420 with CNW — Marijuana Research Hurdles Could Remain Despite Federal Rescheduling

The Biden administration’s decision to reclassify cannabis as a less-harmful drug might ease some research challenges, though scientists caution that obstacles will persist. Ziva Cooper, director of the UCLA Center for Marijuana and Cannabinoids, described this moment as historically significant but expressed cautious optimism about the actual implementation of these changes.

Although many Americans now live in states where marijuana is legal, federal restrictions have historically constrained research into its effects and applications. Researchers who have long studied marijuana believe this reclassification could boost funding and interest in research. However, they acknowledge that regulatory and logistical issues may still dampen enthusiasm.

Traci Toomey, who heads the University of Minnesota’s Marijuana Research Center, echoed Cooper’s sentiments. She noted that while some research opportunities might open up, these opportunities will not be entirely unrestricted.

Last week, the U.S. Department of Justice formally recommended reclassifying cannabis as a Schedule III substance, which recognizes its potential medical benefits and aligns its classification with drugs such as codeine-infused Tylenol, testosterone and ketamine. This shift would not legalize cannabis at the federal level but would remove it from the same category as LSD and heroin, thus reducing some of the restrictions around it.

Recently, an assessment by the U.S. Department of Health and Human Services noted that there was some reliable scientific evidence supporting the use of cannabis as a treatment for specific ailments. Nonetheless, some detractors contend that there is insufficient proof to support its medicinal application.

The federal government’s finalization of this reclassification will probably lower certain barriers to study. It will be easier for academics to obtain federal research licenses, and researchers won’t need to store cannabis in costly, highly secure facilities. Moreover, the U.S. Drug Enforcement Administration would no longer impose quotas on cannabis production for research purposes.

This could make hospitals, universities and even government agencies more willing to support clinical trials involving marijuana, according to Will Humble, executive director of the Arizona Public Health Association.

However, the impact of FDA regulations on cannabis research remains uncertain. While the FDA normally approves Schedule III drugs, it has not yet approved cannabis for any treatment, although it is commonly used for pain treatment, hunger stimulation and nausea control following chemotherapy.

Furthermore, rescheduling marijuana will not immediately increase the number of FDA-approved facilities where researchers can obtain the drug.

Valerie Ahanonu, head of the University of Utah’s Center for Medical Marijuana Research, highlighted that even years after the legalization of hemp-derived CBD, research remains difficult due to sourcing issues that meet federal standards. Ahanonu stressed the complexity and extensive bureaucratic procedures involved, making it uncertain how much the reclassification will genuinely enhance research opportunities.

Despite these challenges, the potential for expanded research and a greater understanding of marijuana’s medical applications remains promising, and marijuana enterprises such as Aurora Cannabis Corp. (NASDAQ: ACB) (TSX: ACB) are likely to applaud every policy change that moves cannabis a step away from the existing prohibitive restrictions 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 — White House Noncommittal on Biden’s View of DOJ’s Stand on Cannabis Reclassification

The White House hasn’t disclosed whether President Joseph Biden backs the U.S. Department of Justice’s (DOJ) proposal to reclassify cannabis after a review he initiated. During a conversation with Karine Jean-Pierre, the White House press secretary, reporters asked questions regarding the president’s stance on the DOJ’s proposal to shift marijuana from Schedule I to III.

Jean Pierre responded by noting that Biden’s administration would let the review process unfold, so she wouldn’t “preempt the matter.” She also stressed the president’s clear stance against incarcerating individuals solely for cannabis possession. Jean-Pierre has consistently refrained from directly addressing the administration’s stance on the rescheduling proposal. Nonetheless, she noted that the review directed by the president aligns with his promise to voters during the last election.

Biden has granted mass pardons twice to individuals convicted of federal cannabis possession offenses. Reclassifying marijuana to Schedule III wouldn’t legalize it or release individuals currently imprisoned for cannabis-related charges.

It’s worth noting that during his presidential campaign, Biden promised to reclassify cannabis as Schedule II substance, which is a stricter classification than what his administration is considering. Jean-Pierre reiterated that the president’s position on the matter is the reason behind his directive for the U.S. Department of Health and Human Services (HSS) and the DOJ to review the rescheduling of cannabis.

