Opinion Sunday: Uphold the Cannabis Buffer Map, Maintain our Integrity – WEHOville

Adult-use Retailers Association urges City Council not to re-write the rules for individual businesses

Dear Mayor Horvath and Members of the City Council,

On behalf of the Adult Use Retailers Association of West Hollywood (AURA), I urge you to protect the integrity of your City Cannabis Licensing process and reject privately-made, inappropriate revisions to the publicly-distributed Cannabis Sensitive Use Buffer Map.

Item 5.B should not be used to amend the “Cannabis Regulations 600-foot Buffer Map” (Cannabis Map) after staff has determined the eligibility of specific properties for cannabis businesses in the Rainbow Entertainment District on Santa Monica Boulevard based on this map, for several years.

While the staff report suggests this Cannabis Map was “only a reference document,” the map was publicly relied upon and presented as an official City document with no disclaimers during City Hearings. City officials and cannabis applicants both used this Cannabis Map to make business decisions.

– The Map was provided to City Council when considering the language when adopting the Cannabis Ordinance and was still published by the City when the Council twice amended the ordinance in 2018 and 2020.

– The Map was provided to the Business License Commission at more than a dozen public hearings as authoritative. The Map was presented in staff reports at eight separate hearings in 2021 alone.

– The map was relied upon by 20+ Cannabis License Application winners to select a business location; twelve of which have already gone through the Business License Commission process, where the same map was displayed as a staff report exhibit.

– The “Guide to the Cannabis Regulations 600 Foot Map” published by the City in conjunction with the Cannabis Map states authoritatively that, “Properties within this buffer are highlighted in yellow and are in eligible (sic) to receive a Cannabis license,” and, “You may dispute the City’s findings by hiring a licensed surveyor to provide additional evidence.”

Based off this map, the public’s understanding, and the understanding of the City Council when they passed the ordinance, was that the entirety of West Hollywood Park, Plummer and Poinsettia Parks were considered to be sensitive uses. Were they not, the Council may have decided to designate them as such when adopting or subsequently amending the ordinance.

Indeed, when our members negotiated a binding legal settlement agreement with the City in August 2020, the possibility of amending the Cannabis Map was discussed and rejected.

As a matter of fairness, it is important that all Cannabis Business license applicants be treated equitably and under the same rules, and if those rules are to change, there needs to be a public process and all businesses should be notified of any changes immediately. This did not happen.

Rather, as staff admits in their agenda item, City PDS staff continued to issue zone clearances and publicly rely on the Cannabis Map in question for several business license hearings while at the same time privately approving a new interpretation and map amendment for Fantom Flower at 8811 Santa Monica Boulevard.

In his correspondence on this Item, Oren Bitan from Buchalter states that the applicant known as Fantom Flower received approval for the location at 8811 Santa Monica Boulevard within the Buffer Zone on the Cannabis Map prior to entering into negotiations for a lease on the property. That lease was signed on November 1, 2020, and according to local news reports, negotiations for the lease began as early as June or July 2020.

At no point between November 1, 2020 and June 28, 2021 did City Staff inform other Cannabis Business License Applicants of the Cannabis Map amendment based on a new interpretation of sensitive uses at West Hollywood Park.

In fact, City staff continued to present the Cannabis Map in whole or in part, as binding and authoritative at Business License Commission hearings for Greenwolf, Door Number 6, Zen Healing, Farmacy Collective, AHHS, LAPCG, and Budberry/Monica’s House as late as June 28, 2021. At least three of these businesses could have chosen a different location on Santa Monica Boulevard had City Staff’s private and novel interpretation of sensitive use at West Hollywood Park been properly disclosed to the public.

To apply a new interpretation and amend the Map now, after the Cannabis Map has been used as authoritative for years and a majority of cannabis licensees have chosen alternative locations based on that Map would constitute a gross injustice and potential cause for litigation.

The Council can preserve the Public’s trust and maintain the integrity of the City’s Cannabis Licensing process by rejecting any privately-made, novel, staff-level interpretations of sensitive uses at West Hollywood Park. The Council must stand for consistency and fairness by denying this amendment to a Cannabis Map that has been relied on by this City Council, the City Business License Commission and all Cannabis Business License Applicants.

