420 with CNW — Congressional Researchers Highlight Shortcomings of Cannabis Rescheduling Recommendation

A recently published Congressional Research Service (CRS) report has highlighted the potential shortcomings of the U.S. Department of Health and Human Services’ (HHS) marijuana rescheduling recommendation. Last year, the HHS published a series of documents recommending that the U. S. Drug Enforcement Administration (DEA) reschedule marijuana to Schedule III of the Controlled Substances Act. HHS officials justified the recommendation on the grounds that cannabis currently has “accepted medical uses” and thus did not meet the conditions required of Schedule I drugs.

Rescheduling cannabis from Schedule I to Schedule III would finally make it legal for doctors to prescribe marijuana at the federal level and would be a major step forward for the country’s medical marijuana industry. However, Congressional researchers argue that the rescheduling recommendation has many shortcomings. The recent report outlined the legal consequences of rescheduling marijuana.

It noted that the country’s state marijuana markets would still be illegal at the federal level and certain cannabis activity-related criminal penalties would remain in place even if cannabis is rescheduled. According to the CRS, approving the rescheduling without any additional legal changes would not make the state legal recreational and medical marijuana industries compliant with the federal Controlled Substances Act.

The report said that while moving cannabis to Schedule III would make it legal for doctors to prescribe it, the U.S. Food and Drug Administration (FDA) would first have to approve cannabis medicines before federal law allows physicians to prescribe cannabis.

Additionally, the manufacturers and distributors of any cannabis products that receive FDA approval would have to register with the DEA and meet regulatory requirements for drugs in Schedule III of the Controlled Substances Act before they can begin handling their respective products. Medical marijuana users would also need to acquire prescriptions from licensed medical providers that will most likely be subject to different federal requirements. The report adds that the rescheduling will only change certain criminal penalties while some marijuana-related penalties would remain unchanged.

On a positive note, the report noted that the rescheduling would finally allow cannabis businesses to deduct their business expenses when they file their federal taxes, something they have been unable to do since the industry’s inception due to federal prohibition. The CRS report also said that regardless of how the rescheduling issue plays out, the Justice Department wouldn’t be able to interfere with state medical cannabis programs, thanks to an appropriations rider renewed annually by Congress since 2012.

As long as the rider remains in place, the report explains, players in America’s state-legal medical cannabis industry will be protected from federal prosecution as long as they comply with state cannabis law.

Despite these shortcomings revealed in the CRS report, cannabis industry actors and ancillary companies such as Innovative Industrial Properties Inc. (NYSE: IIPR) are likely to see the rescheduling of marijuana to Schedule III as a step in the right direction. Other reforms can follow this significant step in due course.

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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 — UFC Officially Strikes Cannabis Off List of Banned Substances

During the last week of December, the Ultimate Fighting Championship (UFC) announced that was formally eliminating cannabis from its list of banned substances for athletes. The change in policy, which took effect on Dec. 31, 2023, also involves entering into a partnership with Drug Free Sport International, its sample collection and shipping company.

The UFC also revealed that it was amending its list based on historical findings, despite stating that it was modelling its list of prohibited substances after the World Anti-Doping Agency.

In 2021, the UFC adopted a policy change that protected professional fighters from penalizations over positive THC tests.

In a press release, UFC’s Hunter Campbell stated that the organization’s objective was to have the best, most progressive and most effective antidoping program in all professional sports. Campbell, the organization’s chief business officer, added that the organization would continue independently administering its drug-testing program, which ensured that all UFC athletes competed under equal and fair circumstances. He also highlighted that the organization was proud of the advancements it has made with its antidoping program over the last eight years.

Jeff Novitzky, senior VP of Athlete Health and Performance at UFC, stated that the updated program was the result of years of trial and error by the organization as well as the incorporation of input. Novitzky added that the antidoping policy was a document that would continue adapting and evolving as science supported changes that could further protect athletes that competed in UFC.

As the legalization movement grows across the country, a growing number of sports organizations are moving to amend their cannabis testing policies for athletes. For instance, the National Basketball Association and its players’ union signed a collective bargaining agreement in June 2023 that involved the removal of cannabis from the league’s list of banned substances and laid out rules permitting players to promote marijuana brands and invest in them, with some exceptions.

In July, the New York Media Softball League announced that it was launching a sponsorship deal with Cornbread Hemp, a CBD company based in Kentucky. The idea behind the collaboration was inspired by moves by teams such as the Chicago Cubs and Kansas City Royals as well as Major League Baseball, which have also partnered with CBD businesses.

