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PVSP has to RUN soon, Sector is Exploding!
Have not seen these kinds of Gains in years in the Cannabis sector
Greengro up 39% today, CDB Denver up 33% today, Trulieve up another 11% today, Canopy Growth up 15% more today, Aurora up another 11% today.
The money will find us eventually, get them while you can on the cheap, it will not be that way for long.
Massachusetts bank enters cannabis industry with new service unit
By MJBizDaily Staff
September 7, 2023
Great NEWS, Banks are stepping up to do business with cannabis companies NOW!!
Berkshire Bank, one of the largest banks in Massachusetts, is expanding services for cannabis companies and entrepreneurs nationwide.
The new banking unit will be established through a partnership with Florida-based Green Check Verified, a cannabis financial services and software company, to offer a platform for clients to conduct and monitor transactions, according to the Boston Business Journal.
Berkshire Bank joins a growing number of Massachusetts financial institutions that are beginning to serve marijuana businesses.
Available services for plant-touching, ancillary and other marijuana-related businesses include electronic fund transfers and wire services, armored cash pickup, debit cards and checks, mobile and online banking as well as savings accounts, money-market access and wealth management, the business publication reported.
The developments come as large parts of the marijuana industry still struggle to secure strong banking relationships and some key services.
The recent decision by financial giant Mastercard to halt cannabis purchases through its popular debit card underscored these ongoing challenges.
And, earlier this year, cannabis operators were forced to scramble and find a new payroll provider after receiving a memo from Paychex advising that the company would no longer process direct deposits or offer other services for marijuana-related businesses.
Marijuana retailers across the country are adjusting to handling and securing more cash in-store in the wake of the Mastercard decision, insiders told MJBizDaily.
Others are zeroing in on improving in-store communication with customers and the overall shopping experience as well as reassessing internal processes, including researching payment-processing vendors to potentially expanding card-purchasing options.
GOP Chairman says Safe Banking Approval "Imminent" !!!!!
Huge NEWS we are very very close!
Marijuana Banking Bill Talks Were ‘Very Productive’ Over Recess, GOP Senate Sponsor’s Office Says, As Key Chairman Predicts ‘Imminent’ Agreement
Published 2 hours ago on September 7, 2023By Kyle Jaeger
Bipartisan talks over a marijuana banking bill were “very productive” over the August recess, the office of the lead GOP Senate sponsor tells Marijuana Moment, as a key Democratic chairman says an agreement on advancing the legislation is “imminent.”
As the Senate reconvenes from its summer break, those most involved in negotiating the Secure and Fair Enforcement (SAFE) Banking Act have been expressing tentative optimism that it could move to a vote soon.
That includes Sen. Steve Daines (R-MT), the top Republican sponsor. A spokesperson for his office told Marijuana Moment on Wednesday that the senator “had very productive talks over the recess and we’re moving in the right direction.”
Democratic members, including Senate Majority Leader Chuck Schumer (D-NY) and Senate Banking Committee Chairman Sherrod Brown (D-OH), have similarly touted progress on the legislation, which Brown said he’s aiming to move within “the next six weeks.”
“We think there is an agreement imminent that there’ll be general agreement on,” Brown, whose panel would be marking up the bill to bring it to the floor, said, according to Politico. “We know that some members of the committee are going to vote no regardless, but we think there’ll be something good that gets a good majority.”
While he wouldn’t give a specific timeline for a potential markup, he said on Monday that the SAFE Banking Act was among several priority measures that he wants to advance by October.
Schumer, meanwhile, said in a Dear Colleague letter last week that “safeguarding cannabis banking” is one of his top legislative priorities, though he stressed the need for bipartisan buy-in. He also said in a floor speech on Tuesday that he’s committed to “making progress on cannabis” during the fall session.
The prospects of passing the SAFE Banking Act this fall are contingent on a number of factors, including the fact that moving must-pass spending legislation to fund the government is expected to take up a significant amount of senators’ time. But there’s also the matter of disagreement over one key section of the bill that prevented it from advancing during the summer session before lawmakers broke for the August recess.
Some Democrats believe that Section 10 of the legislation would undermine banking regulations and are seeking to amend or remove. Republicans have said they view that option as a “non-starter,” however. And it’s unclear if any progress was made over the recess to reach an agreement that would allow the bill to move through the Senate Banking Committee and onto the floor.
Marijuana Moment reached out to Brown’s office for comment, but a representative was not immediately available.
At a press conference in late July before lawmakers broke for recess, Schumer said that senators were “making good progress” in bipartisan negotiations over the legislation and predicted a a “very, very productive fall in the Senate.”
Marijuana will be legal across US with a prescription!!!
Many article are saying that if the FDA accepts the rescheduling of Cannabis to III, thT it will automatically be legal across the US, with a prescription.
It all helps on the way to fully legalization eventually.
Senate Banking Committee Chair Aims To Advance Marijuana Bill Within ‘The Next Six Weeks’
September 6, 2023
By Kyle Jaeger
A key Senate committee chairman says that he’s spoken with Majority Leader Chuck Schumer (D-NY) about moving bipartisan marijuana banking legislation, which he hopes to advance along with several other priority bills “in the next six weeks.”
Senate Banking Committee Chairman Sherrod Brown (D-OH) told Punchbowl News on Monday that the Secure and Fair Enforcement (SAFE) Banking Act is one of the top bills on his fall legislative agenda. And while he didn’t comment on the substance of his conversation with Schumer, the majority leader has made clear in letters to colleagues and in a floor speech on Tuesday that cannabis banking is a priority.
“We want to get RECOUP. We want to get SAFE Banking. We already have, in the NDAA, the FEND Off Fentanyl Act. All three of those are my priorities,” Brown said, referencing banking accountability and opioid-related enforcement legislation in addition to the marijuana measure. “We want to do all that in the next six weeks.”
The prospects of passing the SAFE Banking Act this fall are contingent on a number of factors, including the fact that moving must-pass spending legislation to fund the government is expected to take up a significant amount of senators’ time. But there’s also the matter of disagreement over one key section of the bill that prevented it from advancing during the summer session before lawmakers broke for the August recess.
Some Democrats believe that Section 10 of the legislation would undermine banking regulations and are seeking to amend or remove. Republicans have said they view that option as a “non-starter,” however. And it’s unclear if any progress was made over the recess to reach an agreement that would allow the bill to move through the Senate Banking Committee and onto the floor.
Marijuana Moment reached out to the offices of Brown and the lead GOP SAFE Banking sponsor Sen. Steve Daines (R-MT) for comment, but representatives were not immediately available.
For his part, Schumer stressed on Tuesday that “we are under no illusion that we can make progress on the Senate floor unless we get bipartisan cooperation” on marijuana reform and other priorities such as curbing the price of insulin and competing against China in the global economy.
“None of this will be easy either,” he said. “The bills will require a lot of work and compromise. But if we can progress on these items, we will greatly improve the lives of average Americans.”
At a press conference in late July before lawmakers broke for recess, Schumer said that senators were “making good progress” in bipartisan negotiations over the legislation and predicted a a “very, very productive fall in the Senate.”
At this point, the SAFE Banking Act has 42 cosponsors—nearly half of the Senate—and that includes eight Republicans and three independents. As a standalone in its current form, insiders say the measure has enough Republican buy-in to reach the 60-vote threshold needed for passage in the Senate.
Cannabis On Fire Again, another 40% !!!
Large caps on FIRE again, PVSP will start moving very soon IMO.
Traders and investors don't know what to do, they do use fundamental they use price, LOL
Until price of PVSP moves up they will sit and wonder what to do!!! Train is ready to leave the station, just need for the PINK small guys to start getting a BID and we will be off to the races.
PVSP will Run Hard soon!!!
The large cap cannabis will always Run first, always, they have the institutional investors and big money available to trade the stock. PVSP is a pink sheet stock for now, until they restructure and get up listed.
Once it starts moving north, it will RUN big time from here. It takes a while for small investors, traders to jump in early, they usually like to chase the price.
280E cost cannabis companies a tax liabilities of up to 70% of their income!!!
