California has always been progressive with its cannabis laws, becoming the first state to legalize medical marijuana in 1996 and recreational marijuana in November 2016.
Now the state is taking a bold step to further protect marijuana users, and it could send the prices of two marijuana stocks skyrocketing.
More on those two pot stocks in just a bit...
You see, Democrat Assemblyman Reggie Jones-Sawyer proposed a bill on June 2 that would prevent state and local law agencies from helping enforce federal drug laws. Marijuana is still illegal under federal law, so cannabis business owners are worried about their businesses getting shut down.
But under this new bill, as long as marijuana users are compliant with California law, state and local law enforcement will not join in on raids by federal agents.
The bill was passed by the State Assembly on June 2 and was sent to the Senate on June 5. It will need to be approved by the Senate before Gov. Jerry Brown (D-CA) can sign it into law, but the bill has a lot of support, according to LA Weekly.
If it passes, California will be a "sanctuary state" for marijuana users and businesses...
Marijuana Stocks Could Skyrocket Because of This New California Bill
Yes, federal agents can still crack down on cannabis businesses because they're illegal under federal law. However, raids and other operations will be more difficult to coordinate without the help of the local law enforcement.
It will take the federal government longer to build a case without the input and knowledge of local and state agencies.
This provides extra protection for cannabis firms that comply with California law.
That's why, if this bill passes, the first marijuana stock we're watching is Terra Tech Corp. (OTCMKTS: TRTC).
TRTC is a California-based company that cultivates and sells medical-grade marijuana.
The company has been called the "Starbucks of weed" as it tries to provide the same look, feel, and experience as the coffee shop in all five of its Blum dispensaries.
And to prepare for the marijuana gold rush in California, Terra Tech just launched a new "Craft Cultivation" model on May 24 to expand its cultivation capabilities. The company executed a one-year lease with Panther Gap Farms in Northern California to produce up to one full acre (44,000 square feet) of cannabis cultivation.
This new "Craft Cultivator" is expected to produce one metric ton of high-grade cannabis annually. Depending on the quality of the marijuana, one ton could be worth between $7 million and $10 million.
Eventually, that additional revenue could help the TRTC stock price climb. But because marijuana is illegal under federal law, this cannabis penny stock is a speculative investment.
TRTC has been volatile. It's traded between $0.14 and $0.56 in the past 52 weeks.
It's also down over 50% so far in 2017, but it's still on our watch list as California has legalized recreational and medical marijuana.
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Through extensive research, we also found a way to play the booming cannabis market without investing in companies that produce and sell marijuana.
In fact, California will be spending a total of $15 million over five years in this particular marijuana sector...
Watch This Marijuana Stock as California Creates Cannabis Safe Haven
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California law enforcement is ramping up its efforts to deal with drivers impaired by marijuana.
Over the next five years, the California Highway Patrol (CHP) will receive $3 million per year ($15 million total) from marijuana taxes to research and develop protocols to detect marijuana impairment.
But there's a problem...
Right now, a major issue in testing for marijuana impairment is the fact that marijuana stays in a user's system for up to 30 days. That means someone who may not be impaired at that moment could still have positive results show up on their tests.
The time to get results from urine and saliva testing also varies drastically depending on the schedule of testing labs and if the sample is diluted.
However, Cannabix Technologies Inc. (OTCMKTS: BLOZF) is trying to change the current inefficiencies of marijuana impairment testing.
To improve accuracy, Cannabix is developing devices that would target the use of THC in suspected impaired drivers within a two-hour time period.
These devices could also be used by employers to test intoxication.
The company is still testing their breathalyzers but announced positive results in March from a trial. The Cannabix Marijuana Breathalyzer Beta prototype was able to detect THC (the psychoactive component in marijuana) in human subjects after they smoked THC cigarettes.
Which States Will Legalize Marijuana Next?
Once the product is finalized, the CHP could create an exclusive contract with Cannabix. This could lead to more deals throughout the country as more states legalize marijuana.
But BLOZF stock is still a speculative investment because its cannabis breathalyzer is still being developed.
BLOZF stock has also been volatile over the last 52 weeks, trading between $0.10 and $0.81 per share. The BLOZF stock price is down 18.45% so far in 2017, but it's on our watch list because of the huge contracts it could receive if it successfully develops a cannabis breathalyzer.
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