Category: Cannabis Laws

Another state is legalizing recreational marijuana, as Virginia Governor Ralph Northam recently signed into law a bill to make adult-use cannabis legal. The legislation marks a significant step in the push to legalize recreational cannabis across the U.S., with Virginia becoming the first state in the South to do so. Now that Virginia is set to make it legal for state-licensed dispensaries to sell cannabis for recreational use, will sophisticated cannabis operators soon flock to the state? And when will commercial sales of adult-use cannabis officially be allowed in Virginia? Keep reading this blog to learn more.

Virginia Governor Signs Recreational Marijuana Law

Recreational marijuana is soon going to be legal in Virginia. Virginia legislators initially passed a bill to legalize adult-use cannabis in February of this year. However, Virginia Gov. Ralph Northam was reluctant to sign the bill into law until lawmakers made some significant changes to the timeline for actually legalizing cannabis. In fact, Northam proposed several amendments to the bill. Once the Virginia General Assembly incorporated, and approved, those amendments, Northam agreed to formally approve the bill and affix his signature to the legislation. This comes just one week after New Mexico also legalized recreational cannabis.

When Will Adult-Use Cannabis Sales Be Allowed in Virginia?

Although Virginia will be legalizing marijuana for recreational use, there is still some question about exactly when different aspects of the new law will go into effect. For some time now, state lawmakers have been engaged in negotiations to potentially accelerate the timeline for allowing individuals to legally possess small amounts of marijuana without being subject to arrest and imprisonment. In fact, Virginia had already decriminalized marijuana possession. Even with Governor Northam having signed the new cannabis legalization bill, however, lawmaker negotiations remain in progress.

At present, the new law calls for marijuana possession to be officially legal on July 1, 2020. This means that all adults over the age of 21 will be able to legally possess up to one (1) ounce of marijuana. At the same time, it will also be legal for individuals to cultivate small amounts of marijuana (e.g., up to four cannabis plants) in their residences. Moreover, most individuals who have previously been arrested and/or convicted on marijuana possession charges in Virginia will be able to have their criminal records expunged. That’s because the bill includes language that “modifies several other criminal penalties related to marijuana, and imposes limits on dissemination of criminal history record information related to certain marijuana offenses.”

The commercial sale of recreational marijuana, however, will not be allowed until January 1, 2024. This is meant to give state and local officials time to vet applicants for licenses, as well as to create the conditions necessary for a thriving cannabis market in Virginia.

Social Equity Licenses for Cannabis Operators in Virginia

Licenses to sell recreational marijuana in Virginia will be approved by a state cannabis board. The board will be under strict guidelines to limit licenses to 400 retailers, 25 wholesalers, 450 cultivators, and 60 manufacturers.

Importantly, the Virginia recreational marijuana law also includes provisions that require the state to prioritize “social equity licenses” when deciding which applicants will be granted licenses to sell adult-use cannabis at dispensaries. This is important because many other states to legalize recreational cannabis have seen a disproportionate number of licenses go to white-owned businesses at the expense of local minority businesses.

Impact of New Law on Virginia’s Recreational Cannabis Market

Virginia already has a thriving medical cannabis market, and it is expected that recreational cannabis will eventually be made available for sale at the same dispensaries. The creation of a recreational marijuana market in Virginia could have huge implications for the cannabis market more generally – especially since Virginia is the first Southern state to open its doors to commercial cannabis sales.

The retail sale of cannabis products in Virginia is expected to generate up to $500 million in sales during the first year of legalization. That figure could rise to as high as $1.4 billion by the fifth year of legalization, according to cannabis industry experts.

Contact Scythian Cannabis Real Estate for Information on Sale-Leaseback Deals

Scythian Cannabis Real Estate is a privately held cannabis real estate fund that helps cannabis operators get the financing they need through sale-leaseback transactions on properties used as dispensaries. Scythian works with some of the largest and most sophisticated retail cannabis companies in the United States. If you are a cannabis operator interested in adding capital, email Scythian today.

PLEASE NOTE THAT THIS BLOG IS NEITHER AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO BUY SECURITIES IN SCYTHIAN REAL ESTATE FUND.

New Mexico is the latest state to legalize recreational marijuana. The New Mexico governor recently signed legislation that will officially make cannabis legal for adult use in the state. What could this mean for the New Mexico economy, and for savvy cannabis operators who are looking to expand their reach into new markets? Keep reading this blog to learn more.

New Mexico Governor Signs Law to Legalize Adult-Use Cannabis

New Mexico is set to become the seventh state since the November 2020 election to legalize adult-use cannabis. The New Mexico state senate passed a cannabis legalization bill earlier this year, shortly after New Mexico Gov. Michelle Lujan Grisham called for a special legislative session to consider, among other things, the legalization of marijuana for recreational use. With previous opponents of legalization no longer in the state senate after the November election, the bill was quickly approved by legislators. Despite opposition from most Republican lawmakers in the state senate, some GOP senators grudgingly supported the measure as a way to regulate marijuana and ensure public health and safety.