Therefore, we ask the Council to reject the staff recommendation on Item 5B and instruct staff to update the Municipal Code to include the entirety of West Hollywood, Plummer and Poinsettia Parks as sensitive uses so that the Municipal Code definitively reflects the Cannabis Map in the future.

Thank you,

Erron Silverstein
Chairman of the Board
Adult Use Retailers Association of West Hollywood

Article Rating

Uphold the Cannabis Buffer Map, maintain our integrity – WEHOville

Adult-use Retailers Association urges City Council not to re-write the rules for individual businesses

Dear Mayor Horvath and Members of the City Council,

On behalf of the Adult Use Retailers Association of West Hollywood (AURA), I urge you to protect the integrity of your City Cannabis Licensing process and reject privately-made, inappropriate revisions to the publicly-distributed Cannabis Sensitive Use Buffer Map.

Item 5.B should not be used to amend the “Cannabis Regulations 600-foot Buffer Map” (Cannabis Map) after staff has determined the eligibility of specific properties for cannabis businesses in the Rainbow Entertainment District on Santa Monica Boulevard based on this map, for several years.

While the staff report suggests this Cannabis Map was “only a reference document,” the map was publicly relied upon and presented as an official City document with no disclaimers during City Hearings. City officials and cannabis applicants both used this Cannabis Map to make business decisions.

– The Map was provided to City Council when considering the language when adopting the Cannabis Ordinance and was still published by the City when the Council twice amended the ordinance in 2018 and 2020.

– The Map was provided to the Business License Commission at more than a dozen public hearings as authoritative. The Map was presented in staff reports at eight separate hearings in 2021 alone.

– The map was relied upon by 20+ Cannabis License Application winners to select a business location; twelve of which have already gone through the Business License Commission process, where the same map was displayed as a staff report exhibit.

– The “Guide to the Cannabis Regulations 600 Foot Map” published by the City in conjunction with the Cannabis Map states authoritatively that, “Properties within this buffer are highlighted in yellow and are in eligible (sic) to receive a Cannabis license,” and, “You may dispute the City’s findings by hiring a licensed surveyor to provide additional evidence.”

Based off this map, the public’s understanding, and the understanding of the City Council when they passed the ordinance, was that the entirety of West Hollywood Park, Plummer and Poinsettia Parks were considered to be sensitive uses. Were they not, the Council may have decided to designate them as such when adopting or subsequently amending the ordinance.

Indeed, when our members negotiated a binding legal settlement agreement with the City in August 2020, the possibility of amending the Cannabis Map was discussed and rejected.

As a matter of fairness, it is important that all Cannabis Business license applicants be treated equitably and under the same rules, and if those rules are to change, there needs to be a public process and all businesses should be notified of any changes immediately. This did not happen.

Rather, as staff admits in their agenda item, City PDS staff continued to issue zone clearances and publicly rely on the Cannabis Map in question for several business license hearings while at the same time privately approving a new interpretation and map amendment for Fantom Flower at 8811 Santa Monica Boulevard.

In his correspondence on this Item, Oren Bitan from Buchalter states that the applicant known as Fantom Flower received approval for the location at 8811 Santa Monica Boulevard within the Buffer Zone on the Cannabis Map prior to entering into negotiations for a lease on the property. That lease was signed on November 1, 2020, and according to local news reports, negotiations for the lease began as early as June or July 2020.

At no point between November 1, 2020 and June 28, 2021 did City Staff inform other Cannabis Business License Applicants of the Cannabis Map amendment based on a new interpretation of sensitive uses at West Hollywood Park.

In fact, City staff continued to present the Cannabis Map in whole or in part, as binding and authoritative at Business License Commission hearings for Greenwolf, Door Number 6, Zen Healing, Farmacy Collective, AHHS, LAPCG, and Budberry/Monica’s House as late as June 28, 2021. At least three of these businesses could have chosen a different location on Santa Monica Boulevard had City Staff’s private and novel interpretation of sensitive use at West Hollywood Park been properly disclosed to the public.

