420 with CNW — Texas AG Wants Court to Reverse Cannabis Decriminalization in Five Cities

Texas attorney general Ken Paxton is asking the court to overturn cannabis decriminalization policies passed and implemented in five cities and has vowed to overrule the “pro-crime extremists” who championed cannabis reform in the Texas cities. The Republican filed suits against the cities of San Marcos, Austin, Denton, Killeen and Elgin earlier this week to overturn their voter-passed cannabis decriminalization measures.

In the filings, Paxton cited relevant state constitutional and statute provisions and argued that these provisions prevented local governments from approving policies that were in conflict with state law. The AG also issued a press release stating that he would not stand by idly while Texas cities run by “pro-crime” extremists deliberately violated state law and promoted illegal drug use. He added that the municipalities that had enacted cannabis decriminalization laws in the last couple of years took unconstitutional action because cities cannot decide policies to be enforced.

Paxton’s legal action comes as cannabis reform activists with Texas Cannabis Collective and Ground Game Texas work to gather signatures that will allow decriminalization measures to be placed on the November ballot for the cities of Lockhart and Dallas. Lubbock voters will also have the chance to make a decision on a marijuana decriminalization, after legislators allowed a resolution on that issue to be placed on the May ballot.

The decriminalization initiatives passed in Denton, San Marcos, Austin, Killeen, Harker Heights and Elgin prevent law enforcement officers from issuing citations against individuals or arresting them for committing nonviolent or drug-trade-related Class A or B misdemeanor marijuana offenses.

Of the aforementioned cities, Harker Heights is the only city that wasn’t targeted by the AG’s lawsuits, likely because it refused to implement the voter-approved change in policy.

Ground Game Texas’ executive director Julie Oliver stated that the attorney general’s lawsuits were an assault on the authority granted to cities by the constitution, which allowed them to enact their law enforcement policies. Oliver issued a press release noting that a majority of voters in each of the cities cited in the lawsuits were in favor of cannabis decriminalization and the deprioritization of cannabis enforcement.

Oliver explained that voters approved resolutions to minimize racial bias in law enforcement efforts and direct public resources to public safety needs with higher priorities. She added that the AG’s description of promarijuana reform groups in the state as pro-crime organizations was ironic because he is currently being investigated for financial crimes. In her conclusion, Oliver noted that the suits attempted to deflect from the AG’s legal issues and his waning political influence.

The pushback from the attorney general in Texas to local efforts to decriminalize marijuana is likely to be a subject of interest to major marijuana companies such as Canopy Growth Corp. (NASDAQ: CGC) (TSX: WEED). This is because the outcome of those lawsuits could impact the manner in which drug-law-reform efforts progress in other states that have not yet ended prohibition.

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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 — DeSantis Hints Cannabis Ballot Measure Will Appear on State Ballot

Florida Governor Ron DeSantis anticipates the inclusion of the marijuana legalization proposal on the November ballot. DeSantis expressed optimism that proponents of marijuana legalization would prevail in the Supreme Court, despite resistance from Ashley Moody, the state’s attorney general, who is attempting to stop the vote.

The Florida Supreme Court has not yet rendered a decision, which is expected by April 1, 2024, in the lawsuit against the Smart and Safe Florida campaign, despite hearing oral arguments in November.

It’s unclear if DeSantis is merely forecasting based on the difficulties at hand or if he has heard back from the court regarding the case’s current standing, which is still considering the Attorney General’s legal challenge. Moody has urged the court to strike down the proposal, even though legalization advocates were able to gather about a million signatures to get it on the ballot. Despite his opposition to the reform and his campaign vow to oppose federal decriminalization, the governor stated that Florida residents should have the final say on the matter this time around.

Before withdrawing from the GOP presidential nomination race, DeSantis stated that if elected president, he would accept state decisions regarding cannabis legalization, even if he believes the reform is detrimental. Despite falling short of the state’s 60% requirement for passing, the reform initiative is supported by most potential voters, according to a recent poll conducted by the Florida Chamber of Commerce. Still, past surveys, such as a University of North Florida survey—showed that 67% of respondents supported the initiative, indicating high support.

Should the measure be passed, it will change the Florida constitution to allow already-established medical marijuana businesses to sell cannabis to anyone over the age of 21 years of age. Cannabis concentrate product purchases are capped at five grams, and home cultivation is not allowed.

