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HUGE!!! Marijuana meets criteria for reclassification as lower-risk drug, FDA scientific review finds
By Katherine Dillinger, CNN
3 minute read
Published 9:28 PM EST, Fri January 12, 2024
Marijuana has a lower potential for abuse than other drugs that are subjected to the same restrictions, with scientific support for its use as a medical treatment, researchers from the US Food and Drug Administration say in documents supporting its reclassification as a Schedule III substance.
An employee at the Good Leaf Dispensary measures out marijuana for a customer on the reservation Mohawks call Akwesasne, Monday, March 14, 2022 in St. Regis, New York.
HHS official calls for reclassifying marijuana as a lower-risk drug in letter sent to DEA
Marijuana is currently classified as Schedule I, reserved for the most dangerous controlled substances, including heroin and LSD. In 2022, President Joe Biden asked US Health and Human Services Secretary Xavier Becerra and the attorney general to begin the administrative process of reviewing how marijuana is scheduled under federal law. HHS Assistant Secretary for Health Adm. Rachel Levine wrote a letter to the Drug Enforcement Administration in August in which she supported the reclassification to Schedule III, a list that includes “drugs with a moderate to low potential for physical and psychological dependence” such as ketamine, testosterone and Tylenol with codeine.
The FDA documents, which are posted online, “reflect HHS’ evaluation of the scientific and medical evidence and its scheduling recommendation” to the Department of Justice, HHS said Friday.
The members of the FDA’s Controlled Substance Staff write in the documents that the agency recommends rescheduling marijuana because it meets three criteria: a lower potential for abuse than other substances on Schedules I and II, a currently accepted medical use in treatment in the US and a risk of low or moderate physical dependence in people who abuse it. The National Institute on Drug Abuse concurs with the recommendation.
Although marijuana has a “high prevalence of nonmedical use” in the US, it doesn’t seem to elicit serious outcomes compared with drugs such as heroin, oxycodone and cocaine, the researchers say. “This is especially notable given the availability” of products that contain very high levels of Delta 9 tetrahydrocannabinol (THC), the primary active compound in cannabis.
A view of cannabis plants at the Illicit Gardens production facility in Independence, Missouri, on March 18, 2023. - Missouri, a largely conservative Midwestern state, is the latest to legalize the recreational use of cannabis. The new regulation, approved by voters in a referendum in November, has sparked an economic boom for the "Show Me" state, fueled by thousands of pot smokers from the eight states on its edges, most of which have not legalized the drug. Across Missouri, cannabis sales in February -- when recreational use was legalized -- totaled $103 million, as compared with $37.2 million the month before, according to the state's health department.
The data also provides “some credible level of scientific support for some of the therapeutic uses for which marijuana is being used in clinical practice in the United States,” namely anorexia, pain, and nausea and vomiting from chemotherapy, the researchers say. However, they note that their analysis and conclusions “are not meant to imply that safety and effectiveness have been established for marijuana” that would support its approval for any particular health condition.
Finally, the researchers point out that marijuana withdrawal has been reported in heavy, chronic users – with symptoms that peak within days and decline over a week or two – but not in occasional users.
“The marijuana withdrawal syndrome appears to be relatively mild compared to the withdrawal syndrome associated with alcohol, which can include more serious symptoms such as agitation, paranoia, seizures and even death,” they write. Rather, marijuana withdrawal symptoms are similar to those of withdrawal from chronic use of Marinol and Syndros, two FDA-approved drug products that use synthetic THC, and the magnitude and timeline of marijuana withdrawal are similar to that of tobacco.
Rescheduling marijuana could open up more avenues for research, allow cannabis businesses to bank more freely and openly, and have firms no longer subject to a 40-year-old tax code that disallows credits and deductions from income generated by sales of Schedule I and II substances.
Twenty-four states, two territories and DC have legalized cannabis for adult recreational use, and 38 states allow medical use of cannabis products, according to data from the National Conference of State Legislatures. Since the first adult-use cannabis sale took place in 2014 in Colorado, cannabis has blossomed into a multibillion-dollar industry that has attracted the attention of multinational companies across sectors such as alcohol, agriculture, pharmaceutical and tobacco.
The DEA will have the final authority to make any changes to marijuana’s scheduling, and it will go through a rulemaking process that includes a period for the public to provide comments before any scheduling action is finalized.
CNN’s Meg Tirrell, Jacqueline Howard, Kevin Liptak and Alicia Wallace contributed to this report.
Yep, I comprehend well; but who will own/control the majority of that 80%?? Not us and WE will not control 50% + 1 share of the pvsp voting shares(CONTROL)Don’t fool yourself or especially others, 20% of the shares at trip one will not cover the pvsp debt and the controlling shares will be able to increase the SS whenever they desire for convertible debt or other purposes. Pvsp will pay down the Zen debt before a spinoff. You must be living in an alternate reality if you believe we are not dealing with Riss.
Zen
Shareholders will hold 80% of PVSP, vs current 15%!
The New Pervasip
While Pervasip common shareholders of record at the spin-out closing date will collectively receive 15% of Artizen’s common shares in addition to keeping their existing Pervasip common shares, Pervasip’s Series K preferred stock will be restructured immediately after completing the Artizen spin-out to reduce the applicable conversion rights from 85% of Pervasip’s fully diluted issued and outstanding stock to 20%. Importantly, that 20% then will also absorb the full impact of all other Pervasip convertible equity and debt securities. As a result, in addition to receiving 15% of Artizen in the spin-out transaction, Pervasip’s common shareholders will collectively hold 80% of Pervasip’s fully diluted shares immediately after the spin-out transaction instead of the current 15%.
Another outright lie:
“Plus PVSP shareholders get to keep their current shares plus current shareholders will OWN 80% of the company vs the current 15%. “.
Zen
Pre tell, how exactly do you know there will be no departures from that SS?? Being dishonest is simply not a good look!!!
Zen
New Artizen will only have 100M Shares, All COMMON Stock!!!
No more special issues, no more CD and NONE will be issued in future!!!
The Founders and all public share holders will hold the same COMMON Stock, total visablility for all investors.
PVSP share holders will receive 15% of the total 100m shares issued which is a higher % than the current PVSP issue.
Plus PVSP shareholders get to keep their current shares plus current shareholders will OWN 80% of the company vs the current 15%.
PVSP will most likely reverse merger with a small public company that has a positive revenue stream and wants to go PUBLIC, this is much much cheaper and faster than using the IPO to become public.
Looking forward to 2024 and beyond!!
The more PVSP you own, the more Artisen Shares you get!!!!
You want more shares of the New Artisen Spin off, they load up on the PVSP shares. You will get the same % of shares in the new company as you hold in PVSP.
NO REVERSE Split for 3 more YEARS so forget that one.
Feds Will Release Marijuana Rescheduling Memo And Related Documents ‘In Their Entirety’ In Response To Lawsuit
Published 14 hours ago on January 11, 2024By Ben Adlin
The Department of Health and Human Services (HHS) has agreed to release documents related to its recommendation to federally reschedule marijuana “in their entirety” amid litigation over a Freedom of Information Act (FOIA) request that was filed by a lawyer last year.
“Good afternoon and thank you for your patience,” a Department of Justice attorney handling the case said in an email to attorney Matt Zorn on Thursday. “The agency has advised that it will release the letter and its enclosures in their entirety.”