To apply a new interpretation and amend the Map now, after the Cannabis Map has been used as authoritative for years and a majority of cannabis licensees have chosen alternative locations based on that Map would constitute a gross injustice and potential cause for litigation.

The Council can preserve the Public’s trust and maintain the integrity of the City’s Cannabis Licensing process by rejecting any privately-made, novel, staff-level interpretations of sensitive uses at West Hollywood Park. The Council must stand for consistency and fairness by denying this amendment to a Cannabis Map that has been relied on by this City Council, the City Business License Commission and all Cannabis Business License Applicants.

Therefore, we ask the Council to reject the staff recommendation on Item 5B and instruct staff to update the Municipal Code to include the entirety of West Hollywood, Plummer and Poinsettia Parks as sensitive uses so that the Municipal Code definitively reflects the Cannabis Map in the future.

Thank you,

Erron Silverstein
Chairman of the Board
Adult Use Retailers Association of West Hollywood

Article Rating

Best Delta-8 THC gummies online: Our top picks – Augusta Free Press

gummies
(© Heather Doucette – stock.adobe.com)

Delta 8 THC is the latest cannabis compound that’s been making a name for itself across various sectors of the industry. Closely related to delta 9 THC – the cannabinoid notorious for its psychotropic effects – delta 8 also gets users high, albeit in a much more subtle, mild way.

So if you’re searching for a product that produces a euphoric high, like the one many associate with marijuana, but in a milder manner and without the intense buzz, delta 8 could be a great new option to try. The cannabinoid comes in many of the same forms as CBD, like tinctures, vapes, and edibles, but my favorite type by far is delta 8 gummies.

Finding high-quality, affordable, reputable brands can be challenging, though, especially since the market is still largely unregulated. Therefore, I put together this list of what I think are by far the three best delta-8 THC gummies currently available.

1. Premium Jane

For years, Premium Jane has been one of the most reputable brands in the CBD market, and now they’ve expanded their range to include delta 8 products. The company’s delta 8 gummies are number one on our list due to their high-quality, affordability, delectable flavor options, and most importantly, their wonderful effects.

The brand only uses the aerial parts of the plant to ensure the purest, most potent delta 8 extract possible. Once the initial extract has been produced, the D8 gummies are then sent to a third-party lab to test for purity and potency, and safety. If you’re looking for that authentic, subtle delta 8 high that everyone seems to be after these days, these are no doubt one of your best options. Premium Jane also offers free shipping, which is another big tick in their favor (though they are not able to ship their delta 8 products to all 50 states).

2. PureKana

PureKana is another brand that has already established a phenomenal reputation within the CBD industry. Now, the company has added delta 8 gummies to their iconic range as well.

Like Premium Jane, PureKana also uses premium-quality USA-grown hemp and extracts its delta 8 from hemp aerial parts only. This is a brand that takes the quality of its products very seriously, which is why they have developed such a rock solid following over the years.

In my experience the effects of their gummies are amazingly calming, and offer that classic delta 8 experience that is for sure noticeable, but not at all too overpowering. Definitely a product that I would highly recommend for anyone getting into the d8 world, and maybe even a little more potent than Premium Jane.

3. Exhale Wellness

Another decent option is Exhale Wellness. The company specializes in delta 8 products and, therefore, has a wider variety of products available. They refer to themselves as the “number 1 delta 8 THC brand in the world,” and while I don’t know how accurate this is, I would say they’re worth checking out if you don’t want to spend top dollar on the other two brands listed above. You might not get the same experience, but there are always going to be some folks out there that are just looking to save a few bucks.

Final thoughts on Delta 8 THC gummies

All in all, when it comes to choosing the best delta 8 THC gummies, it’s all about finding trustworthy and reputable brands that are passionate and experienced when it comes to producing top-quality products. Unfortunately, there are a lot of exploitative brands out there simply trying to make some quick money from the recent boom in the industry.