Additionally, activists’ preferred equality provisions, such as expungements or other forms of relief for those with prior cannabis convictions, are absent from the measure.

According to DeSantis’ economic analysts, should voters approve the measure, new sales tax income may range from $195.6 million to $431.3 million a year. And those numbers might increase significantly if legislators were to apply an extra excise tax on marijuana sales, similar to other states where cannabis is legal.

However, DeSantis has stated unequivocally that he still doesn’t support the bill, regardless of its possible economic benefits. Recently, he made the claim that some people are utilizing the medical cannabis program as a cover for recreational use, which may be contributing to the state’s rise in the number of patients.

The entire cannabis industry, including leading companies such as Canopy Growth Corp. (NASDAQ: CGC) (TSX: WEED), will be watching the outcome of the matter before the state supreme court and the polls later this year.

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420 with CNW — Major Themes Marijuana Investors Can Expect in 2024

Despite a year of major highs and lows in 2023, cannabis investors are hopeful that this year will be better thanks to several major issues that are likely to boost the cannabis industry. Let’s take a look at five themes likely to shape the industry:

Rescheduling prospects

Last year, U.S. marijuana businesses witnessed substantial gains after the U.S. Department of Health and Human Services (HHS) recommended the rescheduling of cannabis from Schedule I to III of the Controlled Substances Act (CSA). If rescheduling materializes, it could alleviate the burdens imposed by Section 280E of the IRS, allowing marijuana companies to obtain tax credits and standard business tax deductions similar to mainstream businesses.

Despite the potential benefits, the timeline for rescheduling remains uncertain as experts anticipate a proposed rule by the U.S. Drug Enforcement Administration (DEA), followed by potential legal challenges.

Advancements in cannabis banking legislation

In 2023, the Senate banking committee endorsed the SAFER banking measure with a bipartisan vote of 14 to 9. This act seeks to enable financial institutions to offer crucial banking services to state-regulated cannabis entities without the fear of federal repercussions.

The bill also introduces updates directing financial institutions to cultivate local banking relationships and expand Federal Deposit Insurance Corp. surveys to smaller businesses. The bill has passed the House seven times but has failed in the Senate.

The focus is currently on section 10 of the act, which aims to prevent regulators from displaying favoritism towards specific industries. Strengthening section 10 language could enhance the bill’s chances of gaining approval from conservative House leadership.

Equities sensitization

The marijuana industry’s stock market performance is likely to remain sensitive to regulatory changes, potentially leading to either positive or negative market swings. With uncertainties surrounding rescheduling and the banking legislation, industry players should brace for ongoing equity sensitivity.

Regulatory shifts could profoundly impact business strategies and investment decisions, and thus stakeholders ought to stay agile in response to these changes.

Additionally, despite potential equity dilution from balance-sheet recapitalization, investors stand to benefit from better financial status among marijuana businesses.

Further stabilization with limited capital formation

The industry is expected to witness continued price stability, fostering a more predictable pricing ecosystem for consumers and businesses. However, states facing diminishing capacity may see pricing power return to marijuana operators.

This year, the influx of new capital into the sector is anticipated to be limited. Even if the DEA agrees to reschedule cannabis, institutional investors are likely to wait for a finalized rule before injecting new capital into the space. This sets the stage for potential investments in companies with proven operational capabilities and scale advantages.

Unlikely mergers and acquisitions

The year 2023 saw subdued activity in marijuana mergers and acquisitions, and this trend is expected to persist in 2024. Last year, companies dedicated their efforts to enhancing cash flow and extending debt, making them less inclined to assume additional debt or divert attention to M&A integration this year.

If the DEA approves rescheduling, most companies will leverage section 280E relief to strengthen their balance sheets rather than engage in a spree of mergers and acquisitions. However, there may be opportunities for smaller-scale mergers and acquisitions, where businesses capitalize on improved financial conditions and potentially high equity valuations for modest, strategic acquisitions.

Existing players such as Canopy Growth Corp. (NASDAQ: CGC) (TSX: WEED) are likely to keep a close eye on regulatory developments at the federal level in the United States as these could shape their future plans and operations.

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420 with CNW — Trend of Looking Beyond High THC in Cannabis to Gain Traction

As cannabis strains have become increasingly potent over the years, THC potency has become a major determining factor for consumers when they buy cannabis products. Brands have invested heavily in R&D efforts to develop more potent strains, and they regularly display high potency as one of their products’ selling points.

