founder of Cresco Labs

Archos

“This is a strong step forward to leverage the potential of American cannabis companies to boost our economy, facilitate a more socially equitable landscape, create durable and good-paying jobs, unlock essential banking streams and raise needed tax revenue. Americans strongly support legalization, and Congress needs to address this issue and shape it so the power of this industry can have the most positive impact as it continues to become mainstream.” –George Archos, Founder/CEO, Verano Holdings

Jarrous

“The Cannabis Administration and Opportunity Act’s draft legislation is designed to jumpstart bipartisan negotiations that have been building momentum in Congress since the first states chose to regulate cannabis for adults. While it’s still a long and uphill climb going forward, this is a great step in moving forward towards ultimately achieving true federal cannabis legalization and ending prohibition.” –Narmin Jarrous, Chief Development Officer, Exclusive Brands

Merchan

“Flora Growth applauds the introduction of legislation that would end the federal prohibition on cannabis, especially the proposed expungement and community reinvestment measures to redress the harm caused by the failed war on drugs. While the bill leaves some questions unanswered, we believe it lays the groundwork towards true federal legalization and would remove many of the barriers that state-legal cannabis businesses currently face due to cannabis’ Schedule I status, such as tax deductions, banking, capital markets and intellectual property issues. While we remain optimistic and enthusiastic about the passage of the act, we feel that even small steps forward, such as the adoption of the SAFE Banking Act, would be a huge success for this Congress and administration.” –Luis Merchan, CEO, Flora Growth

Hale

“We see this as a very positive piece of legislation, addressing most of the major concerns for the legal cannabis market, which includes allowing regulated sales, allowing states to regulate their own markets and laying out guidelines for federal taxation. Even with regulatory and compliance changes at the federal level, transparency and accountability are going to be critical areas of focus to ensure the legal industry is able to thrive. More regulation will only lead to even more licensing and lending opportunities for entrepreneurs in the industry.” –Ryan Hale, Chief Sales Officer, Operational Security Solutions

Gillette

“If there’s anything I’m hoping that Democrats and Republicans can agree upon, it would be the legalization of cannabis at the federal level. … This is huge legislation that we’ve been waiting [on] for a very long time. I know other bills have been introduced, but this one really hits on so many important things that need to be addressed. One of the things that I think is really important is the fact that it allows states to determine their own laws. … Obviously, it’s going to have a tremendous impact should it pass, in that the descheduling of cannabis is going to remove the impact of things like 280E and banking restrictions on the industry. … Getting rid of that barrier, I think, is also going to give opportunities to cannabis businesses to increase wages and offer benefits, including things like 401Ks, that they can’t necessarily offer now because of the lack of banking and because cannabis is federally illegal. On the community side, I think it’s going to be very impactful, as well, because you’re looking at an immediate expungement of federal, nonviolent cannabis crimes, which have significantly impacted people’s lives. … Obviously, I think it’s the right thing to do [for] prisoners that are sitting in jail for nonviolent cannabis crimes while people in their state or people in states that surround their state are profiting from the sale of cannabis. … Then, it’s allowing reinvestment in those communities that have been the most impacted. … This is the right thing to do. It should’ve happened 10 years ago, but it’s the right thing to do, and my hope is that we can at least get support of people in the Senate to be able to pass something like this. Obviously, we can’t continue to live in a system where it’s legal under state law and illegal under federal law, but … I don’t think it’s going to be perfected the day the bill is signed into law. I think it’s going to be evolving over time, the same way many states’ regulatory programs evolved over time.” —Rachel Gillette, Partner & Leader of Cannabis Industry Group, Holland & Hart

Below are comments from Sens. Chuck Schumer, Ron Wyden and Cory Booker regarding their draft release of the Cannabis Administration and Opportunity Act:

Schumer

“I will use my clout as majority leader to make this a priority in the Senate. As my colleagues and I have said before, the war on drugs has really been a war on people, particularly people of color. The Cannabis Administration and Opportunity Act would help put an end to the unfair targeting and treatment of communities of color by removing cannabis from the federal list of controlled substances. It’s not just an idea whose time has come; it’s long overdue. We have all seen the agony of a young person arrested with a small amount of marijuana in his or her pocket, and because of the historic overcriminalization of marijuana, they have a very severe criminal record they have to live with their whole lives. It’s tougher to get a job; tougher to get credit; tougher to live a normal life. The waste of human resources because of the historic overcriminalization has been one of the great historical wrongs for the last decades. We are going to change. We are going to fight hard to change.” –Sen. Chuck Schumer, Majority Leader

Wyden

“Cannabis prohibition, a key pillar of the failed war on drugs, has caused substantial harm to our communities and small businesses, and especially for communities of color. It’s as simple as this: Senators Booker, Schumer and I want to bring common sense to the federal government, end prohibition and restore the lives of those hurt most and set them up for opportunity.” –Sen. Ron Wyden, Chair, Senate Finance Committee

Booker

“For decades, our federal government has waged a war on drugs that has unfairly impacted low-income communities and communities of color. While red and blue states across the country continue to legalize marijuana, the federal government continues to lag woefully behind. It is time for Congress to end the federal marijuana prohibition and reinvest in communities most impacted by the failed war on drugs. I am proud to introduce this landmark piece of legislation with Senator Wyden and Majority Leader Schumer that will finally turn the page on this dark chapter in American history and begin righting these wrongs.” –Sen. Cory Booker

Digital Editor Eric Sandy, Senior Digital Editor Melissa Schiller, Associate Editor Tony Lange and Assistant Editor Andriana Ruscitto contributed to this report.

Illinois Set to Award New Cannabis Dispensary Licenses After Lawsuits, Delays

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As it stands, the Cannabis Administration and Opportunity Act does not have enough votes to pass the Senate. That’s part of the reason why a final version of the legislation to end cannabis prohibition has yet to be formally filed in Congress.

In unveiling a preliminary draft of the federal cannabis bill on July 14, Senate Majority Leader Chuck Schumer, D-N.Y.; Senate Finance Committee Chairman Ron Wyden, D-Ore.; and Sen. Cory Booker, D-N.J.—the sponsors—are hoping to receive feedback from industry stakeholders between now and Sept. 1 as they fight to gain broader support among their colleagues in the upper chamber.

“This is going to be a process,” Schumer said during a joint press conference with Wyden and Booker on Wednesday, shortly after releasing their 163-page legislation.

RELATED: Senate Trio Unveils Federal Cannabis Legalization Draft With Provisions to Deschedule, Tax and Regulate

“This is a draft bill,” Schumer said. “We intend to show it to all of the stakeholders. We don’t have the votes necessary at this point. But we have a large majority of our caucus for it. We’re going to show it to the others and say, ‘Well, what don’t you like? What do you like?’ And we’ll see if we can get the support. We’re going to put our muscle behind it, our effort behind it, and we are going to get this done ASAP.”

Stakeholders aren’t shying away. By and large, early comments have been cautiously supportive—with much of the reaction underscoring the importance of social equity provisions in the proposal. 

Notably, restorative justice measures in the bill include the expungement of non-violent federal cannabis offense convictions, as well as restorative justice and opportunity trust funds reserved for certain reinvestment programs.

The social equity measures seen in states that have recently passed adult-use legislation—like New York, Virginia, New Mexico and Connecticut—aim to deliver a scale of justice to people who deserve it that goes unparalleled in American history.

Below are comments from various stakeholders and policy experts regarding the Cannabis Administration and Opportunity Act:

Hawkins

“It is time for cannabis prohibition to end, and we applaud the efforts of Senators Cory Booker, Ron Wyden and Senate Leader Chuck Schumer for their bold and necessary bill, the Cannabis Administration and Opportunity Act. The war on cannabis was engineered to target people of color when it launched in 1937, and we live with the disproportionate impact today. We view this historic bill as an essential step toward righting decades of inequitable wrongs. We implore Congress to consider the importance of this moment; in looking at the eight states that have legalized cannabis since the election last November, it’s clear that ending federal cannabis prohibition is the will of the American people. We should no longer delay. The United States Cannabis Council (USCC) stays committed to its mission of federal legalization that prioritizes access, removes barriers to an equitable industry and provides restorative justice to communities harmed by cannabis prohibition.” –Steve Hawkins, CEO of U.S. Cannabis Council, Executive Director of Marijuana Policy Project

Littlejohn

“This thoughtful and comprehensive draft represents an historic step on the path to federal cannabis legalization. Through this draft, Leader Schumer and Senators Booker and Wyden maintain their commitment to economic justice through cannabis reform by providing for reinvestment into the communities most impacted by cannabis prohibition and by creating pathways for or impacted individuals to participate in this burgeoning industry.” –Amber Littlejohn, Executive Director, Minority Cannabis Business Association

Altieri

“The days of federal prohibition are numbered. These actions by Senate Majority Leader Schumer and Senators Booker and Wyden reflect the fact that the supermajority of Americans are demanding that Congress take action to end the cruel and senseless policy of federal prohibition. It is time for legislators to comport federal law with the laws of the growing number of states that have legalized the plant, and it is time for lawmakers to facilitate a federal structure that allows for cannabis commerce so that responsible consumers can obtain high-quality, low-cost cannabis grown right here in America without fear of arrest and incarceration.” –Erik Altieri, Executive Director, National Organization for the Reform of Marijuana Laws (NORML)

