With half of the year now in the history books, it is safe to say the first half of 2021 will likely be remembered as a series of watershed moments for the cannabis industry. Even if we do not achieve full federal legalization or true social equity for all players in the space, those issues rose to prominence for the industry this year. But perhaps most importantly, 2021 will be remembered as the year that these matters also caught the attention of mainstream America, both in Washington D.C. and in states moving to legalization.

In a move that would be unfathomable only a decade ago, Senate Majority Leader Chuck Schumer (D-New York) placed the full backing of his office behind total cannabis legalization at the federal level this year. He first mentioned his unwavering support in an April 20 press conference where he declared that “the time has come” for marijuana legalization. To back up this declaration, he introduced the framework for the Cannabis Administration and Opportunity Act on July 14. With co-sponsors Sens. Cory Booker (D-New Jersey) and Ron Wyden (D-Oregon) by his side, Schumer detailed the provisions of the proposed legislation, which dictates a comprehensive approach that includes the robust reforms needed for cannabis banking and tax policy while also addressing the social equity issues raised by the failed war on drugs and disproportionate drug enforcement practices against Black and brown people through the decades.

Although there are myriad concerns about the effort’s viability and doubts that President Biden would ever sign the full legislation into law, the introduction and prominent discussion of federal legalization are hugely encouraging for anyone interested in the growth of the cannabis industry. Some have suggested the discussion of full legalization is only serving as a negotiation tool to finally encourage full Congressional passage of the SAFE Banking Act. If that turns out to be the case, the industry would still be better off than it is today. While we watch to see if the Cannabis Administration and Opportunity Act passes in full and is signed into law, we are hopeful that all this activity will finally move the needle in the right direction at the federal level. 

In addition to this activity in Washington, we are seeing an increasing acknowledgment from states that the costly social injustices of cannabis law enforcement over the years must be addressed in legalization legislation in statehouses. As a result, both Illinois and New York have included strong social and economic equity provisions in their legislation that aims to equal the playing field in the awarding of licenses while righting the wrongs of the unfair incarceration of minorities during prohibition. 

New York’s law may be the most progressive of any state thus far by creating a social and economic equity program that encourages those individuals in underserved communities to participate in the adult-use market. Components of the law include expanding eligibility for social equity applicants, the creation of a community reinvestment fund that is supported by cannabis taxes and possibly most notable, automatic expungement of many past criminal cannabis convictions. The New York automatic expungement law has been hailed as a national blueprint for other states to follow. 

Illinois also allows for past cannabis arrests and convictions to be expunged from records, so long as the circumstances of the offense meet specific criteria. In addition, the approach that Illinois is taking toward awarding licenses may also prove to be one of the most significant developments in our industry since legalization efforts first became successful and took effect. This is a true equity program that acknowledges the past and sets a precedent for how the process can be managed moving forward. It’s incredible to see the sheer number of social equity applicants in Illinois, and this time many more of them will win their license. Now, we need to make sure that they have funding to launch their businesses successfully. This is a great moment for the cannabis industry.

While other states have incorporated components of social equity and police record expungement into their legislation, the examples from New York and Illinois make it an inescapable fact that efforts to legalize marijuana will always be tied to some kind of social equity component. What is more interesting, is how the social equity legislation in New York and Illinois comprise some of the most assertive steps forward for criminal justice reform anywhere in the country, inside or outside of the cannabis space. This is a good sign for the cannabis industry and the nation as a whole.

Finally, the progress of state-by-state legalization whether for recreational or medical marijuana marched forward throughout 2021. Although Florida seemed poised for legalization of adult-use, a state Supreme Court ruling against language used in the ballot initiative effectively killed its chances this year. In my opinion, the next states to go fully legal will include Ohio and Pennsylvania. In July, Ohio Democrats introduced a bill that would legalize adult-use in the state and allow for the records for many past convictions to be sealed, effectively allowing those individuals to participate in the newly legal market. Although many say the legislation faces a steep climb to passage, a growing number of Ohio leaders recognize that cannabis provides a revenue stream into state coffers and provides an alternative to address the Buckeye state’s deadly opioid crisis. 

In Pennsylvania, where a majority of residents now support legalization of adult-use cannabis,  state representatives Jake Wheatley and Dan Frankel are working on a legal and regulatory framework. In addition, Gov. Tom Wolf (D) has called legalizing cannabis for adult-use a priority for the state. In another encouraging sign, legislative leaders in longtime holdout North Carolina continue to move forward legislation that would finally legalize medical marijuana in the state. 

As the popularity of marijuana legalization continues to increase (a 2020 Gallup poll reported that 68% of Americans now support legalization), 2021 may well be remembered as a tipping point year for the cannabis industry. More than 60% of the U.S. population now has legal access to either recreational or medical marijuana, and the issues and concerns of the industry are front and center on the national stage and consciousness. There is perhaps a no better time to be in this industry.