Zorn posted a screenshot of the email on his blog, noting that the release could mean that “rescheduling is imminent—or not.”
State Governors Urge Biden to Reschedule Marijuana by Year-End for Economic and Safety Benefits
When the government announces a marijuana rescheduling through a Federal Register notice, he pointed out, it would “attach the letter and its enclosures” to that posting.
Zorn last month obtained more than 250 pages of the rescheduling advisory letter and supporting documents sent by HHS to the Drug Enforcement Administration (DEA) last year, though the vast majority were released only in highly redacted form.
In a phone interview with Marijuana Moment, Zorn said the new development comes after a “little scuffle” with the federal government over the timeline in his FOIA lawsuit. The Justice Department had filed a motion to vacate a deadline for summary judgement that was set for January 18, and while Zorn said he would typically accept such a request, he instead filed an opposing brief and the judge ultimately denied the government’s motion.
He added that, “realistically, the lawsuit could have accelerated” the timing of the government’s scheduling announcement, though it’s also possible that just the letter will be released without DEA immediately announcing a decision in the ongoing scheduling review.
In October, HHS released a highly redacted version of the one-page letter from the health agency to DEA in response to public records requests by news organizations such as Marijuana Moment and lawyers, including Zorn.
Shane Pennington, a lawyer who co-writes the On Drugs blog with Zorn, applauded his colleague’s work in pushing for the documents to be released.
“Matt has demonstrated once again that litigation is a powerful tool for unlocking doors, solving problems, and doing the ‘impossible,'” he told Marijuana Moment in an email. “I’m proud to work with him on On Drugs and so many other projects.”
Broadly, the documents are believed to discuss new scientific information that’s come to light in recent years, which HHS suggests might necessitate rescheduling marijuana.
HHS initially sent the rescheduling memo to DEA in August of last year, reportedly advising the government move cannabis to Schedule III of the federal Controlled Substances Act (CSA), alongside drugs like ketamine and Tylenol with codeine.
With the rescheduling recommendation now in DEA’s hands, many are watching closely for updates.
While the Congressional Research Service (CRS) recently concluded that it was “likely” that DEA would follow the HHS recommendation based on past precedent, DEA reserves the right to disregard the health agency’s advice because it has final jurisdiction over the CSA.
Recently, DEA reiterated in a letter to Congress that it has “final authority” on rescheduling decisions, regardless of the health agency’s recommendations.
“DEA has the final authority to schedule, reschedule, or deschedule a drug under the Controlled Substances Act, after considering the relevant statutory and regulatory criteria and HHS’s scientific and medical evaluation,” it says. “DEA is now conducting its review.”
The agency’s statement came in response to an earlier letter from 31 bipartisan lawmakers, led by Rep. Earl Blumenauer (D-OR), that implored DEA to consider the “merits” of legalization as it carried out its review. That initial letter also criticized the limitations of simply placing cannabis in Schedule III, as opposed to fully removing the plant from CSA control.
Also recently, the governors of six U.S. states—Colorado, Illinois, New York, New Jersey, Maryland and Louisiana—sent a letter to President Joe Biden urging the administration to reschedule marijuana by the end of this year.
“Rescheduling cannabis aligns with a safe, regulated product that Americans can trust,” says the governors’ letter, which points to a poll that found 88 percent of Americans support legalization for medical or recreational use. “As governors, we might disagree about whether recreational cannabis legalization or even cannabis use is a net positive, but we agree that the cannabis industry is here to stay, the states have created strong regulations, and supporting the state-regulated marketplace is essential for the safety of the American people.”
Correct and not complaining, but let’s be honest; how many years did it sit at trip one??? Secondly, it ran with the other penny turds in 21’, all based upon lies and scam deals. Third, Zen is now years behind the initial projected revenue with no profits (in fact still at year one projections) and will not be worth close to some of these projected dream prices after a spin off while pvsp will remain a low trip stock. Zen knows a precipitous spin off will be a failure, hence the delay. No one can be so naive as to believe an audit can take more than a few months to complete. The facts being stated, I’m still a sucker for 1s but not 2s.
Same exact thing we all said at the beginning of 2022 and 2023 and here we sit at .0001-.0002 area quite sad but we shall see I have my shares and have been waiting for the explosion for quite some time.
This stock went from no bid to a penny a couple of year ago. Share structure wasn’t much different than it is today. We will see …
YUPPPPP!!! Good place to park your money here . 2024 going to be LIT!
Keep the faith, Artizen is the Real Thing!!!
Real Revenue $16- 20 MILLION in 2024 is my guess
$PVSP Happy New Year! 🎉
Auditors completed the annual inventory audit for WA operations and completed the first such review for Oregon.
While December traditionally is a slower sales month for branded cannabis products, compared to Sep., Oct., Nov. with each month north of $1.3MM in sales, as of January 10, Artizen is off to a great start at already 50% of the high-grossing prior months!
We are just hoping that we will finally get our audit report 🤦♂️
$PVSP Happy New Year! 🎉
— Pervasip Corp (@PervasipC) January 11, 2024
Auditors completed the annual inventory audit for WA operations and completed the first such review for Oregon.
While December traditionally is a slower sales month for branded cannabis products, compared to Sep., Oct., Nov. with each month north of…
$PVSP Happy New Year! 🎉
Auditors completed the annual inventory audit for WA operations and completed the first such review for Oregon.
While December traditionally is a slower sales month for branded cannabis products, compared to Sep., Oct., Nov. with each month north of $1.3MM in sales, as of January 10, Artizen is off to a great start at already 50% of the high-grossing prior months!
We are just hoping that we will finally get our audit report 🤦♂️
1:00 PM · Jan 11, 2024
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Last quarter results looked good, Latest qtr out in a week
This data is from the last quarter showed improving business fundamentals
Pervasip Announces Third Quarter Financials
Press Release | 10/17/2023
SEATTLE, Oct. 17, 2023 (GLOBE NEWSWIRE) -- Pervasip Corp. (OTCPK: PVSP) (“Pervasip” or the “Company”), a developer of companies and technologies in high value emerging markets, and its wholly owned subsidiary, Artizen Corporation, today announced the filing of its unaudited financial statements for its 3rd Quarter ended August 31, 2023.
Key Highlights
60% Gross Margin Improvement: Gross profits for the three months ended August 31, 2023, totaled $1,994,465 compared to $1,257,843 during the same period in 2022, an increase of almost 60%, leading to 2023 3rd quarter gross margins of 45%, compared to 29% for the 3rd quarter 2022. The quarter-over-quarter comparison best reflects the results of the Company’s cultivation investments and process improvements.
Income from Operations increased by 1,131%: Operating income rose to $591,751 for the quarter ending August 31, 2023, compared to $52,312 for the same period ending August 31, 2022.
Slight revenue growth: Consolidated revenues for the 9 months ended August 31, 2023, totaled $11,920,638, compared to revenues of $11,847,517 during the same period in 2022, representing an increase of $73,121, a small increase despite the loss of revenues from the closure of one of the Company’s cultivation facilities.