Even though potency will continue to be a primary determining factor for the majority of consumers, secondary factors will also affect how cannabis genetics trends in 2024 across the country. Aside from high-THC genetics, experts on high-yield cultivars say that cannabis consumers are becoming increasingly interested in factors such as terpene profiles, minor cannabinoids and legacy strains bred with high-THC marijuana strains.

While THC is the most prominent compound in the cannabis plant, it is just one of more than 100 cannabinoids produced by plants in the cannabis family, including marijuana and hemp. Aside from THC, cannabis has tons of other cannabinoids, such as the well-known CBD (cannabidiol) and lesser-known ones such as CBN and THCV, which are starting to gain attraction.

On top of cannabinoids, marijuana also produces a plethora of terpenes that are responsible for the flavors, aromas and colors of different cannabis strains.

Some research has found that when cannabis plants are taken in their entirety with the complete profile of terpenes, they trigger an “entourage effect” that pronounces the effects of all the different compounds in cannabis as they interact. These factors will likely become more prominent in the future as America’s state-legal cannabis market grows and matures.

In the meantime, however, potency is still the main determining factor for most consumers when they walk into a cannabis dispensary. Reggie Harris, cofounder and CEO of House of Kush, a genetics company located in Missouri, says some of the dispensaries his company works with have reported that they don’t want cannabis with less than 25% THC or will only purchase those lower levels at lower prices.

Harris notes that even though people are fond of legacy cannabis strains such as OG Kush and Bubba Kush, high-THC strains attract the most customer attention. House of Kush specializes in producing such legacy strains and has started crossbreeding them with other genetics to increase their potency while maintaining their legacy genetics. These types of genetics could be a major hit this year because they are still recognizable to most customers yet contain higher potency levels.

Terpenes such as myrcene and limonene as well as minor cannabinoids such as THCV and CBN may also determine consumers’ cannabis purchasing decisions moving forward. Leading enterprises such as Canopy Growth Corp. (NASDAQ: CGC) (TSX: WEED) could be looking for ways to leverage this change in consumer preferences.

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420 with CNW — Biden Issues Proclamation Pardoning All with Minor Cannabis Convictions

President Joe Biden recently issued a proclamation extending full and unconditional pardons to individuals previously convicted in the United States for the use or possession of cannabis. Simultaneously, he exercised executive authority to commute the sentences of 11 individuals serving excessively long terms for nonviolent drug offenses. These offenses included possession with the intent to distribute small quantities of methamphetamine (meth) and cocaine.

In a released statement, President Biden emphasized the imperative of ensuring equal justice under the law. He underscored the consensus among elected officials from both political spectrums, faith leaders, civil rights advocates and law enforcement figures. The common ground was the belief that the criminal justice system should genuinely reflect the fundamental value of enhancing community safety and resilience.

Regarding the commuted sentences, Biden highlighted the disproportionately lengthy penalties handed down for nonviolent drug offenses. He pointed out that if these individuals were charged with the same offenses today, they would be eligible for significantly reduced sentences.

Concerning the pardoning of convictions related to the simple possession and use of cannabis, Biden expressed his conviction that too many lives had been adversely affected by what he termed the nation’s flawed marijuana policies. He deplored the adverse impact of criminal records for cannabis use and possession on education, housing and employment opportunities, characterizing it as a time to rectify these injustices. Additionally, he urged state governors to follow suit in addressing state-level offenses related to cannabis.

The pardons specified in the proclamation exclusively pertain to convictions for the simple possession and use of cannabis. They do not extend to other offenses involving different controlled substances or activities beyond the basic possession of cannabis, such as possession with the intent to distribute or driving offenses under the influence of marijuana.

There has been ongoing discussion about easing federal cannabis restrictions. In August, the U.S. Department of Health & Human Services (DHHS) recommended the easing of cannabis restrictions by reclassifying it as a Schedule III drug, a departure from its current Schedule I classification by the U.S. Drug Enforcement Agency (DEA). Despite changing attitudes toward cannabis with most states allowing its use either recreationally or for medical purposes, the DEA continues to categorize it alongside substances such as LSD and heroin as a Schedule I drug.