How Section 280E is hindering the cannabis industry
Feb 03, 2021
Cannabis
Following the November 2020 elections, 15 states and Washington DC have legalized adult use of recreational marijuana. Beyond that, a continuously growing number of states allow their residents to purchase legal medicinal marijuana, and many have also decriminalized adult recreational marijuana use. However, marijuana remains a Schedule I substance to the Controlled Substances Act and is therefore illegal on all accounts at the U.S. federal level; thus, creating a number of issues for businesses in the cannabis industry duly operating in states where marijuana has been legalized. Not only is it difficult for cannabis companies to avail themselves of alternative banking solutions, but there are also obstacles in place preventing these companies from taking advantage of notable tax deductions.
Chief among these hurdles is Internal Revenue Code (IRC) Section 280E
What is Section 280E?
Section 280E is only a few lines, but carries significant impact for the cannabis industry. The law reads as such:
“No deduction or credit shall be allowed for any amount paid or incurred during the taxable year in carrying on any trade or business if such trade or business (or the activities which comprise such trade or business) consists of trafficking in controlled substances (within the meaning of schedule I or II of the Controlled Substances Act) which is prohibited by Federal law or the law of any State in which such trade or business is conducted.”
More simply, the law denies cannabis businesses any U.S. federal income tax deduction for ordinary and necessary business expenses, despite being duly licensed as a legal business in their state of operation. U.S. Congress enacted the law in the 1980s following a court case which disallowed a convicted cocaine trafficker from claiming deductions from ordinary business expenses under federal tax law. While the law intends to target illegal drug dealers, it simultaneously generates considerable problems for cannabis companies legally operating in their respective states because marijuana is a Schedule I substance.
What is a Schedule I controlled substance?
In 1970, President Richard Nixon signed the Controlled Substances Act (CSA). The CSA is part of the Comprehensive Drug Abuse Prevention and Control Act, a federal drug policy to regulate the manufacturing, importation, possession, use and distribution of certain narcotics, stimulants, depressants, hallucinogens, anabolic steroids and other chemicals. Under the CSA, there are five schedules at the federal level used to classify drugs based on their abuse potential, accepted medical applications in the U.S., and safety and potential for addiction.
The DEA defines Schedule I drugs, substances or chemicals as those drugs with “no currently accepted medical use and a high potential for abuse.” Examples of Schedule I drugs include:
Heroin
LSD
Marijuana
Ecstasy
Methaqualone
Peyote
How does Section 280E affect legal cannabis businesses?
Typically, the ability to deduct ordinary business expenses means that a business is subject to federal tax on its net income (i.e., gross receipts minus expenses). However, the definition of Section 280E and the classification of cannabis as a Schedule I substance severely hinder legal cannabis companies from taking advantage of tax deductions for actual economic expenses incurred in the ordinary course of business, which results in a significantly higher effective tax rate as compared to other businesses. In fact, businesses within the cannabis industry are left with tax liabilities of up to 70% of their income. Section 280E has increased scrutiny on the most common business expenses, including:
Employee salaries
Utility costs such as electricity, internet and telephone service
Health insurance premiums
Marketing and advertising costs
Repairs and maintenance
Rental fees for facilities
Payments to contractors
Importantly, Section280E affects all state-legal businesses that engage in the cultivation, sale or processing of the cannabis plant. For example, cultivators, medical dispensaries, marijuana retail stores and infused product manufacturers, as well as concentrates and cannabis oil manufacturers, all feel the economic effects of Section 280E on their businesses.
What are the exceptions to Section 280E?
While Section 280E greatly restricts the tax deductions of state-legal cannabis businesses, there is still a small bit of reprieve. Current IRC provisions permit state-legal cannabis businesses, such as marijuana growers, producers, wholesalers or retailers, to deduct the Cost of Goods Sold (COGS) in computing their US federal income tax liability, despite the application of Section 280E. This was upheld through Olive, 139 T.C. 19 (2012) as well as through Chief Counsel Advice (CCA). COGS generally entails inventory costs, including the cost of the product itself, shipping the product and certain other directly related expenses, depending on whether the cannabis business constitutes production or resale. Currently, the IRS does not allow any other amount as a deduction or credit for amounts paid or incurred with respect to cannabis business operations.
Have there been any recent legal challenges to Section 280E?
More than half of the states in the U.S. legally allow some form of marijuana sale or consumption, whether that be medicinal or both medicinal and recreational. As such, there is a considerable amount of legal businesses dealing with the excessive tax burden of Section 280E. In response, companies are turning to the courts to challenge the status quo.
Alpenglow Botanicals and the U.S. Supreme Court
Alpenglow Botanicals LLC is a medical marijuana dispensary in Colorado – a state where medical and recreational marijuana is legal. The business elected to deduct ordinary business expenses beyond COGS on their federal tax returns. However, following an audit of Alpenglow’s tax returns between 2010 and 2012, the IRS denied the deductions and charged the company over $50,000 for those taxes not paid. Alpenglow argued that the IRS exceeded its authority because rejecting the deductions due to Section 280E regulations implicitly determined that Alpenglow trafficked in an illegal drug, despite the fact that that marijuana is legal both recreationally and medicinally in Colorado.
Subsequently, the taxpayer sued for a refund in district court and lost. Then in 2018, the Tenth Circuit sided with the IRS. Alpenglow did not give up. They pushed the case all the way to the highest court in the land, the United States Supreme Court, with a February 2019 Petition for Writ of Certiorari.
However, the U.S. Supreme Court issued a denial of certiorari, declining to hear the case. The Supreme Court offered no explanation for denial, which to some signaled that the Court agreed with the Tenth Circuit judgment that the IRS was simply enforcing existing law.
As such, Section 280E remains a thorn in the side of cannabis-related businesses.
https://www.bakertilly.com/insights/how-section-280e-is-hindering-the-cannabis-industry
How cannabis rescheduling could create new opportunities for banking
Stephanie PriceBYSTEPHANIE PRICE
SEPTEMBER 4, 2023
IN BUSINESS OF CANNABIS NORTH AMERICA, REGULATION
How cannabis rescheduling could create new opportunities for banking
Last week, the U.S Department of Health and Human Services (HHS) urged the Drug Enforcement Administration (DEA) to reclassify cannabis from Schedule I to Schedule III under federal law.
If rescheduled, cannabis would still be federally prohibited. However, it would allow for more scientific research as it would remove strict DEA processes for studies.
Additionally, it allow federal tax deduction for the cannabis industry and potentially support efforts for cannabis banking legislation, in particular, create new opportunities for banking and financial service providers, says Robert Mann, Co-Founder & CEO of StandardC.
FinCEN and IRS Regulations could be impacted, Mann notes, it could improve the financial viability of the licensed cannabis industry in a number of key areas.
For example, Mann highlights that, with the elimination of IRS 280E, cannabis companies may be able to deduct standard business expenses in Federal tax filings, and, eliminating prohibitions from investing in Schedule-I-related companies would allow significant new investment from private equity and venture capital.
Lenders will be able to perfect a security interest in licensed cannabis business collateral and licensed cannabis businesses would have bankruptcy protection.
Addtionally, developing therapeutic drugs would be vastly simplified, opening up new funding opportunities for cannabis-related drug development and research.
Richard Laiderman, former head of global treasury for VISA and Co-Founder and chair of StandardC, stated: “Rescheduling cannabis to Schedule III may allow dispensaries to accept credit card payments. Credit card payments may supplant cash transactions if this occurs, reducing the risks and costs associated with cash-only operations.”
Cannabis banking expert, Robert Baron, added: “While changes will inevitably occur, financial institutions looking to serve this market segment must implement risk management tools to evaluate and monitor cannabis businesses.”
Cannabis stocks rally amid report Biden supports legalization for medical use
Sep. 05, 2023 4:23 PM ETCuraleaf Holdings, Inc. (CURLF), TCNNF, CRLBFMJNA, CGC, GTBIF, CCHWF, JUSHF, AYRWF, VRNOF, LFLYBy: Val Brickates Kennedy, SA News Editor28 Comments
cannabis legalization in the united states of america.
Curaleaf, Trulieve, Cresco and several other cannabis stocks rallied Tuesday amid a report that President Biden supports legalizing marijuana for medical purposes.
