As states move to reopen after the coronavirus shutdowns, dispensaries in parts of the country that failed to declare them essential businesses will also start serving their first in-person customers in weeks. 

The year 2020 was destined to be a banner year for marijuana producers and dispensaries. That is, until COVID-19 reared its ugly head. 

If you’re wondering how COVID-19 is affecting marijuana legislation, you’re not the only one. The reality is that the coronavirus pandemic has, unfortunately, hampered some marijuana legalization efforts in the short term, but it shouldn’t have any long-lasting effects. 

There's a lot of optimism in the cannabis industry surrounding the Health and Economy Recovery Omnibus Emergency Solutions (HEROES) Act. The key reason: It includes the Secure and Fair Enforcement (SAFE) Banking Act. If the HEROES Act passes the Senate, it will send pot stocks rallying, because it will make it easier for U.S. cannabis companies to access banking services, reducing their need to hold cash. It would also signify an important step forward toward the legalization of marijuana at the federal level. But as exciting as it sounds, investors shouldn't get ahead of themselves, and here's why:

The pandemic has affected every industry in the U.S., some worse than others, and the cannabis industry has not been immune. Unfortunately, some cannabis companies seeking justice in court could face such long delays that they may never get resolution.

Courts have never been known for speedy turnarounds even in the best of times, and in the midst of a pandemic, many legal proceedings have come to a grinding halt. To put things in perspective, in Denver, prior to COVID-19, a lawsuit typically took about a year from start to finish. And that’s extremely quick compared to other cities. In Chicago, for example, lawsuits can drag on for years. 

Attorneys Generals from 34 states and territories sent a letter today to Congressional leadership urging members to expeditiously pass

As companies across the country are downsizing, industry-leading cannabis testing facility ACS Laboratory is expanding. On May 13, the company acquired Botanica Testing Inc., a certified hemp and CBD testing laboratory. 

With the growing popularity of hemp-derived cannabidiol (hemp CBD) products in e-commerce, the U.S. Patent and Trademark Office (USPTO) has seen a significant influx of trademark applications used in association with CBD goods. However, many of these applications have been denied by the USPTO.

States still searching for the best path forward in balancing economic and health concerns amid the continuing coronavirus outbreak also face another challenge once businesses reopen: recovering billions lost in state tax revenue, as well as millions of lost jobs.

In the long term, marijuana legalization might provide an answer. Even in historically conservative Texas, where marijuana is not legal but has been decriminalized, a movement is growing to legalize cannabis. Many believe the resulting tax revenue can help the state recover.

A “vast majority” of American hemp farmers and processors will focus on CBD in 2020 according to a report by Hemp Benchmarks, which monitors the sector.

That’s despite a current glut in supply that has many companies sitting on massive amounts of biomass and CBD oil.

Leading researchers in the USA will check the effectiveness of whole-plant versus single-extract CBD under a $9 million project aimed at enlightening consumers and doctors.

Harvard Medical School, which will lead the research project, and Massachusetts Institute of Techology (MIT), received $4.5 million each to support the series of studies.

The grant, reportedly the largest ever for cannabis research, was provided by Charles R. Broderick, an early investor in the Canadian medical marijuana market, and an alumnus of both schools.