420 with CNW — Federally-Financed Studies Reveal Developmental Issues or Autism Aren’t Linked to Maternal Marijuana Use

Two new studies funded by the federal government may help reduce some concerns about cannabis use during pregnancy. One study found no link between early cannabis use in pregnancy and the development of autism in children, while the other showed no connection to an increased risk of developmental delays in early childhood.

Both studies analyzed pregnancy outcomes where the mother either self-reported marijuana use or tested positive for THC during prenatal visits, typically around the second month of pregnancy.

The autism-related study included information from 146,296 individuals involved in 178,948 pregnancies from 2011 to 2019. The study on developmental delays included information from 106,240 adults and 119,976 pregnancies from early 2015 to late 2019. The kids underwent tests at different phases to check for developmental milestones and autism.

The autism study concluded that prenatal marijuana use was not linked to childhood autism after accounting for factors such as socioeconomic status, other substance use, and maternal health conditions. Likewise, the developmental delay study found no evidence that cannabis use in early pregnancy was associated with delays in motor skills, speech or language, or overall developmental impairment.

However, both studies caution that the results should not be interpreted as indicating that marijuana use during pregnancy is entirely safe, especially with heavy or frequent use. The autism study’s authors did note that, despite the lack of a general link to autism, there might be one with frequent cannabis use, underscoring the need for additional investigation in this field.

One notable finding in the developmental study was a slight reduction in speech and language delays when only urine test results were considered for cannabis use. This finding did not appear in the self-reported data on marijuana use.

The studies also align with recommendations from both the American Academy of Pediatrics and the American College of Obstetrics and Gynecology, which advise pregnant people to avoid marijuana use. The authors recommend that people who are pregnant or planning to become pregnant should be informed of the potential risks marijuana poses to fetal and newborn health.

The research teams stated that their work represents one of the largest investigations into maternal cannabis use during pregnancy. While their results are consistent with most studies on childhood development following prenatal cannabis use, the researchers acknowledged that some earlier research had suggested a negative impact. They also pointed out that their findings differ from a 2023 study that reported a connection between cannabis use and autism in children.

These studies align with what many in the cannabis industry, such as Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB), have always wanted government-funded studies to reaffirm so that the claims by prohibitionists are proved wrong.

About CNW420

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 — Officials in Ukraine Approve Medical Marijuana Qualifying Conditions

The government of Ukraine recently approved a list of medical conditions that qualify for medical marijuana following the enactment of the country’s marijuana legislation by President Volodymyr Zelensky. The Ministry of Health shared a list of roughly 20 medical conditions eligible for marijuana treatment, noting that more conditions could be included later if medically approved.

The current list covers a variety of health issues, including neuropathy, multiple sclerosis, shingles, cerebral palsy, chemotherapy-related complications, childhood epilepsy and Parkinson’s disease.

While Zelensky and other officials have said access to medical marijuana can help soldiers address mental and physical wounds incurred during the nation’s ongoing war with Russia, post-traumatic stress disorder (PTSD) is currently not a qualifying medical condition.

The Ministry of Health also clarified the guidelines for using marijuana-based medicines, emphasizing the need for strict state control. Patients are advised to stop treatment if they don’t see therapeutic effects within one to three  months or if they experience serious side effects, including mental-health issues.

The country has begun importing cannabis products following the decision to move marijuana from list 1 to list 2 of Ukraine’s drug classification system. This shift allows cannabis to be prescribed for medical use.

The legislation was initially approved last year but faced opposition when the Batkivshchyna party attempted to block it by introducing a resolution to repeal the bill. That resolution was ultimately rejected in January this year, clearing the way for the law to take effect. Opponents of the measure also tried to stop it by submitting hundreds of amendments, described by critics as “spam,” to slow the process. Despite these efforts, 248 votes were cast in favor of the bill.

The responsibility for regulating marijuana cultivation and processing will fall to Ukraine’s Ministry of Agrarian Policy. The State Agency on Medicines and the National Police will oversee the distribution of cannabis for medical use and ensure compliance with the law.

Zelensky has been vocal in his support for medical cannabis. In an address to parliament last year, he urged lawmakers to adopt best practices from around the world to help alleviate the pain and suffering of Ukrainians, especially given the country’s ongoing war. He stressed the need to legalize marijuana-based medicines for persons in need while ensuring that production is properly regulated.