Stocks seeing double-digit gains included Curaleaf (OTCPK:CURLF), Canopy Growth (CGC), Medical Marijuana (OTCPK:MJNA), Leafly (LFLY), Cresco Labs (OTCQX:CRLBF), Trulieve Cannabis (OTCQX:TCNNF), Columbia Care (OTCQX:CCHWF), Verano (OTCQX:VRNOF), Jushi (OTCQX:JUSHF), Ayr Wellness (OTCQX:AYRWF) and Green Thumb (OTCQX:GTBIF).
Cannabis ETFs also climbed, including AdvisorShares Pure Cannabis ETF (YOLO), Amplify Seymour Cannabis ETF (CNBS), ETFMG Alternative Harvest ETF (MJ), AdvisorShares Pure US Cannabis ETF (MSOS), and Global X Cannabis ETF (POTX).
Earlier Tuesday, cannabis news outlet Marijuana Moment reported that White House Press Secretary Karine Jean-Pierre said during a briefing on Friday that Biden has “always” supported the legalization of cannabis for medical purposes.
Jean-Pierre reportedly made the comment in response to a question about reports that the DEA may reclassify cannabis as a Schedule III substance. Cannabis is currently classified as a Schedule I substance, the DEA's highest risk category.
Cannabis stocks have been on a roll since last week when Bloomberg reported that the US government was moving to have the drug reclassified as a Schedule III substance.
Schedule I drugs are considered to have a high potential for abuse with no currently accepted medical use. The category includes drugs such as heroin and LSD. Schedule III drugs are defined as having low risk for psychological or physical dependence. Schedule III drugs include Tylenol with codeine, ketamine and anabolic steroids, according to the DEA’s website.
Why Marijuana Stocks Keep Growing Higher Tuesday
By Rich Smith – Sep 5, 2023 at 1:55PM
KEY POINTS
Last month, the Department of Health and Human Services suggested easing regulations on marijuana use.
The Drug Enforcement Agency has final say on that -- but its boss, President Joe Biden, now says he supports medical marijuana legalization.
President Biden's flip from marijuana legalization foe to marijuana legalization advocate has ignited a rally in cannabis stocks.
Marijuana stocks are lighting up on positive news from the White House.
What happened
It's the Tuesday after the holiday weekend, and shares of marijuana stocks seem to have benefited greatly from the rest. Across the board, shares of cannabis companies are shooting higher. Tilray Brands (TLRY 3.34%) is tacking on a solid 4.5% gain as of 12:45 p.m. ET, and Aurora Cannabis (ACB 2.78%) is up 6.8%, while Curaleaf Holdings (CURLF 14.58%) gains 14.1%, Green Thumb Industries (GTBIF 13.58%) gains 14.6%, and industry bellwether Canopy Growth (CGC 24.33%) is doing best of all -- up a powerful 27.6%.
And they all have President Joe Biden to thank for it.
As you've probably heard by now, late last month the U.S. Department of Health and Human Services (HSS) recommended to the U.S. Drug Enforcement Agency (DEA) that the latter downgrade marijuana from a Schedule I controlled substance to just a Schedule III controlled substance -- something that investors have waited nearly a year to see. But in fact, the news got even better over the weekend.
During the 2020 presidential campaign, then-VP hopeful Kamala Harris promised that the Biden administration, if elected, would "decriminalize marijuana, and we will expunge the records of those who have been convicted of marijuana." But then, it didn't actually do that.
In a disheartening development for marijuana investors, then-White House Press Secretary Jen Psaki later clarified that the president did not, in fact, back efforts in Congress to legalize marijuana at all.
But this changed over the holiday weekend.
As cannabis news source Marijuana Moment reported on Monday, new White House Press Secretary Karine Jean-Pierre now says that, in fact, President Biden has "always supported the legalization of marijuana for medical purposes" (emphases added). And with this statement now in hand, it seems more likely than ever that the DEA will go along with administration policy and downgrade marijuana to a Schedule III controlled substance. In turn, this designation that would facilitate medical research on the drug, and presumably make it more likely that medical marijuana (at least) will now become legal at the federal level.
Now what
Admittedly, this is still a step short of the full-scale marijuana legalization that investors have been looking forward to since 2020. But it's a step toward that goal. It's also worth pointing out that this is how legalization has tended to work at the state level, with state governments first testing the waters by legalizing medical pot, and then, when the world doesn't end, proceeding to full-scale legalization next.
Investors in marijuana stocks may therefore be correctly interpreting this week's news when they assume that, while it may take some time, marijuana is now on a confirmed path toward legalization.
Granted, it still remains to be seen if legalizing marijuana (whether medical or otherwise) will translate into profits for marijuana stocks. Financial data from S&P Global Market Intelligence suggest that this may be easier said than done. Canopy Growth, Aurora Cannabis, Tilray, and Curaleaf, for example, have all remained decidedly unprofitable for years, despite marijuana having been legalized in Canada already. On the other hand, Green Thumb Industries does seem to have figured out the trick of eking out (very small) profits from the U.S. cannabis trade.
https://www.fool.com/investing/2023/09/05/why-marijuana-stocks-keep-growing-higher-tuesday/
Some people likes us, 35 Million on BID LOL
What a sad group of investors, so many long faces it's too funny! Sector is up 100% in few days, easiest money every made!!!
Cannabis Industry Enjoys a Rare Moment of Progress
By Jonathan Roeder
September 5, 2023 at 7:00 AM EDT
You're reading The Dose newsletter.
This week, we’re looking at the implications of last week’s news that the US Department of Health and Human Services is recommending looser restrictions for cannabis.
Long-delayed step
It’s not very often that Trump supporter and Republican Representative Matt Gaetz and Democratic Senate Majority Leader Chuck Schumer are on the same page. But that’s where we found ourselves last week after the Department of Health and Human Services recommended the Drug Enforcement Administration loosen restrictions on cannabis.
Gaetz, the right-wing GOP congressman from Florida, said the moment was “historic” and linked to his recent question-and-answer session with DEA Administrator Anne Milgram in which he pushed her for a timeline on a cannabis decision. At about the same time, New York’s Schumer called HHS’s move “the right thing” and pledged to work in Congress to pass “important marijuana legislation and criminal justice reform.”
See also: Health Department Recommends Moving Pot to Schedule III
The convergence of these two political opposites underscores just how untenable the federal prohibition on cannabis has become. States with populations totaling more than 160 million currently allow both recreational and medical access for adults, while many more states allow medical sales. The number of states where marijuana is illegal on the local level is steadily dwindling.
“It’s very clear that Americans are ready for this, and it’s time for our political leaders to catch up,” Boris Jordan, executive chairman of cannabis dispensary chain Curaleaf, said shortly after the news broke.
It’s becoming increasingly urgent for US policymakers: Illicit competitors have taken advantage of the gray area between federal and state rules to undercut licensed companies, which are also suffering from high taxes and scant access to financing.
“The regulated cannabis industry in the US is hurting due to lack of capital, uniquely burdensome taxes and nearly unfettered competition from unlicensed operators,” said Adam Goers, co-chair of the Coalition for Cannabis Scheduling Reform. “Moving down to Schedule III will provide a massive boost to our industry, particularly social equity and small business owners who have suffered the most under the status quo.”
It would also change how cannabis businesses are taxed, according to Kim Rivers, chief executive officer of Trulieve, a cannabis company with 186 US retail locations and 4 million square feet of cultivation and production facilities. She said that such a change would have saved the company $137 million last year, reducing its tax rate from 24% of gross profit to 4%.
It’s “a historic step forward,” Rivers said.
Zachary Kobrin, an attorney who specializes in cannabis at Akerman, agreed that moving cannabis to Schedule III would bolster companies’ results. He referred to the federal tax code known as section 280E, which prevents companies that sell an illegal substance from taking tax deductions, as “one of the most negatively impactful policies” on the industry.
“Cannabis companies currently have effective tax rates as high as 70% to 90%,” Kobrin said in an email. Rescheduling grants “massive tax savings and allows cannabis operators to run their business like every other business when it comes to tax planning and saving.” It would also likely open the industry up to capital markets and US stock exchanges, he added, while opening up access to FDA research grants that would make clinical studies of marijuana more accessible.
Kobrin said the DEA review process, which will be broader than the one carried out by HSS, could take six to twelve months — or longer.
