The new spending plan that was proposed last night at Congress will once again protect medical marijuana patients and business in legal states.
When Jeff Sessions rescinded the Cole Memo in early January of this year, the legal marijuana industry in the United States was left vulnerable to federal enforcement of the Controlled Substance Act if the Rohrabacher-Blumenauer Amendment would not be included in the next budget.
The Amendment was first introduced in 2001 and passed House in May 2014 after six previous attempts. Inclusion of the Amendment prohibits the Department of Justice from spending money to interfere with laws in states where medical marijuana is legal.
The risk imposed on cannabis stocks may be on the verge of lifting so long as President Donald Trump signs the new budget proposal which must also be formally approved by Congress.
Congressional leaders agreed to the $1.3 trillion budget proposal that will fund the government until the end of September, and it would keep protections in effect for medical marijuana in legal states.
The new budget does not include protections for state-legal recreational cannabis but the Department of Justice has not had that restriction strongly imposed on them since Jeff Sessions took over last year.
The inclusion of the amendment in the new spending plan shows that Congress supports that individual states have the right to tax and regulate cannabis on their own terms.
It’s predicted that this is a good time for investors to consider stocks in cannabis since the risk is on hold for another six months at least and with priced having pulled back.
Forbes published a list of cannabis companies that are currently on track to sales of $10 million or more in sales per year and will be positively impacted should the budget be approved. These include: Golden Leaf Holdings, GrowGeneration, Kush Bottles, MPX Bioceutical and Terra Tech.
The new bill will also protect the provisions in place that protect industrial hemp research programs from federal interference.
The marijuana industry is not slowing down anytime soon, even with the threat of federal interference. Businesses and interested investors are wise to monitor federal laws but keep an open mind to the direction the in which the industry is headed.
Hopefully new bills will be introduced in the future that will reform a federal marijuana policy on a permanent basis instead of depending on a new budget to offer protections.
credit:420intel.com
