420 with CNW — Trump’s Cuts to Funding Put Marijuana Research at Risk

The federal government’s decision to reduce funding for research is jeopardizing 565 cannabis-related studies. In addition, a freeze on new grants from the National Institutes of Health (NIH) is slowing down future studies at a critical time, raising concerns about cannabis policy changes and potential consequences for the industry.

Earlier this month, the NIH announced that there would be a significant cut in research grants allocated for indirect costs, such as facility and administrative expenses, capping it at 15%. Universities responded by filing lawsuits to block the cuts, leading to a temporary halt in their implementation while legal challenges unfold.

Researchers are now left in uncertainty, continuing their work despite the looming threat of funding termination, which could have long-term effects on the $32 billion cannabis industry.

Without solid scientific studies, the legal cannabis sector faces difficulties countering claims about the negative effects of marijuana, including lawsuits concerning high-potency cannabis products. Additionally, without substantial research backing, industry advocates may struggle to persuade legislators who remain skeptical or opposed to marijuana reform, including changes to its federal classification.

While federal grants are not the sole financial resource for marijuana studies, institutions like UCLA receive funding from state marijuana tax revenue. However, in most cases, NIH grants remain essential as they support larger, more impactful research projects.

The federal government has also halted the review process for new studies, leaving many projects stuck indefinitely.

This disruption contradicts previous indications that the administration would take a supportive stance on cannabis and goes against a call made by the National Academies of Sciences, Engineering, and Medicine in September. The organization urged the government to lift existing research restrictions to better understand marijuana legalization’s public health implications.

Although cannabis research accounts for only a fraction of the $47 billion the federal government spends annually on biomedical studies, it has seen significant growth. In 2012, when recreational cannabis was legalized for the first time in Washington and Colorado, researchers published approximately 1,200 cannabis-related studies. By 2021, that number had surged to over 4,200, with an increasing focus on marijuana’s potential benefits rather than just its risks.

The uncertainty surrounding funding could also impact the ongoing cannabis rescheduling process. The DEA has paused rescheduling hearings, with the decision now resting solely in the agency’s hands. If Trump’s choice for DEA director, Terrance Cole, a known marijuana critic, is confirmed as DEA chief, the chances of rescheduling could diminish.

Marijuana businesses like Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB) inside and outside the U.S. are likely to take a keen interest in the way Trump’s administration supports or hinders marijuana policy reform at the federal level.

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CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of an article each business day at 4:20 p.m. Eastern – a tribute to the time synonymous with cannabis culture. The concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.

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420 with CNW — Ohio Residents Voice Their Opposition to GOP Efforts to Thwart Voter-Approved Marijuana Reforms

Several Ohio residents have voiced their opposition to a proposed measure that seeks to alter the state’s cannabis regulations. Senate Bill 56, introduced last month by Senator Steve Huffman, has received pushback, with 40 people submitting testimony against it during a Senate General Government Committee hearing.

“This legislation is not about keeping consumers safe,” stated Don Holztrager of Chronic Wellness LLC. “It’s about enabling corporate monopolies, consolidating control, and stifling competition.”

Committee Chair Senator Kristina Roegner presented a revised version of the bill that eliminates sections related to taxation and revenue allocation. Initially, the legislation proposed increasing the tax on recreational cannabis to 15%, with all revenue directed to the state’s general fund. Currently, cannabis sales tax revenue is distributed among various programs, including 36% to the marijuana social equity and jobs fund, another 36% to the host community marijuana fund, 25% supports substance abuse and addiction programs, and the remaining 3% is allocated to the Tax Commissioner Fund and the cannabis control division.

If passed, the bill would significantly alter existing cannabis laws, including reducing the number of plants allowed for home cultivation from 12 to 6 and lowering the permitted THC potency in recreational cannabis products to 70%.

Other key provisions in the legislation include:

Consolidating Ohio’s medical and recreational cannabis programs under the cannabis control division.
Mandating that cannabis be transported in a vehicle’s trunk.
Specifying that cannabis use is only allowed within private residences.
Limiting the number of operational dispensaries to 350.

Several individuals who testified were particularly concerned about restrictions on home cultivation. Holztrager argued that the law should permit six plants per adult rather than per household. He also advocated for home growers to have opportunities to test their products, sell to dispensaries, and build independent brands, fostering small business growth.