Although Lujan Grisham signed the recreational marijuana bill into law on April 12, the possession and use of cannabis for recreational purposes won’t technically be legal for a few more months because state officials still need to work out some of the details. This includes evaluating and approving licenses for cannabis product testing labs, as well as establishing rules on product safety, qualifications for applying for a cannabis operator license, and standards for training employees who work as “cannabis servers” at dispensaries.

What Is New Mexico’s Recreational Cannabis Law?

Linda Trujillo, the superintendent of the New Mexico Regulation & Licensing Department, said that adults over the age of 21 can legally grow small quantities of marijuana – six (6) plants per person or 12 per household – at their residences beginning on June 29, 2021. Additionally, individuals will be allowed to possess up to two (2) ounces of marijuana outside their residences.

Some other important aspects of the new law include the following:

• Cities and towns can’t ban cannabis businesses, but they can place limits on location and hours of operation.
• Marijuana cultivation quantities will be capped for the first few years.
• Marijuana must come in child-proof packages.
• State lawmakers will have the ability to work with Native American tribal governments on separate cannabis deals.
• Employers can still fire employees who use marijuana.

When Can Recreational Cannabis Be Sold in New Mexico?

Legal sales of recreational cannabis won’t happen until next year because cannabis operators will need to apply for state licenses. The legal sale of adult-use cannabis in state-licensed dispensaries is scheduled to start by April 1, 2022.

Although cannabis operators won’t be able to sell adult-use cannabis until 2022, they will be allowed to start cultivating marijuana several months in advance in order to meet what is expected to be significant demand for their products. There is already a robust market for medical cannabis in New Mexico: more than 112,000 patients, or roughly 5% of the state’s population, are currently enrolled in New Mexico’s medical marijuana program.

The Creation of a Cannabis Economy in New Mexico

Proponents of cannabis legalization in New Mexico have long argued that the creation of a legal cannabis economy within the state will help to generate jobs for residents, as well as revenues for state and local governments. New Mexico will impose a 12% tax on legal cannabis sales at the outset, with that tax rate steadily increasing to 18% as more time goes by. (These new taxes will not apply to medical marijuana sales.) The expectation is that New Mexico’s recreational cannabis market will thrive and provide the state with much-needed tax revenues in the future.

New Mexico Marijuana Reform Efforts and Social Justice

In addition to providing a huge boost to the New Mexico economy, the legalization of marijuana for recreational use could also change the state’s legal landscape. In fact, marijuana reform is something that NM Governor Lujan Grisham has long supported. After signing the cannabis law, she addressed the disproportionate arrests and convictions for marijuana possession among racial and ethnic minorities. According to Lujan Grisham, marijuana legalization will help to “bring about social justice in ways in which we have been talking about and advocating for, for decades.”

One specific way in which the new law could impact social justice is by leading to the release of more than 100 people who are currently incarcerated for low-level marijuana possession or distribution charges. Additionally, the new cannabis law includes a provision that will allow for thousands of New Mexico residents to automatically expunge past marijuana possession convictions from their records. Beyond that, law enforcement will no longer be able to use the odor of marijuana as justification for police searches of vehicles, residences, or other private property.

Contact Scythian Cannabis Real Estate Today

Scythian Real Estate is a privately held cannabis real estate fund that has strong relationships with the top cannabis operators in the United States. Scythian provides capital and other assistance to cannabis companies with dispensaries in states where marijuana is legal for recreational use. If you are a cannabis operator looking to add capital and/or expand your business into a new cannabis market like New Mexico, Scythian Real Estate may be able to help. For additional information, send us an email.

PLEASE NOTE THAT THIS BLOG IS NEITHER AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO BUY SECURITIES IN SCYTHIAN REAL ESTATE FUND.

It appears that it will be a little longer before adult-use cannabis is legal in North Dakota. That’s because the North Dakota State Senate recently voted against a bill that would have legalized marijuana for recreational use. What does this mean for the future of the North Dakota cannabis market? And what could it mean for cannabis operators in North Dakota? Keep reading this blog to learn more.

North Dakota State Senate Rejects Adult-Use Legalization of Cannabis

Marijuana reform efforts have been underway in North Dakota for quite some time. So far, however, those efforts to change existing laws that prohibit adult-use cannabis have come up short. The latest example is the recent vote by the North Dakota Senate. The ND Senate vote on a bill to legalize recreational marijuana was lopsided: 37-10 to defeat the proposed legislation, also known as House Bill 1420. Moreover, state senators only debated for a mere 30 minutes before casting their votes. This was not terribly surprising, especially given the composition of the ND Senate and the generally conservative politics of the state. During the brief debate over the proposed law, several Republican senators argued that increased use of marijuana would have negative consequences for young people who became addicted to the drug, as well as increasing the incidence of DUIs and traffic accidents.

While the North Dakota Senate was strongly against the push to legalize adult-use cannabis in the state, the North Dakota House was actually in favor of the idea. In February 2021, members of the ND State House passed a cannabis legalization bill by a vote of 56-38. Remarkably, that legalization measure had bipartisan support, with a Republican member of the House sponsoring the bill. That member, Rep. Jason Dockter, said that he supported the proposed legislation because he feared that “a more liberal citizen-initiated measure” might appear on the ballot in the 2022 election in the absence of action by state lawmakers now.