Havens

“While the bill would direct the attorney general to remove cannabis from the Controlled Substances Act, it wouldn’t legalize cannabis everywhere. Thus, it’s more appropriate to say that the bill would end the federal prohibition on cannabis, rather than legalize it. States would still be able to prohibit cannabis growing, manufacturing, distribution, sale and consumption within their borders. However, they wouldn’t be able to stop transportation of cannabis through their states (e.g., from one legal state to another legal state, via a state where it’s illegal). Schumer, Booker and Wyden know the bill is a longshot. My view is that they are introducing it to let the caucus know where they stand, and more importantly, to start the conversation and hopefully pave the way for incremental reform. Given the current makeup of the Senate, incremental reform is much more likely than a sweeping proposal like this.” –Jonathan Havens, Co-chair of the Cannabis Law Practice and Chair of the Food and Beverage Practice, Saul Ewing Arnstein & Lehr

Castille

“Today’s press conference was historic and is yet another sign that cannabis prohibition is on its way out the door—but it is critical that this bill and other federal cannabis legislation start to connect the dots between social justice and economic justice. It’s not enough to stop arresting folx. We must provide a pathway to economic liberation and a chance to build generational wealth. Without an equitably functioning cannabis industry, we risk perpetuating the same racial wealth gaps that already exist.” –Kaliko Castille, President, Minority Cannabis Business Association

Perez

“We have been clear from day one that any federal marijuana reform bill must be equally comprehensive to the devastation that has been caused by prohibition, particularly in Black, Latinx and Indigenous communities. And we are grateful to see Senators Booker, Wyden and Schumer heeding that call by including language directly from the MORE Act—centering social equity, reparative justice and reinvestment—that we championed in the House, in the Senate bill, and we look forward to working with them to make marijuana justice a reality this session.” –Maritza Perez, Director of the Office of National Affairs, Drug Policy Alliance

Strekal

“Our main priority is to ensure that Americans who choose to responsibly consume cannabis are no longer discriminated against under the law. With one in eight Americans choosing to consume on a semi-regular basis, including nearly one in four veterans, we must end the practice of arresting over 500,000 Americans every year and denying countless others employment, housing and other civic rights if we are truly to be the ‘Land of the Free.’ The federal government can take great strides toward rectifying this situation by advancing the Cannabis Administration and Opportunity Act through the legislative process.” –Justin Strekal, Political Director, National Organization for the Reform of Marijuana Laws (NORML)

Kovler

“Cannabis continues to be disproportionately weaponized against communities of color, and we are thrilled that the Cannabis Administration and Opportunity Act has proposed expungement and community reinvestment measures to address the damage perpetuated by the failed war on drugs. While the bill leaves some questions unanswered, we believe it provides a tangible pathway to true federal legalization.” –Ben Kovler, Founder/CEO, Green Thumb Industries

Whiteman

“We applaud the introduction of legislation that would federally decriminalize cannabis. The introduction of legislation that would federally decriminalize cannabis would have implications far beyond banking. For starters, it will expand the opportunities for minority populations that have been disproportionately targeted during the war on drugs. Federal decriminalization would also enable manufacturing and then shipping across state lines, which would greatly benefit brands like Wana. Supply chains will become more efficient and cost-effective as plants would be grown in appropriate outdoor climates and other materials could be sourced across markets. For a company like Wana, it means that we would be able to manufacture and ship out of regional or national facilities instead of recreating the wheel in every market.” –Nancy Whiteman, CEO, Wana Brands

Perrone

“Today’s new cannabis legalization plan from Senators Schumer, Wyden and Booker is an important first step, but more must be done to address the challenges cannabis workers face and the need to make sure the industry supports good-paying union jobs our families need. Cannabis worker safety and apprenticeships must be a top priority and any federal legislation needs to dedicate funding to further research for these priorities. Congress must also ensure this cannabis legislation respects current state laws while also preventing the industry from moving high-wage union jobs from one state to low-wage agricultural jobs in another state. As America’s largest cannabis workers union, UFCW welcomes this new proposal and urges members of Congress—both Republicans and Democrats—to build on this framework and pass a strong bipartisan bill that establishes a national cannabis policy that ends outdated approaches holding so many communities back.” –Marc Perrone, President, United Food and Commercial Workers (UFCW) International

Caltabiano

“The introduction of the Cannabis Administration and Opportunity Act is imperative to address the disparate impact of the war on drugs and right the wrongs created by decades of injustices perpetrated by disproportionate enforcement against minorities. In addition, the opportunity to address safe access to cannabis and robust reforms needed for cannabis banking and tax policy is long overdue. While this bill is an essential step in the right direction, it is a big ask and I’m a realist. It will take a lot to get this bill through Congress and signed by the president. I remain hopeful and enthusiastic for the passage of the Act, but I believe that even incremental actions such as the passage of the SAFE Banking Act would be a tremendous accomplishment for this Congress and the current administration.” –Joe Caltabiano, CEO of Choice Consolidation Corp., Co-founder of Cresco Labs

Archos

“This is a strong step forward to leverage the potential of American cannabis companies to boost our economy, facilitate a more socially equitable landscape, create durable and good-paying jobs, unlock essential banking streams and raise needed tax revenue. Americans strongly support legalization, and Congress needs to address this issue and shape it so the power of this industry can have the most positive impact as it continues to become mainstream.” –George Archos, Founder/CEO, Verano Holdings

Jarrous

“The Cannabis Administration and Opportunity Act’s draft legislation is designed to jumpstart bipartisan negotiations that have been building momentum in Congress since the first states chose to regulate cannabis for adults. While it’s still a long and uphill climb going forward, this is a great step in moving forward towards ultimately achieving true federal cannabis legalization and ending prohibition.” –Narmin Jarrous, Chief Development Officer, Exclusive Brands

Merchan

“Flora Growth applauds the introduction of legislation that would end the federal prohibition on cannabis, especially the proposed expungement and community reinvestment measures to redress the harm caused by the failed war on drugs. While the bill leaves some questions unanswered, we believe it lays the groundwork towards true federal legalization and would remove many of the barriers that state-legal cannabis businesses currently face due to cannabis’ Schedule I status, such as tax deductions, banking, capital markets and intellectual property issues. While we remain optimistic and enthusiastic about the passage of the act, we feel that even small steps forward, such as the adoption of the SAFE Banking Act, would be a huge success for this Congress and administration.” –Luis Merchan, CEO, Flora Growth

Hale

“We see this as a very positive piece of legislation, addressing most of the major concerns for the legal cannabis market, which includes allowing regulated sales, allowing states to regulate their own markets and laying out guidelines for federal taxation. Even with regulatory and compliance changes at the federal level, transparency and accountability are going to be critical areas of focus to ensure the legal industry is able to thrive. More regulation will only lead to even more licensing and lending opportunities for entrepreneurs in the industry.” –Ryan Hale, Chief Sales Officer, Operational Security Solutions

Gillette

“If there’s anything I’m hoping that Democrats and Republicans can agree upon, it would be the legalization of cannabis at the federal level. … This is huge legislation that we’ve been waiting [on] for a very long time. I know other bills have been introduced, but this one really hits on so many important things that need to be addressed. One of the things that I think is really important is the fact that it allows states to determine their own laws. … Obviously, it’s going to have a tremendous impact should it pass, in that the descheduling of cannabis is going to remove the impact of things like 280E and banking restrictions on the industry. … Getting rid of that barrier, I think, is also going to give opportunities to cannabis businesses to increase wages and offer benefits, including things like 401Ks, that they can’t necessarily offer now because of the lack of banking and because cannabis is federally illegal. On the community side, I think it’s going to be very impactful, as well, because you’re looking at an immediate expungement of federal, nonviolent cannabis crimes, which have significantly impacted people’s lives. … Obviously, I think it’s the right thing to do [for] prisoners that are sitting in jail for nonviolent cannabis crimes while people in their state or people in states that surround their state are profiting from the sale of cannabis. … Then, it’s allowing reinvestment in those communities that have been the most impacted. … This is the right thing to do. It should’ve happened 10 years ago, but it’s the right thing to do, and my hope is that we can at least get support of people in the Senate to be able to pass something like this. Obviously, we can’t continue to live in a system where it’s legal under state law and illegal under federal law, but … I don’t think it’s going to be perfected the day the bill is signed into law. I think it’s going to be evolving over time, the same way many states’ regulatory programs evolved over time.” —Rachel Gillette, Partner & Leader of Cannabis Industry Group, Holland & Hart

Below are comments from Sens. Chuck Schumer, Ron Wyden and Cory Booker regarding their draft release of the Cannabis Administration and Opportunity Act:

Schumer

“I will use my clout as majority leader to make this a priority in the Senate. As my colleagues and I have said before, the war on drugs has really been a war on people, particularly people of color. The Cannabis Administration and Opportunity Act would help put an end to the unfair targeting and treatment of communities of color by removing cannabis from the federal list of controlled substances. It’s not just an idea whose time has come; it’s long overdue. We have all seen the agony of a young person arrested with a small amount of marijuana in his or her pocket, and because of the historic overcriminalization of marijuana, they have a very severe criminal record they have to live with their whole lives. It’s tougher to get a job; tougher to get credit; tougher to live a normal life. The waste of human resources because of the historic overcriminalization has been one of the great historical wrongs for the last decades. We are going to change. We are going to fight hard to change.” –Sen. Chuck Schumer, Majority Leader

Wyden

“Cannabis prohibition, a key pillar of the failed war on drugs, has caused substantial harm to our communities and small businesses, and especially for communities of color. It’s as simple as this: Senators Booker, Schumer and I want to bring common sense to the federal government, end prohibition and restore the lives of those hurt most and set them up for opportunity.” –Sen. Ron Wyden, Chair, Senate Finance Committee

Booker

“For decades, our federal government has waged a war on drugs that has unfairly impacted low-income communities and communities of color. While red and blue states across the country continue to legalize marijuana, the federal government continues to lag woefully behind. It is time for Congress to end the federal marijuana prohibition and reinvest in communities most impacted by the failed war on drugs. I am proud to introduce this landmark piece of legislation with Senator Wyden and Majority Leader Schumer that will finally turn the page on this dark chapter in American history and begin righting these wrongs.” –Sen. Cory Booker

Digital Editor Eric Sandy, Senior Digital Editor Melissa Schiller, Associate Editor Tony Lange and Assistant Editor Andriana Ruscitto contributed to this report.

