Marijuana laws are pretty strict in Wisconsin. Although cannabis is spreading its roots across US states, it’s still illegal at the federal level. President Trump and his administration want states to decide. Florida, New York, and Minnesota are all gearing up to legalize adult-use cannabis. Now, Wisconsin is pushing to legalize medical marijuana. Let’s see what’s happening in the state.

Recently, lawmakers in Wisconsin introduced a bill to legalize medical cannabis. If the new bill is passed into law, it will allow patients to use cannabis if they’re registered with the state. Also, the bill will create a licensing system for growers.

The demand for marijuana legalization motivated lawmakers to pursue the bill. A Marquette University Law School poll in April showed that 59% of voters supported legalization. Also, around 83% of the voters supported medical cannabis legalization.

Cannabis is still illegal in Wisconsin. Marijuana is considered a Schedule I hallucinogenic substance under the Wisconsin Uniform Controlled Substances Act. Medical cannabis is allowed to a limited extent. The state legalized non-psychoactive CBD oil in 2014. However, the oil has tight controls. Non-psychoactive CBD oil is allowed for limited medical conditions under Wisconsin’s cannabis laws. In November 2017, Wisconsin legalized the cultivation of industrial hemp.

For patients to use medical marijuana, they have to:

• join a new state Department of Health Services registry
• have a medical condition to qualify for the registry like AIDS, cancer, post-traumatic stress disorder, Alzheimer’s disease, severe pain, or chronic disease
• obtain approval from a doctor after diagnosis to qualify and join the registry
• pay a registration fee of $250 and an annual fee of $250

The bill will also allow a new licensing system for medical marijuana growers. The criteria include:

• growing more than a dozen marijuana plants
• an initial fee of $250 and an annual fee of $5,000
• not growing marijuana for personal or family use

Democratic Senator Jon Erpenbach, Democratic Representative Chris Taylor, and Republican Senator Patrick Testin introduced the new bill. According to them, the government shouldn’t decide whether a patient needs medical marijuana. Previously, I discussed how Democrats have always supported marijuana legalization. As the 2020 presidential election campaign heats up, Democratic candidates have stepped up for federal marijuana legalization. Recently, Beto O’Rourke boosted his election campaign with marijuana reforms.

Notably, Republicans haven’t always favored marijuana legalization. A Harvard study showed that 50% of Republicans oppose legalization. I think Republicans could be a challenge in Wisconsin. Notably, the Republican-controlled legislature will make it difficult for the bill to be passed.

Currently, 33 states have legalized cannabis for medical purposes. The states include Michigan, Minnesota, North Dakota, and Illinois. Meanwhile, 11 states and Washington DC have legalized marijuana for recreational use. California legalized medical cannabis in 1996 and recreational cannabis in 2016. Texas still doesn’t support legalization.

Also, Florida and Minnesota are ready to welcome cannabis. Oklahoma legalized medical marijuana in 2018. Recently, the state introduced new medical cannabis laws.

Major Canadian cannabis players are expanding into Europe and some US states. However, federal restrictions stop companies from expanding in the US.

Canopy Growth (CGC) (WEED) plans to expand its CBD business through its partnership with Martha Stewart. Together, they plan to launch a variety of CBD-based products for animal and human use. However, CBD products still face challenges from the FDA. As a result, we’ll have to see if Canopy Growth expands into the US market. The company will expand in the new edibles and beverages market after Cannabis 2.0. Canopy Growth could face challenges in the US. Aurora Cannabis (ACB) could also face the same hurdles. The company plans to expand into the US after edible legalization in Canada.

Cronos Group (CRON) could face similar problems. Recently, the company announced its entry into the US market. Cronos Group acquired Redwood Holding Group. Redwood manufactures, markets, and distributes hemp-derived CBD infused skincare products and other consumer products. Altria (MO) has a $1.8 billion investment in the company. Cronos Group has lost 9.0% in September, while Canopy Growth has gained 8.5%. Aurora Cannabis has lost 7.6% in September.

As the cannabis industry continues to grow, the federal government is losing out on tax revenues. Notably, the tax revenues are going to the states.

The Marquette University Law School poll in April showed how President Trump is losing his edge over Joe Biden and other presidential candidates. Around 51% of voters chose Biden over President Trump for the 2020 election.

President Trump needs to strike hard if he wants to stay in the White House. Attempting to legalize medical marijuana might be a good start. Read Marijuana: Will Trump Have an Edge over Biden? to learn more.

I discussed how cannabis has gained popularity in various countries. Mexico might be next. Read Marijuana Legalization: Mexico Will Seal the Deal! to learn more.

Should the US step up and legalize marijuana? Stay with us on more insights into the cannabis industry.

Last week, Delta Air Lines (DAL) CEO Ed Bastian told Bloomberg that the carrier is still hoping Boeing (BA) will build a new midmarket airplane, dubbed the Boeing 797. The optimism comes at a time when other airlines are battling thousands of cancellations amid the Boeing 737 MAX 8 crisis. Delta doesn’t hold any of the troubled planes, which have been grounded for over six months now. Since the Ethiopian Airlines Boeing 737 MAX 8 crash on March 10, Delta Air Lines has gained 17.4%, outperforming the broader S&P 500 Index, which has returned 9.4%. Delta fell 1% yesterday, while Boeing lost 0.6%.

During the same period, Delta’s peer American Airlines (AAL) has lost 13.5%. American, which owns 24 MAX jets, canceled 7,800 flights in the second quarter alone. United Airlines (UAL) has pushed the 737 MAX 8 comeback to December 19. By then, it’s expected to have canceled 9,500 flights since the beginning of the grounding. American and United fell 1.75% and 1%, respectively, yesterday.

Bastian added that Delta Air Lines could be looking at “200 aircraft over the next decade” while talking about demand for Boeing’s 797 from his airline. Most of this demand would come from the need to replace aging 757 and 767 models. Delta holds 127 units of 757s and 77 units of 767s. Both models are out of production.

Boeing’s European rival, Airbus (EADSY) recently forecast that over 14,000 aircraft would go in for replacement around the world by 2038. If built, the 797 would compete directly with Airbus’s A321XLR, which will start flying in 2023. Because Boeing has shelved the 797 project until the 737 MAX 8 flies again, any further delay in the 737 MAX 8’s comeback will give A321XLR a competitive advantage. Boeing has focused all its manpower and resources on getting the 737 MAX 8 back in the skies. American Airlines has already ordered 50 A321XLRs. JetBlue (JBLU) has also opted for A321XLRs to focus on flights to Europe. JetBlue is a loyal Airbus customer and doesn’t hold any Boeing planes.

Delta Air Lines already has a fleet of over 200 Airbus planes. However, while talking about Airbus’s competing product, Bastian added, “We want to wait and see what Boeing can create.” The reason could be the trouble Delta is having with the A220s that were built in a joint venture between Airbus and Canada’s Bombardier (BDRBF). While the airlines only canceled less than 5% of A220 flights, Bastian wants to see that number below 1%.

While Boeing has postponed the decision to build the 797, its 777X program is battling delays. One major issue is related to the plane’s General Electric GE9X engines. The troubled 737 MAX 8 is also powered by LEAP engines made in GE’s joint venture CFM International (the problems with the aircraft are not related to the engines). The 777X is also facing trouble in load tests, which it needs to pass before regulators will clear it for the skies. Because of the 737 MAX 8 safety concerns, Boeing is facing greater regulatory scrutiny.