The legislation that was up for a vote in the North Dakota Senate would have limited the legal use of recreational marijuana to individuals 21 and older. The law also would have limited legal possession to a maximum of one (1) ounce of marijuana, restricted legal possession to private property, and prohibited individuals from growing marijuana at their residences. Additionally, the bill called for a total of just 18 dispensaries to be approved for state licenses.

Recreational Marijuana Could Be on North Dakota Ballot in 2022

At present, only medical cannabis is legal for purchase and use in North Dakota. So, now that the North Dakota Senate has defeated the most recent iteration of a recreational marijuana legalization bill, what happens next? It appears that the next realistic opportunity to legalize cannabis for recreational use in North Dakota will come in the 2022 election. The last time North Dakota voters had an opportunity to weigh in on adult-use legalization came in 2018, when they defeated a legalization measure by a 59-41 margin. If the results of cannabis reform measures in other states during the 2020 election are any indication, however, North Dakota’s prospects for recreational marijuana legalization this time appear quite strong.

In fact, many cannabis industry observers believe that it is just a matter of time before recreational cannabis is legalized for both sale and use in North Dakota. Experts point to North Dakota’s neighboring states – South Dakota on the southern border, Montana on the western border, and Minnesota on the eastern border – all of which have already legalized medical marijuana, while both South Dakota and Montana have also already legalized recreational marijuana. In fact, the November 2020 election saw residents in South Dakota and Montana enthusiastically approve measures to make adult-use cannabis legal. In addition to its neighboring states, North Dakota is also bordered in the north by Canada, where cannabis has been legal for both recreational and medical use since 2018.

Contact Scythian Cannabis Real Estate Today

Scythian Real Estate is a privately held cannabis real estate fund that works with some of the largest and most sophisticated cannabis operators in the country, including Grassroots Cannabis (Curaleaf) in North Dakota. If you are a cannabis operator interested in learning more about Scythian, send us an email.

PLEASE NOTE THAT THIS BLOG IS NEITHER AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO BUY SECURITIES IN SCYTHIAN REAL ESTATE FUND.

In a move that could have ramifications for the entire cannabis industry, New York passed a recreational marijuana bill that would make adult-use cannabis legal in the state. The legislation was approved by lawmakers in the New York State Senate just before the April 1 deadline for passing the state budget. So, what could legalization of recreational marijuana mean for major cannabis operators looking to make inroads in New York’s emerging cannabis market? Keep reading this blog to learn more.

NY Senate Votes to Legalize Adult-Use Cannabis

State senators in the NY Senate approved the recreational marijuana bill in overwhelming fashion, with 40 senators voting in favor of the legislation and just 23 senators voting against it. (The vote still came down mostly along party lines, with Republican lawmakers generally opposing legalization.) The historic vote by the New York State Senate came on the heels of NY Governor Andrew Cuomo voicing his own support for the legislation and signaling that he would sign the legalization measure if it reached his desk. In earlier statements, Cuomo had linked the criminalization of cannabis with the disproportionate incarceration of minorities and people of color, and Cuomo had called for legalization as a way to ensure fair treatment in the state’s criminal justice system when it came to enforcing drug laws.

Not long after the New York Senate voted in favor of legalizing adult-use cannabis, the other chamber of the New York State Legislature – the NY State Assembly – approved the bill by a vote of 100 to 49. The bill then headed to the desk of Governor Cuomo, who quickly moved to sign it into law. And just like that, New York became the 15th state, along with the District of Columbia, to legalize marijuana for recreational use. The move to make marijuana legal in New York comes on the heels of its tri-state neighbor, New Jersey, also legalizing marijuana for recreational use.

In addition to allowing for the legal sale of recreational marijuana at state-licensed dispensaries, the new law also allows individuals to possess up to three (3) ounces of marijuana and up to 24 grams of cannabis concentrate. Beyond that, the law goes further than the marijuana laws in many other states by allowing individuals to grow up to six (6) marijuana plants at their residences.

When Will Recreational Marijuana Be Legal in NY?

The NY cannabis legalization law goes into effect immediately. However, since it will take time to implement rules and set up the New York cannabis economy, it could be more than a year before dispensaries are prepared to start selling cannabis for recreational use.

The rules under which cannabis operators will ultimately be granted adult-use cannabis licenses are also still being worked out by lawmakers and other state officials. At present, it is expected that the 10 medical marijuana operators currently licensed in New York will be allowed to sell recreational cannabis. However, these operators will likely be required to pay larger-than-usual licensing fees to gain entry into the recreational marijuana market. Additionally, the operators looking to “double dip” into both the NY medical cannabis market and the NY adult-use market will be limited to just three (3) adult-use dispensaries each, with those dispensaries being located within or adjoining the operators’ existing medical marijuana dispensaries. The idea behind limiting the total number of dispensaries that any one cannabis company can own and/or operate is that the state wants to make sure that the New York cannabis market is competitive.

