Article

U.S. HOUSE COMMITTEE LIKES POT.

November 21, 2019

 

What next a WEED PARTY?

 

U.S. congressional committee passed a legislation to decriminalize cannabis, taking it a step closer to being approved by the Democratic-controlled House of Representatives. Indeed, federal legalization would be a big positive for investor sentiment surrounding cannabis equities, which have been battered by oversupply and a steep price decline for the underlying commodity since becoming legal in Canada. The approval comes two months after the House passed a bill to advance legislation that would allow banks to provide services to cannabis companies in states where it is legal. The latest bill, which has more than 50 co-sponsors, enables states to set their own policies while allowing to expunge federal marijuana convictions and arrests. Additionally, the bill will authorize a 5% federal sales tax on marijuana products that are manufactured in or imported into the United States.

However, our proprietary SP+GTM algorithm is  skeptical about the future of the bill. Early step in a long process with no near-term implications for cannabis stocks. The Senate isn’t likely to approve it, even if the House were to do so, is our consensus when applying th analytics  to the question.

 

Shares in the sector are down more than 25% this year, according to the alternative harvest ETF (MJ.P), which tracks cannabis-related stocks, taking a blow from a slow roll out of retail stores and oversupply in Canada, as well as uncertainties related to U.S. regulations. When add net capitalization models, SP+GTM algorithm shows a 40% decline in stock values. No a time to invdst in cannabis, unless you like losing money.

Weed companies have been spending heavily to expand and strike partnerships in the United States, banking on more states legalizing cannabis for both recreational and medical use. Currently, 11 U.S. states have legalized marijuana for recreational use, while 33 states have approved it for medical purposes. Not one has a profit and will not unless their business models are rei9nvented.

 

now for more hooks....

 

 

WASHINGTON — The House Judiciary Committee took the first step Wednesday to legalizing marijuana in the U.S., advancing a bill to remove pot from the Controlled Substances Act and create a tax to fund programs to heal damage from the war on drugs. “For far too long, we have treated marijuana as a criminal justice problem instead of a matter of personal choice and public health,” said committee Chairman Rep. Jerry Nadler, D-N.Y. “Whatever one’s views on the use of marijuana for recreational or medicinal purposes, arresting, prosecuting, and incarcerating users at the federal level is unwise and unjust.”

Rep. Matt Gaetz, R-Fla., argued that Americans are far ahead of Congress in attitudes about marijuana. “We are not rushing; we are being dragged forward by our constituents,” said Gaetz, who backed the bill but warned that some of its attempts to redress damage from the war on drugs might go too far for conservatives. In addition to removing cannabis from the Controlled Substances Act and leaving it to states to regulate, the bill creates a 5% tax that would be used to fund restorative programs and help people most targeted by the war on drugs start new legal weed businesses.

Some Republicans who favor legalization sought to substitute a bill called the States Act that lacks the social programs but has bipartisan support in the Senate, including from Sen. Elizabeth Warren, D-Mass.

 

PEANUT GALLERY REPORT

 

 

The "Marijuana Opportunity Reinvestment and Expungement Act of 2019" -- also called the MORE Act -- could officially remove cannabis from the list of federally controlled substances, expunge federal marijuana convictions and arrests, and approve allocation of resources for communities affected by the war on drugs, according to the bill's text. The legislation, introduced by Rep. Jerrold Nadler, D-N.Y., and co-sponsored by more than 50 lawmakers, passed 24-10 in the committee today . It would also establish an organization -- called the Cannabis Justice Office -- to introduce a 5% sales tax on cannabis sales in states where it remains legal, according to the bill. "These steps are long overdue. For far too long, we have treated marijuana as a criminal justice problem instead of a matter of personal choice and public health," Nadler, the committee's chairman, said during bill markup. "Federal action on this issue would follow growing recognition in the states that the status quo is unacceptable." Nadler added, "Despite the federal government’s continuing criminalization of marijuana, 33 states and the District of Columbia have legalized medical cannabis.”

 

The landmark bill marks the first time a congressional committee has passed a bill in favor of legalizing marijuana at the federal level. It will still need to pass the full House before moving to the Senate – where it’s likely to stall. House Judiciary Committee Chairman Jerrold Nadler speaks during a news conference on Capitol Hill to highlight the MORE Act (Marijuana Opportunity Reinvestment and Expungement Act) legislation in Washington, Nov. 19, 2019.

 

The MORE Act would remove marijuana as a Schedule I substance, a category that also features other drugs, such as heroin, LSD, ecstasy and peyote. "States have led the way -- and continue to lead the way -- but our federal laws have not kept pace with the obvious need for change," Nadler said in a statement. "We need to catch up because of public support and because it is the right thing to do."

Former Vice President Joe Biden has spoken out in favor of decriminalizing marijuana and expunging criminal records for possession charges, but like Nadler, thinks each state should decide whether or not to legalize it.

 

Biden's lukewarm approach to marijuana has put him at odds with other 2020 Democratic presidential contenders, such as Massachusetts Sen. Elizabeth Warren and Vermont Sen. Bernie Sanders, who have each supported sweeping legislation to reform how the criminal justice system deals with the drug. Biden should go back to Delaware and sell hotdogs on the beach.

 

Fellow candidates California Sen. Kamala Harris and New Jersey Sen. Cory Booker have also released plans to legalize marijuana if they're elected to the White House. While similar bills have been introduced in the Senate, Majority Leader Mitch McConnell noted he doesn't "have any to endorse the legalization of marijuana," as he told reporters in December, despite his approval last year of a farm bill that would legalize hemp. 

 

Still, while the House is a step closer to legalizing cannabis across the U.S., it isn't likely the bill will be signed into law by President Donald Trump, who has openly opposed pro-legalization legislation, even if it ended up on his desk. Trump even donated part of his salary in 2019 to pay for a promotional campaign highlighting the negative effects of marijuana use, as Health and Human Services Secretary Alex Azar said in a statement in August.

 

Is that good, or bad ... with the Trumpster, you don't know?

 

 

 

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