Premium Jane and PureKana are our top choices for delta 8 gummies due to the brands’ exceeding reputations, product quality, flavor options, customer service, and affordability. If you would like to read more about some of the best delta 8 products out there, as well as more detailed information about what you can actually expect to feel and experience when using delta 8, this is a great in-depth article that we highly recommend checking out.

3 Cannabis Growth Stocks You Don’t Want to Miss in August – The Motley Fool

It’s a fact of investing life that growth stocks are easier to find in growing industries than in mature or stagnating ones. That’s why the cannabis industry is one of the first places I look when I’m scanning for potential new investments.

This trio of marijuana companies, in particular, is worth following in August. Each is facing a handful of new developments that will shake out over the summer. While the stocks I’ll discuss today might not be the safest investments in the market, they’re definitely worth investigating if you’re eager for some exposure to growth in the near term.

A cannabis farmer in a field inspects one of his crops.

Image source: Getty Images.

1. Trulieve Cannabis

With its 83 dispensaries in Florida and a small but growing number outside the state,  Trulieve Cannabis (OTC:TCNNF) is one of the fastest-growing medicinal cannabis operators in the U.S. And Trulieve’s growth is poised to accelerate thanks to its investment in new hubs outside the Sunshine State. Its recent entry into the West Virginia market and the scaling up of its wholesale operations in Pennsylvania and Massachusetts will provide a lot of new opportunities in the near future.

By the end of this year, the company could be making as much as $850 million in revenue. That’s quite a bit more than its trailing-12-month revenue of $619.3 million, and it’d be just the start of what management has planned.

Specifically, Trulieve has an acquisition pending for Harvest Health & Recreation, another multistate cannabis operator. The transaction could close in the third quarter, and if it goes through, it’ll open up an entirely new hub in the Southwest region of the U.S., where Trulieve doesn’t currently have a presence.

Finally, if cannabis is legalized nationwide, Trulieve is exceptionally well positioned to capture recreational use market share in Florida using the same strategy it used in the medicinal market. Its medicinal cannabis dispensaries cover the vast majority of the state’s largest population centers, and its stores are already equipped to handle significant ongoing demand from their regular customers.

So, the company doesn’t face major barriers to serving additional demand when or if the recreational marijuana market comes online. And its extensive retail presence acts as free advertising to build consumer awareness in advance of a change in legislation. In short, the next few years could be even better than the company’s recent breakout from Florida, and that’s worth paying attention to.

2. Planet 13

Planet 13 Holdings (OTC:PLNH.F) is another up-and-coming cannabis cultivator. But unlike Trulieve, it’s a small-scale operator that’s focused on building out individual superstores, like its flagship location near the Las Vegas Strip. Using the mountain of revenue — $63 million — generated by that store in 2019, Planet 13 is now branching out with a new mega-dispensary in Santa Monica, Calif., which will be its third location in total (it has one more in the Vegas area as well). The California store opened at the start of July, so its first revenue should be reported in the company’s third-quarter update.

The investment thesis for Planet 13 is that it’s still extremely small, so it will be able to grow very rapidly and make early investors rich over the next few years. Since the company’s current plans call for expanding to reach at least eight superstores in the next five years, it wouldn’t be surprising if its revenue multiplied several times over before 2025.

But even with its Las Vegas store alone, Planet 13 should be posting strong revenue growth compared to 2020 as tourism returns. In Q1, its revenue was up 41.8% year over year — and there’s a good chance that’ll be the slowest growth it reports until 2022.

^SPX Chart

^SPX data by YCharts.

3. Tilray

Multinational cannabis giant Tilray (NASDAQ:TLRY) is perhaps the world’s largest marijuana company. With its cultivation and distribution footprint spanning North America, South America, and Europe, few of its competitors have as broad a reach. And thanks to its recent acquisition of Aphria, it even has a craft beer business that operates in the U.S., generating $15.9 million in net revenue in the fourth fiscal quarter of 2021.