The current reform is opposed to that of Russia, Ukraine’s longstanding foe. Russia has always opposed marijuana reform on a national and international level and has expressed disapproval of nations such as Canada that have legalized the drug.

The medical marijuana program is taking shape in Ukraine, and it might be an industry that companies such as Aurora Cannabis Corp. (NASDAQ: ACB) (TSX: ACB) could keep an eye on since it could present an international market that they could venture into.

About CNW420

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 — Michigan Cannabis Sales Boom as Recreational Sales Begin in Ohio

Last month, Ohio kicked off its recreational cannabis sales, raising questions about how this would impact Michigan’s already thriving industry, which attracts many Ohio customers. Michigan had become a popular destination for Ohio residents seeking cannabis, with many dispensaries conveniently located near the state border in cities such as Morenci and Monroe.

Ohio’s dispensaries sold close to $55 million worth of product in the first month of the state’s legal cannabis sales, which got underway in August.

Despite this, the Michigan Marijuana Regulatory Agency has released new data indicating that the state’s dispensaries have not suffered. In actuality, sales kept rising: recreational marijuana sales at Michigan dispensaries reached $294 million in August, up 3% from July’s $286 million. Sales increased significantly from $271 million even in August of the previous year, indicating a 9% growth overall.

A closer look at sales figures from regions bordering Ohio shows a similar trend of increased sales. In southwest Michigan, recreational sales reached $86 million in August, up from July’s $82 million. Likewise, the southeast and east regions of Michigan saw sales grow from $121 million to $123 million.

These increases indicate that Ohio’s entry into the recreational market has not slowed down Michigan’s cannabis industry, particularly in border regions.

However, not everyone in Michigan is seeing that same trend. Sean Lyden, CEO of Green Labs Provisions, a dispensary located in Luna Pier, which is six miles from Ohio’s border, reported a 15% drop in sales during August compared to the previous month. Despite this decline, Lyden remains cautiously optimistic, believing that the most significant challenges may have already passed.

One factor that still draws Ohio customers to Michigan is the price difference between the two states. In Ohio, the cost of an ounce of marijuana flower is around $250, while in Michigan, the same amount was priced at around $80 in August.

Michigan’s cannabis market, now almost five years old, has experienced a substantial drop in prices due to increased competition and supply. For the time being, Ohio’s higher prices and limited number of dispensaries may continue to encourage Ohio residents to cross state lines to purchase marijuana in Michigan, where competition is fiercer and prices are lower.

However, Lyden anticipates that as Ohio’s market grows and becomes more competitive, the situation may change. To stay ahead of potential market shifts, he is considering expanding his business with additional dispensaries in Michigan and possibly in Ohio. This expansion could help his company become less dependent on Ohio customers visiting the Luna Pier location.

The growing sales in these two states are helping to strengthen the reach of the industry, and enterprises in other jurisdictions, such as Aurora Cannabis Corp. (NASDAQ: ACB) (TSX: ACB), will be hoping that the momentum keeps building in those new markets.

About CNW420

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 — New Research Shows Cannabis Users Fared Better During COVID-19

According to a recent study, individuals who use cannabis are less likely to die, require a ventilator or suffer from extreme COVID-19 infections. Researchers from New York’s Northwell Health conducted the study, which was just released in the peer-reviewed “Cannabis and Cannabinoid Research” journal.

The study analyzed the National Inpatient Sample Database’s data, focusing on patients admitted with a COVID-19 diagnosis. The patients were divided into two groups: those who used marijuana and those who did not. To ensure fairness, researchers adjusted for various factors, such as race, age, gender and existing health conditions.

Cannabis users had a lower risk of passing away or developing major conditions, including respiratory failure or the need for intubation, according to the study.

According to the data, 28.2% of marijuana users experienced extreme COVID-19 infections, compared to 46.6% of those who did not use marijuana. The death rate among marijuana users was 2.8%, while it was higher at 5.1% for nonusers. Similarly, intubation rates were lower for marijuana users at 7.1%, compared to 9.7% for nonusers. Marijuana users also spent slightly less time in the hospital, with an average stay of 6.4 days versus 7.0 days for those who didn’t use cannabis.

However, Dr. Benjamin Caplan, a medical cannabis expert and author of “The Doctor-Approved Cannabis Handbook,” pointed out some limitations in the study. These include difficulties in properly matching the patients and a lack of specific data, such as the types of products used and the levels of inflammation in patients.

Despite these limitations, Caplan stated that the results were encouraging. He suggested that cannabis could help avoid severe COVID-19 effects by reducing inflammation and immunological reactions.