HERBL Becomes Exclusive Distributor of Craft Cannabis Brand Henry’s Original

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SANTA BARBARA, Calif., July 13, 2021 – PRESS RELEASE – HERBL, California’s largest cannabis supply chain company, announced its exclusive distribution partnership with Henry’s Original, a vertically integrated craft cannabis brand. HERBL will aid Henry’s Original in scaling its current collection of products, including craft flower and pre-rolls throughout California.

Henry’s Original was launched by co-founders Jamie Warm and Joshua Keats, two farmers who have cultivated cannabis in the Emerald Triangle for over two decades each. Henry’s Original grows its own flower across multiple farms in Mendocino County to bring small-batch, craft cannabis to the California market. All Henry’s Original flower is sun-grown using sustainable, organic methods and is Clean Green Certified.

With this partnership, the HERBL catalog will now feature a full line of Henry’s Original craft and value-priced flower and pre-rolls in a variety of convenient offerings. This includes flower available in eighths, half ounce and 1-gram jars as well as eighths and half-ounce mylar pouches. Pre-rolls come in 1-gram singles and 2-gram multipacks with four half gram pre-rolls.  

“Henry’s Original’s handcrafted and premium-quality products will be met with high demand as more conscious consumers gravitate toward sustainable brands,” HERBL founder and CEO Mike Beaudry said. “Henry’s Original is a welcome addition to our portfolio of unique and thoughtfully cultivated brands, and we are excited to offer products that honor Mendocino County’s strong cannabis heritage.”

“This partnership with HERBL is a tremendous opportunity to put a spotlight on Mendocino County, which has played an instrumental role in the American cannabis story,” Henry’s Original co-CEO Joshua Keats said. “Our team is dedicated to showcasing the region’s exceptional flower to the wider legal market.”

Alabama Medical Cannabis Commission Receives Final Appointments

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As it stands, the Cannabis Administration and Opportunity Act does not have enough votes to pass the Senate. That’s part of the reason why a final version of the legislation to end cannabis prohibition has yet to be formally filed in Congress.

In unveiling a preliminary draft of the federal cannabis bill on July 14, Senate Majority Leader Chuck Schumer, D-N.Y.; Senate Finance Committee Chairman Ron Wyden, D-Ore.; and Sen. Cory Booker, D-N.J.—the sponsors—are hoping to receive feedback from industry stakeholders between now and Sept. 1 as they fight to gain broader support among their colleagues in the upper chamber.

“This is going to be a process,” Schumer said during a joint press conference with Wyden and Booker on Wednesday, shortly after releasing their 163-page legislation.

RELATED: Senate Trio Unveils Federal Cannabis Legalization Draft With Provisions to Deschedule, Tax and Regulate

“This is a draft bill,” Schumer said. “We intend to show it to all of the stakeholders. We don’t have the votes necessary at this point. But we have a large majority of our caucus for it. We’re going to show it to the others and say, ‘Well, what don’t you like? What do you like?’ And we’ll see if we can get the support. We’re going to put our muscle behind it, our effort behind it, and we are going to get this done ASAP.”

Stakeholders aren’t shying away. By and large, early comments have been cautiously supportive—with much of the reaction underscoring the importance of social equity provisions in the proposal. 

Notably, restorative justice measures in the bill include the expungement of non-violent federal cannabis offense convictions, as well as restorative justice and opportunity trust funds reserved for certain reinvestment programs.

The social equity measures seen in states that have recently passed adult-use legislation—like New York, Virginia, New Mexico and Connecticut—aim to deliver a scale of justice to people who deserve it that goes unparalleled in American history.

Below are comments from various stakeholders and policy experts regarding the Cannabis Administration and Opportunity Act:

Hawkins

“It is time for cannabis prohibition to end, and we applaud the efforts of Senators Cory Booker, Ron Wyden and Senate Leader Chuck Schumer for their bold and necessary bill, the Cannabis Administration and Opportunity Act. The war on cannabis was engineered to target people of color when it launched in 1937, and we live with the disproportionate impact today. We view this historic bill as an essential step toward righting decades of inequitable wrongs. We implore Congress to consider the importance of this moment; in looking at the eight states that have legalized cannabis since the election last November, it’s clear that ending federal cannabis prohibition is the will of the American people. We should no longer delay. The United States Cannabis Council (USCC) stays committed to its mission of federal legalization that prioritizes access, removes barriers to an equitable industry and provides restorative justice to communities harmed by cannabis prohibition.” –Steve Hawkins, CEO of U.S. Cannabis Council, Executive Director of Marijuana Policy Project

Littlejohn

“This thoughtful and comprehensive draft represents an historic step on the path to federal cannabis legalization. Through this draft, Leader Schumer and Senators Booker and Wyden maintain their commitment to economic justice through cannabis reform by providing for reinvestment into the communities most impacted by cannabis prohibition and by creating pathways for or impacted individuals to participate in this burgeoning industry.” –Amber Littlejohn, Executive Director, Minority Cannabis Business Association

Altieri

“The days of federal prohibition are numbered. These actions by Senate Majority Leader Schumer and Senators Booker and Wyden reflect the fact that the supermajority of Americans are demanding that Congress take action to end the cruel and senseless policy of federal prohibition. It is time for legislators to comport federal law with the laws of the growing number of states that have legalized the plant, and it is time for lawmakers to facilitate a federal structure that allows for cannabis commerce so that responsible consumers can obtain high-quality, low-cost cannabis grown right here in America without fear of arrest and incarceration.” –Erik Altieri, Executive Director, National Organization for the Reform of Marijuana Laws (NORML)

Havens

“While the bill would direct the attorney general to remove cannabis from the Controlled Substances Act, it wouldn’t legalize cannabis everywhere. Thus, it’s more appropriate to say that the bill would end the federal prohibition on cannabis, rather than legalize it. States would still be able to prohibit cannabis growing, manufacturing, distribution, sale and consumption within their borders. However, they wouldn’t be able to stop transportation of cannabis through their states (e.g., from one legal state to another legal state, via a state where it’s illegal). Schumer, Booker and Wyden know the bill is a longshot. My view is that they are introducing it to let the caucus know where they stand, and more importantly, to start the conversation and hopefully pave the way for incremental reform. Given the current makeup of the Senate, incremental reform is much more likely than a sweeping proposal like this.” –Jonathan Havens, Co-chair of the Cannabis Law Practice and Chair of the Food and Beverage Practice, Saul Ewing Arnstein & Lehr

Castille

“Today’s press conference was historic and is yet another sign that cannabis prohibition is on its way out the door—but it is critical that this bill and other federal cannabis legislation start to connect the dots between social justice and economic justice. It’s not enough to stop arresting folx. We must provide a pathway to economic liberation and a chance to build generational wealth. Without an equitably functioning cannabis industry, we risk perpetuating the same racial wealth gaps that already exist.” –Kaliko Castille, President, Minority Cannabis Business Association

Perez

“We have been clear from day one that any federal marijuana reform bill must be equally comprehensive to the devastation that has been caused by prohibition, particularly in Black, Latinx and Indigenous communities. And we are grateful to see Senators Booker, Wyden and Schumer heeding that call by including language directly from the MORE Act—centering social equity, reparative justice and reinvestment—that we championed in the House, in the Senate bill, and we look forward to working with them to make marijuana justice a reality this session.” –Maritza Perez, Director of the Office of National Affairs, Drug Policy Alliance

Strekal

“Our main priority is to ensure that Americans who choose to responsibly consume cannabis are no longer discriminated against under the law. With one in eight Americans choosing to consume on a semi-regular basis, including nearly one in four veterans, we must end the practice of arresting over 500,000 Americans every year and denying countless others employment, housing and other civic rights if we are truly to be the ‘Land of the Free.’ The federal government can take great strides toward rectifying this situation by advancing the Cannabis Administration and Opportunity Act through the legislative process.” –Justin Strekal, Political Director, National Organization for the Reform of Marijuana Laws (NORML)

Kovler

“Cannabis continues to be disproportionately weaponized against communities of color, and we are thrilled that the Cannabis Administration and Opportunity Act has proposed expungement and community reinvestment measures to address the damage perpetuated by the failed war on drugs. While the bill leaves some questions unanswered, we believe it provides a tangible pathway to true federal legalization.” –Ben Kovler, Founder/CEO, Green Thumb Industries