Social Equity Concerns Addressed in NY’s Cannabis Legalization Law

While other states have encountered issues with minorities being underrepresented among dispensary owners who are ultimately granted licenses for adult-use legalization, the New York cannabis legalization bill specifically addresses some of those problems. In fact, the bill explicitly supports what are known as “social equity applicants,” as well as microbusinesses that operate outside and apart from larger cannabis operators with a strong presence in multiple states. The NY bill includes provisions that would encourage at least 50% of all licenses for adult-use sales to be granted to social and economic equity applicants. Additionally, New York will create a state-run Cannabis Advisory Board with a directive to “actively promote and potentially license social and economic equity applicants.”

NY Adult-Use Cannabis Market Expected to Generate Billions of Dollars

Cannabis industry experts believe that the creation of a new cannabis market in New York will result in billions of dollars in annual revenues for the state. According to one projection, the New York economy would see approximately $2.3 billion in annual sales of cannabis by the fourth year of legalization, as well as the creation of at least 60,000 new jobs. The taxes imposed on adult-use sales will be set at 13%, with 9% going to the state and the remaining 4% going to local municipalities where the dispensaries are operated. There will also be a “potency tax” on tetrahydrocannabinol (THC), so that marijuana with higher concentrations of THC is taxed at a higher rate.

Contact Scythian Cannabis Real Estate Today

Scythian Cannabis Real Estate is a privately held cannabis real estate fund that assists cannabis operators with financing through sale-leaseback deals on properties used for retail operations. If you are a cannabis operator and would like to learn more, email us today.

PLEASE NOTE THAT THIS BLOG IS NEITHER AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO BUY SECURITIES IN SCYTHIAN REAL ESTATE FUND.

Michigan officially legalized marijuana for recreational use in 2018, but the issuance of licenses to sell recreational marijuana was still limited to dispensaries that already had a medical marijuana license. That has now changed, with Michigan lawmakers opening up the cannabis license application process to more applicants and making it easier to obtain cannabis licenses as of March 1, 2021. What effect will this have on the cannabis industry, and will it attract investors from outside the state who are looking to sell recreational marijuana in the Michigan cannabis market? Keep reading this blog to learn more.

Michigan Changes Adult-Use Cannabis Licensing Requirements

In 2008, Michigan became the 13^th state to legalize cannabis for medical use. It took another decade for Michigan to legalize adult-use cannabis in 2018, then another year for adult-use cannabis to be legally sold in Michigan, and still longer for the state’s cannabis market to open up competition for adult-use cannabis licenses. Under the terms of the state’s adult-use legalization act, which allows adults to possess up to 2.5 ounces of cannabis outside their residence and up to 10 ounces inside their residence, dispensaries needed to apply for and receive a state-issued license to sell recreational cannabis. However, the pool of eligible applicants for those highly coveted licenses was limited to dispensaries that already had an active medical marijuana permit.

The Michigan Marijuana Regulatory Agency (MRA) issued a press release that addressed the recent changes to Michigan’s cannabis licensing rules. MRA executive director Andrew Brisbo stated that “business entry into the adult-use marijuana market will be more accessible for all Michiganders, as the requirement to hold a license on the medical side of the industry will be removed.”

It is important to note the requirement to first obtain a medical marijuana license is not being removed for all adult-use marijuana licenses. Rather, the new rules will apply to individuals and businesses seeking certain types of recreational cannabis licenses:

• Marijuana Retailer
• Marijuana Processor
• Class B Marijuana Grower
• Class C Marijuana Grower
• Marijuana Secure Transporter

The changes to Michigan’s cannabis license application process were approved in October 2020, but they did not go into effect until March 1, 2021. Upon implementation, the new rules immediately invalidated old versions of the cannabis application. Anyone who wants to apply for a recreational cannabis license will need to use the new application forms.

The new licensing rules were spurred by criticism of the restrictions on new licenses and a belief among some that allowing fewer licenses to legally sell adult-use cannabis in Michigan was causing the illegal cannabis market to thrive, particularly in rural areas that lacked adult-use dispensaries. In the MRA’s original advisory bulletin announcing the new cannabis licensing rules, the state’s marijuana regulatory agency said that “where the regulated market is not available to meet consumer demand, the illicit market stands ready to fill that void.” As the illegal cannabis market filled the gap, the agency noted, the city of Detroit saw a sharp rise in marijuana-related shootings and drug-related homicides.

Expansion of Adult-Use Licenses Could Boost Michigan Marijuana Market

The expansion of the cannabis licensing process is expected to open the Michigan cannabis market to new retailers. This, in turn, should provide a huge boost to the Michigan economy generally and the state’s cannabis market in particular. Although adult-use marijuana has only been legal in Michigan for a little over a year, legal cannabis sales have shown a steady upward trend on a month-to-month basis. In January 2021, adult-use sales in Michigan generated more than $67 million in revenue.

Importantly, the Michigan cannabis market will now be opened up to individuals and companies from outside the state. Under the old adult-use licensing rules, only Michigan-based class A marijuana growers or marijuana microbusinesses owned by residents of Michigan could apply for an adult-use license without already possessing a medical marijuana license.