Further supporting these findings, a 2022 study indicated that certain marijuana compounds might prevent SARS-CoV-2, the virus responsible for COVID-19, from infecting human cells in a lab setting. Researchers discovered that two cannabinoid acids found in hemp, cannabidiolicacid (CBDA) and cannabigerolic acid (CBGA), could bind to the spike protein of the virus. By doing so, these compounds might block the virus from entering cells and causing an infection, opening up potential new treatment and prevention options.

Similarly, a recent Canadian study discovered that by keeping the virus out of cells, lowering oxidative stress and stopping the cytokine storm, cannabinoids may help lessen the severity of COVID-19 infections.

However, not all studies paint a positive picture of marijuana use in relation to COVID-19. Research from the University of Washington, published earlier this year, found that cannabis use was associated with a higher risk of severe COVID-19. Additionally, there is no concrete evidence that smoking cannabis can cure or prevent COVID-19.

As more studies are conducted on the potential therapeutic effects of marijuana on the way people fared during the recent pandemic, there is a possibility that the science could show that the cannabis industry and its many actors, such as Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB), might have in one way or the other supported some people in their struggle against the infection.

About CNW420

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 — Could Marijuana Reclassification Be Answer to Maintaining Medicare?

The U.S. Justice Department took significant steps toward changing the legal status of cannabis in May by beginning the process to move the substance from schedule 1 to schedule 3, a less-restrictive category under federal drug laws. This shift is noteworthy because it reflects the recommendations of medical experts at the U.S. Department of Health and Human Services (HHS), who have recognized that cannabis now has an accepted medical use. Equally crucial is that reclassifying marijuana could boost much-needed research into its medical potential.

However, simply changing the plant’s classification won’t be enough to make a substantial impact. True progress will only occur if policymakers take swift and decisive actions to enable more in-depth research into medical marijuana and its potential as an alternative treatment, especially for age-related health issues.

One of the leading proponents of incorporating marijuana-based treatments into elder healthcare is Howard Kessler, creator of the Commonwealth Project in Massachusetts. Kessler played a key role in starting research at the Florida-based MorseLife Health System that discovered more than 62% of senior citizens between the ages of 65 and 75 could cut back on or completely stop taking their prescription drugs by using cannabinoid-based therapy.

Kessler notes that while the findings are encouraging, more extensive research is essential. This kind of research would give seniors and medical professionals the knowledge they need to make educated decisions regarding the advantages of medical marijuana.

Kessler’s advocacy reflects the same commitment that inspired President Lyndon B. Johnson to sign the Medicare and Medicaid Act into law in 1965, creating Medicare to guarantee healthcare coverage for those 65 years of age and older.

Nearly six decades later, this commitment is under strain due to the rising costs of maintaining Medicare. One of the most pressing threats to senior health today is the overreliance on prescribed opioids for pain management. The widespread use of these highly addictive drugs among seniors has led to increased risks of overdose and addiction. In this context, medical marijuana presents a potential alternative.

Evidence from states where cannabis is legal suggests that doctors prescribe significantly fewer doses of painkillers to patients enrolled in Medicare. Based on these figures, medical cannabis might save up to $500 million a year in costs if it were legalized nationwide.

If cannabis is indeed reclassified, conducting more studies to investigate its safe and controlled application in the treatment of pain and other ailments should come first, especially in the context of Medicare Advantage. Such research could not only lead to substantial savings for the Medicare system but also improve the quality of life for seniors by offering them better, safer treatment options.

As entities such as Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB) continue to bring to market more efficacious medical-marijuana formulations, the uptake of these treatments could spur additional reforms that could see the existing restrictions further eased.

About CNW420

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 — California Senators Pass Bill Authorizing Cannabis Growers to Sell at Farmers’ Markets

California Senate lawmakers have advanced a bill that would grant small cannabis cultivators a new license to sell directly to consumers at state-run farmers’ markets and other transient events. Additionally, the bill would allow adults to use cannabis at events that have been approved.

The bill does not, however, imply that small marijuana farmers can openly sell their goods at farmers’ markets alongside other merchants. Cannabis sales in approved locations would require certain regulatory permits from state and local authorities.

The assembly initially approved the bill in May, where it received overwhelming support before heading to the senate. The bill is now poised for a full senate vote after passing through two senate committees.