Whiteman

“We applaud the introduction of legislation that would federally decriminalize cannabis. The introduction of legislation that would federally decriminalize cannabis would have implications far beyond banking. For starters, it will expand the opportunities for minority populations that have been disproportionately targeted during the war on drugs. Federal decriminalization would also enable manufacturing and then shipping across state lines, which would greatly benefit brands like Wana. Supply chains will become more efficient and cost-effective as plants would be grown in appropriate outdoor climates and other materials could be sourced across markets. For a company like Wana, it means that we would be able to manufacture and ship out of regional or national facilities instead of recreating the wheel in every market.” –Nancy Whiteman, CEO, Wana Brands

Perrone

“Today’s new cannabis legalization plan from Senators Schumer, Wyden and Booker is an important first step, but more must be done to address the challenges cannabis workers face and the need to make sure the industry supports good-paying union jobs our families need. Cannabis worker safety and apprenticeships must be a top priority and any federal legislation needs to dedicate funding to further research for these priorities. Congress must also ensure this cannabis legislation respects current state laws while also preventing the industry from moving high-wage union jobs from one state to low-wage agricultural jobs in another state. As America’s largest cannabis workers union, UFCW welcomes this new proposal and urges members of Congress—both Republicans and Democrats—to build on this framework and pass a strong bipartisan bill that establishes a national cannabis policy that ends outdated approaches holding so many communities back.” –Marc Perrone, President, United Food and Commercial Workers (UFCW) International

Caltabiano

“The introduction of the Cannabis Administration and Opportunity Act is imperative to address the disparate impact of the war on drugs and right the wrongs created by decades of injustices perpetrated by disproportionate enforcement against minorities. In addition, the opportunity to address safe access to cannabis and robust reforms needed for cannabis banking and tax policy is long overdue. While this bill is an essential step in the right direction, it is a big ask and I’m a realist. It will take a lot to get this bill through Congress and signed by the president. I remain hopeful and enthusiastic for the passage of the Act, but I believe that even incremental actions such as the passage of the SAFE Banking Act would be a tremendous accomplishment for this Congress and the current administration.” –Joe Caltabiano, CEO of Choice Consolidation Corp., Co-founder of Cresco Labs

Archos

“This is a strong step forward to leverage the potential of American cannabis companies to boost our economy, facilitate a more socially equitable landscape, create durable and good-paying jobs, unlock essential banking streams and raise needed tax revenue. Americans strongly support legalization, and Congress needs to address this issue and shape it so the power of this industry can have the most positive impact as it continues to become mainstream.” –George Archos, Founder/CEO, Verano Holdings

Jarrous

“The Cannabis Administration and Opportunity Act’s draft legislation is designed to jumpstart bipartisan negotiations that have been building momentum in Congress since the first states chose to regulate cannabis for adults. While it’s still a long and uphill climb going forward, this is a great step in moving forward towards ultimately achieving true federal cannabis legalization and ending prohibition.” –Narmin Jarrous, Chief Development Officer, Exclusive Brands

Merchan

“Flora Growth applauds the introduction of legislation that would end the federal prohibition on cannabis, especially the proposed expungement and community reinvestment measures to redress the harm caused by the failed war on drugs. While the bill leaves some questions unanswered, we believe it lays the groundwork towards true federal legalization and would remove many of the barriers that state-legal cannabis businesses currently face due to cannabis’ Schedule I status, such as tax deductions, banking, capital markets and intellectual property issues. While we remain optimistic and enthusiastic about the passage of the act, we feel that even small steps forward, such as the adoption of the SAFE Banking Act, would be a huge success for this Congress and administration.” –Luis Merchan, CEO, Flora Growth

Hale

“We see this as a very positive piece of legislation, addressing most of the major concerns for the legal cannabis market, which includes allowing regulated sales, allowing states to regulate their own markets and laying out guidelines for federal taxation. Even with regulatory and compliance changes at the federal level, transparency and accountability are going to be critical areas of focus to ensure the legal industry is able to thrive. More regulation will only lead to even more licensing and lending opportunities for entrepreneurs in the industry.” –Ryan Hale, Chief Sales Officer, Operational Security Solutions

Gillette

“If there’s anything I’m hoping that Democrats and Republicans can agree upon, it would be the legalization of cannabis at the federal level. … This is huge legislation that we’ve been waiting [on] for a very long time. I know other bills have been introduced, but this one really hits on so many important things that need to be addressed. One of the things that I think is really important is the fact that it allows states to determine their own laws. … Obviously, it’s going to have a tremendous impact should it pass, in that the descheduling of cannabis is going to remove the impact of things like 280E and banking restrictions on the industry. … Getting rid of that barrier, I think, is also going to give opportunities to cannabis businesses to increase wages and offer benefits, including things like 401Ks, that they can’t necessarily offer now because of the lack of banking and because cannabis is federally illegal. On the community side, I think it’s going to be very impactful, as well, because you’re looking at an immediate expungement of federal, nonviolent cannabis crimes, which have significantly impacted people’s lives. … Obviously, I think it’s the right thing to do [for] prisoners that are sitting in jail for nonviolent cannabis crimes while people in their state or people in states that surround their state are profiting from the sale of cannabis. … Then, it’s allowing reinvestment in those communities that have been the most impacted. … This is the right thing to do. It should’ve happened 10 years ago, but it’s the right thing to do, and my hope is that we can at least get support of people in the Senate to be able to pass something like this. Obviously, we can’t continue to live in a system where it’s legal under state law and illegal under federal law, but … I don’t think it’s going to be perfected the day the bill is signed into law. I think it’s going to be evolving over time, the same way many states’ regulatory programs evolved over time.” —Rachel Gillette, Partner & Leader of Cannabis Industry Group, Holland & Hart

Below are comments from Sens. Chuck Schumer, Ron Wyden and Cory Booker regarding their draft release of the Cannabis Administration and Opportunity Act:

Schumer

“I will use my clout as majority leader to make this a priority in the Senate. As my colleagues and I have said before, the war on drugs has really been a war on people, particularly people of color. The Cannabis Administration and Opportunity Act would help put an end to the unfair targeting and treatment of communities of color by removing cannabis from the federal list of controlled substances. It’s not just an idea whose time has come; it’s long overdue. We have all seen the agony of a young person arrested with a small amount of marijuana in his or her pocket, and because of the historic overcriminalization of marijuana, they have a very severe criminal record they have to live with their whole lives. It’s tougher to get a job; tougher to get credit; tougher to live a normal life. The waste of human resources because of the historic overcriminalization has been one of the great historical wrongs for the last decades. We are going to change. We are going to fight hard to change.” –Sen. Chuck Schumer, Majority Leader

Wyden

“Cannabis prohibition, a key pillar of the failed war on drugs, has caused substantial harm to our communities and small businesses, and especially for communities of color. It’s as simple as this: Senators Booker, Schumer and I want to bring common sense to the federal government, end prohibition and restore the lives of those hurt most and set them up for opportunity.” –Sen. Ron Wyden, Chair, Senate Finance Committee

Booker

“For decades, our federal government has waged a war on drugs that has unfairly impacted low-income communities and communities of color. While red and blue states across the country continue to legalize marijuana, the federal government continues to lag woefully behind. It is time for Congress to end the federal marijuana prohibition and reinvest in communities most impacted by the failed war on drugs. I am proud to introduce this landmark piece of legislation with Senator Wyden and Majority Leader Schumer that will finally turn the page on this dark chapter in American history and begin righting these wrongs.” –Sen. Cory Booker

Digital Editor Eric Sandy, Senior Digital Editor Melissa Schiller, Associate Editor Tony Lange and Assistant Editor Andriana Ruscitto contributed to this report.

NationalLink Inc. Celebrates 25th Business Anniversary in Providing Complete ATM Solutions and Serving Cannabis Businesses

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The Democrats’ majority in the U.S. Senate isn’t getting any younger this Congress, but a trio of proponents behind cannabis reform have remained gradual in kickstarting their efforts. Their pace picked up July 14.  

Senate Majority Leader Chuck Schumer, D-N.Y., Senate Finance Committee Chairman Ron Wyden, D-Ore., and Sen. Cory Booker, D-N.J., unveiled a preliminary draft of a federal cannabis legalization bill they plan to formally introduce later this year. 

The 163-page Cannabis Administration and Opportunity Act (CAOA) aims to remove cannabis from the list of controlled substances; tax and regulate cannabis at the federal level; and grant states the power to keep or administer their own oversight programs. 

“This is a bill we’ve consulted the experts; we’ve consulted many of our colleagues,” Schumer said during the July 14 press conference announcing the bill. “And the next step, for this critical legislation, is getting further input from stakeholder groups, which is essential to the legislation’s success. It’s time for the country to engage in this discussion and update our federal laws, not only to reflect popular wisdom, but science—but science.”

The Senate trio issued a joint statement Feb. 1, in which they said ending federal cannabis prohibition is necessary to right the wrongs of the failed war on drugs. In the statement, they said they would release a unified discussion draft on comprehensive reform to ensure restorative justice, protect public health, and implement responsible taxes and regulations.  

schumer wyden booker

Senate Democrats

U.S. Sens. Cory Booker, Chuck Schumer and Ron Wyden at the July 14 press conference.

