Trump’s new DEA pick

TRUMP’S TEAM
Trump taps Florida Sheriff Chad Chronister to lead the DEA

Driving the news: The cannabis industry is closely watching President-elect Donald Trump’s cabinet and executive branch appointments.

While cannabis is not likely Trump’s foremost concern in making these picks, the people that fill these positions will have a crucial role in how the next Administration treats cannabis policy.

What happened: Last week, Trump tapped Florida Sheriff Chad Chronister to lead the Drug Enforcement Administration.

Chronister hasn’t been super vocal about cannabis reform, but in 2020, he applauded a move by the local board of county commissioners to treat possession of up to 20 grams of marijuana as a civil offense instead of a misdemeanor, Marijuana Moment reports.

But while Chronister seems to support reduced sentences for cannabis, he didn’t take a position on Florida’s Amendment 3, the ballot measure that failed to legalize cannabis in the state on Election Day. 

Why it matters: The DEA kicks off hearings to potentially reclassify cannabis from the most restrictive Schedule I of the Controlled Substances Act to the least restrictive Schedule III this morning.

Chronister will be integral in either supporting — or opposing — the move when he takes office next year. As far as appointments go for the industry, the DEA is perhaps the most crucial.

Trump himself has said he supports rescheduling and easing the federal government’s prohibitive stance on cannabis. 

And more: Trump’s pick for Attorney General, and Chronister’s new boss, Pam Bondi, does not have a positive record on cannabis reform, as we’ve reported. Other nominees, Robert F. Kennedy Jr to lead the Department of Health & Human Services (HHS), have far more positive records on cannabis. 

Read more in our November 25 newsletter about what Trump’s picks mean for the industry: Reading the Administration’s cannabis tea leaves

-JB

Last week’s cannabis holiday did not go unrecognized by sandwich-maker Jimmy John’s:

DEA faces another lawsuit over rescheduling 👀

Attorney Matt Zorn filed a lawsuit against the DEA, seeking to compel the agency to disclose its communications with anti-cannabis group Smart Approaches to Marijuana (SAM) ahead of today’s rescheduling hearing. Zorn alleges the agency violated federal records laws by not disclosing the communications. Zorn says the DEA failed to respond to a Freedom of Information Act request he filed in October.

Last week, the judge presiding over the hearing dismissed a lawsuit that sought to remove the DEA from the hearing, over its communications with SAM. But the judge did ask the DEA to respond to the allegations, and underscored that they are serious despite dismissing the suit.

Florida’s market getting bigger, despite Amendment 3’s failure

After 18 months, 22 new cannabis business licenses were issued in Florida last week, bringing the total number of licenses issued in the state to just 47 for the multi-billion dollar market. More from the Tallahassee Democrat.

Canadian man sentenced to life for CBD in Dubai

A 64-year old Canadian man who uses CBD to manage a rare disease, was searched and arrested in the Dubai airport for possession of his medication. He is now facing a life sentence in the United Arab Emirates with an appeal set for December 25th. More from the National Post.

Health Canada cutting back ✂️

The cannabis program for the regulator of Canada’s cannabis industry is being cut back by more than $20 million over the next several years. It’s part of an overall budget-cutting effort by Canada’s federal government. StratCann has a look at what it might mean.

This chart comes from GreenWave Advisors via the Wall Street Journal. It shows how much cash on hand large, multistate operators have compared to the taxes they owe the federal government as a result of 280E — which stipulates that companies selling Schedule I or II controlled substances can’t deduct regular business expenses.

Green Thumb Industries is clearly in the best position, while companies like Verano, Jushi, and Trulieve will have to figure out how to pay their bills. Some, like Trulieve, sought refunds on their 280E taxes earlier this year. And, of course, if cannabis is reclassified to Schedule III, 280E will go away completely. 

Read more about how the 280E tax came about.

Vaping vs. Smoking: The Healthiest Path to Cannabis Relief | Doctor-Approved 

Why Donald Trump Will Be Good For Weed | Forbes

Michigan’s Legal Marijuana Market Is Poised To Surpass $10 Billion In Total Recreational Sales By Year’s End | Marijuana Moment