The White House has yet to confirm the status of the rescheduling proposal. While Jean-Pierre mentioned the proposal is with the DOJ, the department confirmed completing the review. It’s expected to have been forwarded to the White House Office of Management and Budget (OMB) for assessment before publication in the Federal Register for public input.

During a committee hearing last week, the head of the U.S. Drug Enforcement Administration (DEA) declined to comment on the department’s recent cannabis rescheduling decision due to the ongoing rulemaking process.

Last month, the press secretary reiterated Biden’s support for cannabis decriminalization. She also stressed that HHS’s rescheduling recommendation to the DEA was grounded in evidence and science, echoing the administration’s principles.

Both Biden and Vice President Kamala Harris have increasingly vocalized their support for cannabis policy reform leading up to the November election. Additionally, the top House Democrat noted that the administration’s move to reschedule cannabis is a positive step but advocated for further congressional action, including passing Senate Majority Leader Chuck Schumer’s legalization bill.

Conversely, a GOP senator argued that cannabis serves as a “gateway drug” and criticized Democrats’ legalization efforts as promoting criminal behavior. He also expressed concerns about marijuana banking legislation facilitating increased drug use in the United States.

All that marijuana companies such as Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB) can do at this point is to wait for the formal communication by the DEA regarding their stand on marijuana scheduling in light of the recommendation that the agency received from HHS.

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420 with CNW — Official Records Show Recreational Marijuana Sales in Canada Exceeded C$5B in 2023

In 2023, Canada’s recreational marijuana market boasted a value of approximately C%5.07 billion ($3.8 billion), a recent government report on retail sales stated. This reflects a 12.2% increase from the previous year, showcasing a trend of growth, albeit at a slower pace compared to earlier years, marking more than five years since the legalization of recreational marijuana in 2018.

Brad Poulos, an entrepreneurship professor at Toronto Metropolitan University, explains this slowdown as a normal evolution of the market. He points out that a big part of the increase in sales of legal marijuana comes from customers moving away from illegal sources. This trend is expected to continue in 2024, with 40% of cannabis transactions still taking place in the illegal market.

One aspect where the illicit market maintains an edge, according to Poulos, is in marijuana edible potency, a product capped by Canadian regulations at 10 mg of THC per package for public health purposes.

Headset Data analyst Mitchell Laferla draws attention to how customer preferences changed last year in Canada’s marijuana market, with pre-rolled joints showing a remarkable rise in sales, accounting for 31.4% of sales, which is a significant increase over the previous year. This surge brings pre-rolls nearly on par with flower products (35.2%), traditionally the most popular category.

Moreover, Laferla’s analysis notes that, in 2023, marijuana prices in Canada decreased generally for the majority of product categories. But compared to the double-digit compression seen the year before, this decrease was less severe, with pre-roll pricing notably remaining stable, probably helped by continued demand in the category.

The recent retail sales data from Statistics Canada for December revealed a year-over-year increase of 3.6% in legal recreational marijuana sales, amounting to C$441.2 million. This represents an 8.2% month-on-month increase over November 2023, reversing the downward trend that had been seen since August, when monthly sales reached a height of C$467 million.

Despite these positive indicators, challenges persist within the regulated market. High taxes remain a significant grievance among industry stakeholders, compounded by the enduring presence of the illicit market. In addition, the industry is looking forward to the parliamentary study of legalization that is scheduled for release in the spring, though it is unclear if the outcome will allay the worries of cannabis retailers and producers.

The marijuana retail industry in Canada is still recouping after several locations were either closed or acquired last year.

Looking ahead, Poulos estimates a potential 10% growth in Canadian marijuana sales for 2024 over the previous year, fueled by continued migration of users from the illicit market and further expansion of legal dispensaries, particularly in regions with limited accessibility such as Quebec and certain municipalities in Ontario.

Individual companies, such as Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB), are likely to fare differently in the new year depending on how well they position themselves to appeal to different consumer segments, including medical marijuana users.

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420 with CNW — Data Provides Insights on Canadian Cannabis Company Closures in 2023

According to new data given by regulators overseeing the three major Canadian cannabis marketplaces — British Columbia, Ontario and Alberta — an unprecedented number of stores in Canada experienced shutdowns or ownership changes in 2023. The data, sought by MJBizDaily, indicates a retail environment characterized by intense competition in certain places and moderate growth in others.

