Two congressmen submitted a bill on Wednesday that will allow small-scale marijuana growers to ship and sell products directly to consumers across states when cannabis is federally legalized.
The “Small and Homestead Independent Producers (SHIP) Act” filed by Rep. Jared Huffman (D-CA) and Rep. Earl Blumenauer (D-OR) is designed to allow smaller businesses to better compete against powerful multi-state operators ((MSOs)) in the event of federal legalization.
“It is a daunting business environment that they’re facing. Markets are consolidating,” Huffman told Marijuana Moment.
“The huge multinational corporations are certainly going to do very well, but we want to make sure that the smaller operations have a chance to compete and succeed.”
The SHIP act allows the cannabis sector to benefit from the direct-to-consumer models where small farmers have historically thrived in traditional agriculture markets.
Excerpts from the bill: “Small cultivator of marijuana and a small manufacturer of a marijuana product may ship and sell marijuana or a marijuana product to an individual located in that State or another State in which possession of marijuana or the marijuana product is lawful by that individual, using the Postal Service or any private or commercial interstate carrier.”
U.S. MSOs: MedMen Enterprises (OTCQB:MMNFF), Curaleaf Holdings (OTCPK:CURLF), Acreage Holdings (OTCQX:ACRHF), Harvest Health & Recreation (OTCQX:HRVSF), Cresco Labs (OTCQX:CRLBF), Green Thumb Industries (OTCQX:GTBIF), Trulieve Cannabis (OTCQX:TCNNF), Ayr Wellness (OTCQX:AYRWF), Columbia Care (OTCQX:CCHWF).
The bill comes as legislative efforts to legalize marijuana at the federal level gain momentum ahead of the mid-term elections.
Read: In August, Sen. Cory Booker said that Congress could soon take up a compromise bill on legalizing cannabis which will include provisions for marijuana business banking and criminal justice reforms.