CANNASWEEP

WEEK OF MARCH 15, 2024

OFW’s Cannabis Team regularly monitors cannabis news, legislation, regulation, and policy so our clients stay up-to-date on the latest developments impacting their business.

If you have any questions or would like more information about any of the items below, please contact us.

We also track cannabis-related legislation introduced in the U.S. Congress.  If you would like to learn more about our Congressional Bill Tracker, please reach out to Ben Dash. 

Federal Executive Branch — Office of the President, Departments, and Agencies

• • Biden makes a rare mention of marijuana in the State of the Union – The President referenced his efforts to ease restrictions on cannabis, a potential signal that he could talk more during the campaign about an issue he has been reluctant to embrace (The New York Times).
    • • Biden also tweeted during the SOTU, “No one should be jailed just for using or possessing marijuana.” Does Biden overpromise, underdeliver on marijuana reform?

• • VP Harris to meet with marijuana pardon recipients at White House this week as Biden leans into issue ahead of election.

• • USDA: USDA released its “Hemp Research Needs Roadmap,” which reflects stakeholder input in identifying the hemp industry’s greatest research needs: breeding and genetics, best practices for production, biomanufacturing for end uses, and transparency and consistency.
    • • These efforts are intended to advance U.S. global competitiveness as outlined in the Biden-Harris Administration’s Executive Order on “Advancing Biotechnology and Biomanufacturing Innovation for a Sustainable, Safe, and Secure American Bioeconomy.”

• • NIH: Delta-8-THC use reported by 11% of 12^th graders in 2023, found a new study (NIH) (American Medical Association) (NBC News)

• • Weed could be Biden’s ace up the sleeve against Trump if he would fulfill his campaign promises.

U.S. Congress

• • FDA’s budgetary justification to Congress included funding requests for numerous cannabis initiatives.  The request can be found at FDA Fiscal Year 2025 Justification of Estimates for Appropriations Committees. Cannabis references in the FDA FY 2025 budget proposal can be found on pages 146, 151, 157, 218, 222, and 225-226. To summarize briefly:
    • The FDA is allocating significant resources toward researching the potential toxicities and safety issues around the thousands of cannabis-derived products being marketed. The National Center for Toxicological Research’s (NCTR) budget increases by $3,671,000 to $80,590,000 for FY 2025, allowing it to continue providing toxicity assessments on substances like cannabis products. Specific NCTR studies include evaluating which animal models can properly mimic human metabolism of CBD, after concerns were raised during the approval of the drug Epidiolex. Another study is assessing the dermal absorption and pharmacokinetics of topical CBD products to assist in evaluating their safety. An opioid study will look at potential molecular impacts of combining methadone/buprenorphine with cannabinoids. Despite approving the cannabis-derived drug Epidiolex in 2018, the FDA has sent over 100 warning letters since 2015, with 30 in 2022 alone, to companies illegally marketing unapproved cannabis products that may endanger public health.The FDA is funding eight new cross-agency research collaborations for FY 2023, including projects on surveillance of cannabis products. Two Women’s Health Research Fellowships are investigating potential adverse impacts of cannabis products on women.

• • Reps. Blumenauer (D-OR-3) and Harris (R-MD-1) sent a letter to the HHS Secretary and the DEA Administrator expressing their frustration with “recent reporting that the Medical Marijuana and Cannabidiol Research Expansion Act is not being implemented in line with congressional intent.” The letter stated that “[i]t is unacceptable that researchers continue to face harmful barriers to cannabis research after Congress expressly removed obstacles to research into this substance.”

• • Taxes, cannabis banking, drug prices: What Senate Dem incumbents hope to tackle next (Politico)

• • Congresswoman Ayanna Pressley (D-MA-7) tweeted, “No more delay, it’s time to legalize marijuana, expunge all records, and finally end the War on Drugs.”

• • Sen. Steve Danies (R-MT) does not think DEA rescheduling marijuana derails the SAFER Banking Act.

Cannabis Rescheduling/Descheduling

• • Biden Push to Ease Marijuana Restrictions Sparks Tensions – Potential reclassification of cannabis prompts objections from some federal officials who believe the move is “half-baked” (The Wall Street Journal). Some DEA officials have raised concerns over scheduling, citing modern cannabis strains, which can be far more potent than those commonly available in the past.