Contact Scythian Cannabis Real Estate

Scythian Cannabis Real Estate is a privately held cannabis real estate fund that works with some of the most sophisticated cannabis operators in major markets throughout the U.S., including Colorado, North Dakota, and Pennsylvania. Scythian also assists cannabis operators that are looking to expand into new markets like Illinois, Michigan, and New Jersey. For more information, email us today.

PLEASE NOTE THAT THIS BLOG IS NEITHER AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO BUY SECURITIES IN SCYTHIAN REAL ESTATE FUND.

After several months of delays, it appears that the legalization of cannabis in New Jersey is back on track. New Jersey residents, and others in the state, should soon be able to go to their local dispensaries to purchase marijuana for recreational use. That’s because NJ Gov. Phil Murphy recently affixed his signature to a law that will address logistical issues with the implementation of necessary measures to create the state’s adult-use cannabis market. What effect will marijuana legalization have on the New Jersey economy, and on the cannabis industry generally? Keep reading this blog to learn more.

NJ Governor Signs Law to Create Adult-Use Cannabis Market

On February 22, 2021, New Jersey Governor Phil Murphy signed a law that will essentially legalize recreational market and create a new cannabis market in the Garden State. The legislation makes it legal to purchase and use cannabis for recreational purposes and decriminalizes possession of small amounts of marijuana.

Although a ballot measure to legalize adult-use cannabis was approved by NJ voters on November 3, 2020, there was a holdup on implementation because of concerns raised by Governor Murphy: the governor refused to sign a bill to begin implementing cannabis legalization measures until state lawmakers approved a related bill to ensure that criminal penalties would remain on the books for underage marijuana use. That “clean-up bill” was subsequently passed by the New Jersey Assembly and the New Jersey Senate by overwhelming margins.

With many of the issues that were holding up adult-use cannabis legalization now on track to be resolved, state lawmakers believe that the legal sale of recreational marijuana in New Jersey could happen before the end of 2021. The state recently appointed five (5) members to a Cannabis Regulatory Commission (CRC), an oversight agency which is in charge of regulating the medical marijuana program and developing rules and regulatory measures for the new recreational marijuana market. While many cannabis operators wishing to do business in New Jersey will need to apply for recreational cannabis licenses, some cannabis operators already have medical cannabis licenses and could seek quick approval for adult-use cannabis sales.

Economic Impact of Recreational Cannabis Legalization in NJ

Cannabis industry experts believe that the New Jersey adult-use cannabis market will generate more than $1 billion annually by 2024. This would make NJ the largest cannabis market on the East Coast and one of the leading cannabis markets in the entire country.

Of course, with New Jersey finally having legalized recreational marijuana, the question now becomes: when will New York legalize adult-use cannabis? Only time will tell on that one, but there is definitely momentum pushing New York towards full legalization of cannabis – especially as the U.S. Congress considers decriminalizing cannabis federally and more and more Americans indicate their support for full legalization of cannabis. Additionally, many industry observers believe that other states like Pennsylvania, Maryland, and Virginia could soon follow New Jersey’s lead and legalize cannabis. Shortly after the NJ marijuana legalization ballot measure was approved by voters in the 2020 election, Steve Hawkins, the executive director of the Marijuana Policy Project, said, “The passage of this ballot measure positions New Jersey to take the lead in the Northeast and will push neighboring states, like New York and Pennsylvania, to take action on marijuana legalization.”

Within New Jersey, the economic impact of legal recreational cannabis could be significant. Scott Rudder, president of the New Jersey CannaBusiness Association, called the new law “historic” and predicted “phenomenal” business opportunities not just for cannabis investors and companies but also for NJ residents. Additionally, there could be a sizable benefit to related businesses like law firms and accounting firms that will be needed to assist cannabis operators.

Contact Scythian Real Estate for Assistance with Cannabis Operations in New Jersey and Across the U.S.

Scythian Cannabis Real Estate is a privately held cannabis real estate fund that provides financing and other operational assistance to some of the largest and most sophisticated cannabis operators in the country. To learn more, send us an email today.

PLEASE NOTE THAT THIS BLOG IS NEITHER AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO BUY SECURITIES IN SCYTHIAN REAL ESTATE FUND.

Illinois recently took an important step by expunging 500k cannabis convictions from the criminal records of state residents. The move to formally remove these cannabis-related criminal histories was made by Illinois Governor J.B. Pritzker just as 2020 came to an end. Cannabis operators who already have a strong presence in Illinois’ thriving legal cannabis market likely took notice. Continue reading this blog to learn more.

Illinois Governor Moves to Expunge Cannabis Arrest and Conviction Records

In 2019, Illinois officially legalized marijuana for recreational use. It was not until 2020, however, that the Illinois marijuana legalization law finally went into effect. At the end of 2020, Illinois Governor J.B. Pritzker went one step further and took action to eliminate the cannabis-related arrest and conviction records of nearly half a million people who had been charged under the previous cannabis laws.

