Marijuana Business Factbook 2019

21 © Copyright 2020, Marijuana Business Daily , a division of Anne Holland Ventures Inc. You may NOT copy this Factbook, or make public the data and facts contained herein, in part or in whole. For more copies or editorial permissions, contact CustomerService@MJBizDaily.com or call (720) 213-5992, ext. 1. National Trends | Chapter 1 MJBIZDAILY.COM Nearly 60% of cannabis business owners are planning to take their companies into a new market within the next year, highlighting the appetite for growth and expansion among the marijuana business community. Nearly all business owners in the ancillary technology and products space are looking to move into new markets, with three-quarters of ancillary services firms looking to do the same. These businesses do not touch the marijuana plant itself and, therefore, are not running afoul of federal marijuana laws, which makes it relatively easy to expand across state lines. Cannabis product manufacturers can leverage licensing agreements that allow their brands to be produced by manufacturers physically located in the state where the products will be sold, giving these businesses more flexibility than plant-touching companies in other sectors of the industry. Among companies looking to expand, a solid majority are pursuing opportunities in both medical and recreational markets. CHART 1.17: Overview Of Major Federal Marijuana Reform Bills In Congress *According to Skopos Labs, an AI pla�orm that provides probabilis�c forecasts for pending bills in Congress. Source: Marijuana Business Daily, Congress.gov, Skopos Labs © 2019 Marijuana Business Daily, a division of Anne Holland Ventures Inc. All rights reserved. Overview Of Major Federal Marijuana Reform Bills In Congress Bill Name Bill Number What It Does Secure and Fair Enforcement Banking Act (SAFE Banking Act) H.R. 1595 Provide federal protec�on for financial ins�tu�ons that serve state-authorized marijuana and ancillary businesses. Strengthening the Tenth Amendment Through Entrus�ng States Act (STATES Act) H.R. 2093 Would create an exemp�on in the Controlled Substances Act to allow states to determine their own cannabis policies without fear of federal reprisal. Democrat 180 Republican 26 Republican 19 Democrat 43 Sponsors Chance of Passing* 3% 3% To date, nearly all meaningful legislation pertaining to cannabis legalization and regulation has come at the state level. While this has allowed states to create thriving and prosperous marijuana industries, cannabis businesses continue to face major challenges ― particularly around taxes and banking ― that can be addressed only by the federal government. Currently, there are two major pieces of legislation under consideration that could impact marijuana policy at the federal level ― the Secure and Fair Enforcement (SAFE) Banking Act and the Strengthening the Tenth Amendment Through Entrusting States (STATES) Act.