Many critics of the measure argue that it reverses crucial aspects of the voter-approved measure. Gary Daniels, policy director at the ACLU of Ohio, criticized the proposed changes, stating, “This is not only a complete departure from the core policies of the initiative but also follows a decision by the General Assembly to forgo making any modifications to the ballot initiative’s language when given the opportunity.”

Some opponents expressed concern that the THC restrictions would push Ohio consumers to purchase cannabis in Michigan instead. Others argued that the legislation should include measures for expunging past cannabis-related convictions.

A committee vote on the bill was originally scheduled for Wednesday but was ultimately canceled.

Marijuana industry players like Aurora Cannabis Corp. (NASDAQ: ACB) (TSX: ACB) from different jurisdictions with legal marijuana markets may be unhappy that after voters made their choice known, some lawmakers are planning to modify the stipulations which were voted upon and approved.

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420 with CNW — Latest Poll Shows Most Texans Want Marijuana Legalized

A recent survey conducted by the University of Houston’s Hobby School of Public Affairs revealed that a significant number of Texans are in favor of legalizing cannabis for recreational use. The poll, which gathered responses from 1,200 adults across Texas and has a margin of error of 2.38%, found that over 60% of Texans support permitting recreational cannabis sales and consumption.

Texas lawmakers passed HB 1325 in 2019, which permitted industrial hemp cultivation as long as the concentration of tetrahydrocannabinol (THC) in the crop was below 0.3%. This created a loophole that some businesses used to introduce THC marijuana products into the market.

The recent University of Houston poll included questions about cannabis and THC-related products. Although a majority of participants supported the legalization of cannabis, many also expressed concern over unregulated THC products, which became available due to gaps in HB 1325. Most respondents favored restricting the sale of these products.

Lieutenant Governor Dan Patrick recently identified banning THC sales in the state as a key priority for this year’s legislative session, which started in January.

The survey revealed that around 62% of respondents, including 71% and 53% of Democrats and Republicans, respectively, back legislation that would permit individuals 21 years of age and over to purchase and use cannabis legally.

A strong majority—79% overall, with 75% and 86% of Republicans and Democrats, respectively—support legalizing cannabis for medical use with a healthcare provider’s prescription.

Decriminalizing cannabis possession for adult use was favored by 69% of Texans, including 61% and 79% of Republicans and Democrats, respectively. When it comes to THC products, opinions were more divided. Roughly 55% of respondents, including 61% of Republicans and 48% of Democrats, support prohibiting the sale of THC products in the state.

According to the survey, age played an even more significant role than political affiliation in shaping opinions on THC and cannabis policies. The findings indicated that 70% of Gen Z respondents supported banning THC sales, while 49% of Gen X and 46% of Baby Boomers and the Silent Generation felt the same.

The survey also examined attitudes toward sports betting and gambling, another significant topic of discussion. Compared to THC and cannabis regulations, gambling appeared to be a less contentious issue, with the vast majority of the respondents expressing some level of support for its legalization in various forms.

Currently, the state only allows certain types of gambling, such as parimutuel betting on dog and horse races, charitable bingo, and lotteries. However, sports betting has gained widespread acceptance nationwide, with thirty-nine states having approved it in some capacity.

Industry actors like Aurora Cannabis Corp. (NASDAQ: ACB) (TSX: ACB) know that it will not be easy to enact marijuana policy reform in a conservative state like Texas, but the passage of time and changes in the rest of the country could eventually galvanize change in the state.

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420 with CNW — Poll Finds Cannabis Helps Most People Cut Their Alcohol Intake

A recent survey reveals that over 50% of cannabis users reduce or completely stop their alcohol consumption after using marijuana. The poll, conducted by NuggMD, a marijuana telehealth platform, lends credence to the expanding theory of a substitution effect, according to which people are increasingly choosing marijuana because they believe it to be safer compared to alcohol.

When asked about the impact of marijuana use on their drinking habits, 54% of respondents reported drinking less or completely stopping. Meanwhile, 22% stated that cannabis did not affect their alcohol consumption, and 14% said it depended on the situation. Only 9% indicated that they consumed more alcohol after cannabis use. The survey was conducted between January 9 and 12, gathering responses from 381 marijuana users.