Nonetheless, it indicates that President Joe Biden is looking to address the issue in time for elections, said Jon Purow, a partner at Greenspoon Marder who specializes in the cannabis industry.
“This is a half measure that looks good for political purposes and could be implemented in time for the presidential election next year,” he said. He predicted the DEA would likely agree with HHS’s decision as it is currently more focused on drugs seen as higher priority such as fentanyl and methamphetamines.
While the industry’s optimism was tempered with caution, there was a broad sense that the recommendation marked an important shift for the industry.
“This major step will help break down barriers for normalization, access, equity and research in the months and years to come,” Goers said.
Cannabis Sector ON FIRE Again, up over 20%!!
PVSP will start running very, very soon as the BIG Caps in Cannabis are up over 100% in a few days since Rescheduling News.
Federal Marijuana Rescheduling Is Just A ‘Step’ On The Path To Legalization, Congressional Lawmakers Say
Published 2 days ago on September 1, 2023By Kyle Jaeger
Congressional lawmakers might be encouraged by news that the top U.S. health agency is recommending marijuana rescheduling—but some like Sens. Elizabeth Warren (D-MA) and John Hickenlooper (D-CO) are also stressing that this is just a “step” in the right direction as they pursue legalization.
Scores of legislators, including Republican members, have applauded the U.S. Department of Health and Human Services (HHS) for advising the Drug Enforcement Administration (DEA) to move cannabis from Schedule I to Schedule III of the Controlled Substances Act (CSA). And some have even claimed credit for the move, pointing to their years of advocacy around marijuana reform.
But while there’s largely consensus around the idea that cannabis does not belong in Schedule I alongside drugs like heroin, marijuana would still remain generally prohibited under federal law as a Schedule III substance. It would remove research barriers and allow state-licensed cannabis businesses to make federal tax deductions, among other political implications. But advocates, as well as key lawmakers, don’t view rescheduling as the end goal.
“I’ve long urged federal action to begin repairing the harms from unjust drug laws & build a more equitable cannabis industry,” Warren said on Friday. “This move by [HHS] is an important step, and we must do more to end the federal government’s harmful criminalization of cannabis.”
Hickenlooper, who represents one of the first states to enact adult-use legalization, also said that the rescheduling recommendation is “definitely a step in the right direction.” However, “if we truly want to regulate marijuana while prioritizing social equity, descheduling it is the only option.”
Sen. Jacky Rosen (D-NV) said HHS’s cannabis recommendation to DEA, which was based on an 11-month scientific review that was carried out under a directive from President Joe Biden, is “another important step towards rescheduling cannabis.”
In Nevada, “we’ve seen the positive impacts of regulating cannabis since 2017,” the senator said. “I’ll keep working in the Senate to make sure we act on commonsense cannabis reform.”
Rep. Dina Titus (D-NV) also called the rescheduling recommendation “a step in the right direction.”
“As a member of the Cannabis Caucus, I know that Nevada has shown regulating marijuana like alcohol works, and that’s where we should be headed at the federal level,” she said.
State officials like California’s top marijuana regulator have also weighed in on the potential loosening of federal cannabis restrictions.
“HHS’s recommendation follows the science and comes to the same conclusion California reached decades ago: cannabis has medical value,” California Department of Cannabis Control (DCC) Director Nicole Elliot said in a statement to Marijuana Moment on Wednesday.
“This recommendation is important—it’s the most progress made to date in modernizing federal laws related to cannabis, and it’s a symbol of more progress to come,” she said. “As this process remains underway, we will continue our work building a legal market that best serves California, and eventually the nation.”
HHS Secretary Xavier Becerra confirmed the news that his agency had sent its cannabis rescheduling recommendation to DEA in a post at exactly 4:20 PM ET on Wednesday—one of the latest examples of the Biden cabinet official sharing marijuana news at the symbolic time.
“I can now share that, following the data and science, [HHS] has responded to [Biden’s] directive to me for the Department to provide a scheduling recommendation for marijuana to the DEA,” Becerra, who told Marijuana Moment in June that his agency planned to complete its work this year, said in the post. “We’ve worked to ensure that a scientific evaluation be completed and shared expeditiously.”
Marijuana Moment is tracking more than 1,000 cannabis, psychedelics and drug policy bills in state legislatures and Congress this year. Patreon supporters pledging at least $25/month get access to our interactive maps, charts and hearing calendar so they don’t miss any developments.
While there’s significant excitement about the development, nothing is final about the scheduling decision. DEA said it “will now initiate its review” taking into account FDA’s findings, but it makes the final call and isn’t required to follow through on a Schedule III reclassification.
A White House spokesperson told Marijuana Moment on Wednesday that the “administrative process is an independent process led by HHS and DOJ and guided by the evidence,” so president’s team will not be commenting on the agency’s recommendation at this time.
Politically, moving marijuana from Schedule I to Schedule III would allow the president to say that he’s helped accomplish a major reform, facilitating an administrative review that may result in rescheduling more than 50 years after cannabis was placed in the most restrictive category as the federal government launched a war on drugs.
This could also bolster momentum for congressional efforts to further reform federal cannabis laws, like a marijuana banking reform bill that Senate Majority Leader Chuck Schumer (D-NY) listed among his legislative priorities for the remainder of the year in a Dear Colleague letter on Friday.
While there’s excitement among advocates about the prospect of rescheduling, some have also voiced concerns that a Schedule III reclassification could negatively impact state markets, with FDA potentially assuming a more hands-on role with respect to cannabis. But others insist that the agency will maintain its hands-off approach to the industry.
Meanwhile, last week, Rep. Matt Gaetz (R-FL) pressed DEA Administrator Anne Milgram to expand on her recent remarks about the origin and timeline of the president’s marijuana scheduling review directive. Specifically, he’s asking for a copy of a letter that Milgram said the president sent to the attorney general and HHS secretary last year directing the review. He also wants an update on whether the administrator asked HHS about the timetable for their work, as she told him she’d do during a recent House Judiciary subcommittee hearing.
Moving Cannabis To Schedule III Would Be A Game-Changing Win
Moving Cannabis To Schedule III Would Be A Game-Changing Win For Common Sense (Op-Ed)Published 3 hours ago on September 3, 2023By Marijuana Moment
“By aligning the legal status of cannabis with both scientific consensus and practical fiscal policy, we can create a more effective business environment for this emerging industry.”
By Ari Hoffnung, Bridge West Consulting
It is exciting to consider the possibility that the Drug Enforcement Administration (DEA) may follow the U.S. Department of Health and Human Services’s (HHS) recommendation to reclassify cannabis from a Schedule I to a Schedule III controlled substance. This would overturn a deeply flawed policy from the era of the Nixon administration, a policy that has been in place for more than 50 years.
From a scientific standpoint, this reclassification is not just appropriate but also overdue. Grouping cannabis with substances like heroin (Schedule I) or OxyContin (Schedule II) doesn’t align with the prevailing scientific consensus on its relative harm.
The fiscal ramifications of such a shift are equally compelling. A move to Schedule III or lower would liberate the cannabis industry from the punitive taxation imposed by Internal Revenue Service (IRS) Code Section 280E, which currently applies only to Schedules I and II substances.
Taxing cannabis businesses in the same manner as other businesses would help boost the entire legal cannabis industry, from large, publicly traded multi-state operators to local dispensaries.
Among all stakeholders, consumers would be the most significant winners. A reclassification would likely make legal cannabis products more price-competitive, shrinking the cost disparity between regulated and unregulated markets.
This would also have a positive impact on state and local tax revenue collections. Many states—even those with more mature cannabis markets like California—have seen significant declines in tax revenue collections. This decline is partly due to the proliferation of illicit dispensaries, now as ubiquitous in places like New York City as Starbucks or Dunkin’ Donuts.
Moving cannabis to Schedule III could mark the beginning of the end for these illicit operations. Let’s be clear, their primary edge isn’t superior product or service but their ability to evade high taxes. While calls for increased investment in enforcement are understandable, a fairer taxation system would certainly offer a more effective and sustainable solution.
Moreover, the reclassification of cannabis could have long-term benefits that extend beyond immediate fiscal and consumer advantages. For instance, moving cannabis to Schedule III could pave the way for more comprehensive and federally funded research into its medical benefits. Currently, the Schedule I status of cannabis severely hinders research in the United States, limiting our understanding of its potential benefits and risks.
