Cannabis helping shape presidential race, with votes set for Florida, North and South Dakota

By Steve Gelsi

Kamala Harris talks about legalization, while Donald Trump expresses support for Florida referendum

Cannabis is playing a bigger role in the U.S. presidential race than in any past campaign, with Vice President Kamala Harris reaffirming support for legalization this week.

On Monday Harris spoke publicly about the issue for the first time since becoming the Democratic nominee.

"I just think we have come to a point where we have to understand that we need to legalize it and stop criminalizing this behavior," Harris said in an interview on the podcast "All the Smoke."

With that statement, Harris staked out a stronger pro-cannabis stance than that of President Joe Biden, who has supported the current effort by the federal government to lower the classification of cannabis to the less restrictive level of Schedule III.

Meanwhile, Republican nominee Donald Trump has said he supports Florida's referendum on adult-use cannabis, which will be on the state ballot in November.

With Election Day a few weeks away and Trump and Harris locked in a tight race, both candidates have positioned themselves to tap into positive voter sentiment around cannabis.

Roughly 70% of people nationwide support legalization of cannabis, according to a 2023 Gallup poll.

The election talk around cannabis has also lifted stocks in the industry.

The AdvisorShares Pure U.S. Cannabis exchange-traded fund MSOS rose about 13.5% in September, while the Amplify Alternative Harvest ETF MJ rose by 3.8%.

Trulieve Cannabis Corp. shares (TCNNF) rose 40% last month and Green Thumb Industries Inc. shares (GTBIF) were up by 7.2% over the same period, while Curaleaf Holdings Inc. (CURLF) rose 6.3%, Cresco Labs Inc. (CRLBF) was up by 6.6% and Verano Holdings Corp. (VRNOF) rose about 0.9%.

Cannabis will be on the ballot in three U.S. states on Nov. 5, while voters in another will consider legalizing psychedelics.

The votes come a year after Ohio, Delaware and Minnesota voters approved adult-use cannabis. Legalization efforts continue in the Pennsylvania legislature as well as in New Hampshire.

Currently 24 states allow adult use of cannabis, while more allow medical use.

$100 million spent in Florida

Florida is the third-largest U.S. state by population after California and Texas, meaning its upcoming voter referendum on adult use will have national significance.

Amendment 3 on the ballot in Florida is the most costly effort to date among state cannabis votes, with a group called Smart & Safe Florida spending more than $100 million in support of the referendum.

About $93 million of that money has come from Trulieve, with additional funding from Verano, Curaleaf and Green Thumb Industries.

Along with Trump, celebrities who have come out in favor of the measure include former NFL player Ricky Williams and Grammy-winning musician Wiz Khalifa.

A group opposed to Amendment 3 called Keep Florida Clean has drawn a $10 million contribution from billionaire Ken Griffin, owner of Miami-based hedged fund Citadel.

North Dakota and South Dakota go to the polls

North Dakota voters will get a third chance to approve adult-use cannabis after earlier attempts fell short.

A group called New Economic Frontier gathered 22,000 signatures to get Measure 5 on the state ballot, while the North Dakota Marijuana Legalization Initiative collected 19,000 signatures in support.

North Dakota has had a medical-cannabis program in place since 2016.

In South Dakota, voters will decide whether to pass Initiated Measure 29, which would allow possession, distribution and use of recreational cannabis for adults over 21.

In 2020, voters in the state approved a measure to allow adult-use cannabis, but a state court struck it down following a constitutional challenge.

Massachusetts to decide on regulated pyschedelics

Adult-use cannabis has been legal in Massachusetts since 2016, and now voters in the state will take up the issue of regulated access to psychedelics for therapeutic treatments.

A measure on the November ballot calls for the establishment of a public-health approach to psychedelics, including removal of criminal penalties for limited personal use by adults.

"Its intent is to remove the personal use of natural psychedelic substances from the illicit market and to provide supervised, safe access ina therapeutic setting through a regulated and taxed system," the measure states.

Oregon and Colorado have already moved to legalize psychedelics, while several other states are studying the medical uses of such substances.

-Steve Gelsi

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10-01-24 1046ET

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