Alberta saw a shift in dynamics as, for the first time since marijuana was legalized in the province in 2018, more marijuana retail licenses were revoked or not renewed than were issued last year. Forty-eight new marijuana store licenses were issued in the province in 2023, while 62 were not renewed or revoked. This marks a departure from 2022, where 140 new licenses were issued compared to 73 cancellations or nonrenewals.

While the data presents a nuanced picture of store closings, the regulator, AGLC, cautions against drawing straight conclusions about license cancellations and business exits from the industry, noting variables such as relocation.

Alberta is regarded as Canada’s most developed cannabis retail sector, with 749 marijuana providers.

Meanwhile, in Ontario, the country’s largest cannabis market based on sales, new retail cannabis store applications have gradually waned since 2021. More than 1,000 applications for retail stores were submitted in 2021, according to information provided by the regulator, AGCO. More than one-half of applications were lost the next year, to 429 new RSAs, and then another 50% fell to 269 in 2023.

The number of license cancellations has not increased as fast. Only 8 applications were terminated in 2021. In 2022, the number increased to 106, but in 2023, it dropped to 92. According to the data, more retailers are reportedly opening in Ontario than closing.

Only 47 cannabis licenses have been approved in British Columbia (BC) in the last year, which is a drop from the 2022 numbers and around 50% fewer than the 98 permits that were granted in 2021. There were 17 expirations or cancellations in 2023, 6 in 2022 and 12 in 2021, according to data from the LCRB.

Currently, BC has 493 operational cannabis stores. The provincial system does not specifically track store closures; hence, the solicitor general and public safety ministry advise against taking the statistics as an accurate depiction of business closures.

A spokesman for the Public Safety Ministry pointed out that the analysis failed to take license dormancy into consideration, which could result in permanent closures. Dormancy occurs when an establishment ceases operations, requiring license holders to inform the LCRB in 10 days if closure exceeds 90 days.

Stores that fail to disclose closures for less than 90 days and permits that lie idle for up to 24 months also add to the difficulty of keeping track of changes in the business. The number of inactive or unrenewed licenses varies throughout the year due to licensees’ one-year window to reactivate their licenses after they expire.

The continued operation of companies such as Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB) is testament to the resilience of the marijuana industry in the country amid the challenges that have stood in the way.

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CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of two informative articles each business day. Our 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. Articles are released each business day at 4:20 a.m. and 4:20 p.m. Eastern – our tribute to the time synonymous with cannabis culture. 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 — Restrictions Imposed on New Recreational Marijuana Markets Could Stifle Business

America was one of the first countries on the globe to adopt cannabis reform and repeal prohibitionist cannabis laws, at least at the state level. The country is now home to the largest cannabis markets on the globe and earns billions of dollars annually from fees and cannabis sales.

Twenty-four states already allow recreational cannabis sales, but several of them passed adult-use cannabis policies in the past couple of years and are still working out the kinks in their markets. However, players in some of America’s youngest recreational cannabis markets are grappling with increasingly stringent rules and regulations that have the potential to stifle their growth. The cannabis industry is already known for its strict rules and numerous fees, which often raise the cost of business and make it hard for businesses to turn a profit.

However, newer markets are taking it a step further with outright bans on certain cannabis products and harsh limitations on marketing, product design and packaging as well as much lower potency caps. Consequently, cannabis operators in young markets such as Maryland, Arizona, New York and Missouri are now facing new policies that could increase the already high cost of business even further and cripple these markets before they can truly soar.

Missouri’s recreational marijuana market is looking at another potential inventory shortage as dozens of manufacturers and brands wait for hundreds of thousands of their product stock-keeping units to receive approval. This expanding backlog, which prevented many brands from entering Missouri’s adult-use market, is due to child safeguards included in new packaging rules that were published in July.

Marijuana product manufacturers in Missouri have been waiting for several weeks now after the Missouri Department of Health and Senior Services (DHSS) passed guidelines limiting cannabis packaging to a single primary color and up to only two symbols or logos featuring different colors.

Operators in New York are also struggling to follow newly passed packaging rules for recreational cannabis while businesses in Maryland have barely any room to market their brand, retail stores or cannabis products on most conventional marketing channels.