Tilray’s appeal is that it might be able to leverage economies of scale and favorable tariff rates within the E.U. to grow and sell cannabis far more cheaply than its competitors. Likewise, its extensive distribution network and supply chain could penetrate markets more rapidly and more deeply than smaller companies can. Right now, it has a leading market share in Canada, where it reported $222.93 million in trailing revenue as of late May.

Compared with Planet 13 and Trulieve, Tilray will likely grow its revenue a bit more slowly in the short term. According to its latest earnings report, Q4 revenue rose to reach $142.23 million in 2021, an increase of 25.27% year over year. If it can continue to expand at this rate over the long term, it could post the consistent earnings growth that more conservative investors crave. More importantly, if cannabis is legalized in the U.S. or key European markets, no company is better positioned to gain than Tilray.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

Cannabis investor Tim Seymour on how to play Schumer’s pot decriminalization bill – CNBC

From left, Senate Majority Leader Chuck Schumer, D-N.Y., Sen. Cory Booker, D-N.J., and Sen. Ron Wyden, D-Ore., hold their news conference to introduce a draft of S-420 the Cannabis Administration and Opportunity Act in the Capitol on Wednesday, July 14, 2021.

Bill Clark | CQ-Roll Call, Inc. | Getty Images

Senate Majority Leader Chuck Schumer’s proposed legislation to legalize marijuana at the federal level might not get passed, according to cannabis investor Tim Seymour, but that could buy investors extra time to get into cannabis stocks while it’s still early.

What’s New With Cannabis Stocks for the Week Ending 07/30/21 – New Cannabis Ventures

Navigate the fast-moving cannabis sector with 420 Investor, a premium service that sends real-time alerts and explanations of the news below and much more.

Summary 

  • Cannabis stocks ended a bad month on a good note.
  • Health Canada added 6 new licenses, leaving the total now at 738.
  • 420 Investor model portfolios have gained 34.8-71.2% year-to-date, while the Global Cannabis Stock Index has gained 18.7%.

Review

It was a quiet week ahead of the kickoff of earnings season next week.

Health Canada added 6 new licenses, leaving the total at 738, including 3 that are expired, revoked or suspended.

During the week, I shared these insights with subscribers at 420 Investor:

  • Model Portfolio Composition 07/23/21
  • Cannabis Sub-Sector Review – 07/23/21
  • Previews for Canopy Growth, Cronos Group and Scotts Miracle-Gro Quarterly Financials

Here are some of this week’s highlights for 420 Investor Focus List names:

  • CGC unveiled two lines of small pre-rolls
  • CRON launched a new line of gummies with flavor masking, SOURZ by Spinach
  • GNLN pre-announced Q2 at $34.5 million, up modestly from Q1 and slightly behind expectations
  • GRAMF announced extended lock-ups by directors and management and also arranged to repurchase up to 1.725 million shares being sold by SISU owners for tax purposes
  • GRWG will be buying what it calls the third largest chain of hydroponics stores, HGS Hydro, which has six stores in Michigan that did $50 million of sales in 2020
  • GTBIF opened its second store in Virginia
  • SMG boosted its quarterly dividend 6.5% to $0.66 per share
  • TCNNF won a Class 1 production license in Georgia
  • TLRY reported Q4 revenue of $142 million, including a month of legacy Tilray results. The company was forced to adjourn its special meeting to authorize a higher share-count due to insufficient voting.
  • VLNCF will be manufacturing LivRelief topicals for Harvest One

The Global Cannabis Stock Index rallied for the second consecutive week, gaining 2.6% to 52.67:

The index, which lost 34.1% in 2019 and lost 54.9% in 2018 after gaining 91.8% in 2017 and 88.8% in 2016, was up 5.2% in 2020. It has gained 18.7% in 2021 thus far. It currently includes 44 stocks and ended 2020 at 44.39:

Model Portfolios

420 Investor offers three model portfolios for subscribers, including two that are long-term focused and fully invested with a goal of beating the Global Cannabis Stock Index, 420 Opportunity and 420 Quality. 420 Opportunity ended the week valued at $153,686, down 0.8%. The model portfolio, up 45.9% in 2021, gained 35.6% in 2020 and has increased 207.4% since April 2014. 420 Quality ended the week at $217,685, down 1.1% for the week, and is now up 34.8% in 2021 after gaining 42.8% in 2020. The model was launched in March 2017 targeting long-term investors seeking to invest in leading cannabis stocks with low portfolio turnover and has gained 335.4% since inception compared to the 34.9% decrease in the index. Flying High, which is focused on swing trades, ended the week valued at $432,169, down 2.4%. The model portfolio gained 52.7% in 2020 and is up 71.2% in 2021, and the return since inception in late 2013 has been 4222%.

