The Bengal Bite 🐯 | Rising Tide of Legalization | July 17, 2020
Cannabis continues to be at the forefront of the national political conversation. The Joe Biden presidential campaign released its federal cannabis recommendations this week which called for the legalization of medical use cannabis at the federal level but stopped short of supporting nationwide recreational legalization. Given the wide bipartisan support for cannabis, with almost 67% of Americans supporting legalization, candidates’ views on cannabis policy has the potential to be the differentiator in races for the House, Senate, and, ultimately, the White House in November.
Meanwhile, a bipartisan group of senators including Chuck Grassley (R-IA) and Dianne Feinstein (D-CA) has begun work on an amendment to the latest defense spending bill that will allow for cannabis and hemp research. As more representatives realize the positive tax revenue and social equity implications of cannabis legalization, the Bengal Capital Team is hopeful that we will continue to see momentum behind the “rising tide of legalization," regardless of electoral outcome this November.
The Bengal Capital Team
Biden task force takes states’ rights approach to cannabis legalization
In advance of next month’s Democratic National Convention, a joint Joe Biden-Bernie Sanders task force recommended rescheduling cannabis on a federal basis, legalizing medical cannabis nationwide, and allowing states to decide recreational cannabis policy. Read more on his policy in MJBizDaily here.
Bipartisan senators file marijuana and CBD research amendment to defense spending bill
A bipartisan group of lawmakers is trying to attach language that would allow federally funded cannabis and cannabinoid research to a large-scale defense spending bill that will reach the Senate floor this week. Senators Dianne Feinstein (D-CA), Chuck Grassley (R-IA), and Brian Schatz (D-HI) introduced the amendment, which would promote studies of cannabis and its derivatives, provide protections for doctors that discuss cannabis with their patients, and encourage the development of Food and Drug Administration-approved drugs based on cannabinoids. Read more on this bipartisan amendment in the Marijuana Moment here.
Higher than expected: Illinois’ $52.8M take from weed sales exceeds what state projected
Cannabis tax revenues exceeded Illinois projections by almost $25 million. This is welcome news for Illinois lawmakers and residents alike, as the state finished the year with general fund revenues $1.1 billion less than the previous fiscal year ended June 30th. Read more on this cannabis windfall in the Chicago Tribune here.
California hits illegal cannabis operators with Al Capone strategy
As local pressure for tax revenues increases, enforcement actions against illegal operators are on the rise. In a move widely lauded by the legal cannabis industry, the Cannabis Department of Tax and Administration initiated legal action against 12 illicit dispensaries across Los Angeles and San Bernardino counties by serving tax warrants, seizing $100,000 in cash, and destroying over $1 million in illegal cannabis products. Read more on how local regulators are removing bad actors in BisNow here.
Federal marijuana legalization is the cure our COVID-ravaged economy needs
Many Americans on both sides of the political spectrum see the benefit of legalizing cannabis. Local governments are in need of tax revenues and jobs, and the cannabis industry has the potential to supply both. Read more in the National Review here.