The Cannabis Clock, Volume 2

Time Keeps on Ticking, Ticking into the Future

By Andrew Behringer

Welcome to the latest installment of the Cannabis Clock — our countdown to the federal legalization of cannabis. When the Cannabis Clock reaches midnight, we will have achieved federal legalization. The last time we checked in, it was 11:53 p.m. Now, let’s examine the latest developments at the state and federal levels. This will inform the new clock time … and our new countdown.

Federal Updates

Federally speaking, quite a few things have happened since we last checked in. In Oct. 2022, the Biden administration announced it would pardon a group of offenders arrested for simple possession of cannabis.

Sounds good, right? Well, yes. But these pardons were for people charged with simple possession at the federal level — only about 6,500 people. While meaningful, one could argue the true motive behind the announcement, which was just ahead of November’s midterm elections, was timed to help Democrats hold control of the government however possible.

In early Mar. 2023, Attorney General Merrick Garland was asked for an update on the status of descheduling cannabis. Garland’s response? That the Department of Justice (DOJ) was still working on creating policies for de-scheduling the cannabis plant, citing the need to hear from health officials currently conducting a scientific review of the plant.

The bottom line: We are now in year three of this administration with no meaningful progress on descheduling the cannabis plant at the federal level.

Lastly, there’s the Secure and Fair Enforcement (S.A.F.E.) banking act. It’s federal legislation that would allow cannabis companies access to F.D.I.C.-insured banks, allowing them to apply for business loans and much more.

S.A.F.E. has failed to pass three separate times in the Senate. With the banking industry in turmoil, we are left to wonder: when will cannabis companies be free to bank legally at F.D.I.C-insured banks?

State Updates

During November’s midterm election, five states voted on cannabis legalization. It was up to the voters to decide the future of the cannabis industry in their state. Of those five, only two — Maryland and Missouri — approved cannabis ballot measures. Arkansas, North Dakota, and South Dakota were unable to gain a majority of votes to approve legal cannabis.

Marylanders voted on and approved ballot question #4, which legalized cannabis for the state. Adult-use cannabis legislation is now speeding its way through the Maryland House and Senate to try to pass it before the end of the legislative session. If the legislation passes, it will create the framework for the industry, which is slated to start in Maryland on July 1, 2023.

In Dec. 2022, New York began its legal adult-use cannabis industry. While New York has been hailed for creating strong cannabis policy in many different areas, there were still a few hiccups with the roll-out of the industry in the state. The cannabis legislation that created the framework for the industry called for the creation of a $200 million “social equity fund.” Of this $200 million, $50 million would be allocated from the state’s budget. The remaining $150 million would come from the “private sector.”

To date, the social equity fund has only $50 million in