It should also be noted that administrative descheduling of cannabis was never a possibility, since the Controlled Substances Act of 1970 (CSA) requires that all drugs with abuse potential be placed on one of five schedules. While cannabis has a low abuse potential, no reasonable scientist would argue that it has no abuse potential.
The reason that alcohol and tobacco—both substances with abuse potential—are not considered controlled substances is that Congress specifically exempted “distilled spirits, wine, malt beverages or tobacco” from the CSA. In other words, while it may make policy sense to treat cannabis in the same manner as alcohol and tobacco, doing so would require congressional legislation.
In conclusion, reclassifying cannabis as a Schedule III substance would be a win for businesses, consumers and common sense. By aligning the legal status of cannabis with both scientific consensus and practical fiscal policy, we can create a more effective business environment for this emerging industry. This could be a pivotal moment in drug policy, an opportunity for federal regulators to finally right some of the historical wrongs and set the stage for a more equitable future.
Artizen has had recorded revenue of what $90 Million plus ?
Refiling those taxes without the 280E rules will most likely result in millions in Federal Tax refunds.
IMO the spin off is not going to happen, makes no sense really.
Too much new regulation coming, Safe Banking, possible Federal decriminalization etc.
1st ever Artizen Oregon Harvest TODAY!
Pervasip Corp
@PervasipC
$PVSP 1st ever Artizen Oregon harvest this Friday! Perfect Fall start, with gorgeous flower, and a happy crew. It takes about 3 - 4 harvests to dial in a new cultivation center and the team in Ashland is already ahead of schedule!
'Rescheduling Is Not Enough,' Advocates Say of HHS Cannabis Recommendation
"The goal of any federal cannabis policy reform ought to be to address the existing, untenable chasm between federal marijuana policy and the cannabis laws of the majority of U.S. states," said NORML's deputy director.
JESSICA CORBETT
Aug 30, 2023
13
Cannabis reform advocates and industry representatives on Wednesday renewed demands for legalizing marijuana at the federal level as U.S. Health and Human Services Secretary Xavier Becerra confirmed his department's rescheduling recommendation.
Marijuana is currently a Schedule I drug—the most restricted category under the Controlled Substance Act (CSA)—but President Joe Biden ordered Becerra and Attorney General Merrick Garland to initiate a review last October, when he issued a mass pardon for simple federal cannabis possession.
Bloomberg initially reported Wednesday that a Department of Health and Human Services (HHS) official on Tuesday wrote to Drug Enforcement Administration (DEA) chief Anne Milgram to recommend reclassifying cannabis Schedule III, a development Becerra confirmed on social media at 4:20 pm ET.
"Following the data and science, HHS has expeditiously responded to President Biden's directive to HHS Secretary Becerra and provided its scheduling recommendation for marijuana to the DEA on August 29, 2023," an HHS spokesperson toldMarijuana Moment. "This administrative process was completed in less than 11 months, reflecting this department's collaboration and leadership to ensure that a comprehensive scientific evaluation be completed and shared expeditiously."
A DEA spokesperson confirmed to the outlet that it received the HHS letter and said: "DEA has the final authority to schedule or reschedule a drug under the Controlled Substances Act. DEA will now initiate its review."
Asked about Bloomberg's reporting on Wednesday, White House Press Secretary Karine Jean-Pierre stressed to reporters that Biden requested the scheduling review, "it's going to be an independent process," and "it's going to be guided by evidence." She declined to comment regarding Biden's position on decriminalization.
NORML declared in an email that "rescheduling is not enough," and in response to the letter, deputy director Paul Armentano said that "it will be very interesting to see how DEA responds to this recommendation, given the agency's historic opposition to any potential change in cannabis' categorization under federal law. Further, for decades, the agency has utilized its own five-factor criteria for assessing cannabis' placement in the CSA—criteria that as recently as 2016, the agency claimed that cannabis failed to meet. Since the agency has final say over any rescheduling decision, it is safe to say that this process still remains far from over."
Armentano argued that "the goal of any federal cannabis policy reform ought to be to address the existing, untenable chasm between federal marijuana policy and the cannabis laws of the majority of U.S. states," and rescheduling "fails to adequately address this conflict."
"Just as it is intellectually dishonest to categorize cannabis in the same placement as heroin, it is equally disingenuous to treat cannabis in the same manner as anabolic steroids," he added. "The majority of Americans believe that cannabis ought to be legal and that its hazards to health are less significant than those associated with federally descheduled substances like alcohol and tobacco. Like those latter substances, we have long argued the cannabis plant should be removed from the Controlled Substances Act altogether, thereby proving state governments—rather than the federal government—the ability to regulate marijuana in the manner they see fit without violating federal law."
Majority Leader Schumer Statement on HSS Cannabis Reschedule
08.30.2023
Majority Leader Schumer Statement On The Biden Administration Recommendation To Reschedule Cannabis
New York, N.Y. – Senate Majority Leader Chuck Schumer (D-NY) today released the following statement on the Department of Health and Human Services (HHS) recommendation to the Drug Enforcement Agency (DEA) to move marijuana from a Schedule I to a Schedule III controlled substance:
“HHS has done the right thing and DEA should now quickly follow through on this important step to greatly reduce the harm caused by draconian marijuana laws. While this is a step forward, there is still much more that needs to be done legislatively to end the federal prohibition on cannabis and roll back the War on Drugs. I am committed to continuing to work in Congress to pass important marijuana legislation and criminal justice reform.”
Cannabis Tax Changes Could Trigger 504% Cash Flow Leap
Which Industry Players Will Benefit?
by
Nicolás Jose Rodriguez, Benzinga Staff Writer
August 31, 2023 4:34 PM | 2 min read
The Department of Health and Human Services' recommendation to reclassify marijuana as a Schedule III drug under the Controlled Substances Act set off ripples across the cannabis market.
One day following Wednesday's news, MSOS ETF
MSOS
surged by 21%. Notable companies also experienced remarkable gains, with State House Holdings Inc.
STHZF
skyrocketing by 74%, Columbia Care
CCHWF
witnessing a 38% boost, Jushi
JUSH
rising by 32%, and Ayr Wellness
AYRWF
showing a 29% increase.
This proposal holds crucial implications for taxation and cannabis businesses, particularly regarding Section 280E.
According to analysis firm Zuanic & Associates (Z&A) the removal of 280E, irrespective of federal legalization, stands to significantly bolster company cash flows.
Cannabis Companies Primed For Cash Flow Surge
Pablo Zuanic, chief analyst at Z&A noted that current calculations show companies with positive operating cash flow and profit before tax could reduce their income tax rates to 70% of PBT, as opposed to the standard 21% rate sans 280E.
Is federal pot legalization on the horizon?
Senate Majority Leader Chuck Schumer, D-New York, said while this is an important step forward for the industry, the end goal is ending federal prohibition.
“HHS has done the right thing and DEA should now quickly follow through on this important step to greatly reduce the harm caused by draconian marijuana laws,” Schumer said in a statement Thursday. ”There is still much more that needs to be done legislatively to end the federal prohibition on cannabis and roll back the War on Drugs.”
Industry executives echoed Schumer’s feelings.
“Federal cannabis reform is long overdue, and today’s news brings us closer to the Biden administration declaring an end to the U.S. government’s failed war on cannabis,” said David Goubert, CEO of multi-state dispensary operator Ayr Wellness.
U.S. health officials want to loosen marijuana restrictions. Here’s what it means
PUBLISHED THU, AUG 31 20233:50 PM EDTUPDATED AN HOUR AGO
Stefan Sykes
@THESTEFANSYKES
KEY POINTS
The Biden administration wants to reconsider how marijuana is treated at the federal level.
This marks the first time that a federal agency has acknowledged rescheduling marijuana to a lower level.
If approved, the move will have wide-reaching implications for the marijuana sector in the areas of taxation, interstate commerce and research.
In this article
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A worker sets up Florist Farms cannabis products on the first day of legal recreational marijuana sales at the Housing Works Cannabis Co. in New York, on Thursday, Dec. 29, 2022.
