What Would Interstate Commerce Look Like Under the Cannabis Administration and Opportunity Act?

Senate Majority Leader Chuck Schumer officially filed his long-awaited Cannabis Administration and Opportunity Act (CAOA) July 21, and while it remains to be seen whether the 296-page bill has the support it needs to become law, this sort of broad federal measure would ultimately open up interstate commerce in the cannabis industry.

What does this mean for existing cannabis operators and business hopefuls in state-legal markets?

Jonathan Robbins, chair of the cannabis practice at Akerman LLP, says cannabis will likely be regulated like alcohol at the federal level, and that “refreshing is an understatement” to describe the impact of interstate commerce opportunities on the industry.

“It will be fantastic to be able to negotiate license agreements or distribution agreements where product can actually be sold across state lines,” he says. “If I represent a multistate operator and they want to do a distribution agreement [now] … with a big brand out West, you can’t just drop a pallet from California and ship it to Florida. Especially with edibles, it makes it so impossible because you … have to get the genetics from the operator, then you have to have a team come in and teach them how to cultivate it properly and … how to manufacture these edibles.”

But, according to Robbins and Robert DiPisa, co-chair of the Cannabis Law Group at Cole Schotz, a reasonable tax rate and a uniform approach to regulations are key to the long-term success of the industry when interstate commerce becomes a reality.

The CAOA aims to levy

What Would Interstate Commerce Look Like Under the Cannabis Administration and Opportunity Act? on cannabis business times