Cost of goods and services for 9 months ended August 31, 2023, totaled $7,879,869 compared to cost of goods and services of $9,016,889 for the 9 months ended August 31, 2022, representing a decrease of $1,137,020, or approximately 12.6%. With revenues remaining almost even during the same period, this material decrease in cost of goods is due to the successful transition of one of the company’s cultivation facilities, increases in harvest yields stemming from infrastructure and process improvement undertaken during 2022, combined with improved labor efficiencies.
The Cost of Goods improvement can best be seen in the three months ended August 2023, totaling $2,409,891 compared to $3,080,904 during the same period in 2022, a $671,013 reduction, or a 21.8% improvement, while increasing revenue for the same period.
Gross profit for the 9 months ended August 31, 2023, totaled $4,040,769 compared to gross profit of $2,830,628 for the 9 months ended August 31, 2022, representing an increase of $1,210,141, and improving gross margins to 34% compared to 24% during the same period in 2022. The change in gross profit is driven by process improvements, higher yields from ongoing facility improvements, and labor efficiency gains.
EBIDTA improved from 7.2% to 10.3%
For the Nine Months Ended
August 31, 2023 August 31, 2022
Net Income attributable to Pervasip Corp. $ (1,440,785 ) $ (1,027,738 )
Add:
Interest expense 898,751 305,535
Income tax expense 1,320,791 827,531
Depreciation and amortization expense 454,663 745,603
EBITDA $ 1,233,420 $ 850,931
https://www.otcmarkets.com/stock/PVSP/news/Pervasip-Announces-Third-Quarter-Financials?id=417639
Washington state Cannabis Market Rebounding
As in other mature markets, recreational marijuana sales in Washington state have cooled since the record-breaking months of the COVID-19 pandemic.
Another similarity with markets such as California, Colorado and Oregon: Year-over-year growth in the state slowed in 2023.
Washington state sold about $1.13 billion in adult-use marijuana through November 2023, down just slightly from the $1.18 billion it sold during the same period in 2022.
New year may bring big change to federal cannabis restrictions
By Brian Scott Dallas
UPDATED 9:30 AM CT Jan. 04, 2024 PUBLISHED 1:05 PM CT Jan. 03, 2024
DALLAS — Jerry Joyner has seen a lot of changes in the cannabis industry since he got involved with the plant decades ago.
Joyner, a longtime North Texas resident, remembers the days when he had to enjoy a joint in secret. The politics around cannabis were negative and the consequences of getting caught were never good; something Joyner admits he learned firsthand.
What You Need To Know
Analysts and experts in the cannabis industry believe the Biden administration is poised to reschedule the substance to a Schedule III drug on the DEA’s drug schedule
Cannabis is considered fully illegal in only three states, according to the National Conference of State Legislatures, with most offering some medicinal marijuana access, and 24 states allow legal usage and sales for adults
Texas currently only allows low-level THC medical marijuana
“In 1992, I got arrested for having two joints in Collin County,” said Joyner.
While he’s not walking down the streets of Dallas smoking, he no longer hides his passion for the plant. Through his years of traveling and working in graphics, art and advertising, he says he saw the positive impact cannabis had on the health and lives of many people around him. Now, from inside of his Deep Ellum studio, he’s become an advocate for cannabis and the cannabis industry through his on-demand TV network, Weed and Whiskey TV.
“We’re a TV network,” Joyner said with a laugh as he showed off some of the entertainment and informative offerings he and his partners have produced.
Joyner, now known by many as J-Man, recently went into a partnership on a line of low-cost cannabis gummies produced and sold in Texas; something he never thought would be possible after his arrest.
Cannabis, once portrayed darkly in media like the 1936 film "Refer Madness," has come into the mainstream and into a much more favorable light in recent years. Currently, cannabis is considered fully illegal in only three states, according to the National Conference of State Legislatures, with most offering some medicinal marijuana access, and 24 states allow legal usage and sales for adults. Texas currently only allows low-level THC medical marijuana, but like most of the country, has also legalized hemp production.
The 2018 U.S. Farm Bill made it legal to grow hemp in the country as long as it contains no more than 0.3% delta 9 THC, the psychoactive compound in cannabis, on a dry weight basis. This opened up sales of CBD products across the country, and a boom in THC products. Now, specialty shops and some convenience stores openly sell products like delta 8 THC, delta 10 THC, and even forms of delta 9, like the popular THCA. The products have similar, if not the same, effects as the adult use cannabis sold legally in almost half the country—although without the regulatory oversight put in place in those legal cannabis states.
Federal law has remained the roadblock for the cannabis industry in many forms, but big change may appear on the horizon.
Analysts and experts in the cannabis industry believe the Biden administration, after pardoning Americans with federal cannabis charges in late 2023, is poised to reschedule the substance to a Schedule III drug on the U.S. Drug Enforcement Administration’s drug schedule. Cannabis is currently a Schedule I drug, which is defined as drugs with no acceptable use and high probability for abuse, and includes substances like heroin and ecstasy. Schedule III would classify cannabis as having a moderate to low-level potential for dependence and put it in line with medical products like Tylenol with codeine, ketamine and anabolic steroids.
Joyner, who’s had a lot of discussion about the potential change lately, says that the reschedule could be a big moment for the cannabis business. Industry experts theorize the move away from Schedule I could lower the tax burden on legal cannabis businesses and open the doors to better banking options.
The move wouldn’t undo any current federal or state-based cannabis laws, but law enforcement experts say the change will certainly have some effects.
“It’s certainly significant,” said Dr. Alex Del Carmen, Dean of Criminology at Tarleton State University.
Del Carmen said the change in scheduling would serve as an acknowledgment on behalf of the government that cannabis isn’t a huge safety threat. That’s a message, he says, law enforcement has already been getting as a growing number of district attorneys across the country have refused to prosecute many low-level cannabis related crimes.
“Now you’re simply going to have the legal backing for DAs to tell law enforcement, ‘Look, worry about this other type of crime, more serious crime,’” said Dr. Del Carmen.
However, a schedule change wouldn’t mean legal weed in the U.S. Federal and state cannabis laws would still be in place and could still be enforced if leaders in the justice system choose to pursue. Inconsistency in cannabis enforcement would likely remain a present issue.
Industry experts say it wouldn’t do anything to address the inconsistencies between state and federal cannabis laws, inconsistent testing policies for cannabis among private employers, or, Joyner’s big concern, the current lack of product safety for cannabis users.
“All it’s gonna do is help some of the big companies make more profit and be more profitable, but it’s not going to solve that problem we have with the illicit market,” said Joyner.
Joyner said that until cannabis is federally legalized, black-market sales will continue to put risky products into people’s hands. The unregulated nature of the market opened by the 2018 Farm Bill puts the risk of bad products onto legal store shelves.
“It could be done with the stroke of a pen, whether it’s this administration or the next one,” said Joyner.
So, how likely is federal legalization? The topic remains a point of contention at the federal level and in most states. Several lobbying groups continue to speak out against legalizing and further normalization of cannabis. President Joe Biden has remained reluctant to fully legalize it, despite numerous rounds of federal pardons for cannabis crimes. Most of the leading GOP candidates currently in the 2024 presidential race have stated they are against legalization. Vivek Ramaswamy is the only one to speak in favor of legalization.