Pritzker’s move to formally expunge cannabis arrest and conviction records was actually required by the Illinois Cannabis Regulation and Tax Act, the law that legalized recreational cannabis in Illinois. As set forth by the statute, the state government had until January 1, 2021 to start the process of expunging non-felony cannabis arrest records from 2013 through 2019. The law specifically required state officials to expunge 492,192 state-level records of cannabis arrests and convictions. However, the deadline for finalizing the expungements is January 2025, which means that clearing these arrest records could ultimately take years. So far, just nine of the 201 counties in Illinois have cleared non-felony cannabis arrest records.

Pardons for Low-Level Cannabis Convictions in Illinois

In addition to expunging cannabis arrest records in Illinois, Pritzker also issued formal pardons for 9,219 individuals with low-level cannabis convictions under the state’s previous laws. This was similar to a move made earlier in 2020 by Colorado Governor Jared Polis to pardon low-level marijuana convictions. Although marijuana possession is no longer a crime in Illinois, people who were previously convicted of marijuana possession in the state were not grandfathered into the new law. This meant that their past convictions under the state’s old cannabis laws remained on their records. A person with a cannabis conviction on their background report could find it difficult to apply for a job, secure housing, or apply for federal loans.

When announcing the decision to expunge cannabis arrest records and pardon cannabis convictions, J.B. Pritzker highlighted the significant damage that has been done to minorities as a result of the state’s war on drugs. Pritzker observed that it has been communities of color “who have disproportionately shouldered this burden.” The Illinois governor acknowledged that the government made mistakes in the past when it came to criminalizing marijuana use and then punishing African Americans. Importantly, the governor also pointed toward a future in which Illinois residents won’t be punished for possessing and using cannabis.

Illinois Cannabis Legalization Law Requires Investment in Low-Income Communities

The Illinois Cannabis Regulation and Tax Act allows local municipalities to generate tax revenues from legal cannabis sales. An important provision of the marijuana legalization law also requires the state to reinvest 25% of those revenues into a fund designated for “R3 communities.” These are communities with a statistical prevalence of gun violence, child poverty, and incarceration. The tax revenues that come from legal sales of cannabis in Illinois will be used to provide financial support for various programs in these communities, including programs aimed at youth development, anti-violence, economic development, and re-entry into the community for people released from prison.

Contact Scythian Cannabis Real Estate Today

Scythian Real Estate is a privately held cannabis real estate fund that provides financing and operational assistance to some of the country’s largest and most sophisticated cannabis operators. If you are a cannabis operator in Illinois or anywhere else in the U.S., Scythian Real Estate may be able to help you. For more information, send us an email.

PLEASE NOTE THAT THIS BLOG IS NEITHER AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO BUY SECURITIES IN SCYTHIAN REAL ESTATE FUND.

In 2020, the U.S. House of Representatives approved historic legislation that would decriminalize cannabis at the federal level. This was the first time in five decades that either chamber of the United States Congress has held an official floor vote on the legal status of cannabis. What will this mean for the future of the cannabis industry? Continue reading this blog to find out.

Also, check out the other entries in Scythian’s “2020 in Review” blog series: Part 1 on states legalizing cannabis in 2020 and Part 2 on cannabis industry success during COVID-19.

Congress Votes in Favor of MORE Act to Allow States to Legalize Cannabis

On December 4, 2020, the United States House of Representatives voted in favor of the MORE Act (also known as the Marijuana Opportunity Reinvestment and Expungement Act). If the MORE Act were to become law, it would allow individual states to determine their own policies regarding the legal status of cannabis – without any interference by the federal government. This would be an important development in cannabis law because federal law currently prohibits the sale and/or possession of cannabis, a legal status that runs counter to the adult-use cannabis laws and medical marijuana laws in several states.

In addition to legalizing cannabis at the federal level, the MORE Act would also establish a federal sales tax for cannabis. As set forth by the federal statute, the revenues generated by the marijuana sales tax would be used to fund a number of restorative justice programs intended to undo some of the harm caused by previous policies and laws that criminalized marijuana possession and that, in many cases, disproportionately harmed members of low-income and minority communities.

Democrat-Controlled Senate Could Lead to Cannabis Decriminalization in United States

The vote on the Marijuana Opportunity Reinvestment and Expungement Act in the U.S. House of Representatives went largely along party lines, with all but five of the votes cast in favor of the cannabis decriminalization legislation coming from Democrats. The final vote tally was 228 in favor of the proposed law and 164 against the proposed law.

The positive outcome for the bill was a predictable result of the Democrats holding a majority in the U.S. House. The bill’s ultimate outcome would be determined by the U.S. Senate, which until recently was controlled by Republicans. After the legislation initially passed in the House, however, the composition of the Senate changed: a special runoff election in Georgia on January 5, 2021 saw the Democrats flip two seats in the Senate. Now the MORE Act could have a legitimate chance of being approved by the Senate and becoming the law of the land.

U.S. Congress Approves Law to Study Medical Applications of Marijuana

The United States Congress passed another important cannabis bill in 2020: both the House and the Senate approved legislation that would grant researchers greater access to cannabis and allow them to study the potential medical uses and applications of marijuana. The medical marijuana research bill is viewed by supporters as a critical step in the creation of better and more targeted federal drug policy.