While Schumer, Wyden and Booker said they’d released a unified discussion draft “in the early part of this year,” they held a press conference July 14 about delivering on that end. They reiterated that the drafted bill they released just prior to the conference is not a final version, and they will consider public input to help fine-tune the legislation through Sept. 1, 2021. 

“This is cannabis common sense,” Wyden said during the press conference.

Watch the full press conference below.

According to the draft bill’s text:  

  • The attorney general would be required to finalize removing “marihuana and tetrahydrocannabinols [THC]” from the schedule of controlled substances no later than 180 days after the enactment of the act.  

  • A federal cannabis sales tax on any products produced in or imported into the U.S. will be 10% during the first two calendar years following the enactment of the bill, then will rise to 15% in the third year, 20% in the fourth year, and 25% in the fifth year.  

  • The act would transfer agency functions with regard to cannabis from the Drug Enforcement Administration’s (DEA) jurisdiction to the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Department of Health and Human Services (HHS) and the Department of the Treasury.  

  • Restorative justice measures include the expungement of non-violent federal cannabis offense convictions for individuals not under a criminal sentencing no later than one year after the bill’s enactment. In addition, any individual with a prior conviction or adjudication of juvenile delinquency for a non-violent federal cannabis offense, who is not under a criminal justice sentence, may immediately file a motion to petition a court for expungement.  

  • All cannabis transported across state lines shall, upon arrival, be subject to the operation and effect of the laws of that state. States will retain their rights to continue prohibition measures, if they choose—forbidding out-of-state shipment into their jurisdictions that violate their state laws—while transportation between states with legal cannabis programs will be permitted. 

Restorative justice and opportunity trust funds will be reserved for certain reinvestment programs:  

  1. A Cannabis Justice Office (within the Office of Justice Programs) will provide eligible entities with funds to administer services—such as job training, reentry support, literacy programs, legal aid, youth recreation and mentoring programs, and health education—for individuals adversely impacted by the war on drugs.  

  1. A Cannabis Opportunity Program will provide any eligible state or locality funds to make loans under section 7(m) of the Small Business Act to assist small business concerns owned and controlled by socially and economically disadvantaged individuals who operate in the cannabis industry.  

  1. An Equitable Licensing Grant Program will provide any eligible state or locality funds to develop and implement equitable cannabis licensing programs that minimize the barriers to cannabis licensing and employment for individuals adversely impacted by the war on drugs. 

With this highly anticipated legislation now landing in Congress, the industry has begun offering its response. By and large, early comments have been cautiously supportive—with much of the reaction underscoring the importance of social equity provisions in the proposal. 

“We have been clear from day one that any federal marijuana reform bill must be equally comprehensive to the devastation that has been caused by prohibition, particularly in Black, Latinx and Indigenous communities,” Maritza Perez, Director of the Office of National Affairs at the Drug Policy Alliance, said in a public statement. “And we are grateful to see Senators Booker, Wyden and Schumer heeding that call by including language directly from the MORE Act—centering social equity, reparative justice and reinvestment—that we championed in the House, in the Senate bill, and we look forward to working with them to make marijuana justice a reality this session.” 

 

Striking a similar note, Ben Kovler, founder and CEO of Green Thumb Industries, said, “Cannabis continues to be disproportionately weaponized against communities of color, and we are thrilled that the Cannabis Administration and Opportunity Act has proposed expungement and community reinvestment measures to address the damage perpetuated by the failed war on drugs. While the bill leaves some questions unanswered, we believe it provides a tangible pathway to true federal legalization.” 

With language that clearly ties the descheduling of cannabis to the long-running policy failure of the U.S.’s war on drugs, the proposal is widely seen as a chance to forge a new, unified front for the emerging cannabis market. States would retain regulatory oversight, but a federal policy would provide at least some degree of unity across the country.

“While the bill would direct the attorney general to remove cannabis from the Controlled Substances Act, it wouldn’t legalize cannabis everywhere,” Jonathan Havens, co-chair of the Cannabis Law Practice and chair of the Food and Beverage Practice at Saul Ewing Arnstein & Lehr, told Cannabis Business Times and Cannabis Dispensary. “Thus, it’s more appropriate to say that the bill would end the federal prohibition on cannabis, rather than legalize it. States would still be able to prohibit cannabis growing, manufacturing, distribution, sale and consumption within their borders. However, they wouldn’t be able to stop transportation of cannabis through their states (e.g., from one legal state to another legal state, via a state where it’s illegal).”

Havens said the CAOA essentially takes a similar approach to the 2018 Farm Bill that ended the federal prohibition on hemp, and would eliminate many obstacles that state-legal cannabis businesses currently face due to cannabis’s Schedule I status, such as tax deductions, banking, capital markets and intellectual property issues.

“We applaud the introduction of legislation that would federally decriminalize cannabis,” said Wana Brands CEO Nancy Whiteman in a public statement. “The introduction of legislation that would federally decriminalize cannabis would have implications far beyond banking. For starters, it will expand the opportunities for minority populations that have been disproportionately targeted during the war on drugs. Federal decriminalization would also enable manufacturing and then shipping across state lines, which would greatly benefit brands like Wana. Supply chains will become more efficient and cost-effective as plants would be grown in appropriate outdoor climates and other materials could be sourced across markets. For a company like Wana, it means that we would be able to manufacture and ship out of regional or national facilities instead of recreating the wheel in every market.” 

“The introduction of the Cannabis Administration and Opportunity Act is imperative to address the disparate impact of the war on drugs and right the wrongs created by decades of injustices perpetrated by disproportionate enforcement against minorities,” said Joe Caltabiano, CEO of Choice Consolidation Corp. and co-founder of multistate cannabis operator Cresco Labs, in a public statement. “In addition, the opportunity to address safe access to cannabis and robust reforms needed for cannabis banking and tax policy is long overdue.” 

As for the bill’s prospects of passing through Congress and being signed into law by President Joe Biden, Caltabiano added, “While this bill is an essential step in the right direction, it is a big ask and I’m a realist. It will take a lot to get this bill through Congress and signed by the president. I remain hopeful and enthusiastic for the passage of the Act, but I believe that even incremental actions such as the passage of the SAFE Banking Act would be a tremendous accomplishment for this Congress and the current administration.”

Havens echoed this sentiment, pointing out that the bill needs 60 votes to pass in the Senate, and it is unclear if all 50 Senate Democrats support the measure, let alone 10 Republicans in that chamber.

“Schumer, Booker and Wyden know the bill is a longshot,” Havens said. “My view is that they are introducing it to let the caucus know where they stand, and more importantly, to start the conversation and hopefully pave the way for incremental reform. Given the current makeup of the Senate, incremental reform is much more likely than a sweeping proposal like this. “

 

Digital Editor Eric Sandy, Senior Digital Editor Melissa Schiller and Assistant Editor Andriana Ruscitto contributed to this report.

Industry Experts, Stakeholders Offer Their Takes on Cannabis Administration and Opportunity Act

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The Democrats’ majority in the U.S. Senate isn’t getting any younger this Congress, but a trio of proponents behind cannabis reform have remained gradual in kickstarting their efforts. Their pace picked up July 14.  

Senate Majority Leader Chuck Schumer, D-N.Y., Senate Finance Committee Chairman Ron Wyden, D-Ore., and Sen. Cory Booker, D-N.J., unveiled a preliminary draft of a federal cannabis legalization bill they plan to formally introduce later this year. 

The 163-page Cannabis Administration and Opportunity Act (CAOA) aims to remove cannabis from the list of controlled substances; tax and regulate cannabis at the federal level; and grant states the power to keep or administer their own oversight programs. 

“This is a bill we’ve consulted the experts; we’ve consulted many of our colleagues,” Schumer said during the July 14 press conference announcing the bill. “And the next step, for this critical legislation, is getting further input from stakeholder groups, which is essential to the legislation’s success. It’s time for the country to engage in this discussion and update our federal laws, not only to reflect popular wisdom, but science—but science.”

The Senate trio issued a joint statement Feb. 1, in which they said ending federal cannabis prohibition is necessary to right the wrongs of the failed war on drugs. In the statement, they said they would release a unified discussion draft on comprehensive reform to ensure restorative justice, protect public health, and implement responsible taxes and regulations.  

schumer wyden booker

Senate Democrats

U.S. Sens. Cory Booker, Chuck Schumer and Ron Wyden at the July 14 press conference.

While Schumer, Wyden and Booker said they’d released a unified discussion draft “in the early part of this year,” they held a press conference July 14 about delivering on that end. They reiterated that the drafted bill they released just prior to the conference is not a final version, and they will consider public input to help fine-tune the legislation through Sept. 1, 2021. 

“This is cannabis common sense,” Wyden said during the press conference.

Watch the full press conference below.

According to the draft bill’s text:  

  • The attorney general would be required to finalize removing “marihuana and tetrahydrocannabinols [THC]” from the schedule of controlled substances no later than 180 days after the enactment of the act.  

  • A federal cannabis sales tax on any products produced in or imported into the U.S. will be 10% during the first two calendar years following the enactment of the bill, then will rise to 15% in the third year, 20% in the fourth year, and 25% in the fifth year.  

  • The act would transfer agency functions with regard to cannabis from the Drug Enforcement Administration’s (DEA) jurisdiction to the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Department of Health and Human Services (HHS) and the Department of the Treasury.  