This week, the Department of Health and Human Services asked the Drug Enforcement Agency to consider easing restrictions on marijuana upon a review of its classification under the Controlled Substances Act.
It could be a significant catalyst for an industry hemmed in by federal regulations even as legalization picks up on the state level.
Marijuana stocks were higher Wednesday on the news. Aurora Cannabis
, Canopy Growth
and Tilray Brands
were among those to see jumps. They all jumped again Thursday.
Since the 1970s, marijuana has been listed alongside heroin and LSD as Schedule I drugs, or substances that authorities say have no accepted medical use and a high potential for abuse. Today, marijuana has remained in this category – ranking higher than fentanyl, cocaine and methamphetamine – despite there being favorable momentum for pot in scientific research and state laws.
The DEA will consider moving marijuana down to a Schedule III drug, alongside ketamine, anabolic steroids and testosterone as a substance that has moderate to low potential for physical or psychological dependence. The recommendation, however, will not de-schedule marijuana.
Cultivation, production and sales would still be in violation of federal law. Marijuana is legal in 39 states medically and 23 states recreationally.
What’s next for marijuana policy?
As part of the recommendation process, HHS conducted a scientific and medical evaluation that will help authorities come to a final decision on the matter.
A decision is likely to come before the 2024 presidential election, Roth MKM analyst Scott Fortune wrote in a Thursday note to clients.
“Historically, the DEA has never gone against a scheduling recommendation from the HHS,” Fortune added.
The DEA will consider marijuana’s reclassification under three criteria: Its potential for abuse, its potential for medical use, and the extent to which its unsafe or addictive.
Regulators have previously used the second criterion to uphold marijuana’s Schedule I classification, but doing so now may prove difficult, said Fortune, with medical marijuana programs existing in nearly 40 states across the nation.
Once the DEA comes to it decision, it will submit its own recommendation in the form of a proposal to the attorney general, who will then make his final ruling.
What does it mean for the weed industry?
If marijuana moves down to a Schedule III substance, this will effectively ease a number of restrictions holding the sector back.
The biggest boon will come in the form of new tax opportunities. Currently, enterprises dealing in Schedule I substances aren’t allowed to write expenses off their federal tax returns under an Internal Revenue Service code known as 280E.
This has been a hindrance for many cultivators, processors and retailers struggling to remain profitable as the industry sees a slowdown in sales.
“The removal of 280E will have a widespread material impact on the financial performance of every company in the industry, large and small, public and private,” said Jeff Schultz, a marijuana attorney at Foley Hoag.
Green Thumb Industries CEO talks HHS official's call to reclassify marijuana as low riskWATCH NOW
VIDEO03:27
Green Thumb Industries CEO talks HHS official’s call to reclassify marijuana as low risk
What’s more, the potential rescheduling will allow for interstate commerce. While many states have legal markets within their borders, transporting Schedule I substances across state lines in illegal, resulting in a glut of marijuana in some states.
The move will furthermore expand potential for research in the sector, entice investors back amid a capital crunch, and possibly return value to publicly traded marijuana stocks.
The rescheduling, however, will not free up banking services for the industry, which has been kept out of traditional banking and loans due to marijuana’s federal standing. Schedule III drugs still present a risk for banking institutions so long as federal laws remain unchanged.
A bill called the Secure and Fair Enforcement Banking Act, or SAFE, will remove this burden and is making its way through Congress.
Is federal pot legalization on the horizon?
Senate Majority Leader Chuck Schumer, D-New York, said while this is an important step forward for the industry, the end goal is ending federal prohibition.
“HHS has done the right thing and DEA should now quickly follow through on this important step to greatly reduce the harm caused by draconian marijuana laws,” Schumer said in a statement Thursday. ”There is still much more that needs to be done legislatively to end the federal prohibition on cannabis and roll back the War on Drugs.”
Industry executives echoed Schumer’s feelings.
“Federal cannabis reform is long overdue, and today’s news brings us closer to the Biden administration declaring an end to the U.S. government’s failed war on cannabis,” said David Goubert, CEO of multi-state dispensary operator Ayr Wellness.
Perfect time to Spin Off Artizen as Sector get HOT!!!
3 different Billion dollar cannabis companies are up 33 to 38% Today alone, and up 28% yesterday!!!
To move Billion dollar companies like they were penny stocks is just remarkable and show how much these companies have been beaten down over the past 2 years. Most Cannabis index are down 76% or more and PVSP is down even more than that, but it can and IMO will run very soon.
A Company that generates over $15 Million in revenue with 40% margins cannot have a market cap of less than $2m over time. Large part of this is the PINK sheets which no institutionl investors trade and no analysis coverage is provided. Get the spin off done and get us uplisted off the PINK and watch us run.
280E Tax Code cost industry $65.3 billion past 10 years
Marijuana industry overpaid $1.8 billion in federal taxes in 2022, analysis shows
By MJBizDaily Staff
May 8, 2023 - Updated May 8, 2023
Marijuana companies paid more than $1.8 billion in federal taxes in 2022 compared to non-cannabis businesses as a result of U.S. tax treatment of the MJ sector, according to an analysis by industry research firm Whitney Economics.
“This excess is forecasted to increase to $2.1 billion in 2023,” Portland, Oregon-based Whitney noted in a news release.
The excess payments are the result of Section 280E of the federal Internal Revenue Code, a longtime thorn in the side of U.S. marijuana businesses that are legal under state law.
Section 280E prevents companies considered traffickers of Schedule 1 and Schedule 2 controlled substances from deducting business expenses in the same way as other businesses.
That effectively results “in federal income tax liability calculated based on gross income, not net income,” Whitney explained.
Between 2020 and 2030, U.S. marijuana industry taxes paid will equal roughly $65.3 billion including the impact of 280E, according to information provided to MJBizDaily by the research company’s chief economist, Beau Whitney.
The forecast is based on a total revenue forecast of $720.2 billion earned by plant-touching cannabis business over that period.
If Section 280E were abolished, Whitney forecasts total taxes paid of roughly $30.1 billion over the same period, a difference of about $35.2 billion.
Cannabis Short Squeeze Epic another 36% today!!
Many of the Billion dollar large cap cannabis companies, are up over 60% in only a few hours trading past few days, unreal. Institutional money is flowing in, crushing Shortie, LOL.
PVSP will move eventually as it take longer for small retail investors to dip their feet in the water after being burned over the past few years.
Let's rock, as they like to say!!!
No Interstate restrictions, No 280E Tax rules that prevent tax write offs!!!!!
"Unlike Schedule I drugs, Schedule III drugs do not have interstate restrictions on them. Drugs with the classification are not subject to 280E tax rules that prevent any tax write-offs for typical business expenses."
This is HUGE for PVSP and Artizen especially as an MSO operating in Washington, Oregon, California and soon New York.
The elimination of 280E will make Artizen highly profitable as business expenses can now be deducted, this is HUGE.
‘Biggest thing, ever’: Marijuana rescheduling recommendation hailed
By Chris Roberts, Reporter
August 30, 2023 - Updated August 30, 2023
The disclosure Wednesday that top Biden administration health officials this week officially recommended marijuana be reclassified from a Schedule 1 substance to Schedule 3 – the same category as Tylenol with codeine – was hailed as the biggest development in MJ policy reform in more than 50 years.
Marijuana investors concurred, boosting stocks of major U.S. cannabis companies approximately 20%.
“It’s historic. It’s the biggest thing that’s happened in cannabis reform at the federal level, ever,” Shane Pennington, a partner at Washington DC-based law firm Porter Wright, told MJBizDaily in a phone interview.
While much more needs to happen before tangible effects are felt – including a separate U.S. Drug Enforcement Administration review and, possibly, a judicial review –the health officials’ statement that cannabis has medical value remains “a game changer,” Pennington noted.
“This is essential to ending the dumpster fire that is cannabis policy,” added Pennington, who has published extensively on federal marijuana law.
“It’s a huge deal. And it has an even broader effect.”
Rescheduling marijuana would dramatically reduce the steep federal taxes now paid by U.S. marijuana companies.
It also could spur more banks and financial institutions to offer traditional banking services to cannabis companies, reducing their long dependency on cash.
The letter Tuesday from Assistant Secretary for Health Rachel Levine, sent to DEA Administrator Anne Milgram – first reported by Bloomberg News – is the latest development in a first-of-its-kind process launched last October by President Joe Biden.