Additionally, it is worth noting that the medical marijuana research law received overwhelming bipartisan support from both Republicans and Democrats. This suggests that there could be room for greater support for federal cannabis legalization efforts in the future. During a House floor debate on the legislation, Rep. Greg Walden from Oregon said that more data on “the actual health impacts of [cannabis] products” in states where those products are currently legal will help to fill an “information vacuum” surrounding the pros and cons of legalizing marijuana.

Contact Scythian Cannabis Real Estate Today

Scythian Real Estate is a privately held cannabis real estate fund that provides financing and other assistance to sophisticated cannabis operators throughout the U.S. If you are a cannabis operator interested in raising capital, Scythian Real Estate may be able to help you. Send us an email for additional information.

PLEASE NOTE THAT THIS BLOG IS NEITHER AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO BUY SECURITIES IN SCYTHIAN REAL ESTATE FUND.

There were some major cannabis legal developments in 2020, many of which reflected a more welcoming environment for the cannabis industry in the United States as more and more states legalize marijuana. One of the most significant developments came on election night as voters in Arizona, Mississippi, Montana, New Jersey, and South Dakota chose to legalize cannabis for either recreational use or medical use.

To learn more about states voting to legalize cannabis in 2020, continue reading this blog. And don’t forget to check out other entries in Scythian’s “2020 in Review” blog series: Part 2 on the cannabis industry thriving during the COVID-19 pandemic and Part 3 on Congress decriminalizing marijuana.

Arizona, Mississippi, Montana, New Jersey, and South Dakota Vote to Legalize Cannabis

Perhaps the biggest development in the cannabis world last year was the overwhelming success of cannabis legalization measures on November 3. On election night 2020, voters in five (5) states were able to voice their support for the legalization of cannabis in Arizona, Mississippi, Montana, New Jersey, and South Dakota. The result: a clean sweep for cannabis legalization.

Voters in all five states were in favor of cannabis reform, choosing to legalize cannabis for either recreational use or medical use. In all five states, the margin of victory was clear and decisive: the South Dakota medical cannabis measure passed with nearly 70% of the vote, and the Mississippi medical marijuana measure passed with 62% of the vote. Moreover, exit polls on election night showed that there was a bipartisan consensus that included both Republicans and Democrats voting in favor of cannabis legalization.

South Dakota voters made history by becoming the first state to go from a total ban on adult-use cannabis to complete legalization: both recreational use and medical use will soon be allowed in South Dakota. The state’s medical cannabis law will go into effect first, to be followed later by implementation of the recreational cannabis law. Meanwhile, Arizona, Montana, and New Jersey are set to legalize cannabis for recreational use, and Mississippi will be legalizing cannabis for medical use.

Cannabis Legalization to Boost State Tax Revenues

The legalization of cannabis in Arizona, Mississippi, Montana, New Jersey, and South Dakota is expected to provide local municipalities with significant tax revenues. That’s because the cannabis reform laws will have provisions that allow for the regulation and taxation of legal cannabis sales by state-licensed dispensaries. At a time when many states are struggling due to the COVID-19 pandemic, additional tax revenues generated by adult-use cannabis sales should provide a much-needed boost to state and local economies.

What Is the Future of Cannabis Legalization in the United States?

A total of 36 states have now legalized medical cannabis use, with 15 of those states also legalizing cannabis for recreational use. The strong support for marijuana legalization in different regions of the country – East, West, South, and Midwest – on Election Night 2020 suggests that more states could be legalizing cannabis in the years ahead. There are already efforts underway to get cannabis legalization on the 2022 ballot in several mid-Atlantic states, including Connecticut, New York, and Pennsylvania.

The continued push for marijuana legalization across the U.S. should provide a significant boost to the cannabis industry. There has been a surge in cannabis acquisitions and investments by major players in the U.S. cannabis industry as more states look primed to legalize cannabis either through legislation or ballot measures.

Contact Scythian Cannabis Real Estate

Scythian Real Estate, which is based out of Colorado, is a privately held cannabis real estate fund that works with many of the largest cannabis operators in the country. Cannabis operators that are looking to expand their reach into new markets should contact Scythian Real Estate for additional information.

PLEASE NOTE THAT THIS BLOG IS NEITHER AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO BUY SECURITIES IN SCYTHIAN REAL ESTATE FUND.

The United States Congress recently moved one step closer to decriminalizing cannabis at the federal level when the House of Representatives approved a bill that would remove marijuana from the Controlled Substances Act (CSA). How likely is it that the legislation will ultimately become a law? And what does it mean for the U.S. cannabis industry? Read on to learn more.

Congress Votes on Law to Decriminalize Cannabis at Federal Level

H.R. 3884, the resolution introduced and voted on in the House, is historic. The bill marks the first time that either chamber of Congress has officially cast votes on a proposed law to decriminalize marijuana federally. The bold legislation, named the Marijuana Opportunity Reinvestment and Expungement (MORE) Act, is intended to “address the devastating injustices caused by the War on Drugs.” Democratic Rep. and House Judiciary Chair Jerry Nadler introduced the MORE Act because the criminalization of marijuana has disproportionately impacted minorities and communities of color through selective enforcement of marijuana laws by police.