However, public favorability for legalization has never been higher. The latest Gallup Poll on the matter, released Nov. 8, 2023, shows a record-setting 70% of adult Americans surveyed were in favor of legalizing cannabis—with self-identified liberals approving at 91%, conservatives at 52%, and 64% of those aged 55+ being in favor. That’s a major upswing from 1969 when Gallup first asked about legalization and only 12% of adults said they were in favor.
While public perception continues to change and states continue to take-on the legalization question, could a cannabis reschedule, if it does indeed come, be the catalyst for federal change? Only time will tell.
Joyner said he’s excited to see where the cards lie 12 months from now.
Nope, they still say and will say they should have SOLD more when it was up. Pvsp/zen is in a catch 22 due to the lack of reve/profits predicted. Pvsp will be a low trip stock w/o zen and zen may run once and remain a .10 or less stock despite the low SS as they will start to dilute with CDs. They know this which is why they have delayed.
Lol ..Smart money are collecting now
How many times the paid pumpers repeated this scam phrase?
Smart money don't buy a stock that convert 10 millions shares to pay the electricity bill 🤪
Has there been dilution over the past few months?
I got 50 Million more in just the past weeks LOL
Don't fall for the BS, the stock is being manipulated and has been for years, and management has called it out several times in past.
What will people say when they take it up? I should have bought more when I had the chance, LOL
kudos to you man for staying positive not many are...
cheers man
Smart Money Building Share Base, LOL Cheap
The more PVSP you own the more Artizen Shares you will get on spinout plus you KEEP all of your PVSP share for new companuy
Tilray Cannabis Delivers Record Q2 Revenue & Profits !!!
Cannabis may be finally turning the corner on Revenue Growth and Profits, lets hope Artizen does the same in a few days!!!
You as well my friend!!
Zen.
Well we are in a NEW YEAR hope EVERYONE has a safe and PROSPEROUS YEAR. GLTY GLTA
Crop must have been lost to the crickets. I heard they can eat many times their weight every day in vegetation.
And what exactly has our new team member been doing? Crickets
Yawn-Another Month--Next tweet will be, we sent back the final inputs---WATCH ;)
Jobynimble, thanks for that post , and let it be a stark reminder to all of us invested in this company. It has been a year since that empty PR pump.... plus, along the way, all of the pumping tweets stating the spin-off was imminent. Ohhhh, it's soooo close now folks! Sure thing German. IF, and I mean, IF .... the spin-off does go down..... it is likely as follows. There will, after having had a full year to address it, no reverse merger, therefore rendering the old shares of PVSP totally worthless... bid / ask .... 0.00001 / 0.00001. Remaining so until Mayorkas decides to get off is asss and do something ln the coming years. And the new shares, [ZEN... what ever] will have acted precisely as a R/S. Now that's shareholder value as seen through the eyes of [Mayorkas.... the Liar .... Putzzzzzz ].
What lowering federal restrictions on marijuana could mean
JANUARY 3, 20245:14 AM ET
HEARD ON MORNING EDITION
4-Minute Listen
The Biden administration is proposing changes to the federal classification of marijuana. NPR's Michel Martin talks to attorney Howard
Sklamberg, who focuses on FDA compliance and policy.
A MARTÍNEZ, HOST:
The Biden administration is recommending the Drug Enforcement Agency significantly lower federal restrictions on marijuana by demoting it from a Schedule 1 to a Schedule 3 drug. Now, the DEA defines Schedule 1 drugs as those with no medical use and a higher potential for abuse, meaning weed was grouped with drugs such as heroin. Joining us now to talk about what these potential changes to federal drug policy actually mean is attorney Howard Sklamberg. He focuses on compliance with Food and Drug Administration policy and served as the agency's top official on a variety of issues, including cannabis. Howard, so legalization advocates have been trying to change the federal classification for decades. What happens if cannabis is approved as a Schedule 3 drug?
HOWARD SKLAMBERG: Good morning. Well, for a lot of purposes, things will not change. In other words, the state programs out there on medical marijuana, the state programs on recreational marijuana will continue. The biggest change is that the tax law will change regarding marijuana companies. And specifically, marijuana companies will, like all other companies, be able to deduct as business expenses items related to marijuana. As right now as a Schedule 1 substance, if you are a marijuana company, you can't deduct as an expense, for example, the costs of the plant and the cultivation and everything else that goes into the business, which is a big effect.
MARTÍNEZ: Do you think the perception would change? I think it's definitely changed in the last few years for sure, but would it make a big difference there?
SKLAMBERG: I think it will continue to change. It has changed, and I think this will accelerate it. It has an important symbolic effect because, you know, what changing from Schedule 1 to Schedule 3 says is the federal government saying, wait a minute, the public health risks regarding cannabis are less than we had thought, you know, for decades. And that does have an important symbolic effect and I think will be used by advocates for further steps in the future.
MARTÍNEZ: Now, recreational use has been legalized in 24 states, and more could join as the issue is expected to appear on a lot of ballots in 2024. How does lowering the federal classification matter if you're driving through a state where marijuana is illegal?
SKLAMBERG: No, it does not. and that's an important thing for people to remember. The overall federal law is still that marijuana is an illegal controlled substance, and the federal government doesn't enforce that, by and large, against possession. But the state laws will remain in effect, and people have to obey the state laws.
MARTÍNEZ: Now, when it comes to the taxes, as you mentioned earlier, does a lower classification mean for national access to study the effects of cannabis?
SKLAMBERG: The ability to do research, clinical research is not really affected by the change in schedule, and the federal government has very much encouraged research into clinical trials and to other uses of marijuana, you know, for years. And I think that's going to continue.
MARTÍNEZ: OK. Now, cannabis business owners are concerned that big pharmaceutical companies might jump in and take over this market. Are we going to start to see maybe gummies and other edibles at our local pharmacies, possibly?
SKLAMBERG: I really do not see that as a risk at all. First of all, the - by changing the scheduling from Schedule 1 to Schedule 3, the overall environment and legal framework for doing research remains the same. And the fact is, for a pharmaceutical company to get an approved drug for cannabis, they have to invest a lot of money into clinical trials, and they have to get an approval for a specific use. So in other words, when you get a drug approved, it's not just, here are gummy bears; use them for what you would like. Our drug approval system is based on evidence related to specific uses of a drug. And the economics did not support that beforehand and I don't think will support that going forward.
MARTÍNEZ: What do you think, Howard, it would take for cannabis to be completely decriminalized? And actually, maybe the first question should be, should it be?
SKLAMBERG: Well, I think it's certainly headed in that direction. And I think that most advocates - and I would agree with them - think you need comprehensive federal legislation on this. I mean, if you take a step back and you were, you know, from a foreign country, and you would say, wait a minute, we have a patchwork of laws. It's illegal federally, but it's not really enforced. There are state laws here and there. There's a need for comprehensive, uniform federal legislation that addresses what is legal and what regulations apply and what safety rules apply.
MARTÍNEZ: Howard Sklamberg is a partner at Arnold & Porter law firm. He focuses on FDA compliance and policy. Howard, thanks.
SKLAMBERG: Thank you very much.
DEA tells Congress it’s considering easing marijuana restrictions
Andrew Solender
DEA Administrator Anne Milgram.
The Drug Enforcement Administration told lawmakers it is "now conducting its review" of whether to soften federal regulation of marijuana under the Controlled Substances Act.
Why it matters: Moving marijuana off the list of Schedule I drugs would mark a significant shift away from federal enforcement of a drug that dozens of states have legalized or decriminalized in recent years.