If the senate approves it, the bill will return to the assembly for approval of the senate’s amendments. One key amendment states that license holders may only offer products for sale and permit on-site consumption at temporary events organized by the state, not at other kinds of temporary gatherings.

Temporary event licenses would be issued by the Cannabis Control Department (DCC). With these permits, those 21 years of age and older would be able to purchase cannabis and consume it on-site at establishments that have local approval.

These activities require permission from local governments, and licenses would only be granted to those who meet the requirements for small-scale cannabis production. This group of growers consists of individuals who grow no more than an acre of marijuana or those who have mixed-light tier 1 or tier 2 permits, each of which has a maximum square footage requirement.

The measure expands on a 2018 California state law that authorized cannabis event permits for a limited time in locations where municipal governments have granted permission. For the first time, marijuana sales and on-site consumption were made possible by the 2018 law at gatherings such as the California State Fair. The new rule would give small-scale producers that obtain the required permits the same sales chances as licensed shops, which are now permitted to sell their products.

In parallel developments, a more comprehensive legislative proposal aimed at overhauling California’s hemp and cannabis regulations seems to have stalled. A committee in the senate failed to bring the proposal to a vote before the deadline, leaving its future uncertain.

The plan, backed by Governor Gavin Newsom, included an amendment that would have integrated hemp-derived products into the state’s licensed cannabis market. Additionally, it aimed to permit hemp farmers from other states to market their goods in California.

This new legislation breaks new ground, and many cannabis companies such as Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB) will be watching to see if other jurisdictions also take up this approach of helping smaller cannabis growers to access the final consumers of their products.

About CNW420

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 — Nebraska’s Judiciary Committee Considers Measures to Legalize, Regulate, Tax Adult-Use Marijuana

The Nebraska Judiciary Committee recently reviewed two proposals aimed at legalizing cannabis for adults aged 21 and older. Senator Justin Wayne introduced LB52, which outlines a regulatory structure for the marijuana industry, including a 25% sales and excise tax on marijuana products. The tax revenue would be allocated to the Education Future Fund.

Additionally, LB52 proposes the creation of the Nebraska Marijuana Enforcement Commission to supervise the sector, administer licenses and impose sanctions for infractions.

Another proposal, LB71, was put forward by Senator Terrell McKinney. This bill also seeks to legalize recreational marijuana but suggests a 16% sales and excise tax on marijuana products. Under LB71, 50% of sales tax revenue would go toward funding the Property Tax Credit Cash Fund and 40% would go toward funding the Education Future Fund. Remaining funds would be allocated to grants for youth outreach, education, prisoner reintegration programs and economic development.

Both proposals aim to remove marijuana from the state’s Controlled Substances Act (CSA). LB52 includes a provision that, starting January 2025, marijuana-related offenses would automatically qualify for clean slate relief, allowing for the removal of certain convictions from criminal records.

McKinney noted that legalizing recreational cannabis could provide significant tax revenue to support property tax reduction and education. He also highlighted the potential to lower the number of inmates in the state, which would lower operating expenses.

Jason Witmer, speaking on behalf of the Nebraska ACLU, backed both proposals, noting that criminalizing marijuana is a waste of tax dollars, negatively affects Black Nebraskans disproportionately, and has no positive effect on public safety. Legalizing cannabis for recreational use, according to Witmer, might result in tax breaks without burdening hardworking Nebraskans more.

Jennifer Henning, mother of a seven-year-old child with severe disabilities, also testified in support of the measures. She clarified that by offering an alternative to pharmaceutical medications such as methadone and ketamine, legalizing marijuana could enhance her son’s quality of life.

On the other hand, Colonel John Buldoc, Nebraska State Patrol superintendent, voiced concerns about the proposals, citing potential risks to public safety. “Based on my extensive experience, cannabis unquestionably impairs one’s ability to drive safely. It is the most prevalent illegal substance detected in the bloodstreams of drivers engaged in collisions,” Buldoc said.

Douglas County sheriff Aaron Hanson also opposed the proposals, stating that neighboring states with legalized adult-use cannabis, such as Missouri and Colorado, have seen increases in traffic fatalities, violent crimes and homicides.

Deputy Solicitor General Zachary Viglianco from the Nebraska Attorney General’s Office shared concerns about health risks associated with cannabis use, including higher chances of cancer, mental health issues and heart attacks.

The committee has yet to take any action on either LB71 or LB52 following the testimonies. The entire cannabis industry, including entities such as Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB), will likely observe how the proposals are considered to glean whether prohibition could soon end in this state as well.