After the momentous vote in the House, Maryland Democratic Rep. Steny Hoyer issued a powerful statement observing that millions of Americans have had their lives destroyed by convictions for possessing just a small amount of marijuana. Hoyer further noted that “the racial disparities in conviction rates for those offenses are as shocking as they are unjust.”

Proponents of the legislation say that the measure would directly benefit the federal government by providing much-needed revenues to finance things like cannabis industry job training, legal aid for indigent criminal defendants, and substance abuse treatment for people with addiction problems. These things would be made possible by a 5% sales tax on all legal sales of cannabis and cannabis-related products.

Proposed Law Would Eliminate Criminal Penalties for Marijuana Possession

If the MORE Act becomes law, it would remove marijuana from the substances banned by the Controlled Substances Act (CSA). The MORE Act would also eliminate criminal penalties for the manufacture, distribution, or possession of marijuana. This means that the law would effectively legalize cannabis in the United States.

The MORE Act also includes a provision that would allow for the expungement of prior convictions for marijuana possession. This means that an individual with a previous conviction for unlawfully possessing marijuana in violation of federal law would potentially be eligible to have that conviction removed from their permanent record. Beyond that, anyone currently in prison for a federal cannabis offense could have the ability to petition for a sentencing review hearing.

Republican Support for MORE Act to Decriminalize Cannabis

The MORE Act had strong support from Democrats, with 222 Democratic members of the House voting in support of the legislation and just six (6) Democrats opposing it. Perhaps surprisingly, five (5) Republicans also voted in favor of decriminalizing cannabis. In fact, one prominent Republican, Florida Rep. Matt Gaetz, was the bill’s co-sponsor. Before voting, Gaetz gave an impassioned speech on the House floor and implored his fellow members in the House to change their positions on marijuana legalization because those stances “are overwhelmingly losing with the American people.”

In addition to Gaetz, the other Republicans who voted to end the federal law prohibiting marijuana manufacturing, distribution, and use included Don Young from Alaska, Tom McClintock from California, Brian Mast from Florida, and Denver Riggleman from Virginia.

Cannabis Decriminalization Not Likely to Pass in U.S. Senate

Despite some Republican support for the MORE Act, the bill passed by the Democratic-controlled House might not go very far in the Senate. Republicans still control the U.S. Senate, and the vast majority of the Republican Party has not shown any inclination to legalize marijuana at the federal level – or to do much of anything that would pave the way for marijuana legalization across the United States.

Mitch McConnell, the Senate Majority Leader and one of the most powerful members of the Republican Party, was highly critical of the House for spending time on the cannabis decriminalization legislation instead of focusing on a COVID-19 stimulus bill that he called more “serious and important” than a marijuana law. Current Democratic vice president elect Kamala Harris previously introduced a similar bill in the Senate, but Republicans in the Senate Finance Committee prevented the measure from reaching the Senate floor for a formal vote.

Some have criticized the recent bill passed in the House of Representatives because it has little chance of gaining enough support in the Senate to become a law. Kevin Sabet, the president of conservative anti-marijuana group Smart Approaches to Marijuana, said that “there is zero interest in moving this bill in the Senate and zero interest in supporting it in either the current administration or the incoming one.” Whether that last observation is actually true remains to be seen.

While president-elect Joe Biden has not yet come out in favor of legalizing cannabis at the federal level, earlier this year he did express support for the decriminalization of marijuana. A spokesperson for the Biden presidential transition team recently said that Biden would reschedule marijuana as a Schedule II drug as opposed to a Schedule I drug. Additionally, Biden “would allow states to continue to make their own choices regarding legalization.”

What Does the Future Hold for Cannabis Legalization in the United States?

While cannabis legalization at the federal level may not be on the horizon, individual states continue to push their own marijuana legalization efforts. A total of 15 states have already legalized cannabis for recreational use, and 36 states have legalized cannabis for medical use. Both of those numbers grew in the November 2020 election, when voters in five (5) states approved laws to legalize cannabis within their respective state borders. Just last month, voters in Arizona, Mississippi, Montana, New Jersey, and South Dakota voted to allow legal marijuana sales at state-licensed dispensaries.

The number of regulated cannabis markets figures to increase in the years ahead, as more and more states take up the issue of whether to legalize adult-use cannabis. There is a growing belief among many in the cannabis industry that states like Connecticut, New Mexico, New York, and Pennsylvania could get recreational cannabis legalization measures on the ballot in 2022.

Contact Scythian Real Estate for Information on Cannabis Operations Financing

Scythian Real Estate is a privately held cannabis real estate fund that partners with some of the largest and most sophisticated cannabis operators in the country. To learn more about the Scythian Real Estate Fund, send us an email.

PLEASE NOTE THAT THIS BLOG IS NEITHER AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO BUY SECURITIES IN SCYTHIAN REAL ESTATE FUND.