In September 2023, a National Collegiate Athletic Association committee gave its formal recommendation that divisional governing bodies eliminate marijuana from the banned substances list for college athletes. That same year, sports regulators in the state of Nevada voted to present a proposed regulatory amendment to the governor that would shield athletes from penalties over the possession or use of cannabis in compliance with state law.

The changing attitudes of sports bodies toward cannabis could help to remove concerns that some sections of the society may have had about this substance, and as the uptake of marijuana increases, ancillary companies such as Innovative Industrial Properties Inc. (NYSE: IIPR) could do more business with marijuana industry actors looking to meet the growing customer demand.

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420 with CNW — Arizona Uses Cannabis Taxes to Give 18 Nonprofits Justice Reinvestment Grants

Arizona state officials recently announced that Arizona has started awarding the first round of justice reinvestment grants to nearly 20 nonprofits across the state. The state’s cannabis law, Proposition 207, created the grant program to support efforts such as substance-use prevention and treatment, public and behavioral health, mentorship programs and workforce development in economically disenfranchised regions.

Using funds drawn from cannabis taxes, the program would also support efforts to address the root causes of crime, reduce Arizona’s prison population, expunge certain cannabis-related criminal records and restore civil rights.

As per Proposition 207, the program receives 35% of Arizona’s Justice Reinvestment Fund, which is funded by 10% of Arizona’s cannabis sales tax revenue. An additional 35% of the Justice Reinvestment Fund is earmarked for county public health departments while the remaining 30% goes to the Arizona Department of Health Services (ADHS) to address critical public health issues that affect Arizona.

Recipients of the first round of grants include Northland Family Health Center, Hushabye Nursery, Axiom Community of Recovery, Stuck Community Acupuncture, Cihuapactli Collective, Phoenix Indian Center, Friendly House, Persevere, Arouet Foundation, Jobs for Arizona’s Graduates (JAG) and Constructive Circles of Peace.

The rest of the 18 grants went to the Arizona Democracy Resource Center, Our Sister Our Brother, Southern Arizona Legal Aid, the Bambi Fundjust Communities Arizona, Regional Center for Border Health Yuma, and Regional Center for Border Health Parker.

A press statement from ADHS noted that the office “identified priority communities’” in Arizona and held 18 listening sessions to highlight public interest in services that participants believed would benefit their communities. This includes improving neighborhood safety and developing community spaces such as community centers and parks, providing training on cultural awareness, culturally appropriate health services, youth development, substance education and prevention services, technology training for former inmates, and increasing access to affordable housing and healthy food.

According to ADHS, all the projects that received grants represent communities from across the state and focus on the key areas detailed during the community listening sessions.

ADHA noted that the Office of Health Equity would create a “robust evaluation process” to make sure that the program funds projects that bring a positive impact by serving the intended communities. Such a program evaluation process would assess if grant applicants meet the outlined goals and use collected data to continuously improve the program, ADHS said.

Arizona isn’t the only state that has earmarked a portion of its cannabis revenue for community reinvestment. California recently announced that applications for $48 million in cannabis tax-funded community reinvestment grants were open. New Jersey has also opened an application round for the state’s marijuana tax-funded social equity program.

The benefits that cannabis companies and ancillary companies such as Innovative Industrial Properties Inc. (NYSE: IIPR) bring through the taxes they pay in the different jurisdictions where they operate highlight some of the socioeconomic value of cannabis legalization.

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420 with CNW — Investment Bank Expects Cannabis to Draw Millions of Customers from Alcohol

Analysis by a multinational investment bank has found that cannabis has grown into a “formidable competitor” to alcohol and will draw tens of millions of users over the next five years while alcohol loses several million drinkers. The TD Cowen analysis estimates that marijuana sales will hit a whopping $37 billion in 2027 as more states legalize cannabis and launch legal sales.

Alcohol has been the main drug of choice for most Americans for nearly a century, but the beverage has been fielding increasing competition from cannabis in recent years. With 24 states legalizing recreational cannabis so far, tens of millions of Americans now have access to legal cannabis. Several more states are considering cannabis reform and will most likely legalize the drug over the decade, increasing access to marijuana to even more Americans.