It would also clear obstacles for the growing cannabis industry, which has struggled to access banking services due to continued federal restrictions.
Driving the news: In a letter to Rep. Earl Blumenauer (D-Ore.) last month, first reported by Punchbowl News on Wednesday, DEA official Michael Miller wrote that the agency has "the final authority to schedule, reschedule or deschedule" drugs under the Controlled Substances Act.
Marijuana is currently a Schedule I substance — which are considered to have the highest potential for abuse and safety risk with no currently accepted medical use — along with drugs such as heroin and LSD.
Blumenauer and dozens of other lawmakers in both parties sent DEA Administrator Anne Milgram a letter in October calling to "end the harmful federal marijuana prohibition and help our law enforcement officers appropriately prioritize public safety."
The backdrop: President Biden in 2022 issued a directive pardoning all prior federal marijuana possession offenses and ordering the Department of Health and Human Services to "review expeditiously how marijuana is scheduled under federal law."
The HHS review, sent to the DEA last August, recommended that marijuana be reclassified as a Schedule III substance, which have accepted medical uses and a low to moderate risk of dependence.
Blumenauer and his colleagues, however, wrote that rescheduling is "an important step in the right direction" but "not sufficient to correct the wrongs of federal prohibition or to meaningfully address the federal-state gap on cannabis policy."
They called for marijuana to be fully removed from enforcement under the Controlled Substances Act.
https://www.axios.com/2024/01/04/dea-weed-marijuana-legal-decriminalize-federal
Congressman’s Marijuana Memo Predicts ‘Productive’ 2024 And Pushes Biden To Embrace Reform Ahead Of Election
Published 1 hour ago on January 3, 2024By Kyle Jaeger
The stage is set for another “productive year” in federal marijuana reform—with lawmakers positioned to leverage “tremendous bipartisan investments” from 2023, while pushing the Biden administration to move further on the issue ahead of this year’s election.
That’s according to the latest yearly marijuana memo from Rep. Earl Blumenauer (D-OR), a founding co-chair of the Congressional Cannabis Caucus who is also marking the 50-year anniversary of his legislative marijuana advocacy work.
The memo details various achievements from the first half of the 118th Congress, including multiple bipartisan cannabis bills and letters, progress on the administrative review into marijuana scheduling and more. It also presents an overview of legislative priorities for 2024, as well as a call-to-action for President Joe Biden to lean more strongly into cannabis reform in the year ahead.
“This was a year for the books, and cannabis reform has been no exception,” Blumenauer, who is retiring at the end of this Congress, said. “Despite challenges in Congress, there are significant steps forward to celebrate as we reflect on the path forward.”
He pointed to the Senate Banking Committee’s passage of a bipartisan marijuana banking bill, the adoption of amendments to appropriations legislation to promote veterans access to medical cannabis and House committee approval of a measure to prevent security clearance denials based on past marijuana use as examples of 2023 accomplishments.
Throughout the year, my Congressional Cannabis Caucus partners and I brought together a broad coalition of members from diverse communities around the country who all agree: it is time for Congress to embrace rational federal cannabis policy,” the memo says.
“Cannabis is a winning issue. With election season nearly upon us and the Biden-Harris Administration completing its formal review of the scheduling of marijuana, President Biden should keep in mind that no one has been penalized by voters for their embrace of cannabis reform,” it says. “President Biden himself owes his victory in Arizona to the young voters who turned out for their marijuana legalization measure.”
The document also notes that Ohio voters overwhelmingly approved a legalization initiative at the ballot in November 2023, and it says Florida is “set to legalize adult-use marijuana next,” depending on the outcome of a state Supreme Court challenge to decide whether it will appear on this year’s ballot.
“Despite dysfunction in Congress, we can accomplish significant reforms in cannabis in 2024,” Blumenauer said. “It is a commonsense issue that can bring people together rather than divide them.”
“In my final year in Congress, and then in the talented hands of the 119th Congress Cannabis Caucus Co-Chairs, we will take bold action to end the failed war on drugs once and for all,” the memo ends.
The stage is set for another “productive year” in federal marijuana reform—with lawmakers positioned to leverage “tremendous bipartisan investments” from 2023, while pushing the Biden administration to move further on the issue ahead of this year’s election.
That’s according to the latest yearly marijuana memo from Rep. Earl Blumenauer (D-OR), a founding co-chair of the Congressional Cannabis Caucus who is also marking the 50-year anniversary of his legislative marijuana advocacy work.
The memo details various achievements from the first half of the 118th Congress, including multiple bipartisan cannabis bills and letters, progress on the administrative review into marijuana scheduling and more. It also presents an overview of legislative priorities for 2024, as well as a call-to-action for President Joe Biden to lean more strongly into cannabis reform in the year ahead.
“This was a year for the books, and cannabis reform has been no exception,” Blumenauer, who is retiring at the end of this Congress, said. “Despite challenges in Congress, there are significant steps forward to celebrate as we reflect on the path forward.”
He pointed to the Senate Banking Committee’s passage of a bipartisan marijuana banking bill, the adoption of amendments to appropriations legislation to promote veterans access to medical cannabis and House committee approval of a measure to prevent security clearance denials based on past marijuana use as examples of 2023 accomplishments.
“Throughout the year, my Congressional Cannabis Caucus partners and I brought together a broad coalition of members from diverse communities around the country who all agree: it is time for Congress to embrace rational federal cannabis policy,” the memo says.
“Cannabis is a winning issue. With election season nearly upon us and the Biden-Harris Administration completing its formal review of the scheduling of marijuana, President Biden should keep in mind that no one has been penalized by voters for their embrace of cannabis reform,” it says. “President Biden himself owes his victory in Arizona to the young voters who turned out for their marijuana legalization measure.”
The document also notes that Ohio voters overwhelmingly approved a legalization initiative at the ballot in November 2023, and it says Florida is “set to legalize adult-use marijuana next,” depending on the outcome of a state Supreme Court challenge to decide whether it will appear on this year’s ballot.
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“Despite dysfunction in Congress, we can accomplish significant reforms in cannabis in 2024,” Blumenauer said. “It is a commonsense issue that can bring people together rather than divide them.”
“In my final year in Congress, and then in the talented hands of the 119th Congress Cannabis Caucus Co-Chairs, we will take bold action to end the failed war on drugs once and for all,” the memo ends.
As the congressman explained, there are a number of potential cannabis policy developments at the state and federal level to watch for in the new year, including the possible completion of the review into marijuana scheduling.
Following a U.S. Department of Health and Human Services (HHS) recommendation to move cannabis to Schedule III of the Controlled Substances Act (CSA), the Drug Enforcement Administration (DEA) is now completing its review before making a final determination.
Senate Majority Leader Chuck Schumer (D-NY) has also recommitted to prioritizing floor consideration of the Secure and Fair Enforcement Regulation (SAFER) Banking Act in this second half of the 118th Congress.
As for the White House, many advocates have appealed to Biden to vocally support ending federal marijuana prohibition, arguing that while his 2022 and 2023 mass pardons for simple cannabis possession represent positive steps, they do not go far enough.
US regulators may loosen restrictions on marijuana
President Joe Biden’s administration is promising to make the biggest shift in federal drug policy in decades by loosening marijuana restrictions.