These findings align with an expanding body of research showing that user behavior is evolving as more states legalize marijuana, allowing greater access to regulated products.

For instance, a study backed by NIDA and published last month discovered that young adults are almost three times as likely to consume cannabis daily or almost daily than alcohol. The study provided more detailed, age-specific data compared to a previous study, which showed that daily marijuana use among Americans has surpassed daily alcohol consumption. Furthermore, alcohol consumers were more likely than cannabis users to acknowledge the potential benefits of reducing their intake.

Similarly, research published in the Addiction Journal last May found that more American adults now use cannabis daily as compared to alcohol.

Another study, conducted by Bloomberg Intelligence (BI), suggests that marijuana is increasingly replacing alcohol as legalization spreads and attitudes toward harm change. The survey also found that many people substitute cannabis for painkillers and cigarettes.

According to a different BI research published in September, the alcohol business is facing an increasing amount of competition as a result of the burgeoning legalization movement. The results of the survey indicate that more people are choosing cannabis over alcoholic drinks like wine and beer.

The trend is not limited to the U.S. Research from Canada, where cannabis is legal federally, revealed that legalization led to a decrease in beer sales, further indicating a substitution impact.

Additionally, a survey conducted by Morning Consult and APA last year revealed that Americans consider cannabis significantly less harmful than opioids, cigarettes, and alcohol. Respondents also rated marijuana as less addictive than the others.

These poll findings confirm some of the trends that industry firms like Aurora Cannabis Corp. (NASDAQ: ACB) (TSX: ACB) have been observing in the jurisdictions in which they operate.

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420 with CNW — US Border Patrol Asks Court to Dismiss Businesses’ Lawsuit on Marijuana Seizures in New Mexico

The U.S. Customs and Border Protection (CBP) and Department of Homeland Security (DHS) are asking a federal judge to dismiss a case brought by New Mexico-licensed cannabis businesses. The businesses allege that the agencies unlawfully seized state-regulated cannabis products and arrested staff members at checkpoints within the state.

According to CBP and DHS, federal law takes precedence over state law as long as cannabis remains prohibited at the federal level. They argue that border agents are authorized to disregard state regulations and seize cannabis products. Furthermore, they assert that protections afforded to state cannabis programs through the Department of Justice (DOJ) policies and congressional rider do not extend to CBP, which operates under DHS.

The lawsuit, brought by 8 New Mexico cannabis businesses, was filed in October last year after reports surfaced of CBP agents seizing products and other property from state-licensed cannabis businesses at border checkpoints across New Mexico.

The businesses claim these actions violate the Fifth Amendment by conducting seizures and searches without following proper procedures. CBP has countered this argument, requesting the case be dismissed on grounds of insufficient claims and lack of jurisdiction.

The lawsuit further describes incidents where CBP detained cannabis business employees for extended periods without filing charges. Although CBP did not directly address these detentions, it maintained its authority to detain individuals under current federal law.

The agency also addressed specific complaints, such as the seizure of non-marijuana property assets like vehicles and cash. CBP argued that since the vehicles were returned to the plaintiffs before the lawsuit was filed, the issue is moot, and the plaintiffs lack standing to seek further relief.

In response to allegations that their actions contradict federal regulations and policy precedents, CBP emphasized that protections for state cannabis programs only apply to the DOJ under a congressional rider and do not extend to DHS or its agencies. Additionally, they rejected claims that prior Treasury Department or DOJ guidance on cannabis reform has any legal bearing, stating that federal law continues to prohibit cannabis and provides no exceptions for CBP or DHS to stop enforcing those restrictions. CBP and DHS also reiterated that cannabis is still classified as a Schedule 1 substance under the CSA.

The plaintiffs are asking the court to require CBP to provide documentation of seized property, return the items or compensate them for their value, and establish a process to contest future seizures in compliance with the Fifth Amendment.

The issue has also drawn attention from legislators, with Representative Gabe Vasquez proposing an amendment to appropriations legislation for DHS, aiming to restrict border agents from using federal funds to confiscate cannabis products from state-licensed operators.

The marijuana industry and its leading firms like Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB) will be hoping that the court system clears the air on whether it is acceptable for Border Patrol to seize cannabis products from licensed companies that are conducting their legitimate business activities in states bordering neighboring countries.