TD Cowen’s Cannabis Beats Booze report notes that the cannabis category will gain 19 million past-month consumers over the next five years while the alcohol category will lose two million. Lead of the analysis team Vivien Azer says the report adds to a growing body of market research that has consistently pointed to cannabis as a disclocator to alcohol sales. She said the team was surprised to see an “even greater underperformance” in the alcohol category in states with legal cannabis markets.

Although alcohol sales are still far ahead of cannabis sales, analysts say the beverage faces a risk of decline as an increasing number of consumers, especially younger people, are substituting alcohol with alternatives such as cannabis. Prior studies have found that younger populations are drinking less alcohol and using substitutes such as cannabis and psychedelics.

The report estimated that states such as Ohio and Minnesota, which recently legalized recreational cannabis but are yet to implement cannabis laws, could bring in an additional $37 billion in sales in 2027.

Alcohol companies may have little trouble navigating the evolving customer trends in the short-term, but certain brands likely face “competitive challenges” in the medium- and long-term.

TD Cowen says alcohol would keep underperforming in states with legal cannabis markets with beer being the most at-risk beverage. On average, TD Cowen notes, the number of drinks taken on given occasions is lower in legal cannabis states.

Despite the impact cannabis legalization seems to have had on alcohol consumption in legal states, Azer doesn’t see alcohol companies entering the marijuana market until there is meaningful administrative or legislative regulatory change at the federal level.

As more people opt for marijuana in lieu of alcohol, cannabis product demand will increase, and ancillary entities such as Innovative Industrial Properties Inc. (NYSE: IIPR) could also see their businesses grow as a result of this boom.

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420 with CNW — New York Regulators Give MSOs Nod to Enter Recreational Cannabis Market

In a significant development, multistate operators holding medical cannabis licenses in New York have received approval from state regulators to venture into the adult-use market starting Dec. 29, 2023. This approval comes one year after the state initiated recreational marijuana sales, signaling a notable progression in the unfolding narrative of New York’s adult-use cannabis sector.

The decision by the Marijuana Control Board (CCB) has long been anticipated, and it represents a pivotal moment that has sparked controversy throughout the rollout of the state’s recreational marijuana market. This move follows a ruling by the New York State Supreme Court on Dec. 1, 2023, wherein an injunction hindering the issuance of new recreational marijuana business licenses was lifted, clearing the path for regulatory authorities to greenlight the expansion.

During its meeting, the CCB gave the nod to six registered organizations, namely Columbia Care NY, Curaleaf NY, Etain, NYCanna, PharmaCann of NY and Valley Agriceuticals.

Earlier this year, it was reported that the state’s Office of Marijuana Management (OCM) had proposed allowing multistate operators to enter the recreational market by year-end. A three-year waiting period that was placed on the state’s 10 vertically integrated medical cannabis providers was essentially eliminated by this plan.

The primary purpose of the waiting time was to provide social-equity shops and smaller suppliers with a first-to-market advantage. However, when unlicensed cannabis businesses proliferated, particularly in New York City, the waiting period was altered.

Despite efforts to expand retail channels and hasten business operations, delays persisted in approving hundreds of CAURD licensees and applicants due to legal challenges over social equity provisions and licensing process.

In another development, the Office of Marijuana Management dealt a setback to the state’s small group of craft cultivators by announcing the discontinuation of the Marijuana Growers Showcase program by year-end. This decision, contrary to the preferences of smaller growers, marks a change in strategy for the showcases, which were initially designed to assist cultivators in selling excess inventory from the previous year.

According to the state, the showcase program has generated more than $4 million in sales this year. While adult-use cannabis retailers in New York have amassed more than $110 million in sales in the current year, this falls significantly short of the billion-dollar projections made prior to the launch of adult-use sales. The Office of Cannabis Management revealed that as of last week, 31 recreational marijuana stores are open statewide.

The growth and consolidation of the recreational cannabis market in New York State could give ancillary entities such as Innovative Industrial Properties Inc. (NYSE: IIPR) opportunities to expand their reach and serve clients in that jurisdiction.

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420 with CNW — Marijuana Stakeholders Discuss Legalization Prospects During National Academies Conference

The National Academies of Sciences, Engineering and Medicine (NASEM) recently hosted a two-day session with marijuana stakeholders, regulators, advocates, and legalization opponents to share thoughts on the country’s cannabis legalization landscape. It was NASEM’s second iteration of the Public Health Consequences of Changes in the Cannabis Policy Landscape’ series, following the first conference in September.