Biden’s recent actions align with his broader approach to clemency, having previously granted clemency to 31 individuals convicted of drug-related offenses in April. Notably, during his 2020 campaign, Biden advocated for the automatic expungement of cannabis use convictions, reflecting a consistent commitment to reforming marijuana-related policies.

Advocates may be getting impatient with the rate at which these reforms are being made, and they wonder how long it will take for the federal government to make the changes necessary to bring the country at par with jurisdictions in Canada where entities such as Canopy Growth Corp. (NASDAQ: CGC) (TSX: WEED) operate.

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420 with CNW — Employee Cannabis Protections Law to Take Effect in California Next Year

California workers will soon enjoy official safeguards against discrimination related to their off-duty and off-site marijuana use following a change to the state’s Fair Employment and Housing Act, known as AB 2188, greenlit by Governor Gavin Newsom on Sept. 18, 2022, and set to take effect at the start of 2024.

Under the legislation, employers are barred from refusing employment, penalizing or terminating individuals based on their use of marijuana products outside of working hours.

Despite California’s pioneering move in 1996 to legalize medical cannabis and its subsequent approval of recreational use in 2016, AB 2188 stands out as the state’s inaugural law explicitly extending workplace protections to cannabis users, regardless of the purpose. AB 2188 introduces provisions that render employers unable to hold an applicant’s past cannabis use against them. Crucially, the measure shifts the focus of employment-related drug testing toward identifying impairment during work hours or on the premises, distancing itself from scrutinizing historical marijuana consumption.

Moreover, the new legislation outlaws inquiries into an applicant’s cannabis use history, preventing employers from delving into this aspect during the hiring process. This marks a significant departure from previous norms, where employers retained the right to discipline individuals for off-duty recreational and medical cannabis use.

For instance, if an individual engages in recreational cannabis use during their leisure time over the weekend and arrives at work on Monday, employers cannot penalize them based on their weekend marijuana consumption. AB 2188 heralds a departure from the previous legality of such punitive measures.

However, AB 2188 does carve out exceptions to these protections, allowing employers to regulate cannabis use during working hours. Specifically, the bill stipulates that employees are not permitted to possess, be under the influence of or use marijuana while on the clock. The legislation also emphasizes that its provisions do not impinge upon an employer’s prerogative to maintain a drug- and alcohol-free workplace.

Certain sectors, such as construction and building trades, along with employees or applicants seeking federal jobs requiring clearance from the Defense Department, may still face employment denial or disciplinary actions for marijuana use outside of work.

Anticipating the implementation of these restrictions, employers are urged to review and adjust their antidiscrimination and drug-use policies. Those covered by the legislation intending to conduct cannabis tests must ensure that their testing programs exclusively target psychoactive cannabis components. Employers are further encouraged to stay abreast of any pertinent updates to their policies, particularly concerning criminal background checks.

The implementation of this law in California brings the Sunshine State at par with jurisdictions where firms such as Canopy Growth Corp. (NASDAQ: CGC) (TSX: WEED) operate and adults are protected from job losses or other sanctions resulting from using marijuana while off-site or off-duty.

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420 with CNW — Japan Passes Bill Authorizing Cannabis-Based Medicines in Landmark Drug Policy Reversal

Japan recently approved a measure that would legalize cannabis-based drugs. The country, which has strict drug laws, plans to lift a ban on medical products derived from marijuana. These drugs, which are produced with CBD, are already used in some countries to manage conditions such as epilepsy.

CBD, or cannabidiol in full, is one of the two primary compounds found in marijuana. The other compound, tetrahydrocannabinol (THC), is known to induce a high when ingested.

This move by Japan is a win for groups that have championed for access to these drugs. The country’s Cannabis Control Act was introduced during the post-war United States occupation in 1948.

A survey on marijuana use conducted in Japan found that only 1.4% of individuals in the country had tried the drug. This figure is quite low, especially when compared to data from the United States showing 50% of the population have tried using marijuana and 40% have tried the drug in France.

Despite this move forward, the recreational use of marijuana has now been criminalized. Officials attributed the toughening of this ban on the recent increase in marijuana-related arrests.

Before the revision was made, inhaling cannabis had technically been legal, based on a loophole introduced so farmers wouldn’t be arrested for inhaling psychoactive smoke accidentally while cultivating hemp. However, following the recent rise in arrests over marijuana, particularly among the young, authorities decided to make changes to the law. Under the revised regulations, any individual found in the possession of marijuana or caught using the drug will face a sentence of up to seven years in jail.

