Schedule III hearing delayed until next year 📉

RESCHEDULING
Schedule III hearing delayed until next year

What happened: A much-anticipated hearing on whether to reclassify cannabis from the most restrictive Schedule I to the far-less restrictive Schedule III will be postponed until early next year, Marijuana Moment reports.

However, the planned December 2 hearing will still take place — but no testimony will be heard until next year. 

The Administrative Law Judge set to preside over the hearing said there was insufficient information from the list of witnesses provided by the Drug Enforcement Administration over whether the witnesses supported or opposed the move and qualify as an “interested person” adversely affected or aggrieved by rescheduling, among other things.

The judge said that information must be provided by November 12, and the hearing may tentatively happen in January or February.

Why it matters: The delay is surely deflating to many cannabis industry companies and investors. 

If cannabis is moved to Schedule III, many investors hope that the sector will be de-risked in profound ways — by getting rid of the 280E tax that prevents cannabis companies from deducting regular business expenses, and potentially allowing companies selling cannabis to recreational markets in the US to list on major domestic exchanges like the Nasdaq. 

In other words, the hope is that rescheduling would be the next ‘Barbarians at the Gate’ moment, catalyzing a flood of investment and interest into the ailing sector. It would be a watershed moment for an industry that sorely needs it. 

But the wait continues. 

In terms of the political ramifications, the delay also means that President Joe Biden’s promise to reform federal cannabis laws will not come to fruition before he leaves office. The next president, whether Donald Trump or Kamala Harris, will be the one to get the credit. 

And more: On a cursory glance, the list of witnesses seems to lean on the anti-cannabis side, including Smart Approaches to Marijuana, and the Community Anti-Drug Coalitions of America, though the industry trade group National Cannabis Industry Association and cannabis firm Village Farms are set to participate. 

We wonder if the judge was savvy to that, given that the DEA chose and signed off on who could be there  — and whether the list of witnesses will be expanded. 

-JB

“Speaking as a vice presidential candidate, we’re not trying to throw people in jail for smoking weed,” Vice Presidential candidate JD Vance said on the Joe Rogan Experience podcast. 

“It’s like very much something that we’re not interested in doing. My attitude on this is kind of ‘live and let live.’ Keep it home. I don’t like smelling it when I take my kids to the park. But keep it at home. I don’t want to throw people in prison. That’s not what we’re trying to do.” 

Vance also signaled a willingness to explore a “legal regime” that would remove criminal penalties for consuming cannabis but would ensure that it’s kept out of public spaces, perhaps owing to former President Donald Trump’s position that cannabis should be moved to a less strict federal classification and that states should decide whether or not to legalize. It’s quite a departure from Vance’s previous stump speech favorite, that illegal cannabis is being laced with fentanyl.

On the other hand: Vance’s comments are quite similar to Vice President Kamala Harris, who said last month on the All The Smoke podcast that: “I just feel strongly people should not be going to jail for smoking weed.”

So, at least on cannabis, not a lot of daylight between the current and potential future Veep. 

New York could be a $6 billion cannabis market 🗽

Despite early struggles, New York could become a $6 billion cannabis market in two years with over 1,600 legal shops, per a new report from industry research firm Whitney Economics. The state so far has $1 billion in annualized sales, according to the report, with over 222 operational dispensaries, per the state’s Office of Cannabis Management. The report also states that shuttering illicit shops is critical to the industry’s success — but a court ruling this week has thrown that operation in jeopardy. Download the report here.

Michigan can restrict legal cannabis use for those on probation 🛑

A Michigan judge ruled on Thursday that legal cannabis use for those on probation still violates federal law, which supersedes state law. That means that legal dispensary purchases can violate probation rules. The case, People v. Hess, centered around a woman convicted of retail fraud and sentenced to 12 months of probation which included a ban on cannabis use. 

New Jersey delays fee hike 🌿

New Jersey cannabis regulators delayed a decision to hike a ‘social equity’ fee attached to cannabis purchases in the state, reports The New Jersey Monitor. Revenues from the fee are used for reinvesting in communities harmed by the War on Drugs.

European cannabis contains toxic pesticides and feces 👀

German cannabis firm Sanity Group tested over 300 samples of illicit cannabis from Germany and other European countries, and found that more than two-thirds contained toxic pesticides — and 65% contained traces of human feces, bacteria, and viruses. Check out the full report here.

Uncle Arnie’s raises $4 million 🍹

Cannabis beverages remain a hotspot for the industry. Mindset Capital, run by longtime cannabis industry investor Aaron Edelheit, led a $4 million round into cannabis-infused beverage company Uncle Arnie’s. The investment comes as a follow-on to Mindset’s first investment in the company in January, and the firm invested alongside an undisclosed strategic investor. Read more about the deal. 

And a few others:

• Colorado edibles company Azuca has partnered with Flower Union to debut what the company calls the first fast-acting “whole plant” edible. 

• MariMed has started product manufacturing in Missouri, and the company has launched a program to help veterans in need.

Non-smoking cannabis consumers are the most likely to buy their product from legal sources, according to a report from New Frontier Data. You can download the rest of the report on cannabis consumer preferences.

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Opinion: Fighting abortion and pot, DeSantis peddles Bizarro World version of Florida | Florida Times-Union

Move over, lottery: Alabama residents could soon make short drive to Florida to buy marijuana | AL.com

‘Twilight Zone’ could await if South Dakotans approve marijuana measure | South Dakota Searchlight

Ricky Williams shares how marijuana helped him with football performance | Chron.com