The first conference featured representatives from federal agencies such as the Food and Drug Administration (FDA), Centers for Disease Control and Prevention (CDC), the National Center for Complementary and Integrative Health (NCCIH), and the National Cancer Institute (NCI). The event created an opportunity for officials from these organizations to share their respective agencies’ perspectives on critical marijuana-related research.

Last week’s conference attracted many participants who had been deeply involved with cannabis regulation at various government levels, including marijuana regulators from California, Maryland, Hawaii, Oklahoma and Missouri. The regulators discussed their experiences with cannabis regulation and the successes and failures they experienced while trying to regulate the swiftly evolving state-legal cannabis industry.

Nicole Elliot, director of California’s Department of Cannabis Control (DCC), noted that California’s cannabis market had become quite robust with “a lot of complexities” since it legalized recreational cannabis six years ago. She said the California market has begun to experience a little stability and consolidation but added that competition in the market is becoming increasingly fierce.

Furthermore, Elliot said the illicit cannabis market has been a persistent thorn in the side of the state legal market and posited that this may be due to the fact that California has a history of producing more cannabis than most states in the country. She also noted that patchwork local rules have created plenty of regulatory loopholes that allow black-market sellers to continue their operations.

Amy Moore, Missouri’s Department of Health and Senior Services (DHSS) director of cannabis regulation, said that while her state is still new to the cannabis industry, its cannabis segment is “pretty active” and recently hit the $1 billion sales milestone. According to Moore, the state’s medical and recreational cannabis rules both have a major focus on public health.

Conversely, Hawaii Office of Medical Cannabis Control and Regulation supervisor Michele Nakata concedes that her state was slow to adopt a medical-cannabis dispensary system, thanks to much more restrictive cannabis policies compared to other states in the country. While this undoubtedly limited the industry’s growth, it made cannabis regulators’ jobs “a lot easier,” even when resources were limited. She said Hawaii cannabis regulators are now preparing for the possibility of recreational-cannabis legalization.

These interactions between the different groups of regulators, opponents and proponents as well as other cannabis industry stakeholders could be helpful in shaping the future plans of many companies such as Innovative Industrial Properties Inc. (NYSE: IIPR), since the insights shared project what could be possible in the coming years.

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420 with CNW — Study Finds Cannabis Gives Anxiety Sufferers Better Sleep Compared to Alcohol

A recent study supported by federal funding has uncovered insights into the sleep patterns of individuals dealing with anxiety, revealing that the use of marijuana appears to be linked to improved sleep quality. The research, published in the “Drug and Alcohol Review” journal and conducted collaboratively by teams from the University of Haifa, Colorado State University and the University of Colorado, sought to explore the subjective sleep experiences of 347 individuals utilizing cannabis to manage anxiety.

Over a span of 30 days, participants were engaged in daily surveys where they documented their substance use and recounted their previous night’s sleep experience. The study compared outcomes on days with no substance use, marijuana-only use, alcohol-only use and co-use of both substances.

The findings indicated a notable difference in reported sleep quality, with participants reporting better sleep on marijuana-only days and co-use days in contrast to nonuse days. Intriguingly, alcohol-only use did not exhibit a similar positive association with sleep quality. The study also revealed a correlation between the frequency of alcohol and cannabis use and sleep patterns. Individuals with higher usage frequencies reported enhanced sleep quality on days when marijuana was the sole substance used compared to those who used alcohol and cannabis less frequently.

This correlation challenges the idea that tolerance may diminish the sleep-inducing effects of cannabis, as the study suggests an opposite trend of improved sleep quality with more frequent marijuana use. In addition, contrary to the common belief that alcohol aids in sleep, the research corroborated previous findings that alcohol does not contribute significantly to overall sleep quality, especially when juxtaposed with cannabis.

The study posited that understanding various cannabis combinations and ratios remains limited, emphasizing the need for further research, especially in clinical trials. The inclusion of diverse cannabis types, varying in dosage and product selection, prompted the researchers to acknowledge existing gaps in knowledge, advocating for future trials to address these uncertainties.

The study concluded by emphasizing the urgency of experimental investigations into the effects of cannabis and alcohol on sleep. It underscored the potential positive impact of cannabis on subjective sleep quality for individuals dealing with anxiety. Additionally, it highlighted the need for further exploration into the interplay between the frequency of substance use and its immediate influence on sleep, especially in populations seeking cannabis as a coping mechanism for anxiety, where alcohol and cannabis misuse may be prevalent.