About CNW420

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 — Kentucky Governor Writes to DEA Admin Supporting Federal Marijuana Reform

Kentucky Governor Andy Beshear recently wrote to Anne Milgram, the U.S. Drug Enforcement Administration (DEA) administrator, to voice his backing of the Department of Health and Human Services’ proposal to relax cannabis restrictions. The proposal advocates for moving marijuana from Schedule 1 to Schedule 3 of the Controlled Substances Act (CSA).

Governor Beshear highlighted that this reclassification would offer patients a safer alternative to harmful opioids, ensuring continued access to reliable products. He also noted that such a move would aid communities in reducing illegal drug use and crime. Additionally, it would level the economic playing field for marijuana businesses and open doors for substantial research opportunities on medical cannabis.

“As a governor, my priority is advancing our state,” Beshear remarked. “Reclassifying cannabis to Schedule 3 is a sensible and crucial step forward for all Kentucky residents, particularly those suffering from serious medical conditions.”

Currently, cannabis is classified as a Schedule 1 substance, which includes substances such as LSD and heroin that are considered to have no recognized medical value. This classification deems marijuana more hazardous than Schedule 2 substances such as Vicodin, fentanyl, methadone, oxycodone and methamphetamine.

“However, the evidence is clear: cannabis has medical benefits and is already being used for medical treatments,” Beshear noted in his letter. “This is a widely acknowledged fact, supported by both parties. For instance, I signed a medical cannabis measure into law, which passed with bipartisan support from a Democratic governor and GOP legislative supermajorities.”

The medical cannabis legislation — State Bill 47 — is set to take effect on Jan. 1, 2025. Currently, the state is processing grower, producer and dispensary licensing applications in preparation for this change. Previously, only residents who met certain requirements could use small quantities of marijuana for medicinal purposes.

In addition, Beshear highlighted his initiatives to address the opioid issue, which he spearheaded while serving as the state’s attorney general. Compared to previous attorneys general, he filed the most individual opioid claims, which helped the state obtain nearly $900 million from businesses that took advantage of Kentucky communities.

The letter further pointed out that in 2022, opioid use resulted in 80,000 deaths across the United States, while marijuana use caused none. This striking disparity, according to Beshear, is the reason Kentucky’s Department of Behavioral Health, Developmental and Intellectual Disabilities, Cabinet for Health and Family Services and Office of Drug Control Policy all support the reclassification of cannabis.

This endorsement of federal marijuana policy reform by Beshear is likely to be welcomed by the broader cannabis industry and its leading actors, such as Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB), since it is a step in the right direction of ending prohibition.

About CNW420

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 — Tax Exemptions That Companies Could Access Once Cannabis Rescheduling Is Complete

The marijuana industry has been significantly hindered by Section 280E of the IRS Code, which prevents businesses dealing with substances listed in Schedules 1 and 2 of the Controlled Substances Act (CSA) from deducting regular business expenses.

Although Section 280E affects federal deductions, the regulations are not governed by federal laws in half of the markets where marijuana businesses are licensed to sell the drug for recreational or medical purposes. This implies that when cannabis businesses submit their state taxes, they are not subject to Section 280E.

This provision has stunted the growth of legal cannabis businesses across the country. However, the sector is about to undergo a major financial shift due to the Biden administration’s proposal to reclassify the drug from Schedule 1 to 3.

Cannabis enterprises are subject to significant limitations on their income-tax obligations and tax filings under Schedule 1. They must also consider whether the states in which they conduct business adhere to federal tax rules.

Section 280E prevents companies from claiming a wide range of administrative, selling and general expenses that are typical for other businesses, including the following:

  • Rent: Leasing space, a common deductible expense in other industries, cannot be deducted in the marijuana sector.
  • Salaries and wages: Paying employees, from executives to budtenders, does not provide any tax relief.
  • Utility costs: Essential utilities such as water and electricity cannot reduce the tax burden.
  • Maintenance and repairs: Keeping facilities in good condition is a nondeductible expense, limiting reinvestment and improvements.
  • Advertising and marketing: Promoting and building a brand drains funds without the benefit of tax write-offs.
  • Health insurance: Providing medical coverage for employees is an unrecognized expense, affecting workforce stability.
  • Amortization and depreciation: The gradual loss of asset value over time is not acknowledged by federal tax rules for nonplant-touching assets.