US regulators may loosen restrictions on marijuana
Scripps News
Dan Grossman
By
Dan Grossman
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Posted: 5:49 p.m. EST Jan 2, 2024
President Joe Biden pardoned thousands of people who were convicted of use and simple possession of marijuana on federal lands and in the District of Columbia at the end of December, in his latest round of executive clemencies meant to rectify racial disparities in the justice system.
The pardon builds on a similar round before the 2022 elections that pardoned thousands convicted of simple possession on federal lands. The administration’s most recent action widens the breadth of criminal offenses covered by the pardon.
The president, in a statement, said his actions would help make the “promise of equal justice a reality.” The move comes as attitudes around marijuana shift nationwide.
In November, Gallup released a poll that shows 70% of Americans nationwide think marijuana should be legalized, the highest number on record. In 2014, when 55% of Colorado voters voted for the state to become the first in the country to legalize marijuana, 51% of Americans nationwide agreed marijuana should be legal.
Since Colorado has legalized marijuana, more than $15 billion of the drug has been sold in the state as of October 2023, according to the Colorado Department of Revenue, and those sales have led to $2.58 billion in tax dollars.
According to the Colorado Department of Revenue, local governments receive 10% of the 15% retail marijuana state sales tax. The 10% is divided among the local governments. Each state appropriates its tax dollars from marijuana differently, but in Colorado the 15% retail marijuana excise tax goes to Colorado public school construction. The excise tax is remitted by the retail marijuana cultivation facility on the first sale or transfer of retail marijuana to any retail marijuana store or retail marijuana products manufacturer. The first $40 million in retail marijuana excise tax revenue collected annually goes to public school construction. Any revenue above that is transferred to the Public School Fund.
The tax money from marijuana sales differs in every state. For example, in Illinois, which legalized recreational marijuana in 2020, much of the tax money from marijuana sales goes to the state’s rainy day fund.
In the most recent election cycle, Ohio became the newest state to legalize the recreational sale of marijuana, making it the 24th state in the country to do so, along with Washington D.C.
Anyone who constantly posts BS.
Rescheduling marijuana and the next states to legalize:
7 predictions for 2024
author profile pictureBy Chris Roberts, Reporter
January 2, 2024
What’s the right revenue per square foot? What’s a realistic business outlook for cultivators? Get realistic market forecasts, state-by-state insights and benchmarks. Get the 2023 Factbook.
With the cannabis industry eagerly awaiting the U.S. Drug Enforcement Administration’s latest move in the rescheduling process, the new year promises the biggest development in U.S. marijuana policy in 50 years.
If the rescheduling odyssey launched by the Biden administration in October 2022 stays on track, as expected, marijuana will be moved to Schedule 3 of the Controlled Substances Act (CSA) sometime in 2024.
Though it wouldn’t happen overnight, rescheduling would deliver tax reform, as Section 280E of the federal tax code would no longer apply.
That IRS provision has hit state-legal marijuana retailers particularly hard and contributed to money woes elsewhere in the supply chain.
Fulfilling the rescheduling promise might also boost President Joe Biden’s sagging reelection hopes.
But whether tax relief would arrive quickly enough for beleaguered marijuana businesses already struggling because of a variety of state-level factors – falling wholesale prices, a vibrant illicit market, etc. – is another question.
Elsewhere, there’s plenty else to keep an eye on.
The next state to legalize adult-use marijuana must overcome either a court challenge or partisan deadlock.
And on Capitol Hill, Congress is tasked with finally passing marijuana banking reform – which could accelerate the uplisting of cannabis stocks to major exchanges and attract more investment in an otherwise bear market.
But don’t hold your breath.
Below are our cannabis industry predictions for 2024:
1. The Drug Enforcement Administration will propose rescheduling marijuana.
There isn’t much to indicate the DEA will defy the Aug. 29 recommendation from the Department of Health and Human Services that marijuana be moved from Schedule 1 to Schedule 3 of the CSA.
The revolutionary acknowledgement that cannabis has medical value, a determination evidently made thanks in part to data provided by the states, isn’t something DEA has the power to contradict.
That would mean the ambitious administrative rescheduling review launched by the Biden Administration in October 2022 will continue, though exactly what happens next isn’t clear.
Legal challenges of indeterminate length are almost certain.
2. Tax relief will come … eventually.
Rescheduling would mean Section 280E, which prohibits state-legal cannabis businesses from deducting many normal business expenses on their federal tax returns, would no longer apply.
That would mean a brighter future and more money for the $34 billion U.S. marijuana industry.
Beau Whitney, the co-founder of Oregon-based Whitney Economics, estimates the nation’s cannabis retailers will collectively pay an extra $2 billion on their federal returns next spring due to 280E.
In the meantime, some cannabis businesses are already seeking relief from previous years.
Most notable is Florida-based Trulieve Cannabis.
The multistate operator is seeking a federal tax refund of $143 million, arguing that it “believes it does not owe” the taxes it paid over three years.
Whether Trulieve is successful in securing that refund will surely set the tone for other cannabis businesses.
3. Rescheduling might be the only progress at the federal level in 2024.
Congress inched closer than ever to approving long-sought banking reform legislation in 2023 after the U.S. Senate Banking Committee passed the SAFER (Secure and Fair Enforcement Regulation) Banking Act during a markup hearing.
But looking ahead, only 13% of senior congressional aides polled by Punchbowl News believe banking reform will pass in the current 118th Congress, and that’s consistent with other outward signs of deadlock.
Democratic Senate Majority Leader Chuck Schumer hinted in November he’s still wrangling support from Republican senators before he’s comfortable pushing for a full vote on the Senate floor.
And given his opposition as an obscure backbencher, it’s hard to imagine new Republican House Speaker Mike Johnson demonstrating an appetite for marijuana reform, despite earlier versions of SAFER sailing through a Democratic-controlled house.
There are also many cannabis industry players who hope the next iteration of the federal Farm Bill will address the proliferation of hemp-derived competitors across the country.
But state-level restrictions and bans might convince federal lawmakers to pass the buck downward.
4. The next states to legalize marijuana will be … Florida and Pennsylvania.
Oklahoma voters’ rejection of marijuana legalization in March suggested MJ reform had run out of steam.
But the idea that a “red wall” is blocking marijuana in conservative states took a big hit in November, when Ohio voters legalized adult-use cannabis by a comfortable margin.
That would seem to portend well for Florida to be the next state to legalize recreational marijuana.
A legalization measure backed by Trulieve Cannabis is angling to appear on the November 2024 ballot, but there’s a high bar to meet.
Recent changes to the state constitution mean 60% of voters, or a 20-point victory, is required to pass the proposed constitutional amendment.
That also assumes the measure survives a constitutional challenge now before the Florida Supreme Court.
Elsewhere, attention is pivoting to the Pennsylvania Legislature, which in December passed a major expansion of the state’s medical marijuana industry.
Democratic Gov. Josh Shapiro has indicated he’ll entertain any adult-use legalization measure lawmakers give him.
But to date, a familiar partisan deadlock has kept legalization pushes bottled up.
Despite the recent MMJ expansion, Republican leaders in the state Senate say they remain opposed to any legalization measures absent federal reform.
However, with Ohio’s recent turn, five of the six states bordering Pennsylvania have legal adult-use cannabis, which adds more pressure on legislators to act.