Cannabis regulators in Maryland have also banned the sale of cannabis elixirs and concentrates, which are best-sellers in other recreational markets. They also passed capped THC levels in individual edibles at 10 milligrams and 100 milligrams per package. According to Wendy Bronfein, the cofounder of Maryland cannabis operator Curio Wellness, the current environment simply isn’t conducive to business.

For companies that may be looking to expand into different markets, such as Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB), the tightening restrictions being imposed on the new markets may be a serious matter of concern.

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420 with CNW — Feds Finally Publish Documents Revealing HHS Cannabis Rescheduling Recommendation

The federal government has released documents confirming that the U.S. Health and Human Services has recommended that the DEA categorize marijuana under Schedule III. Currently, the Controlled Substances Act classifies marijuana as a Schedule I substance, which means it has a high potential for abuse and has no accepted medical use.

Health officials explained that marijuana had a lower potential for abuse in comparison to other substances under Schedule I or II and was already accepted for medical use in America. In their review, the health officials stated that more than 30,000 healthcare professionals across various jurisdictions in the U.S. were allowed to recommend the medical use of cannabis for more than six million eligible patients for roughly 15 medical conditions.

The majority of the documents debate the federal government’s analysis for drug scheduling, calling attention to the importance of cannabis’ abuse potential in comparison to other substances, its risk of physical dependence, its relative safety and whether it has been accepted for medical use.

The review also examined if available scientific literature supported the medical use of marijuana, with federal health officials acknowledging that many states in the country had legalized the medical use of cannabis. They also noted that some medical marijuana programs had been around for a couple of years.

With regard to effectiveness, the memo stated that the biggest evidence for efficacy existed for cannabis use within pain indications, particularly neuropathic pain.

The U.S. Food and Drug Administration (FDA) also carried out a review noting that it didn’t find support for cannabis providing benefit for anxiety or epilepsy. The review did, however, determine that there was a risk linked to treating post-traumatic stress disorder with cannabis. The agency also highlighted that, in general, there was inadequate quality clinical data supporting the use of cannabis for post-traumatic stress disorder.

In the matter of marijuana’s safety in comparison to other drugs, the review argued that the risks to public heath posed by cannabis were low in comparison to other abused drugs, including benzodiazepines, cocaine and heroin. The review called attention to the fact that cannabis ranked the lowest for overdose deaths, as compared to other substances. The released documents also revealed that the National Institute on Drug Abuse supported the agency’s review.

It is important to note that even if the DEA accepted the health department’s recommendation to reschedule cannabis, the drug would still not be legal under federal law. However, its rescheduling would allow state-legal marijuana businesses to claim federal tax deductions. At the moment, these businesses aren’t permitted to do so because of Section 280E of the Internal Revenue Service code.

Entities in the industry, such as Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB), will be hoping that the rescheduling of cannabis at the federal level paves the way for further regulatory reforms as the years go by.

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420 with CNW — DEA Informs Congress It Has Final Say on Cannabis Scheduling Despite HHS Recommendation

The U.S. Drug Enforcement Agency (DEA) has asserted its ultimate authority in determining the scheduling of cannabis, regardless of the recommendations made by the U.S. Health and Human Services. Michael Miller, the DEA acting chief of the Office of Congressional Affairs, communicated this stance in a letter addressed to Representative Earl Blumenauer, cochair of the Congressional Marijuana Caucus.

The scheduling review process, initiated by President Joseph Biden in October 2022, commenced with a scientific assessment from the HHS. The assessment purportedly advised the DEA to reclassify cannabis from Schedule I to Schedule III of the Controlled Substances Act (CSA). After HHS provided its recommendation in August, the DEA proceeded with its independent review.

The DEA’s response was prompted by an earlier letter from 31 bipartisan legislators, led by Blumenauer, urging the DEA to consider the merits of legalization during the review. The lawmakers expressed concern about the limitations of placing marijuana in Schedule III rather than completely removing it from CSA control. They emphasized the urgency of full descheduling and criticized the outdated scheduling of cannabis, which they deemed incongruent with the public’s sentiment.

In its reply, the DEA refrained from addressing the lawmakers’ arguments and focused on the procedural details of the scheduling review. The timeline for completing the review remains undisclosed, though speculation suggests a conclusion before the November election.

The Congressional Research Service (CRS) suggested that, based on past precedent, the DEA would likely follow HHS’s recommendation. However, the DEA reiterated its final jurisdiction over the CSA, retaining the authority to disregard HHS advice.