What could change if cannabis businesses were freed from the constraints of Section 280E? It would result in a scenario where the industry is no longer categorized alongside substances such as LSD and heroin but rather with everyday prescription medications.

For starters, cannabis businesses could claim deductions for typical expenses such as salaries, rent, utility bills, and advertising and marketing costs. Money saved from 280E could be reinvested into the enterprise, spurring growth, job creation, research and development.

Further, cost savings could be passed on to consumers, making medical marijuana more affordable and accessible. Additionally, with reduced stigma, obtaining loans, credit lines and banking services could become easier. Relief could also lead to competitive pricing for patients and consumers, reducing the appeal of the black market.

The potential for these changes has the industry excited and speculative. Will these possible deductions create a thriving economic environment for marijuana businesses, or will financial parity with other industries remain elusive?

One thing is certain: rescheduling cannabis and making Section 280E irrelevant for marijuana entities could unleash a flood of prosperity and turn a once-restricted sector into a major player in the financial world.

The question: when will the industry be able to reach its full potential financially? Marijuana companies such as Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB) can only wait for the final rule to be published so that they ascertain how the change in policy will impact their tax obligations.

About CNW420

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 — Marijuana Operators in Pennsylvania Complain About Software Mandated by Regulators

Pennsylvania’s medical cannabis market generated more than $1.3 billion in sales in 2023, despite numerous issues and outages with the state’s mandated track-and-trace software. Operators claim these problems could be avoided if the software provided by MJ Freeway functioned correctly.

Although MJ Freeway recently merged with BioTrack to form Alleaves, it remains the sole provider under a contract established in 2017. Industry operators and a few legislators have voiced frustrations regarding MJ Freeway’s lack of a two-way Application Programming Interface (API) with other approved software used for sales and inventory management. This means businesses must manually input data, such as lab results and POS information, into MJ Freeway, which is both prone to errors and is time consuming. Additionally, when MJ Freeway experiences an outage, such as one that occurred last September, all operations are forced to halt.

Software providers, such as I Heart Jane and Dutchie, have confirmed that the API connection with MJ Freeway is nonfunctional, further complicating matters for businesses.

The situation is exacerbated by the state health department’s delay in implementing a fully integrated API system as mandated by a 2021 rule. State Representative Joe McAndrew expressed his confusion over the monopoly held by MJ Freeway in the state’s cannabis industry. McAndrew presented a resolution to the state legislature in May that would mandate that the health department integrate the required API technology per state law and review its contract with MJ Freeway within a month.

At the moment, medical marijuana enterprises can employ seven software providers certified by the health department; however, not all of them can interface with MJ Freeway. The ambiguity surrounding which platforms can communicate with the mandated software adds to the confusion.

Neil Ruhland, a spokesman for the health department, emphasized the organization’s dedication to safeguarding patient data while also looking for ways to enhance the current setup. Ruhland acknowledged that Pennsylvania already employs a seed-to-sale solution with some API capabilities, but he did not specify which vendors have a functional two-way API with MJ.

Moreover, the state is exploring alternatives to MJ Freeway, as indicated by a public notice posted last November, though the current status of that search remains unclear.

The $10.3 million, five-year contract with MJ Freeway was extended in April 2022. Grown In, a cannabis-related newsletter, said that MJ Freeway can charge medical cannabis licensees an extra $80,000 a year for assistance because of the deal.

As state lawmakers consider three different proposals for legalizing adult-use marijuana, the importance of a reliable seed-to-sale platform becomes more evident. Legalization PA, an advocacy group, estimates that legalizing recreational cannabis could potentially boost the state’s cannabis market to $2.8 billion in yearly sales.

Cannabis advocates thus emphasize the necessity of an effective and interactive software system to prevent the problems encountered in the past few years.

The concerns of industry players in Pennsylvania need to be addressed so that they don’t have to grapple with more challenges than they already face. This will enable them to have a chance at thriving in the same way industry companies such as Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB) are thriving in other legal markets.

About CNW420

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.

To receive SMS alerts from CNW, text CANNABIS to 888-902-4192 (U.S. Mobile Phones Only)

For more information, please visit https://www.CannabisNewsWire.com

Please see full terms of use and disclaimers on the CannabisNewsWire website applicable to all content provided by CNW, wherever published or re-published: https://www.CannabisNewsWire.com/Disclaimer

CannabisNewsWire
Denver, CO
www.CannabisNewsWire.com
303.498.7722 Office
Editor@CannabisNewsWire.com

CannabisNewsWire is powered by IBN