  • Restorative justice measures include the expungement of non-violent federal cannabis offense convictions for individuals not under a criminal sentencing no later than one year after the bill’s enactment. In addition, any individual with a prior conviction or adjudication of juvenile delinquency for a non-violent federal cannabis offense, who is not under a criminal justice sentence, may immediately file a motion to petition a court for expungement.  

  • All cannabis transported across state lines shall, upon arrival, be subject to the operation and effect of the laws of that state. States will retain their rights to continue prohibition measures, if they choose—forbidding out-of-state shipment into their jurisdictions that violate their state laws—while transportation between states with legal cannabis programs will be permitted. 

Restorative justice and opportunity trust funds will be reserved for certain reinvestment programs:  

  1. A Cannabis Justice Office (within the Office of Justice Programs) will provide eligible entities with funds to administer services—such as job training, reentry support, literacy programs, legal aid, youth recreation and mentoring programs, and health education—for individuals adversely impacted by the war on drugs.  

  1. A Cannabis Opportunity Program will provide any eligible state or locality funds to make loans under section 7(m) of the Small Business Act to assist small business concerns owned and controlled by socially and economically disadvantaged individuals who operate in the cannabis industry.  

  1. An Equitable Licensing Grant Program will provide any eligible state or locality funds to develop and implement equitable cannabis licensing programs that minimize the barriers to cannabis licensing and employment for individuals adversely impacted by the war on drugs. 

With this highly anticipated legislation now landing in Congress, the industry has begun offering its response. By and large, early comments have been cautiously supportive—with much of the reaction underscoring the importance of social equity provisions in the proposal. 

“We have been clear from day one that any federal marijuana reform bill must be equally comprehensive to the devastation that has been caused by prohibition, particularly in Black, Latinx and Indigenous communities,” Maritza Perez, Director of the Office of National Affairs at the Drug Policy Alliance, said in a public statement. “And we are grateful to see Senators Booker, Wyden and Schumer heeding that call by including language directly from the MORE Act—centering social equity, reparative justice and reinvestment—that we championed in the House, in the Senate bill, and we look forward to working with them to make marijuana justice a reality this session.” 

 

Striking a similar note, Ben Kovler, founder and CEO of Green Thumb Industries, said, “Cannabis continues to be disproportionately weaponized against communities of color, and we are thrilled that the Cannabis Administration and Opportunity Act has proposed expungement and community reinvestment measures to address the damage perpetuated by the failed war on drugs. While the bill leaves some questions unanswered, we believe it provides a tangible pathway to true federal legalization.” 

With language that clearly ties the descheduling of cannabis to the long-running policy failure of the U.S.’s war on drugs, the proposal is widely seen as a chance to forge a new, unified front for the emerging cannabis market. States would retain regulatory oversight, but a federal policy would provide at least some degree of unity across the country.

“While the bill would direct the attorney general to remove cannabis from the Controlled Substances Act, it wouldn’t legalize cannabis everywhere,” Jonathan Havens, co-chair of the Cannabis Law Practice and chair of the Food and Beverage Practice at Saul Ewing Arnstein & Lehr, told Cannabis Business Times and Cannabis Dispensary. “Thus, it’s more appropriate to say that the bill would end the federal prohibition on cannabis, rather than legalize it. States would still be able to prohibit cannabis growing, manufacturing, distribution, sale and consumption within their borders. However, they wouldn’t be able to stop transportation of cannabis through their states (e.g., from one legal state to another legal state, via a state where it’s illegal).”

Havens said the CAOA essentially takes a similar approach to the 2018 Farm Bill that ended the federal prohibition on hemp, and would eliminate many obstacles that state-legal cannabis businesses currently face due to cannabis’s Schedule I status, such as tax deductions, banking, capital markets and intellectual property issues.

“We applaud the introduction of legislation that would federally decriminalize cannabis,” said Wana Brands CEO Nancy Whiteman in a public statement. “The introduction of legislation that would federally decriminalize cannabis would have implications far beyond banking. For starters, it will expand the opportunities for minority populations that have been disproportionately targeted during the war on drugs. Federal decriminalization would also enable manufacturing and then shipping across state lines, which would greatly benefit brands like Wana. Supply chains will become more efficient and cost-effective as plants would be grown in appropriate outdoor climates and other materials could be sourced across markets. For a company like Wana, it means that we would be able to manufacture and ship out of regional or national facilities instead of recreating the wheel in every market.” 

“The introduction of the Cannabis Administration and Opportunity Act is imperative to address the disparate impact of the war on drugs and right the wrongs created by decades of injustices perpetrated by disproportionate enforcement against minorities,” said Joe Caltabiano, CEO of Choice Consolidation Corp. and co-founder of multistate cannabis operator Cresco Labs, in a public statement. “In addition, the opportunity to address safe access to cannabis and robust reforms needed for cannabis banking and tax policy is long overdue.” 

As for the bill’s prospects of passing through Congress and being signed into law by President Joe Biden, Caltabiano added, “While this bill is an essential step in the right direction, it is a big ask and I’m a realist. It will take a lot to get this bill through Congress and signed by the president. I remain hopeful and enthusiastic for the passage of the Act, but I believe that even incremental actions such as the passage of the SAFE Banking Act would be a tremendous accomplishment for this Congress and the current administration.”

Havens echoed this sentiment, pointing out that the bill needs 60 votes to pass in the Senate, and it is unclear if all 50 Senate Democrats support the measure, let alone 10 Republicans in that chamber.

“Schumer, Booker and Wyden know the bill is a longshot,” Havens said. “My view is that they are introducing it to let the caucus know where they stand, and more importantly, to start the conversation and hopefully pave the way for incremental reform. Given the current makeup of the Senate, incremental reform is much more likely than a sweeping proposal like this. “

 

Digital Editor Eric Sandy, Senior Digital Editor Melissa Schiller and Assistant Editor Andriana Ruscitto contributed to this report.

Following Los Angeles’ $1.2 Billion Illegal Cannabis Bust, Monterey County Cracks Down on Enforcement Operations

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The Democrats’ majority in the U.S. Senate isn’t getting any younger this Congress, but a trio of proponents behind cannabis reform have remained gradual in kickstarting their efforts. Their pace picked up July 14.  

Senate Majority Leader Chuck Schumer, D-N.Y., Senate Finance Committee Chairman Ron Wyden, D-Ore., and Sen. Cory Booker, D-N.J., unveiled a preliminary draft of a federal cannabis legalization bill they plan to formally introduce later this year. 

The 163-page Cannabis Administration and Opportunity Act (CAOA) aims to remove cannabis from the list of controlled substances; tax and regulate cannabis at the federal level; and grant states the power to keep or administer their own oversight programs. 

“This is a bill we’ve consulted the experts; we’ve consulted many of our colleagues,” Schumer said during the July 14 press conference announcing the bill. “And the next step, for this critical legislation, is getting further input from stakeholder groups, which is essential to the legislation’s success. It’s time for the country to engage in this discussion and update our federal laws, not only to reflect popular wisdom, but science—but science.”

The Senate trio issued a joint statement Feb. 1, in which they said ending federal cannabis prohibition is necessary to right the wrongs of the failed war on drugs. In the statement, they said they would release a unified discussion draft on comprehensive reform to ensure restorative justice, protect public health, and implement responsible taxes and regulations.  

schumer wyden booker

Senate Democrats

U.S. Sens. Cory Booker, Chuck Schumer and Ron Wyden at the July 14 press conference.

While Schumer, Wyden and Booker said they’d released a unified discussion draft “in the early part of this year,” they held a press conference July 14 about delivering on that end. They reiterated that the drafted bill they released just prior to the conference is not a final version, and they will consider public input to help fine-tune the legislation through Sept. 1, 2021. 

“This is cannabis common sense,” Wyden said during the press conference.

Watch the full press conference below.

According to the draft bill’s text:  

  • The attorney general would be required to finalize removing “marihuana and tetrahydrocannabinols [THC]” from the schedule of controlled substances no later than 180 days after the enactment of the act.  

  • A federal cannabis sales tax on any products produced in or imported into the U.S. will be 10% during the first two calendar years following the enactment of the bill, then will rise to 15% in the third year, 20% in the fourth year, and 25% in the fifth year.  

  • The act would transfer agency functions with regard to cannabis from the Drug Enforcement Administration’s (DEA) jurisdiction to the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Department of Health and Human Services (HHS) and the Department of the Treasury.  

  • Restorative justice measures include the expungement of non-violent federal cannabis offense convictions for individuals not under a criminal sentencing no later than one year after the bill’s enactment. In addition, any individual with a prior conviction or adjudication of juvenile delinquency for a non-violent federal cannabis offense, who is not under a criminal justice sentence, may immediately file a motion to petition a court for expungement.  

  • All cannabis transported across state lines shall, upon arrival, be subject to the operation and effect of the laws of that state. States will retain their rights to continue prohibition measures, if they choose—forbidding out-of-state shipment into their jurisdictions that violate their state laws—while transportation between states with legal cannabis programs will be permitted. 

Restorative justice and opportunity trust funds will be reserved for certain reinvestment programs:  

  1. A Cannabis Justice Office (within the Office of Justice Programs) will provide eligible entities with funds to administer services—such as job training, reentry support, literacy programs, legal aid, youth recreation and mentoring programs, and health education—for individuals adversely impacted by the war on drugs.  