While a long shot to take action, Pennsylvania still has better chances than other states in 2024.
But looking further ahead, the success of medical programs in Deep South states such as Louisiana and Mississippi might hint that the next adult-use move will be in a traditionally conservative area.
5. Marijuana reform will be a 2024 presidential campaign issue – for somebody.
It’s not hard to find political watchers, including retiring U.S. Rep. Earl Blumenauer, who believe marijuana legalization played a role in the election of Biden as president in 2020.
With a legalization measure potentially on the ballot in Florida and the first adult-use sales in Ohio currently scheduled to begin in fall 2024, marijuana will be on some voters’ minds.
And if current polling trends continue, a sagging Biden campaign might need to find something exciting to trigger turnout.
6. States will make moves against the illicit market.
New York Gov. Kathy Hochul struck a triumphant tone in December when she announced the opening of the state’s 37th legal adult-use marijuana store.
But it’s an open question whether what Hochul calls the “nation-leading adult-use cannabis industry” can weather what appears to be the biggest and boldest illicit market yet seen in the legalization era.
What is known is that the illicit market must be brought to heel for legalization to work.
Estimates of how many unlicensed marijuana sellers are open for business in New York City alone range from 1,500 to as many as 8,000.
In contrast, when Hochul and Attorney General Letitia James shut down – for good this time, they promised – a notorious unlicensed store in Brooklyn last month, it marked only the ninth such closure.
There’s reason for optimism, as the state’s legal retail capacity is finally starting to expand.
Major multistate operators were given the green light to begin adult-use retail sales on Dec. 29.
But it remains to be seen how effective new retail options will be at steering customers away from the illicit market – or what combination of enforcement and market incentives will curb unlicensed sales.
And the illicit market is still booming in other legacy states, including California.
Regulators, lawmakers and law enforcement are on notice to devise solutions and deliver results.
7. States will either deliver on ambitious social equity promises or reimagine “a fair industry.”
The legal marijuana industry is still struggling to fulfill criminal justice reform vows.
New York went further than most when it promised that small businesses – including operations run by individuals caught up in the war on drugs – would be first in line to sell cannabis legally.
However, those initial plans triggered constitutional challenges. States are now reevaluating how to guarantee disadvantaged groups a role in the legal industry.
It’s clear more needs to be done to make good on that great expectation as social equity programs across the country fend off legal challenges from would-be entrepreneurs who say they’re unlawfully excluded from the opportunity.
Look for lawmakers in Ohio who ended 2023 without promised changes to the voter-approved adult-use legalization measure to propose a lawsuit-proof equity plan that other states could follow – if one can be found at all.
Who stepped on your toes buddy
Biden’s administration is poised to make the biggest shift in federal drug policy in decades
By MONA ZHANG
01/01/2024 07:00 AM EST
President Joe Biden’s administration is poised to make the biggest shift in federal drug policy in decades by loosening marijuana restrictions, but the move is sparking blowback from an unlikely constituency: legalization advocates.
They argue that moving marijuana to a lower classification would do nothing to address the federal-state divide in marijuana laws, fail to address the impacts of criminalization, disrupt existing state-regulated cannabis markets, lead multi-billion-dollar pharmaceutical companies to dominate the medical cannabis industry and spur a potential federal crackdown.
Howard Sklamberg, an attorney and former top official at the FDA’s Center for Drug Evaluation and Research, argues those fears are alarmist and misguided. He doesn’t believe the cannabis industry needs to worry about a crackdown if the drug is moved from Schedule I to III under the Controlled Substances Act, as recommended by the Food and Drug Administration after a review of the scientific evidence.
“If you’re going to launch an enforcement initiative against cannabis, why would you start off with saying, ‘Oh, by the way, it’s less of a risk than we thought,’” Sklamberg said in an interview with POLITICO. “You would use your power under Schedule I and go after it.”
CANNABIS
Legal weed takes effect in Ohio as lawmakers scramble to change voter-passed law
BY MONA ZHANG | DECEMBER 07, 2023 12:55 PM
Sklamberg is now a partner at the law firm Arnold & Porter, but he held a variety of leadership roles at the FDA from 2010 to 2017, including stints overseeing compliance and enforcement operations. Sklamberg served as the FDA’s top official on a variety of issues, including cannabis.
Support for marijuana legalization cracked 70 percent for the first time last November since Gallup started asking the question in 1969. The results of the poll were announced the day after Ohio voters made the Buckeye state the 24th in the nation to legalize recreational weed. And 38 states regulate medical marijuana sales.
The Drug Enforcement Administration will have the final say on any change in marijuana’s federal classification. There’s no timeline for when the agency will announce that decision, but Sklamberg believes it’s likely in the first half of 2024.
“Agencies want to get their work done in an election year by the summer,” Sklamberg said. “The DEA could accomplish it by then.”
Expect 10k / 10q around January 17, 2024.
Maybe more?
Oldrogue.
“The only exception would be a future uplisting to OTCQX”. What this states is a RS for a FUTURE uplisting and not a RS for an up-listing. Let’s be clear what this states in plain English, they can RS stating they will up list BUT never do up list.
2024 - shareholders will own 2 public companies with their current PVSP shares. Better than giving them away at these levels.
5 Cannabis Policy Reform Efforts to Watch in 2024
From the SAFER Banking Act to state-level reform, Akerman’s Jonathan Robbins outlines the legislation and potential policy changes on the horizon for the industry.
MELISSA SCHILLER | DECEMBER 27, 2023
It’s been another hectic year for the cannabis industry, from the U.S. Department of Health and Human Services’ (HHS) recommendation that cannabis be rescheduled to the evolution of cannabis banking reform to Ohio voters approving an adult-use legalization measure in the November election.
With so many potential policy changes on the horizon, which ones should business operators be most attentive to?
Here, Jonathan Robbins, chair of Akerman’s cannabis practice, outlines the legislation and potential policy changes to watch in 2024.
1. SAFER Banking Act
The Secure and Fair Enforcement (SAFE) Banking Act—which aims to provide safe harbor for banks, credit unions, and other financial institutions and payment processors that provide services to state-licensed cannabis businesses and has passed the U.S. House seven times since 2019—got a makeover this year when lawmakers revealed a revised version of the legislation in September, ahead of a scheduled committee markup.
The Senate Banking Committee approved the amended bill—called the Secure and Fair Enforcement Regulation (SAFER) Banking Act of 2023 (S. 2860)—during a markup hearing Sept. 27. While it remains to be seen when and if the legislation is considered on the Senate floor, Senate Majority Leader Chuck Schumer, D-N.Y., has vowed to call a vote on the SAFER Banking Act “as quickly as possible.”
While the industry has been buzzing about the banking reform legislation for the past several years, Robbins predicts that Congress will have more pressing issues to deal with next year, pushing SAFER Banking to the back burner once again.
“I do not feel optimistic that we are going to finally see the passage of the SAFER Banking Act in 2024,” he says. “I don't think we’re going to end up seeing it pass this year, even though I’d have probably been more optimistic and hopeful than ever if you’d asked me that question back in September.”
What could help the legislation’s chances, Robbins says, is if lawmakers amended the bill to include language that would allow cannabis businesses to access U.S. public exchanges.