Figures from the country’s health ministry show that the number of arrests made two years ago in relation to marijuana was 5,783, observing a significant increase among teenagers and youth in their twenties. Additionally, a police probe conducted on more than 700 individuals who were arrested based on cannabis possession found that almost 30% of them felt the lack of penalties against consuming marijuana gave them courage to thwart the law.

After the measure was approved in parliament, government spokesman Hirokazu Matsuno stated that the government hoped this revision would help curb the trend of more young people abusing cannabis.

It should be noted that the revised law will enter into effect a year from promulgation. Under this law, marijuana and THC are categorized as narcotics to be regulated. Additionally, two kinds of licenses for cultivating marijuana will be established: one for purposes such as hemp and the other for parties that grow the plant to make medicine.

The easing of marijuana laws in Japan is likely to be welcomed as a step in the right direction by industry players such as Canopy Growth Corp. (NASDAQ: CGC) (TSX: WEED), which see this as a victory for progressive-minded people around the world.

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420 with CNW — Study Finds Drop in Young Adults’ Use of Tobacco, Alcohol Post-Cannabis Legalization

New research has found that the legalization of cannabis may be linked to a drop in the use of cigarettes and alcohol by young adults. For their study, the researchers surveyed 311 individuals aged 18 to 20 years of age who were living in Los Angeles prior to and after the state legalized the recreational use of cannabis in 2016.

The participants were divided into two groups: prelegalization and postlegalization, with the latter group having 139 participants.

The researchers found that despite increased normalization of marijuana use and increased access to the drug, legalization did not cause the frequency of marijuana use to increase. However, they did observe a shift in the use of edibles after legalization. This, the researchers theorized, could point to a substitution effect that may have resulted from increased access to marijuana via diversion of marijuana from adult-use or medical marijuana dispensaries or a medical marijuana recommendation.

With regard to the use of other substances, the researchers observed a drop in cigarette and alcohol use among participants in the postlegalization group. This, they argued, suggested the possibility of a protective effect provided by marijuana or potentially ongoing changes in attitudes and norms toward the drug.

The study, which was funded by the National Institute on Drug Abuse, reported its findings in the “Journal of Psychoactive Drugs.”

The study’s findings counter arguments made by prohibitionists on the potential impact of legalizing marijuana, as the data also showed no significant rise in the use of cannabis among young adults who hadn’t attained the minimum age that’d allow them to access retail dispensaries. In their report, the researchers recommended that future studies monitor whether stable rates of marijuana use and reductions in the use of cigarettes and alcohol would be sustained as participants attained legal age to access these substances. They also recommended that research focus on how these trends altered or continued as participants entered adulthood.

This is not the first study to observe a possible substitution effect. Research that was published recently in the “International Journal of Mental Health and Addiction” reported that the legalization of medical cannabis was linked to a lower frequency of use for nonprescribed opioids. Separate research published in October also found that legal access to CBD products brought about considerable reductions in opioid prescriptions.

Earlier in August, another study determined that cannabis was significantly linked to decreased cravings for opioids for individuals who were using them without prescriptions. This suggests that expanding access to legal marijuana by letting various companies such as Canopy Growth Corp. (NASDAQ: CGC) (TSX: WEED) operate may offer individuals safer substitutes.

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420 with CNW — Study Finds Marijuana Users Possess Greater Understanding, Empathy

A recent study, featured in the “Journal of Neuroscience Research,” has shed light on the enhanced emotional understanding observed in regular cannabis users. The study, conducted by a team of neurobiologists at the National Autonomous University of Mexico, underscores the potential positive impact of cannabis on interpersonal relationships and its plausible therapeutic applications.

The research involved a comparison of empathy measurements between two distinct groups: 85 regular marijuana users and 51 individuals who abstained from cannabis use. The researchers utilized a 33-item written test and MRI images to gauge the participants’ empathic responses.

The written test, designed to evaluate both cognitive and affective empathy, delved into specific areas, or subscales, including the ability to empathize by placing oneself in another’s shoes and recognizing others’ impressions and emotions. Additionally, it gauged the capacity to resonate with positive and negative emotions.