  1. A Cannabis Opportunity Program will provide any eligible state or locality funds to make loans under section 7(m) of the Small Business Act to assist small business concerns owned and controlled by socially and economically disadvantaged individuals who operate in the cannabis industry.  

  1. An Equitable Licensing Grant Program will provide any eligible state or locality funds to develop and implement equitable cannabis licensing programs that minimize the barriers to cannabis licensing and employment for individuals adversely impacted by the war on drugs. 

With this highly anticipated legislation now landing in Congress, the industry has begun offering its response. By and large, early comments have been cautiously supportive—with much of the reaction underscoring the importance of social equity provisions in the proposal. 

“We have been clear from day one that any federal marijuana reform bill must be equally comprehensive to the devastation that has been caused by prohibition, particularly in Black, Latinx and Indigenous communities,” Maritza Perez, Director of the Office of National Affairs at the Drug Policy Alliance, said in a public statement. “And we are grateful to see Senators Booker, Wyden and Schumer heeding that call by including language directly from the MORE Act—centering social equity, reparative justice and reinvestment—that we championed in the House, in the Senate bill, and we look forward to working with them to make marijuana justice a reality this session.” 

 

Striking a similar note, Ben Kovler, founder and CEO of Green Thumb Industries, said, “Cannabis continues to be disproportionately weaponized against communities of color, and we are thrilled that the Cannabis Administration and Opportunity Act has proposed expungement and community reinvestment measures to address the damage perpetuated by the failed war on drugs. While the bill leaves some questions unanswered, we believe it provides a tangible pathway to true federal legalization.” 

With language that clearly ties the descheduling of cannabis to the long-running policy failure of the U.S.’s war on drugs, the proposal is widely seen as a chance to forge a new, unified front for the emerging cannabis market. States would retain regulatory oversight, but a federal policy would provide at least some degree of unity across the country.

“While the bill would direct the attorney general to remove cannabis from the Controlled Substances Act, it wouldn’t legalize cannabis everywhere,” Jonathan Havens, co-chair of the Cannabis Law Practice and chair of the Food and Beverage Practice at Saul Ewing Arnstein & Lehr, told Cannabis Business Times and Cannabis Dispensary. “Thus, it’s more appropriate to say that the bill would end the federal prohibition on cannabis, rather than legalize it. States would still be able to prohibit cannabis growing, manufacturing, distribution, sale and consumption within their borders. However, they wouldn’t be able to stop transportation of cannabis through their states (e.g., from one legal state to another legal state, via a state where it’s illegal).”

Havens said the CAOA essentially takes a similar approach to the 2018 Farm Bill that ended the federal prohibition on hemp, and would eliminate many obstacles that state-legal cannabis businesses currently face due to cannabis’s Schedule I status, such as tax deductions, banking, capital markets and intellectual property issues.

“We applaud the introduction of legislation that would federally decriminalize cannabis,” said Wana Brands CEO Nancy Whiteman in a public statement. “The introduction of legislation that would federally decriminalize cannabis would have implications far beyond banking. For starters, it will expand the opportunities for minority populations that have been disproportionately targeted during the war on drugs. Federal decriminalization would also enable manufacturing and then shipping across state lines, which would greatly benefit brands like Wana. Supply chains will become more efficient and cost-effective as plants would be grown in appropriate outdoor climates and other materials could be sourced across markets. For a company like Wana, it means that we would be able to manufacture and ship out of regional or national facilities instead of recreating the wheel in every market.” 

“The introduction of the Cannabis Administration and Opportunity Act is imperative to address the disparate impact of the war on drugs and right the wrongs created by decades of injustices perpetrated by disproportionate enforcement against minorities,” said Joe Caltabiano, CEO of Choice Consolidation Corp. and co-founder of multistate cannabis operator Cresco Labs, in a public statement. “In addition, the opportunity to address safe access to cannabis and robust reforms needed for cannabis banking and tax policy is long overdue.” 

As for the bill’s prospects of passing through Congress and being signed into law by President Joe Biden, Caltabiano added, “While this bill is an essential step in the right direction, it is a big ask and I’m a realist. It will take a lot to get this bill through Congress and signed by the president. I remain hopeful and enthusiastic for the passage of the Act, but I believe that even incremental actions such as the passage of the SAFE Banking Act would be a tremendous accomplishment for this Congress and the current administration.”

Havens echoed this sentiment, pointing out that the bill needs 60 votes to pass in the Senate, and it is unclear if all 50 Senate Democrats support the measure, let alone 10 Republicans in that chamber.

“Schumer, Booker and Wyden know the bill is a longshot,” Havens said. “My view is that they are introducing it to let the caucus know where they stand, and more importantly, to start the conversation and hopefully pave the way for incremental reform. Given the current makeup of the Senate, incremental reform is much more likely than a sweeping proposal like this. “

 

Digital Editor Eric Sandy, Senior Digital Editor Melissa Schiller and Assistant Editor Andriana Ruscitto contributed to this report.

California Governor Signs Legislation to Establish Department of Cannabis Control

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With Virginia becoming the first adult-use cannabis domino to fall in the South, the race is now on among neighboring states to follow suit and end prohibition. South Carolina gubernatorial candidate Joe Cunningham hopes his state is the next.

The former one-term Democratic congressman, who represented South Carolina’s coastal 1st District from 2019-2021 in the U.S. House, narrowly lost his re-election bid to Republican state representative Nancy Mace, 50.6% to 49.4%, in the November election.

During his two years in Washington, D.C., Cunningham joined bipartisan bills the second most often compared to other House Democrats, and was the fifth most politically right compared to House Democrats, according to GovTrack.us.

Cunningham, 39, is now seeking his party’s nomination to challenge South Carolina Republican Gov. Henry McMaster, 74, in the November 2022 election.

joeforsouthcarolina.com

South Carolina Democratic gubernatorial candidate Joe Cunningham presents his proposal to end cannabis prohibition in a July 12 press conference. 

While Cunningham announced his run for governor in April and has since announced his support of cannabis legalization, he formally released his plan to end cannabis prohibition in the state during a press conference July 12 in Charleston. That plan calls for the full legalization of medical and adult-use cannabis for adults 21 years and older, as well as for the expungement of cannabis-relation convictions.

“There are countless reasons to provide our citizens with a safe and legal marijuana option,” Cunningham said. “Legalizing marijuana would free up our law enforcement to focus on more serious crimes and more effectively tackle our state’s record-high murder rate. It would be a game-changer for people in South Carolina with debilitating health conditions. And it would generate tens of millions in tax revenue to finally provide critical funding for our state.” 

According to South Carolina State Law Enforcement Division data, murders in the state were up nearly 25%, from 457 in 2019 to 571 in 2020. The 571 murders represent the highest yearly total since the state began tracking the statistic in 1960, CBS-affiliate WLTX reported. 

In addition to legalization and expungement, Cunningham said his cannabis plan aims to raise revenue through responsible regulation and create jobs to give South Carolina farmers a boost.

Cunningham also claimed McMaster has failed to be honest about cannabis and its benefits.

“The people are no longer divided on this issue,” Cunningham said. “It’s the politicians that haven’t come around. Politicians like Henry McMaster who have spent their entire career perpetuating the myths about marijuana, scaring people into thinking it’s more dangerous than it is and, worst of all, keeping it out of the hands of the people who need it most. I think it’s time to tell the truth. Be honest. This governor might be stuck in the past, but I’m not.”

In response to the legalization proposal, South Carolina GOP Chairman Drew McKissick said Cunningham was playing stupid games.

“We’ve seen the problems legalizing marijuana has caused in other states, like Colorado,” McKissick said in a press release. “The rise in crime, the increase in health problems, especially suicidal thoughts and the negative effect on children’s development, all became worse when the state decided to legalize marijuana.”

McKissick did not provide data to support those claims. According to a study by the CATO Institute, a libertarian think tank founded by the Charles Koch Foundation, violent crime has “neither soared nor plummeted” in the wake of cannabis legalization. Koch is a known advocate of ending cannabis prohibition.

RELATED: New Coalition Launches to End Cannabis Prohibition, Bridge Across Ideological, Party Lines

“If you want to play stupid games, you win stupid prizes,” McKissick said. “And Democrats like Joe Cunningham keep wanting to play with fire.”

McKissick went on and said he and his fellow Republicans stand with state law enforcement that cannabis should not be legalized, and with doctors who believe medicine is something that should be approved and regulated by the U.S. Food and Drug Administration. At least one fellow South Carolina Republican did not agree with McKissick’s stance.

The SCGOP’s stance on medical cannabis is “an intellectually lazy position that doesn’t even try to present medical facts as they currently exist …” state Sen. Tom Davis said in a tweet.

As the incumbent governor, McMaster has previously expressed his opposition toward the legalization of adult-use cannabis, and also has failed to voice his support for medical cannabis legislation, according to the National Organization for the Reform of Marijuana Laws (NORML).

McMaster assumed governorship of South Carolina on Jan. 24, 2017, when former Gov. Nikki Haley resigned to serve as the U.S. Ambassador of the United Nations during the Trump administration. McMaster, an early Donald Trump supporter who delivered the nominating speech for Trump during the 2016 Republican National Convention, then won his 2018 election to serve his first four-year term as South Carolina’s governor.