For more than 50 years, federal law has classified marijuana as a Schedule 1 controlled substance, officially designated as more harmful than fentanyl and methamphetamine and on the same level as heroine and LSD.
Schedule 1 cripples industry
Long dismissed as scientifically and medically unsound by a generation of experts, that classification has also stymied the state-legal marijuana industry, shutting off access to banks, blocking typical business deductions on tax returns and forbidding interstate commerce.
On Oct. 6, 2022, calling current federal drug laws a “failed approach,” Biden announced he would direct the attorney general and the secretary of the Department of Health and Human Services to “review expeditiously how marijuana is scheduled under federal law.”
Earlier in the summer, Health Secretary Xavier Becerra suggested that an HHS review could be completed by the end of the year.
Instead, “This administrative process was completed in less than 11 months, reflecting this department’s collaboration and leadership to ensure that a comprehensive scientific evaluation be completed and shared expeditiously,” an HHS spokesperson told MJBizDaily via email.
A DEA spokesperson confirmed receipt of the letter from the assistant secretary for health in a statement Wednesday:
“DEA has the final authority to schedule or reschedule a drug under the Controlled Substances Act. DEA will now initiate its review.”
The agency declined to comment further.
Neither agency provided a copy of the letter, which MJBizDaily requested via a Freedom of Information Act request.
DEA response before Election Day – or sooner?
There’s no hard and fast deadline for a DEA response, but most observers believe a recommendation is likely before the November 2024 presidential election.
However, the unprecedented speed with which the HHS completed its leg of the process suggests the DEA could issue a recommendation even sooner – which would then trigger a federal rulemaking process.
More federal reform would be required for marijuana companies to legally ship product between states or other countries.
But the cannabis industry was near ecstatic Wednesday, as the value of shares in major multistate operators such as Cresco Labs and Green Thumb Industries shot up by more than 20%.
The gains reflected the knowledge that the IRS’ punitive Section 280E, which prohibits marijuana companies from taking typical business deductions on their federal tax returns, would no longer apply – even as business leaders called for rescheduling to happen on an even more accelerated timeline.
“We hope that this recategorization occurs promptly,” said Boris Jordan, executive chair of New York-based MSO Curaleaf Holdings.
“It’s very clear that Americans are ready for this, and it’s time for our political leaders to catch up.”
The future of SAFE Banking
Wednesday’s revelation could also help break a logjam in Congress, where still-necessary reform measures such as federal legalization and banking protections remain in near-limbo.
“Ultimately, I believe that cannabis should be descheduled with strong federal regulations put in place to protect public health and safety,” said U.S. Sen. Ron Wyden, an Oregon Democrat and the lead sponsor of the SAFE Banking Act, which would forbid federal banking regulators from penalizing financial institutions that do business with state-legal marijuana operators.
Previous versions of SAFE Banking have passed the House of Representatives seven times only to be blocked in the Senate, though the bill did have an informational hearing in May.
Experts say SAFE Banking will still be necessary even if marijuana is rescheduled.
“However, the recommendation of HHS to reschedule cannabis as a Schedule III drug is not inconsequential,” Wyden added in his statement.
“If HHS’s recommendation is ultimately implemented, it will be a historic step for a nation whose cannabis policies have been out of touch with reality.”
Federal health agency recommends easing marijuana restrictions Landmark decision!
By David Ovalle and Laurie McGinley
Updated August 30, 2023 at 8:54 p.m. EDT|Published August 30, 2023 at 7:39 p.m. EDT
The nation’s top health agency is recommending easing restrictions on marijuana in what could portend a landmark shift in federal policy on cannabis.
The Department of Health and Human Services has recommended to the Drug Enforcement Administration that marijuana be reclassified as a lower-risk, Schedule III controlled substance, according to a person familiar with the recommendation who spoke on the condition of anonymity because they were not authorized to speak on the issue. Marijuana is currently a Schedule I controlled substance, deemed alongside heroin and LSD as having the potential for abuse and with little or no accepted medical use.
DEA, which said it has the final authority to classify a drug under federal law, confirmed it has received a recommendation from HHS and said it will now initiate its review, a process that could take months. If DEA follows the health agency’s recommendation, marijuana would be placed in the same category as anabolic steroids and ketamine, which can
Huge Tax Savings for Cannabis companies with rescheduling
Cannabis stocks jump as feds call for easing restrictions
By John Pletz
August 30, 2023 12:16 PM UPDATED 12 HOURS AGO
Cannabis stocks jumped on news that the federal government is moving closer to reclassifying marijuana, which would cut taxes on companies at a time when they desperately need the cash. Verano Holdings jumped 20% to $3.20 per share. Green Thumb Industries shares rose 18% to $8.15 and Cresco Labs stock climbed 13% to $1.15. All three companies are based in Chicago.
HHS calls for easing restrictions on marijuana, sending cannabis stocks higher
PUBLISHED WED, AUG 30 20233:33 PM EDTUPDATED 19 MIN AGO
Annika Kim Constantino
@ANNIKAKIMC
Stefan Sykes
@THESTEFANSYKES
KEY POINTS
The U.S. Department of Health and Human Services has recommended easing restrictions on marijuana, a spokesperson for the Drug Enforcement Administration told CNBC on Wednesday.
That move could potentially expand the market for cannabis, sending shares of Canopy Growth, Tilray Brands and Cronos Group higher.
Marijuana is currently classified as a Schedule I drug, a designation reserved for drugs with no currently accepted medical use and a high potential for abuse, such as heroin.
James Romano trims flower while working in CommCans processing facility in Medway, MA on Oct. 27, 2021. Beneath the trimmed flower is a tray collecting shake, cannabis flower that has naturally broken down through handling. Shake can be used in CommCans p
The U.S. Department of Health and Human Services has recommended reclassifying marijuana as a lower-risk drug, which would in turn ease restrictions on the budding business, a spokesperson for the Drug Enforcement Administration told CNBC on Wednesday.
Marijuana is currently a Schedule I drug under the Controlled Substances Act, meaning it’s deemed to have no currently accepted medical use and a high potential for abuse. Despite being legalized for recreational use in nearly half of states, marijuana’s federal classification alongside drugs such as heroin and LSD has hindered the industry’s growth.
After enjoying a sales surge during the Covid-19 pandemic, the industry is in free fall as investors turn away and capital dries up. The industry has also been barred from accessing most banking services, or from being traded across state lines, resulting in a glut of cannabis in many states and a drop in prices.
A federal reclassification could potentially expand the market for marijuana, which is a multibillion-dollar industry in the U.S. and a cash crop in many newly legalized states.
The news sent shares of several cannabis companies, including Canopy Growth
, Tilray Brands
and Cronos Group
, jumping Wednesday. The recommendation was first reported by Bloomberg.
In a letter addressed to DEA officials, the HHS called for marijuana to be reclassified as a Schedule III drug under the Controlled Substances Act, a DEA spokesperson told CNBC. Schedule III is defined as drugs with a moderate to low potential for physical and psychological dependence.
The DEA, which regulates controlled substances, has the final authority to reschedule marijuana. The agency will now initiate a review of the drug, the spokesperson said.
A lack of federal regulation has meant cannabis businesses in states where recreational sales are legal still can’t access traditional banking services or institutional capital. A congressional bill called the Secure and Fair Enforcement Banking Act, or SAFE, would lift such restrictions but hasn’t made it through the Senate, despite passing in the House several times.
Patrick Rea, managing director at cannabis investment firm Poseidon Garden Ventures, said his fund is “cautiously optimistic” for the changes a reclassification could bring to the industry.
“Certainly, moving cannabis off of Schedule 1 is the right decision and long overdue,” Rea said in a statement. “Though a full descheduling would be preferred and likely most appropriate for cannabis, we welcome smart decisions and progress towards full legalization and regulation in the legal cannabis industry.”
Biden administration moves to loosen weed restrictions
The recommendation is the result of a yearlong review initiated by the president.
