Thread by @J_P_RICE

1/ Comparing the 3 Federal Cannabis Legalization Bills proposed will likely clarify much of the misunderstanding and misinformation on this platform. With the editing help of @GoBlueCdn & @thecannalysts and the thought provoking discussion of many

@GoBlueCdn @thecannalysts 2/ & many others this document developed:

drive.google.com/file/d/1g2hXE4…

A few key points: The closer you look, the more I feel you will agree that the key provisions that will affect the Federally legal aren't

@GoBlueCdn @thecannalysts 3/ all that different. The biggest are Tax Rate & Tax Proceeds Allocation. While #MORE provides the lion's share to Expungement, CAOA funds Expungement & Social Equity equally. #SRA funds Law Enforcement (no comment). Yes, CAOA's tax rate is the highest. However,

@GoBlueCdn @thecannalysts 4/ like #CBMTA there's a 50% kick-back on the first $20M, which makes the differences in the final year between #MORE & #CAOA 4%. Two of the many common denominator are the Imposition of Tax and the Regulatory Agency @USTreasury via #TTB. Excise Tax is calculated

@GoBlueCdn @thecannalysts @USTreasury 5/ X% of the FIRST Sale. Maybe more important is the surrounding provisions and WHO an Industry Member can sell to and WHEN the tax will be calculated. In many ways, this element will architecturally impair Verticality & (potentially) escalate the tax rate to the

@GoBlueCdn @thecannalysts @USTreasury 6/ Price to Consumer (PTC) for #MSOS. #TTB is the only logical choice and has most if not all of the necessary elements in place to efficiently launch Legalization. Interstate & Foreign Commerce is clearly legalized & the language giving Congress the authority to

@GoBlueCdn @thecannalysts @USTreasury 7/ regulate applies only to Interstate & Foreign Commerce, There is no mention of postponement, The suggestion of Congress using the same language to suspend commerce is highly ironic. What should be noted is the SEC. 701 of #SRA which defines US International Cannabis

@GoBlueCdn @thecannalysts @USTreasury 8/ Commerce Policy and codifies it, including directing the removal of support for The 1961 Single Convention on Narcotic Drugs, the 1971 Convention on Psychotropic Substances, 1972 Protocol Amending the Single Convention on Narcotic Drugs, and the 1988 United Nations

@GoBlueCdn @thecannalysts @USTreasury 9/ Convention Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances, all deftly pointed out by @PresumablyPaul as the major barrier to Foreign Trade. This language needs to be inserted into #MORE & #CAOA before passage.

@GoBlueCdn @thecannalysts @USTreasury @PresumablyPaul 10/ While #MORE & (particularly) #SRA avoid FDA, CAOA adds Chapter XI - Cannabis Products to The Federal Food, Drug, and Cosmetics Act (21 U.S.C. 301 et seq.) Section 1101 Establishes "The Center for Cannabis Products" inside FDA within 90 Days. Section 1102 Defines

@GoBlueCdn @thecannalysts @USTreasury @PresumablyPaul 11/ "Adulterated Cannabis Products" Section 1103 Defines "Misbranded Cannabis Products". Section 1104 Requires Annual Registration of Premise & Products. Section 1105 "General Provisions for Control" (Age Verification). Section 1106 "Cannabis Product Standards" (Testing,

@GoBlueCdn @thecannalysts @USTreasury @PresumablyPaul 12/ Results, Ingredients) Section 1107 "Recall Authority" Section 1108 "Records & Reports on Cannabis Products". Section 1109 "Prohibition on Flavored Electronic Cannabis Delivery Systems". Section 1110 "Preservation of State & Local Authority". Section 1111 "Cannabis

@GoBlueCdn @thecannalysts @USTreasury @PresumablyPaul 13/ Products Advisory Committee". As pointed out by @ICstruct this could slow progress and be a thorn in the side of the industry for years due to the proclivity of FDA to #BigPharma. Though #SRA brings #USDA into the mix for no apparent reason.
The 5 elements that

@GoBlueCdn @thecannalysts @USTreasury @PresumablyPaul @ICstruct 14/ would be catastrophic to the existing industry: (1) CAOA Sect 304(2) TIED HOUSE (A) Acquiring or holding (after the expiration of any existing license) any interest in any license with respect to the premises of the retailer. This would require all Industry Members

@GoBlueCdn @thecannalysts @USTreasury @PresumablyPaul @ICstruct 15/ to divest all retail. Identical to #FAA (2) #FAA Section 205 - Unfair Competition and Unlawful Practices which prohibits Manufacturers from owning Wholesale Permits. States often Permit self-distribution & likely will. However, it's generally reserved to aide

@GoBlueCdn @thecannalysts @USTreasury @PresumablyPaul @ICstruct 16/ in-state producers & wouldn't solve the Interstate production issues @GoBlueCdn uncovers. (3) FAA Section 208 - Interlocking Directories which, when coupled with Arms Length & Control Group tax provisions would hinder significantly "spinning off" retail and/or

@GoBlueCdn @thecannalysts @USTreasury @PresumablyPaul @ICstruct 17/ wholesale assets. (4) FAA Section 208 - Allows States to Monopolize Cannabis Wholesale Distribution & Retail Sales. Known as "Control States" 21 States currently hold Distilled Spirits Monopolies (PA holds all Alcohol Sales). (5) The aforementioned Foreign Trade

@GoBlueCdn @thecannalysts @USTreasury @PresumablyPaul @ICstruct 18/ Section 701 of #SRA adeptly pointed out by @PresumablyPaul in recent days. While this creates a path for Exports, it creates a path for Imports- No mention of any pause in Foreign Trade or Interstate Commerce.

These 5 obstacles are the Trade Practice Rules (ie

@GoBlueCdn @thecannalysts @USTreasury @PresumablyPaul @ICstruct 19/ Tax & TRADE Bureau) & #TTB's enforcement put IMHO the Vertical Integration business model in an "Inescapable Box" so to speak and quickly evaporate it. I'll leave the financial fall-out of this to others.

Many of you will say "They won't do that". Many of you

@GoBlueCdn @thecannalysts @USTreasury @PresumablyPaul @ICstruct 20/ will say "This is DOA". IMHO It is a certainty. I hold this opinion because Trade Practices are necessary to create "a level playing field" and a level playing field is necessary for one reason and one reason only: for @USTreasury to complete it's primary function

@GoBlueCdn @thecannalysts @USTreasury @PresumablyPaul @ICstruct 21/ & protect and collect Federal Excise Taxes on Cannabis.

For those of you betting on this business model, ask yourself "should I bet on this business model getting it's money at the expense of Uncle Sam or should I bet on Uncle Sam getting his money" because

@GoBlueCdn @thecannalysts @USTreasury @PresumablyPaul @ICstruct 22/ that's the whole argument boiled down.

@Luc_Carlin