As the health benefits of cannabis gain more attention from the scientific community, demand could grow much faster, which could in turn boost the demand for ancillary services such as those offered by Innovative Industrial Properties Inc. (NYSE: IIPR).

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420 with CNW — Congressional Researchers Say High Federal Taxes on Marijuana May Hamper Industry’s Economic Potential

The Congressional Research Service recently published a report that cautions legislators to consider the possible consequences of levying high taxes on cannabis products in the event that marijuana gets legalized federally. This comes as Congress considers several reform initiatives and the DEA concludes its review of marijuana scheduling and makes a decision on whether or not to reclassify cannabis as a Schedule 3 drug under the Controlled Substances Act, as recommended by the U.S. Health and Human Services Department.

In a previous report, the nonpartisan research body argued that the DEA was likely to reschedule cannabis based on previous precedents. In its most recent report, the body states that the potential economic impacts of recreational cannabis could be major considerations in any actions taken by Congress on the drug, warning that reliable federal scientific data on this particular topic is scanty given the substance’s ongoing prohibition.

The report advised that Congress gather additional data through agencies such as the Bureau of Economic Analysis as well as Bureau of Labor Statistics. The report also discussed the possible descheduling or rescheduling of cannabis, arguing that imposing federal taxes on the drug much like the taxes levied on tobacco could affect the drug’s economic development capacity.

The Congressional Research Service explained that a balanced approach was needed when it came to marijuana taxes, noting that legislators would need to consider the benefits of increased revenue vs. the drawbacks of a possible consumer resistance against high taxes that may permit the black market to proliferate. It then cited some studies whose findings posit that high tax rates levied on cannabis — and the consequent high prices for recreational cannabis products could heighten the odds of potential consumers turning to the untaxed illicit market.

The body also presented a counterargument, claiming that high cannabis taxes could even deter some individuals from trying the substance altogether, particularly those who were new to adult-use cannabis and weren’t likely to buy from the illicit market. In addition to this, it pointed out modest bits of legislation that could relieve some of the peculiar financial challenges cannabis businesses in legal states faced due to prohibition. This includes the Secure & Fair Enforcement Regulation (SAFER) Banking Act, which was cleared in September by the Senate’s Banking Committee.

This measure would create a safe haven from federal law for transactions with state-sanctioned recreational cannabis businesses and any entity handling the proceeds from such transactions, as well as restrict the ability of federal regulators to terminate a deposit account for a recreational cannabis business. Currently, however, the bill is yet to advance to the House.

With the right federal regulatory framework in place, enterprises such as Innovative Industrial Properties Inc. (NYSE: IIPR) that serve marijuana businesses could grow and thrive.

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420 with CNW — Nevada Approves Six Additional Cannabis Consumption Lounges

Nevada authorities are still granting more licenses for consumption lounges, with the state’s marijuana compliance board (CCB) recently giving the green light to six additional conditional licenses for various marijuana businesses, including TGIG LLC; NevadaPure LLC; Higher* Archy LLC; Desert Evolution LLC; Green Thumb Industries (GTI); and Curaleaf Holdings.

Curaleaf Holdings, a global cannabis giant, obtained one license for Tryke Companies, its subsidiary that runs Reef Dispensaries. GTI, another significant player in the multistate marijuana sector, also secured a license for Integral Associates, its subsidiary, with intentions to open a club on the Strip.

The CCB stated in June last year that it intended to establish new rules for regulating consumption lounges, aiming to promote greater inclusivity within Nevada’s marijuana sector. Back then, the agency stated that it planned to grant up to 65 permits, most of which would be linked to already-operating dispensaries and the remaining portion to independent lounges.

The board announced 20 potential candidates for the licenses granted in October 2022. In June 2023, the CCB first issued three conditional licenses to the Venue@Sol Cannabis, Planet 13 Holdings and Cheyenne Medical Sammy Davis dba, which operates as Thrive Cannabis Marketplace. LA Lounge received a license as the first lounge independent from a dispensary in July, and in August, three additional licenses were issued to KV Group, Global Harmony and Deep Roots Harvest.

There are currently 15 conditional licenses that have been approved. After being authorized, licensees have a year to fulfill all regulatory criteria and make the necessary modifications to start operating. Mitch Britten, CEO of Thrive Cannabis Marketplace, expressed excitement in September about commencing work on their new opening on the Strip, terming it a significant milestone for their business.