Outlook

After a strong rally to begin 2019, the cannabis sector experienced a sharp decline over the next year to unprecedented levels due to several negative developments, including the CannTrust fraud, the surprise termination of Bruce Linton as CEO of Canopy Growth, a disappointing roll-out of legalization in Canada, regulatory confusion in the U.S. regarding CBD and a slow roll-out of legalization in California, the vaping crisis and then financial turmoil and market disruptions due to the COVID-19 pandemic. The sector saw capital available to fund expansion dry up, a situation that continues to leave companies operating with negative cash flow severely challenged, as the availability is limited to stronger operators.

Cannabis stocks overreacted and put in a bottom in March 2020, and they are now benefiting from a perception that the industry offers strong growth prospects, something that wasn’t clear then. A big change has been that the pandemic caused many regulators to permit previously prohibited types of retail activities, like curbside pickup and delivery. The legal market is rapidly capitalizing on becoming even more convenient than the illicit market, with the ability to order online. High unemployment and large deficits have begun to spur state legalization efforts as well as more favorable regulatory control at the local level. Access to capital has improved dramatically, and the leading companies are generating large and rapidly growing revenue and profits.

There are several potential catalysts ahead, including the FDA providing clarity on CBD regulation, progress in the Canadian legalization that commenced in October 2018 and that is beginning to include a broader set of products and the continued growth in German and Israeli MMJ and other international markets that have been slow to develop. The adult-use implementations in California and Massachusetts for adult-use were slow to roll out but are beginning to show great improvement. Michigan and Illinois legalized for adult-use at the end of 2019, and these markets are showing strong growth that could encourage other states to legalize. Voters in Arizona, Montana, South Dakota and New Jersey all approved adult-use legalization in November, and New Mexico, New York and Virginia have enacted legalization through the legislative process in 2021.

The big themes ahead are likely to be continued cross-industry investment into the sector and more consolidation in Canada and in the U.S., potential federal regulatory reform (SAFE Banking Act and other more comprehensive legislation, which could eliminate 280E taxation and enable trading on higher exchanges for MSOs as well as the broad usage of credit cards for cannabis purchases), steps to enable cannabis research, the roll out of MMJ in Germany, Mexico and in Australia as well as continued advances in South America and potential adult-use legalization in Israel and Mexico, new legal cannabis implementations in AZ, MT, NJ and SD, and MMJ implementations in AL, WV and VA, possible legalization via the legislatures in DE, FL, MD, MN, NH, PA and RI and implementation of the CT, NM, NY and VT commercial programs in 2022 and VA in 2024.

Get ahead of the crowd by signing up for 420 Investor, the largest & most comprehensive premium subscription service for cannabis traders and investors since 2013.

Alan Brochstein, CFA
Based in Houston, Alan leverages his experience as founder of online community 420 Investor, the first and still largest due diligence platform focused on the publicly-traded stocks in the cannabis industry. With his extensive network in the cannabis community, Alan continues to find new ways to connect the industry and facilitate its sustainable growth. At New Cannabis Ventures, he is responsible for content development and strategic alliances. Before shifting his focus to the cannabis industry in early 2013, Alan, who began his career on Wall Street in 1986, worked as an independent research analyst following over two decades in research and portfolio management. A prolific writer, with over 650 articles published since 2007 at Seeking Alpha, where he has 70,000 followers, Alan is a frequent speaker at industry conferences and a frequent source to the media, including the NY Times, the Wall Street Journal, Fox Business, and Bloomberg TV. Contact Alan: Twitter | Facebook | LinkedIn | Email