Cunningham won South Carolina’s 1st District that same election, claiming suburban voter support by demonstrating his interest in local issues, especially his opposition to offshore drilling. The first bill he introduced sought to ban offshore drilling and seismic testing off the Atlantic and Pacific coasts—it passed the House but stalled in the Senate—The State reported.

While a Democrat hasn’t won South Carolina’s governorship since Jim Hodges’ occupancy from 1999-2003, Cunningham’s ability to reach across party lines was a driving factor in his 2018 U.S. House victory, when he became the first candidate to flip one of the state’s congressional seats from red to blue in more than a decade. Before that, that last Democrat to win the 1st District was Mendel Jackson Davis in 1978.

Should Cunningham unseat McMaster in 2022, legalizing cannabis would still be a tough task in South Carolina, where Republicans currently hold 65% majorities in both chambers of the state Legislature.

Advanced Container Technologies Offers Customized Packaging for Companies Looking to Launch or Build Brands in the Cannabis and CBD Sectors

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The Democrats’ majority in the U.S. Senate isn’t getting any younger this Congress, but a trio of proponents behind cannabis reform have remained gradual in kickstarting their efforts. Their pace picked up July 14.  

Senate Majority Leader Chuck Schumer, D-N.Y., Senate Finance Committee Chairman Ron Wyden, D-Ore., and Sen. Cory Booker, D-N.J., unveiled a preliminary draft of a federal cannabis legalization bill they plan to formally introduce later this year. 

The 163-page Cannabis Administration and Opportunity Act (CAOA) aims to remove cannabis from the list of controlled substances; tax and regulate cannabis at the federal level; and grant states the power to keep or administer their own oversight programs. 

“This is a bill we’ve consulted the experts; we’ve consulted many of our colleagues,” Schumer said during the July 14 press conference announcing the bill. “And the next step, for this critical legislation, is getting further input from stakeholder groups, which is essential to the legislation’s success. It’s time for the country to engage in this discussion and update our federal laws, not only to reflect popular wisdom, but science—but science.”

The Senate trio issued a joint statement Feb. 1, in which they said ending federal cannabis prohibition is necessary to right the wrongs of the failed war on drugs. In the statement, they said they would release a unified discussion draft on comprehensive reform to ensure restorative justice, protect public health, and implement responsible taxes and regulations.  

schumer wyden booker

Senate Democrats

U.S. Sens. Cory Booker, Chuck Schumer and Ron Wyden at the July 14 press conference.

While Schumer, Wyden and Booker said they’d released a unified discussion draft “in the early part of this year,” they held a press conference July 14 about delivering on that end. They reiterated that the drafted bill they released just prior to the conference is not a final version, and they will consider public input to help fine-tune the legislation through Sept. 1, 2021. 

“This is cannabis common sense,” Wyden said during the press conference.

Watch the full press conference below.

According to the draft bill’s text:  

  • The attorney general would be required to finalize removing “marihuana and tetrahydrocannabinols [THC]” from the schedule of controlled substances no later than 180 days after the enactment of the act.  

  • A federal cannabis sales tax on any products produced in or imported into the U.S. will be 10% during the first two calendar years following the enactment of the bill, then will rise to 15% in the third year, 20% in the fourth year, and 25% in the fifth year.  

  • The act would transfer agency functions with regard to cannabis from the Drug Enforcement Administration’s (DEA) jurisdiction to the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Department of Health and Human Services (HHS) and the Department of the Treasury.  

  • Restorative justice measures include the expungement of non-violent federal cannabis offense convictions for individuals not under a criminal sentencing no later than one year after the bill’s enactment. In addition, any individual with a prior conviction or adjudication of juvenile delinquency for a non-violent federal cannabis offense, who is not under a criminal justice sentence, may immediately file a motion to petition a court for expungement.  

  • All cannabis transported across state lines shall, upon arrival, be subject to the operation and effect of the laws of that state. States will retain their rights to continue prohibition measures, if they choose—forbidding out-of-state shipment into their jurisdictions that violate their state laws—while transportation between states with legal cannabis programs will be permitted. 

Restorative justice and opportunity trust funds will be reserved for certain reinvestment programs:  

  1. A Cannabis Justice Office (within the Office of Justice Programs) will provide eligible entities with funds to administer services—such as job training, reentry support, literacy programs, legal aid, youth recreation and mentoring programs, and health education—for individuals adversely impacted by the war on drugs.  

  1. A Cannabis Opportunity Program will provide any eligible state or locality funds to make loans under section 7(m) of the Small Business Act to assist small business concerns owned and controlled by socially and economically disadvantaged individuals who operate in the cannabis industry.  

  1. An Equitable Licensing Grant Program will provide any eligible state or locality funds to develop and implement equitable cannabis licensing programs that minimize the barriers to cannabis licensing and employment for individuals adversely impacted by the war on drugs. 

With this highly anticipated legislation now landing in Congress, the industry has begun offering its response. By and large, early comments have been cautiously supportive—with much of the reaction underscoring the importance of social equity provisions in the proposal. 

“We have been clear from day one that any federal marijuana reform bill must be equally comprehensive to the devastation that has been caused by prohibition, particularly in Black, Latinx and Indigenous communities,” Maritza Perez, Director of the Office of National Affairs at the Drug Policy Alliance, said in a public statement. “And we are grateful to see Senators Booker, Wyden and Schumer heeding that call by including language directly from the MORE Act—centering social equity, reparative justice and reinvestment—that we championed in the House, in the Senate bill, and we look forward to working with them to make marijuana justice a reality this session.” 

 

Striking a similar note, Ben Kovler, founder and CEO of Green Thumb Industries, said, “Cannabis continues to be disproportionately weaponized against communities of color, and we are thrilled that the Cannabis Administration and Opportunity Act has proposed expungement and community reinvestment measures to address the damage perpetuated by the failed war on drugs. While the bill leaves some questions unanswered, we believe it provides a tangible pathway to true federal legalization.” 

With language that clearly ties the descheduling of cannabis to the long-running policy failure of the U.S.’s war on drugs, the proposal is widely seen as a chance to forge a new, unified front for the emerging cannabis market. States would retain regulatory oversight, but a federal policy would provide at least some degree of unity across the country.

“While the bill would direct the attorney general to remove cannabis from the Controlled Substances Act, it wouldn’t legalize cannabis everywhere,” Jonathan Havens, co-chair of the Cannabis Law Practice and chair of the Food and Beverage Practice at Saul Ewing Arnstein & Lehr, told Cannabis Business Times and Cannabis Dispensary. “Thus, it’s more appropriate to say that the bill would end the federal prohibition on cannabis, rather than legalize it. States would still be able to prohibit cannabis growing, manufacturing, distribution, sale and consumption within their borders. However, they wouldn’t be able to stop transportation of cannabis through their states (e.g., from one legal state to another legal state, via a state where it’s illegal).”

Havens said the CAOA essentially takes a similar approach to the 2018 Farm Bill that ended the federal prohibition on hemp, and would eliminate many obstacles that state-legal cannabis businesses currently face due to cannabis’s Schedule I status, such as tax deductions, banking, capital markets and intellectual property issues.

“We applaud the introduction of legislation that would federally decriminalize cannabis,” said Wana Brands CEO Nancy Whiteman in a public statement. “The introduction of legislation that would federally decriminalize cannabis would have implications far beyond banking. For starters, it will expand the opportunities for minority populations that have been disproportionately targeted during the war on drugs. Federal decriminalization would also enable manufacturing and then shipping across state lines, which would greatly benefit brands like Wana. Supply chains will become more efficient and cost-effective as plants would be grown in appropriate outdoor climates and other materials could be sourced across markets. For a company like Wana, it means that we would be able to manufacture and ship out of regional or national facilities instead of recreating the wheel in every market.” 

“The introduction of the Cannabis Administration and Opportunity Act is imperative to address the disparate impact of the war on drugs and right the wrongs created by decades of injustices perpetrated by disproportionate enforcement against minorities,” said Joe Caltabiano, CEO of Choice Consolidation Corp. and co-founder of multistate cannabis operator Cresco Labs, in a public statement. “In addition, the opportunity to address safe access to cannabis and robust reforms needed for cannabis banking and tax policy is long overdue.” 

As for the bill’s prospects of passing through Congress and being signed into law by President Joe Biden, Caltabiano added, “While this bill is an essential step in the right direction, it is a big ask and I’m a realist. It will take a lot to get this bill through Congress and signed by the president. I remain hopeful and enthusiastic for the passage of the Act, but I believe that even incremental actions such as the passage of the SAFE Banking Act would be a tremendous accomplishment for this Congress and the current administration.”

Havens echoed this sentiment, pointing out that the bill needs 60 votes to pass in the Senate, and it is unclear if all 50 Senate Democrats support the measure, let alone 10 Republicans in that chamber.

“Schumer, Booker and Wyden know the bill is a longshot,” Havens said. “My view is that they are introducing it to let the caucus know where they stand, and more importantly, to start the conversation and hopefully pave the way for incremental reform. Given the current makeup of the Senate, incremental reform is much more likely than a sweeping proposal like this. “

 

Digital Editor Eric Sandy, Senior Digital Editor Melissa Schiller and Assistant Editor Andriana Ruscitto contributed to this report.