Ending a lull in cannabis industry legislation and sales, March proved to be a busy time for marijuana businesses. Michigan enjoyed rebounding sales during the spring months, as it also continued to benefit from trends that point toward 2022 growth in the market.
On top of some big cannabis growth for Michigan, Congress rounded up the month by passing three major U.S. reform bills all near the last week of March.
As always, we have collected this news so you don’t have to spend your time searching out information that matters to you and your business.
MORE Act Revisions Lift Felony Conviction Provision, Updates Property Requirements
WASHINGTON, D.C. – The MORE Act, which originally decriminalized marijuana, passing in December 2020 by a margin of 228-164, again came to the House floor this month.
Revisions were made from the last session, including:
- The removal of a provision that would have allowed federal regulators to deny cannabis business licenses to applicants who have prior felony convictions
- Text that updates property requirements and allows operators to secure locations after receiving a federal license
Many amendments were offered at a Rules Committee hearing to advance the bill, but only three were considered for a vote.
- Passed: Amendment authorizes $10M for the National Highway Traffic Safety Administration to conduct a study on technologies and methods that law enforcement may use to determine whether a driver is impaired by marijuana
- Passed: Amendment directs the National Institute for Occupational Safety and Health (NIOSH) to conduct a study on the impact of legalization to the workplace, as well as directs the Department of Education to conduct a study on the impact of legalization on schools and school-aged children.
- Failed: Amendment would have required federal agencies to review security clearance denials going back to 1971 and retroactively make it so cannabis could not be used “as a reason to deny or rescind a security clearance”
While there is currently no companion bill in the Senate, Majority Leader Schumer (D-NY) along with Senators Booker (D-NJ) and Wyden (D-OR) is expected to introduce a comprehensive cannabis reform bill in April.
Marijuana Research Act
The House also passed the Marijuana Research Act in early April, removing barriers for researchers seeking to apply and get approved to study cannabis, set clear deadlines for federal agencies to act on their applications, and make it easier for scientists to modify their research protocols without having to seek federal approval.
Cannabidiol Marihuana Research Expansion Act
Last month, the Senate also unanimously passed a research bill: the Cannabidiol Marihuana Research Expansion Act. The two chambers must negotiate a deal on these research provisions before sending to President Biden.
Cannabis Sales Make Gains, Trends Show Growth
The Michigan Marijuana Regulatory Agency announced 2022 gains in Michigan cannabis sales after a January plunge in adult-use sales. Sales in total gained 1.5% to $154.8 million in February, up 47% from a year ago.
Medical sales fell 32% from a year ago to $26 million, down 7% sequentially, and adult-use sales increasing 92% to $128.9 million, up 3.5% sequentially despite three fewer days in the month, MMRA reported.
Along with sales gains, cannabis industry trends appear to be pointing to more growth, as well, according to CannaBusiness ERP.
Among CannaBusiness findings, growth is indicated by trends that lean toward:
- Increased state legalization: The National Cannabis Industry Association(NCIA) provides a map with state-by-state policies
- National sales increases in 2022: Experts are projecting sales to reach $30 billion in 2022 (up from $19.5 billion in 2020)
- Increased demand and product types
- Expanding consumption lounges
- Increased Merger and Acquisition (M&A) activity
Activists Continue Fight to Remove Marijuana From Schedule 1 Substance List
New proposed legislation, House Bill 5877, aims to remove marijuana from a list of drugs categorized as Schedule 1.
Despite being legal recreationally, marijuana remains categorized alongside ecstasy, LSD, and heroin, as well as certain opiates. Michigan law defines a Schedule 1 drug as a substance that has high potential for abuse and has no accepted medical use in treatment.
“Cannabis is still a schedule 1 substance. Schedule 1 is the highest, most criminalized on the list of drugs,” state Rep. Yousef Rabhi, D-Ann Arbor, who sponsored the legislation, told mlive on March 8. “Why? It’s legal, we’re using it medically, there’s adult use in the state that’s been approved by voters and yet we’re still listing it as a schedule 1 substance.”
The bill is named after 80-year-old marijuana legalization activist and poet John Sinclair, who has advocated for marijuana legalization for more than a half-century.
He was sentenced to up to 10 years in prison after being arrested in 1969 for possession of two marijuana joints. His arrest inspired a protest rally at Crisler Arena in Ann Arbor in 1971, which featured a performance by John Lennon and Yoko Ono and contributed to Sinclair’s release from prison.
Sinclair and others with National Organization for the Reform of Marijuana Laws (NORML) of Michigan sued the state in 2019 to have marijuana removed from the list of scheduled substances.