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U.S. Supreme Court Justice Says Current Federal Cannabis Prohibition is „Contradictory and Unstable” – JD Supra

Last month, the U.S. Supreme Court denied review of a case out of Colorado dealing with a medical marijuana dispensary’s challenge to a tax code provision. After denying review, Justice Thomas—one of the Court’s most conservative members and one not known for offering unsolicited political or legal opinions—issued a statement indicating that, with an increasing number of states legalizing marijuana, “a prohibition on intrastate use or cultivation of marijuana may no longer be necessary or proper to support the Federal Government’s piecemeal approach.” He then went even further, describing the Colorado case that the Court declined to hear as a prime example of the fact that marijuana businesses do not experience “equal treatment” under the law.

For almost two decades now, the Court has upheld and relied on its 2004 decision in Gonzales v. Raich, in which it held that Congress’ power to regulate interstate commerce authorized it “to prohibit the local cultivation and use of marijuana.” Interestingly, for those of certain legal history mindset, Gonzales itself had relied upon the famous WWII-era case Wickard v. Filburn (1941) which extended Congress’ ability to regulate interstate commerce to a farmer’s decision whether or not to grow wheat on his farm. Suffice it to say, both Gonzales and Wickard suggest a very broad reading of “interstate commerce” which allows Congress to regulate … well, nearly anything.

In Gonzales, the Court reasoned that Congress “enacted comprehensive legislation to regulate the interstate market in a fungible commodity” and that any exemption for local use could undermine this “comprehensive” regime. In doing so, the Court focused on Congress’ decision to “prohibit entirely the possession or use of marijuana” and had “designate[d] marijuana as contraband for any purpose.” As a result, prohibiting intrastate use was, according to the Court, “‘necessary and proper’” to avoid a “gaping hole” in Congress’ regulatory scheme. Thus, Congress’ power to regulate interstate commerce appeared to reach, per Gonzales, even wholly intrastate acts. It’s hard to imagine a broader mandate than the power to regulate either interstate or intrastate acts.

Fast-forward to 2021. Justice Thomas now acknowledges that since Gonzales, Congress has sent mixed signals concerning enforcement of its previously comprehensive federal prohibition. The Department of Justice has repeatedly issued memos changing its policies regarding federal enforcement against state-legal cannabis. In just the last year, five more states—comprising 43 million people (NY, NM, VA, NJ, CT)—have passed adult-use recreational marijuana laws. There are now 36 states with medical marijuana laws, and half of them also allow recreational adult use. Support for complete legalization of cannabis continues to poll at above 65%. Given this, Justice Thomas is right: “one can certainly understand why an ordinary person might think that the Federal Government has retreated from its once-absolute ban on [the cultivation and use of] marijuana.”

Justice Thomas summed up the federal government’s confused approach to state-legal cannabis well when he said, “the Federal Government’s current approach is a half-in, half-out regime that simultaneously tolerates and forbids local use of marijuana. This contradictory and unstable state of affairs strains basic principles of federalism and conceals traps for the unwary.”

A sitting US Supreme Court Justice questioning whether or not federal marijuana laws are even necessary is a welcome, albeit surprising, development. Interestingly, for those reading the tea leaves, none of the other Justices added their name to Justice Thomas’s statement. That said, the route to national legalization very likely does not go through the Supreme Court – it goes through the states, and eventually, the Congress.

But in the current environment, as state after state passes legalization laws by referenda and legislative acts, and a massive and heavily-regulated industry grows exponentially, the Court cannot turn a blind eye to the increasingly incoherent policies of the federal government: complete prohibition, but with “enforcement guidance” that ignores the Controlled Substances Act when convenient. This is a recipe for ad hoc enforcement and disrespects existing federal law.