Despite the controversy surrounding the rescheduling review, little is known about HHS’s justification for recommending Schedule III. The agency submitted extensive documents to the DEA, but those documents have been released in highly redacted form, offering scant insight into the health agency’s findings on medical benefits, addictive potential or other policy aspects.

The DEA has received input from various stakeholders, including 29 former U.S. attorneys, urging the preservation of Schedule I. Six governors and former DEA heads voiced opposition to HHS’s recommendation, highlighting the complexity of the marijuana policy debate.

Lawmakers and advocates supporting marijuana reform marked the one-year anniversary of Biden’s cannabis pardon and scheduling directive by urging further action. Two GOP senators introduced legislation to prevent federal agencies from rescheduling cannabis without congressional approval.

Simultaneously, a coalition of 14 GOP legislators urged the DEA to reject HHS’s recommendation and maintain the strictest categorization for cannabis under the CSA.

Actors in the marijuana space, such as Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB), are eagerly waiting for the decision that the DEA will make on cannabis classification under the CSA.

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420 with CNW — New York Publishes Sample Job Descriptions to Help Employees, Companies in Legal Cannabis Industry

The state of New York’s labor department recently published sample job descriptions for various positions in the marijuana industry. Their intention is to allow prospective employees to evaluate their qualifications to work in different roles in the growing industry while also helping firms streamline hiring processes.

In a statement, a representative of the department said that marijuana’s legalization had created significant opportunities, and the department of labor was committed to supporting businesses as well as those seeking employment in the state as the industry continued to expand. The department began posting the sample descriptions earlier this month. They include example positions in delivery, cultivation, retail, and product manufacturing and hospitality as well as sampling and testing jobs.

Some positions are entry level, such as managing retail inventory or trimming, while others require skilled individuals for roles such as cannabinoid extraction, management or laboratory testing. The job-description samples are posted on the department’s Cannabis Career Exploration site and are meant to be used as education resources for those seeking employment. The website also includes a page on how to find cannabis jobs and links to marijuana education opportunities.

The department also released a statement noting that this online resource was put together to help New Yorkers explore working in the marijuana industry. It further noted that the resource would also help those seeking employment to evaluate their skills to find a focus area and determine what education or training they would need to succeed in their chosen careers. The department then added that the resources could be used as a starting point for businesses as they start hiring their workforce.

The sample postings come just weeks after the state’s Supreme Court lifted an injunction that prohibited state cannabis regulators from processing new retailer licenses. This move will allow the New York marijuana market to expand significantly.

In a press release, the Cannabis Control Board’s chair Tremaine Wright stated that the decision brought relief to hundreds of those with provisional licenses whose businesses had been sidelined. Wright then noted that the board remained focused on upholding a transparent and fair process as it continued to support and grow the state’s marijuana industry.

New York Governor Kathy Hochul also wrote on social media that the decision by the supreme court meant there should be more places to buy tested, safer and legal marijuana stores would launch faster. Currently, however, there fewer than 30 licensed retailers for adult-use cannabis in the state.

It is expected that the court’s decision will also reduce the number of illicit operators in the market, who currently make up a significant fraction of the marijuana market.

Marijuana industry actors elsewhere, including group leader Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB), are likely to welcome the steps that are being taken to get the industry finally going in New York State since the state has faltered several times in its attempts to roll out regulated sales.

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420 with CNW — Federal Survey Reaffirms State-Level Cannabis Legalization Hasn’t Changed Teen Use Patterns

A new survey has determined that the use of marijuana in teens hasn’t increased even as more states legalize the drug’s use across the country. The survey was funded by the National Institute on Drug Abuse (NIDA) and carried out by researchers at the University of Michigan. It determined that rates of past-year marijuana use remained stable for all grades that took part in the survey, even as more cannabis markets opened and expanded for adults countrywide.

During a webinar last week, NIDA’s chief of epidemiological research Marsha Lopez stated that no significant increases had been observed with no increase in perceived availability being recorded either. The survey, which questioned teens on the use of delta-8 THC products, found that past-year cannabis use stood at 29%, 17.8% and 8.3% for 12, 10th and 8th graders respectively.

