A lot of important news this week. Consider reading further if you have considered investing in cannabis business stocks….
Federal
Biden Administration Firing Employees for Past Marijuana Use
Young White House staffers are being disciplined or fired in the Biden administration for admitting to using marijuana in the past. Some are being placed in remote work programs.
This comes after a federal recommendation that said not to immediately terminate employees that have a history of marijuana use.
Some employees used cannabis in states that had recreational or medical legalization, which is the majority of states now.
Even Republicans are pushing back against this policy, like congressman David Joyce who sent a letter to Biden condemning the actions. This highlights that marijuana legalization is now a bipartisan issue.
SAFE Banking and CLAIM Acts Reintroduced in Congress
The Secure and Fair Enforcement (SAFE) Banking Act and related Clarifying Law Around Insurance of Marijuana (CLAIM) Act were reintroduced in Congress this month. These acts serve to change the marijuana industry forever.
Cannabis companies have always had difficulty getting banks to take their money. The SAFE Banking Act would allow banks and credit unions to work with marijuana businesses without the fear of federal prosecution. There will also be protections for lending to cannabis businesses so they can increase their operations.
Cannabis companies have a difficult time getting insurance to work with them for prices that are affordable. Insurance companies see the cannabis industry as a liability because marijuana is still federally illegal. The CLAIM Act has been reintroduced and will provide insurance companies protection for engaging with marijuana companies, letting them take bigger risks.
These bills are expected to pass now that Democrats have control over both chambers of Congress. If ever there was a time to purchase stocks in cannabis businesses, it’s now!
States
Illinois
Chicago is Home to “Big Cannabis”
Just like “Big Pharma” there is beginning to form “Big Cannabis,” a group of companies that are rapidly growing and publicly traded. Three of the five companies in this group are located in Chicago: Green Thumb Industries, Cresco Labs and Verano Holdings. Verano just purchased Pennsylvania’s Terra Vida, among a number of other companies around the States.
This should bring significant commerce to the Chicago region, which some have called the “Silicon Valley” of pot.
Florida
Teacher Fired for Medical Marijuana
A teacher in Florida has been fired for using medical marijuana. She was recommended cannabis by doctors and had stopped using opioids for pain control since starting it. Nevertheless, after failing a drug test, her school’s board voted to fire her because of a “drug free workplace” requirement. This doesn’t make any sense because the school approved to allow medical marijuana by students.
This was a sad setback to Floridian medical marijuana rights.
West Virginia
WV Approves Medical Marijuana Edibles
West Virginia has approved medical marijuana edibles, like chocolates and brownies for patients requiring treatment. This is a great step in the right direction. Pennsylvania regulators should take note as the state still does not allow edibles despite approving high potency orally-active products like Rick Simpson Oil (RSO). No point in forbidding edibles if you can eat a rice grain-sized amount of RSO and get high off it (or half the syringe).
Pennsylvania
PA Medical Marijuana Regulations Update
Regulations in Pennsylvania are being updated to include that “continuing care” by medical marijuana doctors requires in-person appointments. This is in contrast to the temporary guidelines that were put in place after coronavirus, allowing businesses (like this one) to see patients and certify them after a video or telephone appointment with the doctor. It is unclear if these temporary guidelines will become permanent and if not, when they will no longer be valid.
The new regulations also prohibit doctors from charging patients “excessive fees.” They do not specify what would constitute excessive but thankfully patients can come to places like Nature’s Way Medicine and receive high-quality efficient certifications for reasonable prices.
Stay tuned next week for more updates and news, including research about cannabis.