The authors found that marijuana users exhibited higher scores on emotional comprehension scales, emphasizing their proficiency in recognizing and understanding others’ emotions. However, distinctions in empathy subscales beyond emotional comprehension did not reach statistical significance.

Researchers posited a potential link between cannabis use and heightened empathy, though they urged caution, emphasizing the necessity for further research to unravel the complexities involved. In their attempt to elucidate the findings, the authors highlighted the anterior cingulate cortex (ACC) as a susceptible region to cannabis effects and a key player in the complex process of empathy. The study proposed that the differences in emotional comprehension scores and brain functional connectivity observed in regular marijuana users might be linked to the impact of marijuana on the ACC, an area rich in CB1 receptors crucial for representing others’ affective states.

Despite these insights, the authors acknowledged certain limitations. Notably, they couldn’t rule out preexisting differences before marijuana-use initiation, emphasizing the study’s inability to establish causation. Moreover, empathy assessments relied on self-reported responses, lacking biochemical markers alongside subjective reports.

Additionally, the study recognized a potential disparity in THC potency between Mexican and U.S. cannabis, with the former containing lower THC levels. They noted that Mexican marijuana contained approximately 2% to 20% THC on the illegal market, potentially influencing brain outcomes differently than in studies reporting emotional dysfunctions in cannabis users.

Despite these caveats, the authors asserted that the results pave the way for further investigation into the clinical applications of cannabis in affecting mood and social interactions. The findings of such studies could end up giving major industry players such as Canopy Growth Corp. (NASDAQ: CGC) (TSX: WEED) ideas on how they can tweak their products and appeal to consumers with specific needs.

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420 with CNW — German Legislators Push Cannabis Legalization Vote to Next Year

German lawmakers have decided to delay the final vote on a cannabis legalization bill, initially set for this week, pushing the potential implementation of the reform to at least early next year. The bill, slated for its final reading in the Bundestag, Germany’s national parliament, has been rescheduled for a decision in December, according to member Carmen Wegge.

Kirsten Kappert-Gonther, a member of the Green Party, cited the need to refine certain aspects of the legislation as the reason for the delay. Despite this setback, she assured the public that legalization is inevitable, albeit postponed.

Responding to inquiries about the Bundesrat’s stance, Wegge confirmed that the legislative body representing German states would be compelled to make a statement in February if the Bundestag proceeds with the bill in December.

Although the delay is currently projected as a two-month setback, critics, including the German news outlet LTO, argue that the “traffic light” coalition government’s commitment to initiating the reform by Jan. 1, 2024, has been compromised. LTO questions the feasibility of enacting legalization by March.

The Bundestag had previously postponed the initial debate on the legislation by a week, attributing the delay to the conflict in Palestine and Israel. Last week, lawmakers in the Bundestag’s Health Committee conducted a hearing where opponents voiced concerns about certain elements of the proposal. The Union, a political alliance of the Christian Democratic Union and Christian Social Union (CDU/CSU), presented an alternative policy focusing on health protection, prevention, education and research, eschewing cannabis legalization.

The Alternative for Germany (AfD) party proposed redirecting attention to medical cannabis, advocating for its integration into national healthcare law to address risks and benefits comprehensively. However, several groups, including the German Association of Judges, the Federal Medical Association, and various police and medical organizations have opposed the coalition government’s legalization proposal.

The legalization measure, spearheaded by Health Minister Karl Lauterbach, outlines provisions allowing adults to possess cannabis and cultivate up to three plants for personal use. It also introduces social clubs for marijuana distribution. Critics argue that these clubs could be limited by factors such as proximity to schools and membership restrictions.

Lauterbach initially disclosed details of the legalization plan in April, distributing legislative text in the following month. The government’s framework, approved by the federal cabinet late last year, underwent revisions to align with international laws.

Despite criticisms, lawmakers are also planning to introduce a second measure establishing pilot programs for commercial sales in various cities, with legislation expected to be submitted to the European Commission for review. The legislation outlines cost estimates for program implementation and regulation, projecting savings from reduced enforcement and anticipating new revenue through wage taxes from cannabis club employees.

If legalization is implemented the way it has been implemented in the markets where companies such as Canopy Growth Corp. (NASDAQ: CGC) (TSX: WEED) operate, the benefits of legalization could exceed more than taxes and jobs. Many more downstream opportunities will be opened, such as the development of ancillary verticals around the marijuana industry.

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