“We believe that rescheduling to Schedule III will mark the most significant federal cannabis reform in modern history,” said Edward Conklin, executive director of the US Cannabis Council, an advocacy and trade group. “President Biden is effectively declaring an end to Nixon’s failed war on cannabis and placing the nation on a trajectory to end prohibition.”Cannabis is currently a Schedule I substance on the CSA, which means it is deemed to have a high likelihood of abuse and no medical uses. | Hans Pennink/AP Photo
By NATALIE FERTIG
08/30/2023 03:19 PM EDT
Updated: 08/30/2023 04:26 PM EDT
The Biden administration’s Department of Health and Human Services is recommending that the Drug Enforcement Agency significantly loosen federal restrictions on marijuana but stopped short of advising that it should be entirely removed from the Controlled Substances Act.
The health agency wants the drug moved from Schedule I to Schedule III under the CSA, potentially the biggest change in federal drug policy in decades.
HHS Assistant Secretary of Health Rachel Levine wrote in a Tuesday letter to the DEA, first reported by Bloomberg News, that the recommendation was based on a review conducted by the Food and Drug Administration.
The DEA confirmed to POLITICO that it received the letter.
“As part of this process, HHS conducted a scientific and medical evaluation for consideration by DEA. DEA has the final authority to schedule or reschedule a drug under the Controlled Substances Act,” a spokesperson for the agency said in a statement. “DEA will now initiate its review.”
The HHS letter is part of the official review process initiated by President Joe Biden last October: The FDA conducts the review, which is then sent to the National Institute on Drug Abuse and HHS, after which HHS transmits a letter of recommendation to the DEA. The DEA is not required to follow HHS’s recommendation.
The White House on Wednesday refused to comment on the review process.
“The administration process is an independent process led by HHS, led by the Department of Justice, and guided by evidence,” White House Press Secretary Karine Jean-Pierre told reporters. “We’re just not going to comment on that.”
Federal law has failed to keep up with massive changes over the last decade in state cannabis policies. Twenty three states now allow anyone at least 21 years old to legally posses the drug, while 38 states have established medical marijuana programs.
The response to the news from the cannabis industry was ebullient.
“We believe that rescheduling to Schedule III will mark the most significant federal cannabis reform in modern history,” said Edward Conklin, executive director of the US Cannabis Council, an advocacy and trade group. “President Biden is effectively declaring an end to Nixon’s failed war on cannabis and placing the nation on a trajectory to end prohibition.”
US Health Officials Urge Moving Pot to Lower-Risk Category
Bloomberg
Change would remove drug from most restricted designation
Cannabis industry stocks respond with double-digit jumps
https://www.bloomberg.com/news/articles/2023-08-30/hhs-calls-for-moving-marijuana-to-lower-risk-us-drug-category#xj4y7vzkg
Cannabis Stock on FIRE on news!!
Trulieve up 20%
Med Marij up 15%,
Hempco up 13%
TinRay up 11%
Maybe, just maybe PVSP and the Cannabis industry is ready to Run!!!
This is HUGE for Cannabis Industry!!!!
Moving cannabis to Schedule III would also unlock marijuana industry tax opportunities that are currently unavailable.
The U.S. Department of Health and Human Services (HHS) is officially recommending that marijuana be moved from Schedule The U.S. Department of Health and Human Services (HHS) is officially recommending that marijuana be moved from Schedule I to Schedule III under federal law—a historic development that means the top health agency no longer considers cannabis to be a drug with high abuse potential and no medical value.
After completing a scientific review into cannabis under a directive from President Joe Biden last year, HHS is now telling the Drug Enforcement Administration (DEA) that it believes marijuana should be placed in Schedule III of the Controlled Substances Act (CSA). The recommendation is not binding, and DEA has the final say, but the scientific analysis combined with growing political support for cannabis reform may well influence DEA to make the change.
Moving cannabis to Schedule III would also unlock marijuana industry tax opportunities that are currently unavailable.
Pervasip Corp. First Harvest Oregon
@PervasipC
·
$PVSP 1st ever Artizen Oregon harvest this Friday! Perfect Fall start, with gorgeous flower, and a happy crew. It takes about 3 - 4 harvests to dial in a new cultivation center and the team in Ashland is already ahead of schedule!
Pervasip Corp Tweet: LA Partners
@PervasipC
·
41s
$PVSP Great few days with our LA partners! Locking down agreements and getting ready!
https://twitter.com/PervasipC?ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Eauthor
Germans stage rally demanding legalization of cannabis
US needs to do the same thing and get the Safe Banking and other legislation moving this year.
Nik Martin
2 hours ago2 hours ago
Chancellor Olaf Scholz's cabinet is due this week to discuss a draft bill that would allow the limited consumption of hashish and marijuana. The plans have been widely criticized as impossible to police.
https://p.dw.com/p/4V6Az
Protesters hold up signs calling for the legalization of cannabis, in Berlin, Germany, on August 12, 2023
The Hanfparade (Hemp Parade) has been held annually since 1997Image: Annette Riedl/dpa/picture alliance
Hundreds of people joined the annual cannabis legalization protest in Germany's capital Berlin on Saturday, days before the cabinet is due to discuss a draft law that will overturn a ban on the drug.
Police said between 500-600 people took part in the Hanfparade (Hemp Parade). The numbers were, however, about a third of last year's 1,500 participants.
The parade started with a rally at the city's Rotes Rathaus (Red town hall) and the protest route included the Unter den Linden boulevard, the government district and Alexanderplatz.
"Hemp is great for peace and climate," was the motto of this year's demonstration.
The Hemp Parade has been held annually since 1997. The purpose is to call on the government to liberalize laws on soft drugs such as marijuana and hashish, which are derived from the cannabis plant.
Parade organizers also advocate for easier access to medical cannabis and the widespread use of hemp, which is the same plant species as cannabis.
Germany set to ease drug laws
The government is planning to legalize cannabis, potentially allowing adults to possess up to 25 grams of cannabis and grow a maximum of three plants for personal use.
Under aproposed law, the drug could be cultivated and sold by so-called cannabis clubs, subject to strict rules, including in neutral packaging and a maximum of 50 grams per customer per month.
The cabinet is due to discuss the bill in the coming week, Health Minister Karl Lauterbach was cited by DPA news agency as saying.
Pro-cannabis advocates within the coalition government are hoping to legalize the drugs this year.
The Health Ministry thinks the measure could save the country's police, legal system and prisons more than €1 billion ($1.11 billion) in costs per year.
However, the proposed law faces many hurdles, including from the German Judges' Association (DRB), which believes that it will be cumbersome to uphold.
"This very small-scale law would necessitate a high level of control, which would lead to numerous new disputes and to many proceedings before the courts," DRB federal director Sven Rebehn told DPA on Saturday.
DRB says the proposed law will also have little impact on the black market for drugs.
Germany's police criticizes law
Earlier this month, the deputy head of the German police union (GdP) said the new law would place a huge burden on the police.
GdP deputy federal chairman Alexander Poitz told the Redaktionsnetzwerk Deutschland (RND) network that the draft bill lacked precision and foresight.
"At no point in the draft paper does it become clear how the expected increased technical and personnel effort of the police and other authorities are to be managed," Poitz said.
The planned law would allow people to smoke marijuana in public, but not within 200 meters of schools, day-care centers, playgrounds or sports fields.
"I hope that the Federal Ministry of Health doesn't think our colleagues would measure the required 200-meter distance between a consumer and a day-care center with a tape measure."
The Free Democratic Party (FDP), the smallest in Chancellor Olaf Scholz's coalition, has also criticized the plans.
"In its current form, it would create a real bureaucratic monster that can hardly be controlled," Kristine Lütke, the FDP's addiction and drug policy spokesperson told the Rheinische Post newspaper last month.
"The FDP parliamentary group firmly rejects an upper limit for possession. After all, no one controls how many bottles of wine someone stores in the cellar," she said.
Instead, she called for "proportionate and accurate regulations that provide real protection for young people and at the same time do not lead to an additional burden on the police and the judiciary."
https://www.dw.com/en/germans-stage-rally-demanding-legalization-of-cannabis/a-66517257
Yea, that is it, LOL, LOL
Good Grief what will you come up with next, LOL
Forbes Article: Cannabis index down 76% from Jan 2021!
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https://www.forbes.com/sites/investor-hub/article/cannabis-stocks-what-you-need-to-know/?sh=7eaebfd2355a