Delta-8 THC is one of the many psychoactive cannabinoids found in the cannabis sativa plant, of which hemp and marijuana are two varieties. Products based on this cannabinoid are typically derived from hemp and sold in mainly unregulated markets, though some states have enacted bans or restrictions.

Between 2020 to 2022, 11 more states legalized the use of cannabis. Data from the survey shows that the liberalization of cannabis policies in these newly legal states didn’t translate into increased perceptions of availability among the youth, with Lopez noting that the perceptions were actually trending downward. This is despite the fact that 2022 recorded the highest ever use of recreational marijuana and some psychedelics. The survey’s results also show steadier decreases in the perception of harm of using marijuana.

The results support advocates’ stand against arguments that legalizing adult-use marijuana would cause underage use to increase. In fact, findings show that in regulated markets where IDs were checked and other safeguards set up, youth access was restricted. In addition, the survey found that there was relatively low prevalence of daily marijuana use, which had been steady for the last decade.

The investigators also compared a range of cannabis-related indicators from teens living in states in which marijuana is illegal and states that have legalized medical use. They observed no statistically significant differences in past-year rates of use across all grades examined, regardless of state medical cannabis laws.

With regard to teens who do consume marijuana, the majority of them revealed that they smoked the drug, but the survey observed a shift in consumption methods, with more teens switching to edibles or vaping.

In a press release, Richard Miech, the survey’s team lead, highlighted the importance of monitoring the use of this drug among teens moving forward.

The findings from the survey possibly trigger thoughts of “we told you so” from cannabis industry participants such as Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB) that have always believed that setting up regulated markets for cannabis could reduce teen access to the substance.

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420 with CNW — Ohio GOP Lawmakers Propose Banning Cannabis Home Grow in Major Changes to Measure

Republican lawmakers from Ohio are proposing a slew of amendments that would cause significant changes to the state’s voter-approved cannabis legalization measure. With the new legislation taking effect last Thursday, GOP lawmakers are looking to implement changes such as banning home-cannabis cultivation, increasing cannabis taxes and adjusting how the state distributes marijuana taxes.

Titled Issue 2, the recreational cannabis legalization measure was passed by Ohio voters last month and is subject to amendments by the legislature. The measure is currently in committee and has already been subject to many attempted changes. This includes a proposal to ban voter-approved home-cultivation provisions that would allow Ohioans to cultivate up to 6 cannabis plants per home and up to 12 plants per household.

Furthermore, GOP senators are proposing to raise the approved marijuana product tax from 10% to 15% and tax cannabis cultivators at rate. Tax revenue collected from the cannabis supply chain would be spent on law-enforcement training, general state funding, safe-driving training, and substance-abuse treatment and prevention.

The voter-approved measure would have directed most of this revenue to a social-equity program and local government-hosted dispensaries.

Northern Ohio Republican Senator Rob McColley says the changes to tax revenue allocations are meant to ensure cannabis tax revenue benefits the state instead of going back into the sector. Columbiana County Republican Senator Michael Rulli says the Senate General Government Committee’s goal is to provide Ohio adults with safe cannabis products.

However, Regulate Marijuana Like Alcohol spokesperson Tom Haren has criticized the proposed amendments and said they will “gut” the measure’s most critical provisions, such as social equity and home cultivation while increasing taxes on legal cannabis. Haren noted that ramping up cannabis taxes would make legal cannabis more expensive and encourage Ohioans to purchase more affordable cannabis from the black market or from Michigan’s cannabis market.

Despite dozens of states now allowing both recreational and medical cannabis, the United States still has an entrenched illicit cannabis market that has consistently undercut the legal industry. If states such as California, which has the largest cannabis industry on the globe, still cannot compete with their illicit markets, Ohio would undoubtedly struggle to remain competitive against cheaper cannabis from the black market.

It will take some time before the proposed changes are permanent. The changes will first have to clear the Senate before heading to the House, which despite having a Republican majority is more inclined to legalize recreational cannabis compared to the Senate.

Columbus Democrat Senator Bill DeMora has also criticized the changes, saying they “ignore the will of the voters,” especially the amendments eliminating home cultivation and changing cannabis tax allocations.

Companies such as Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB) that keep a close eye on the industry developments happening in different jurisdictions will probably follow the goings on in Ohio to see what form the recreational-cannabis industry takes in the months to come.

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