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420 with CNW — Study Explores the Ethical Complexities Linked to Undertaking Marijuana Research Funded by Industry Actors

Researchers from the Center for Addiction and Mental Health (CAMH) are exploring the ethical implications of marijuana research that’s largely funded by actors with industry interests. Prior to the recent wave of state-level legalization, studying the potential risks and benefits of marijuana was practically impossible, making the recent rush of cannabis-related studies even more important for the fledgling cannabis market.

These studies give us a glimpse into marijuana and how its use affects humans, particularly in the long term. However, a lot of cannabis research is conducted by actors who stand to make financial gains if the research yields positive results, raising questions on the ethics of marijuana research that’s mostly funded by a for-profit cannabis sector.

Titled ‘Canadian cannabis researcher perspectives on the Conduct and Sponsorship of Scientific Research by the for-profit Cannabis Industry,’ the CAMH study was published in the journal Social Science & Medicine. It found that although researchers are pushed by their need for high-quality research and commitment to helping maintain public health, they are regularly forced into industry partnerships due to systemic barriers.

The study notes that the challenges that push scientists into industry partnerships point to the structural problems that need systemic solutions.

Cannabis research often involves medical conditions that typically don’t respond to conventional treatments and have a notable impact on quality of life. Many of the researchers involved in marijuana research are committed to research efforts that improve people’s lives by advancing our knowledge of the human body and new medications.

CAMH researchers ran a series of 38 interviews with clinicians, academic researchers, and peer researchers from across Canada. Unfortunately, many of them say marijuana’s controlled status at the federal level and the structural barriers arising from its status often force them to make difficult decisions regarding conflict of interest, agenda bias, and scientific integrity.

Some of the study’s considerations included increasing transparency regarding cannabis industry funding, ensuring industry interests don’t influence research agendas, and limiting reliance on the cannabis industry for research funding. Researchers also suggested the implementation of institutional policies that ensure research integrity and independence regardless of the source of funding.

This includes providing concise guidelines that encourage collaborations that benefit public health and manage conflicts of interest effectively. As America’s state-level cannabis industry expands and more people gain access to the drug, such guidelines will be critical to safeguarding the integrity of marijuana research and making sure it is in line with public health goals.

While there are some ethics risks linked to conducting cannabis research sponsored by industry actors, many firms like Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB) are often interested in uncovering the truth about the effects of this substance so that they can leverage their findings for commercial gain. It would therefore be counterproductive in the long run if they twisted the truth since it would only be a matter of time before any fraud is exposed.

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420 with CNW — Pennsylvania House Democrats Give Marijuana Legalization Another Go

Democrats in Pennsylvania are making another attempt to legalize cannabis through new legislation spearheaded by state Representatives Dan Frankel from Allegheny County and Rick Krajewski from Philadelphia. They are currently seeking co-sponsors for their proposal, marking the latest effort in a series of attempts over recent years to address cannabis legalization in the state.

The proposed legislation aims to expunge criminal records for individuals with past cannabis-related offenses, reinvest funds into communities disproportionately impacted by drug policies, and implement safeguards to prevent predatory marketing and accidental exposure to children. The bill also seeks to set reasonable limits on marijuana potency and create business opportunities within Pennsylvania’s growing cannabis sector.

Krajewski, who chairs the House Health Subcommittee on Health Care, has conducted five hearings to study marijuana programs in other states. The hearings examined the benefits, challenges, and lessons learned from those initiatives. Reflecting on these sessions, Krajewski noted that they included insights from public health professionals, advocates for criminal justice reform, and proponents of social equity.

“We’ve gathered knowledge from experts and observed successes across the country,” Krajewski stated. “Now is the time for Pennsylvania to act, ensuring we don’t fall further behind while creating an opportunity to generate substantial public revenue.”

Recreational cannabis is already legal in 24 other states, including nearly all of Pennsylvania’s neighbors. Public opinion polls indicate widespread bipartisan support among Pennsylvanians for marijuana decriminalization, reflecting the growing demand for change.

Frankel highlighted the adverse effects of marijuana criminalization, particularly in minority communities. He underscored the need to not only legalize cannabis but also to address the longstanding harm caused by prior enforcement policies.