“I’m really tired of seeing U.S. plant-touching companies that want to do a public offering having to do so on a Canadian exchange,” he says. “And I know that U.S. regulators would like to do it, but they’re afraid to do it. I’ve had those conversations, and so I would love to see some policy reform in that respect. And while it's not necessarily part of the SAFER Act, I would be hopeful that the passage of that act, if it ever happens, would open the door to U.S. exchanges being a little more welcoming of the industry.”
2. Rescheduling
Part of the reason Robbins believes that the SAFER Banking Act will stall again in 2024 has to do with the HHS’ August recommendation that cannabis be reclassified under the Controlled Substances Act (CSA). HHS still has not confirmed publicly the details of its recommendation, but Bloomberg, which first broke the news, said they viewed an unredacted letter sent to the Drug Enforcement Administration (DEA) that indicated HHS officials suggested a move to Schedule III. The DEA must now decide whether it will accept or reject that recommendation.
“I think that it’s probably more likely that just leading up to the election, we’re going to see some movement on the issue of rescheduling cannabis from a Schedule I controlled substance to a Schedule III substance,” he says. “The buzz in the industry is let’s deal with that and then the financial issues will sort of fall into line behind it.”
Robbins would prefer cannabis to be descheduled rather than rescheduled; he says rescheduling could be a death sentence to small businesses if they are required to undergo clinical trials through the U.S. Food and Drug Administration (FDA) and the additional regulatory scrutiny that comes along with producing and selling a Schedule III controlled substance.
“People have a lot of guesses and speculation as to what the practical effects are going to be to the industry [in terms] of rescheduling,” Robbins says. “It seems to me that [Schedule II] is really off the table and now, based upon the HSS recommendation that it be moved to Schedule III, that would be the most likely candidate, which is great and applauded in the industry [because it would remove 280E]. But what is that going to mean if you are a small cultivator in Oregon or a retailer in California?”
2024 is an election year, and Robbins expects some movement on rescheduling before voters head to the polls in November.
“President Biden is going to want to have some nugget to be able to dangle in front of the voters come November, so I think that he’s going to probably push the DEA to consider and reschedule cannabis to Schedule III under the CSA before the election,” he says.
3. Federal Legalization Bills
While federal officials evaluate how cannabis is scheduled under the CSA, Congress has several cannabis legalization bills to consider.
Rep. Jerry Nadler, D-N.Y., reintroduced the Marijuana Opportunity, Reinvestment and Expungement (MORE) Act (H.R. 5601) in September. The legislation would deschedule and decriminalize cannabis at the federal level, as well as provide expungements for certain cannabis offenses and create reinvestment opportunities for those adversely impacted by prohibition. Previous versions of the MORE Act have passed the U.S. House twice.
Rep. Nancy Mace, R-S.C., filed the States Reform Act of 2023 (H.R. 6028) last month, building off the States Reform Act that the congresswoman filed in November 2021 alongside four Republican co-sponsors. The latest version of the bill aims to “amend the Controlled Substances Act regarding marihuana, and for other purposes,” as Cannabis Business Times previously reported.
In early December, another federal cannabis reform bill entered the ring in Washington when Rep. Dave Joyce, R-Ohio, reintroduced the latest version of the Strengthening the Tenth Amendment Through Entrusting States (STATES) Act. That bill aims to ensure that each U.S. state has the right to determine the best approach to cannabis legalization within its borders.
Overall, Robbins doubts any of these federal policy reform efforts will make much progress next year as lawmakers focus on more pressing issues, both domestic and abroad.
“There are so many issues in an election year that people are going to focus on,” he says. “Unfortunately, cannabis reform or even reform with respect to psychedelic substances is not going to be a priority, but we can walk and chew gum at the same time, so there’s certainly no reason why this can’t be addressed as well.”
4. Florida’s Adult-Use Ballot Measure
At the state level, Robbins says 2023 was a good year for adult-use legalization, with Delaware, Minnesota and Ohio joining the ranks of the 21 adult-use states that came before them. 2024 will be a big year for these states as they roll out commercial adult-use sales, and Robbins also expects more states to legalize, including Pennsylvania, South Dakota, Hawaii and, perhaps most notably, Florida.
“Mostly I’m keeping my eyes on Florida because I am a Florida resident and a Florida attorney, and we have been heavily involved in the efforts to make Florida an adult-use state,” he says. “Unfortunately, that’s something that Florida’s Legislature has not only been slow to move on, but they’ve been very active in trying to prohibit any steps towards adult use in the state of Florida. However, I feel pretty good it’s going to happen.”
Smart and Safe Florida has sponsored an adult-use legalization measure that the group hopes to get on the November 2024 ballot. The proposal has faced criticism from Florida Attorney General Ashley Moody and now awaits a decision from the state Supreme Court on whether it is fit to appear on next year’s ballot.
In 2021, the Florida Supreme Court stopped a pair of legalization attempts from appearing on the state’s 2022 ballot, ruling that the language was misleading to voters.
“They’ve pushed back hard, and our governor, [Ron] DeSantis, has been pretty public about his opposition to adult-use legalization in Florida, but the sponsors of the bill have put a lot of time and effort and money into it, and they’ve spent a lot of time crafting the language in the proposed legislation,” Robbins says. “In my personal view, I think that the language is not misleading at all, and I don’t think it violates the single subject rule. And we were up in November before the Supreme Court of Florida, and I’m hopeful and optimistic that the Supreme Court will agree with us in the matter, we’ll make the ballot in November, and if it makes the ballot, I’m very optimistic that it’ll pass, and that’ll be a big boom for the state of Florida. Hopefully it will result in a lot of tourism dollars and tax dollars to the state.”
5. The Farm Bill
The 2023 Farm Bill is another hot topic in the cannabis industry heading into 2024. The legislation is expected to miss an end-of-year deadline and be kicked to next year, and Robbins hopes the end result will tie up loose ends regarding delta-8 THC and other intoxicating hemp-derived cannabinoids that were not addressed in the 2018 Farm Bill that federally legalized hemp.
Robbins says the current patchwork of state regulations on these cannabinoids “wreaks havoc on the industry” and could be addressed through cohesive federal legislation like the Farm Bill.
RELATED: Industry Associations Weigh In on 2023 Farm Bill: What’s to Come for Hemp?
“There’s been a lot of debate and a lot of disagreement in the industry over other cannabinoids besides delta-9 THC in the plant and whether they should be legal and should be commercialized or not,” he says. “I’m curious to see how the 2023 Farm Bill that will be released in 2024 is going to address that and close those loopholes, if at all.”
https://www.otcmarkets.com/otcapi/company/financial-report/383834/content
Go to page 8,Paul Riss has Common Shares only in PVSP. Where he has Preferred shares???
Oldrogue.
No projection or statement is set in stone re the ‘forward looking statement
‘, you should know that. No one wants a RS but the current situation is wishy washy at best.
Zen
LOL .. you were saying the same thing when it was .004, .003, .002, .001, .0007..
Broken record!
But my predictions were correct all year long.. and my post on January that it will be on the trips by fall is still there
While you were never embarrassed when the pps was tongue teasing you all the time, while you were posing BS, That's normal .. paid pumpers have thick skin
I believe my post hit the nerve, specially when I'm exposing what is in Paul Riss's ponzi scheme plan
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