While Justice Thomas’s views on either legalization generally, or the current “contradictory and unstable” state of affairs under federal and state law specifically, do not have the force of law, it is certainly telling that an often tight-lipped Justice spoke out on this issue. It’s yet another indicator—along with the rapid expansion in the number of states legalizing, consistent public polling, and the investment community’s increasing interest in this industry—that the tide may finally soon turn with respect to federal marijuana policy. As one example, it appears likely that soon the U.S. Senators representing states that have legalized adult-use recreational marijuana will constitute a majority of that chamber. Anyone interested in these matters should keep a close watch on developments at the federal level in the coming months. We certainly will.

Predicting Politics In The Cannabis Legalization Debate – Forbes

When Supreme Court Justice Clarence Thomas calls the federal government’s approach to cannabis policy a “contradictory and unstable state of affairs,” you know the calls for reform have reached the highest levels. But for many of us in the industry, we weren’t surprised by this timely statement from what some may consider an unlikely advocate for federal policy changes.

That’s because the cannabis industry is used to seeing government officials, on both sides of the aisle, support their state’s cannabis industry at different points in the legalization process. While it’s easy to assume Democrats are pro-legalization and Republicans are anti-legalization, recent history shows us politics can shift after a state legalizes cannabis. Often, the shift makes it more palatable for elected officials to extend a cooperative hand across the aisle. It is not uncommon for a conservative elected official to oppose legalization because they see it as criminal activity, and then reverse course after their state legalizes to support fewer regulations for cannabis businesses. Conversely, a liberal elected official might champion legalization on the basis of social and criminal justice reform, while later advocating for comprehensive regulations for cannabis businesses due to public health concerns.

When it comes to traditional political wrangling, predicting an elected official’s cannabis policy stance can be counter intuitive. It has defied party lines, and in many ways, risen above the hyper partisan politics of other topics like immigration, health care, and voting rights. But depending on the issue area focus of legalization, members of a given party may not agree on the best path forward.

Most recently – and for the first time in our country’s history – the Senate Majority Leader, a Democrat, unveiled a framework for legalization alongside two other Democratic Senators. But President Biden said even if a full legalization bill made it through Congress and to his desk he might veto it. And in his first 200 days in office, President Biden also prevented Washington D.C. from starting an adult-use cannabis market by withholding federal funds.

Still the President has repeatedly said he supports states’ rights when it comes to cannabis legalization. But in the states, much like on Capitol Hill, some Democrats aren’t comfortable opening legal markets without federal cover. For instance, Hawaii Democratic Governor David Ige and the Democratic supermajorities in both statehouse chambers held up legalization efforts this year due to concerns about its Schedule 1 substance distinction.

MORE FOR YOU

Meanwhile, the SAFE Banking Act, a bill to allow cannabis businesses access to banking services and no longer force them to operate in all cash, passed the U.S. House this year with a bipartisan vote of 321-101. The SAFE Banking Act also has a companion bill in the Senate with nine Republican cosponsors. Among them are Senators Roy Blunt (R-MO), Bill Cassidy (R-LA), Susan Collins (R-ME), and Steve Daines (R-MT), who hail from medical cannabis-friendly states.

But commonsense, bipartisan legislation like this should not come as a total surprise. Senate Republicans have a recent history of supporting cannabis legalization. Former U.S. Senator Cory Gardner, from my home state of Colorado, became a champion for state legalization programs on Capitol Hill several years after Colorado launched adult cannabis sales in 2014. And in 2018, he threatened to block all Department of Justice nominations after the Trump administration rescinded previous federal guidance, including the Cole Memo.

And in the states, ruby red Oklahoma has the largest medical cannabis market in the country with more licensed marijuana businesses than any other state and about 10% of its population registered as patients. The result of a successful ballot initiative, the Sooner State’s medical cannabis program is supported by its Republican-held legislature and Republican Governor Kevin Stitt.

For traditionally conservative Republicans, supporting their state’s cannabis legalization frameworks means supporting states’ rights, reduced regulatory burdens for businesses, and the success of a new industry in the free market. And for liberal Democrats, supporting this new industry means the opportunity to draft strong government regulations and support underrepresented minorities. So far, these seemingly counter intuitive political stances have led to more collaborative outcomes. Both parties have proven this is possible at the state level, and members of Congress and the President should endeavor to strike the same harmony at the federal level.