Frankel pointed to challenges faced by other states, such as regulatory shortcomings and legal disputes involving out-of-state marijuana companies, as lessons for Pennsylvania to avoid. “Our proposal is designed to benefit taxpayers, prioritize public health, and uplift communities disproportionately affected by prohibition,” Frankel explained.

Some elements of the proposed legislation align with initiatives previously outlined by Governor Josh Shapiro. Earlier this year, Shapiro included cannabis legalization as part of the state’s executive budget measure, envisioning it as a significant source of new revenue for the state. Although the legislature did not approve the initiative at the time, Shapiro’s administration has projected that a regulated cannabis market could generate $250 million annually. His proposal also called for expunging marijuana-related criminal records and allocating $5 million toward restorative justice programs.

The cannabis industry and its leading players like Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB) will be following the developments in Pennsylvania to see whether it becomes the latest U.S. state to enact cannabis policy reform.

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420 with CNW — Australian Parliament to Vote on Cannabis Legalization This November

Australian legislators are preparing to vote on legislation that could pave the way for adult-use cannabis legalization across the nation. Senator David Shoebridge of the Greens Party, who has spearheaded the effort, announced on social media that the proposed bill is scheduled for a vote in Parliament on November 27.

The legislation seeks to establish a regulated cannabis market, complete with taxation and licensing. Central to the plan is the creation of the Cannabis Australia National Agency (CANA), which would oversee licensing and regulations and maintain a comprehensive register of cannabis strains. The bill also explicitly permits home growth for personal use and home edibles processing. Additionally, it proposes the establishment of marijuana cafes, providing spaces for social consumption.

In developing the bill, the Greens Party consulted extensively with the public. Feedback revealed widespread support for keeping marijuana production and sales free from heavy corporate influence. There was also consensus that industries like pharmaceuticals, tobacco, and alcohol should not dominate the cannabis market.

The proposal report by the Greens highlighted that globally, many nations are moving away from criminalization in favor of regulated legalization. The party warned that Australia could fall behind if it relies solely on state and territory-level reforms rather than adopting a unified national approach.

Despite its bold vision, the proposal has encountered resistance within Parliament. Earlier this year, the Senate Constitutional and Legal Affairs Committee recommended rejecting the bill, citing concerns about potential risks associated with legal cannabis.

Further, a report authored by Paul Scarr of the Liberal Party cautioned that legalizing cannabis could lead to a significant increase in consumption, potentially introducing new public health challenges. The document cited survey data suggesting that more than a million Australians might try marijuana if it became legal, raising concerns about the societal and health impacts of such a shift.

The legislative report accompanying the proposal projected that taxing cannabis at rates of 15% or 25% could generate between $28.2 billion and $36.8 billion in government revenue over a decade. Proponents argue that this revenue could redirect profits away from organized crime, instead fostering a legitimate market driven by local businesses and entrepreneurs producing high-quality and safe products.

The Greens are optimistic about the legislation’s prospects, describing the current political climate as the most favorable opportunity yet to advance marijuana reform. “We have a chance for meaningful change,” the party declared on its website, pointing to their influence in the Senate as a critical factor.

Currently, marijuana is federally illegal in Australia, apart from a restrictive medical program. However, certain regions, such as the Australian Capital Territory, have adopted local reforms. The territory decriminalized small amounts of illegal substances in 2023, building on an earlier policy that eased restrictions on cannabis possession.

Meanwhile, at the federal level, the government recently shifted policies on other substances, allowing therapeutic access to psychedelics like MDMA and psilocybin for patients with PTSD and resistant depression. The drugs are classified under Schedule 8 for medical use but remain prohibited for non-authorized purposes under Schedule 9.

Entities like Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB) that have an interest in the international market for marijuana are likely to take an interest in the goings-on in Australia to see if any business opportunities avail themselves once legalization is launched.

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420 with CNW — Researcher Files Lawsuit to Block Marijuana Rescheduling Hearing

David Heldreth, CEO and founder of Panacea Plant Sciences, has filed a federal court lawsuit, claiming the DEA breached several legal protocols in preparing for a hearing on the Biden administration’s proposal to reclassify marijuana. The suit urges the court to issue an injunction halting the DEA’s scheduled hearing until these legal concerns are addressed.

Heldreth’s complaint argues that the DEA has not complied with important legal requirements related to administrative procedures and federal consultation obligations. At the core of his argument is the agency’s decision to hold a hearing on moving marijuana from Schedule 1 to 3 of the CSA, which he contends lacks necessary adherence to federal guidelines.