Planet 13 Holdings also unveiled its plans for a consumption lounge named DAZED! at the beginning of this month. The lounge, adorned with unique features such as VIP booths for marijuana-infused cocktails and “bong chandeliers,” will offer 3,000 square feet of space for food sales, entertainment and consumption. Larry Scheffler, the company’s co-CEO, expressed enthusiasm, envisioning their lounge as a destination that outshines typical Vegas experiences. They aim to open the venue by mid-April next year, capturing the attention of marijuana novices, enthusiasts, tourists and locals alike.

Many licensees of consumption lounges had originally planned to open for business by summer, but they encountered several setbacks. It is anticipated that the lounges will draw a large number of tourists, supporting the Nevada cannabis business, given that Las Vegas alone had more than 38 million visitors in 2022. Additionally, the state’s cannabis sector is expanding thanks to the entry of well-known individuals such as artist Future into the market with his cannabis line, Evol by Future.

Conversely, the establishment of lounges is not advancing as quickly in other states. In California, Governor Gavin Newsom vetoed AB 374, a bill that would have legalized marijuana cafes similar to those in Amsterdam.

The aim of the bill, which Assemblymember Matt Haney introduced early this year, was to allow lounges to sell prepackaged, noninfused food and beverages. Newsom cited concerns about the existing California laws that mandate a smoke-free workplace for workers, stressing the importance of worker health and safety. Haney expressed his intentions to collaborate with the governor’s office and labor leaders to address these concerns and reintroduce the bill in the future.

As more states begin licensing consumption lounges for cannabis, the market for ancillary product and service providers such as Industrial Innovative Properties Inc. (NYSE: IIPR) could widen in those jurisdictions.

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420 with CNW — Cannabis Legalization Causes Major Drug Test Manufacturer to Replace Tests with Fentanyl

Psychemedics, a leading drug-testing technology manufacturer, has unveiled an innovative screening panel that diverges from detecting cannabis, instead focusing on fentanyl and other controlled drugs, as a response to the shifting landscape due to the legalization of cannabis in numerous states.

Psychemedics’ updated Advanced 5-Panel Drug Screen marks a transformative step in how companies safeguard their places of work by shifting focus from cannabis to the major threat posed by fentanyl. The revamped screening panel has garnered approval from the Food & Drug Administration (FDA) and is celebrated for its enhanced accuracy in identifying amphetamines, PCP, opioids and cocaine.

Psychemedics, established in 1987 after which it pioneered hair testing, expressed the necessity for this change in a recent press release and highlighted the failure of the original five-panel drug tests to adapt to the contemporary drug market, specifically in detecting the escalating presence of fentanyl.

Psychedemics CEO and president Brian Hullinger stressed the substantial transformation in workplace challenges brought about by the changing dynamics involving cannabis and fentanyl. He explained how the company responded to this shift by developing its Advanced 5-Panel, aiming to close the existing gap.

With a growing number of states legalizing marijuana, protections have been established for employees who use cannabis during their off-duty hours. In California, for instance, employers are now prohibited from inquiring about an applicant’s prior cannabis use.

Similarly, Michigan recently ceased pre-employment cannabis drug testing for job applicants for government jobs and offered those penalized for past THC tests the chance to have their sanctions retroactively removed. Nevada and Washington also protect job applicants from discrimination based on positive marijuana tests. New York extended job protections for those adults legally using marijuana during their off-hours while away from their workplaces.

At the federal level, there have been attempts to end marijuana drug testing for those applying for federal jobs. The House Rules Committee has repeatedly blocked these efforts, but the Senate approved defense legislation back in July preventing intelligence agencies from withholding security clearances based solely on past cannabis consumption. The House Oversight & Accountability Committee has also approved a bipartisan bill to prevent federal employment or security clearance denials due to past marijuana consumption.

Concurrently, concerns regarding the fentanyl drug supply have grown. While there have been debates over claims of fentanyl-laced cannabis, experts acknowledge the presence of this potent opioid in drugs such as cocaine and heroin.

The spreading wave of legalization isn’t only leading to shifts in the work of makers of testing kits for drugs. It is also creating many opportunities for companies such as Innovative Industrial Properties Inc. (NYSE: IIPR) that don’t deal in the substance but serve cannabis companies in an ancillary role.

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