The initial hearing is slated for Dec. 2, following a period of public comment that ended several months ago. While numerous groups requested participation in the hearing, DEA director Anne Milgram selected only 25, excluding Panacea. Heldreth claims that this exclusion was unwarranted and appears to be a retaliatory move by the DEA. He argues that Panacea’s prior opposition to the DEA’s regulatory moves on psychedelic substances may have led to this exclusion, framing it as a response to the company’s stance on various drug policy issues.

In his legal filing, Heldreth highlights four primary grounds for requesting a stay on the DEA’s proceedings. One key argument is that the DEA failed to follow a 1990s executive order mandating federal agencies to consult with tribal organizations when developing policies or regulations that could impact their interests.

Additionally, he claims that the agency did not comply with the Regulatory Flexibility Act and the Small Business Regulatory Enforcement Fairness Act, which require that the impact on small businesses be considered in federal rulemaking.

The complaint seeks a court order blocking any further proceedings or scheduling actions on cannabis until the case is fully reviewed. It requests that all deadlines and hearings within the DEA’s administrative process be suspended while the legal issues in question are resolved.

While the initial hearing remains slated for December, John Mulrooney, the DEA’s Chief Administrative Law Judge, issued an order indicating that the DEA’s current witness list lacks sufficient detail. The judge has asked the agency for additional information on the witnesses and possible dates for a formal hearing early next year, potentially in January or February.

The DEA has hinted that further information may be needed on several aspects of the scientific review that informed the decision to recommend reclassifying marijuana. The agency’s recent actions have sparked speculation among some observers who interpret this as a sign of hesitation or skepticism regarding the rescheduling proposal.

Entities like Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB) within the marijuana industry will be following how this lawsuit plays out and the subsequent steps in the rescheduling process since a lot is riding on this expected change to federal marijuana policy.

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420 with CNW — New Jersey Marijuana Advocates Discuss the Possibility of Increasing the Fee for Social Equity

Advocates in New Jersey are currently debating whether the state’s Marijuana Regulatory Commission should raise the fee directing revenue from recreational cannabis sales to fund social equity initiatives and support communities affected by past drug policies. The commission is set to meet soon to determine the fee rate that will apply starting January 1. Presently, the fee is set at $1.24 per ounce.

Four years since New Jersey legalized recreational cannabis, some advocates argue that it is time to increase the fee to $30 per ounce. New Jersey has some of the lowest marijuana taxation in the nation, according to Marleina Ubel, a senior policy analyst at New Jersey Policy Perspective. She suggested that a cost of $30 would be practical and reasonable for companies.

Ubel stressed that the money raised by this tax is essential for the communities that were most negatively impacted by previous drug restrictions. She suggested that the revenue may be used to support after-school programs and other initiatives that would assist in reviving these areas.

The fee is a required part of the state’s cannabis legalization law and is collected based on the amount of cannabis produced. The law allows the commission to adjust the fee every year, capping it at a specific maximum as the market grows.

Although the commission has the authority to set and modify this fee, it can only recommend how the funds should be used, with final spending decisions falling on the governor and the Legislature. Part of the revenue must be directed toward initiatives that discourage youth from marijuana use.

The commission has conducted public talks on possible applications of the money over the last three years, coming up with ideas such as legal aid, expungement programs, social support services, and larger community reinvestment projects. None of the social equity fee funds have been used yet.

Proponents of the increase contend that without a larger fee, the program cannot have the desired effect. The American Civil Liberties Union of New Jersey’s Ami Kachalia also supports increasing the charge to the suggested $30 per ounce. She believes this adjustment would enhance the state’s commitment to social justice by funneling more resources into Latinx and Black communities, who faced the brunt of discriminatory drug enforcement policies.

Not all parties support the fee hike, as some worry it may harm the growing market. Raising the tax, they contend, would encourage growers to raise wholesale prices, which would then force retailers and manufacturers to pass the higher expenses on to customers. This might then encourage more individuals to buy cannabis from unlicensed vendors.

Cannabis firms, such as Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB), operating in different markets will be hoping that any fees added onto marijuana products in New Jersey don’t make the final product too costly for the people to afford since this would be counterproductive to all parties concerned.

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