• • 80% chance rescheduling decision will be made in coming months, as DEA raises concerns.

• • Rep. Earl Blumenauer (D-OR-3) thinks DEA should release their plan to reschedule marijuana on April 20^th.

• • Marijuana can’t be properly regulated without better research – Opinion (The Washington Post).

The States

• • Alabama: Alabama’s medical marijuana program on hold at least another month.

• • Arizona: AZ Attorney General Kris Mayes issues opinion: AZ law bars smoke shops from selling delta-8 THC products; Arizona House Panel advances bill to legalize psilocybin service centers that has already passed the full Senate.

• • Arkansas: Arkansas panel delays approval of ownership change for West Memphis medical marijuana dispensary.

• • Colorado: Colorado lawmakers battle over legalization of supervised drug injection sites.

• • Florida: DeSantis voiced concerns around the smell of marijuana smoke becoming prevalent in public places, if the measure passes; Creator of Charlotte’s Web CBD urges DeSantis to veto hemp bill.

• • Hawaii: Cannabis bill to be heard for first time in House next week; Hawaii Senate Panel cuts out House-passed marijuana expungements bill, limiting it to a single-county pilot program.

• • Indiana: Republican gubernatorial candidates talk marijuana on first debate. On marijuana legalization in Ohio, Hill said, “I don’t think it would have made it if it had gone through the regular assembly process. It’s imperative that we debate and have public discourse about various issues in an open environment with accountability.”

• • Iowa: Iowa bill would limit legal cannabis product potency.

• • Kentucky: Kentucky could see medical marijuana changes, including opt-outs, more conditions allowed.

• • Louisiana: At least nine bills have been pre-filed for the 2024 Regular Legislative Session that could change the way Louisiana deals with marijuana.

• • Maryland: A federal judge denied a motion to vacate a garnishment order against a cannabis business, rejecting claims that ongoing prohibition puts industry contract suits outside of federal court jurisdiction.

• • Massachusetts: Massachusetts officials eye regulation of Thc-infused hemp products sold in liquor stores and smoke shops.

• • Michigan: The Cannabis Regulatory Agency (CRA) is issuing this bulletin to notify licensed marijuana businesses about recent fraudulent activity in the cannabis industry;

• • Minnesota: Does a loophole in Minnesota’s new recreational cannabis law permit the sale of higher potency cannabis flower by hemp retailers?; Minnesota regulators launch effort to catch retailers selling illegal marijuana as ‘hemp’ flower; New Minnesota bill would clarify rules on serving alcohol and THC drinks at bars and restaurants.

• • Mississippi: State Representative Yancey brought forward house Bill 1676 in an attempt to regulate over-the-counter THC products; Kids are buying pot-like drugs from corner stores. Lawmakers want to stop it (Politico).

• • Missouri: Hearing on recall of 60,000 Missouri marijuana products set to begin.

• • New Hampshire: House passes bills to expand medical marijuana, with future of legalization uncertain; New Hampshire GOP Governor reaffirms he’d sign marijuana legalization bill with state-run model despite personal reservations.

• • New York: Democratic lawmakers are confident they’ll be able to come to an accord with Gov. Kathy Hochul to crack down on the retailers as part of a broader effort to aid the struggling legal cannabis marketplace in the state; Homeland Security, NYPD team up on cannabis smuggling investigation; State Senate Cannabis Subcommittee Chair Jeremy Cooney, a Rochester Democrat, wants to repeal an excise tax on medical marijuana to boost participation in the program; ‘Terrified to criticize’: Accusations of hostility and retaliation surface against NY’s Office of Cannabis Management

• • Oregon: Oregon State receives $10 million grant to work with 13 Native American Tribes on hemp economic development; Gov. Tina Kotek (D) said she plans to sign the centerpiece bill that lawmakers passed in response to the state’s soaring drug addiction and fentanyl overdoses; The Oregon Liquor & Cannabis Commission is providing information to recreational marijuana licensees, applicants, hemp certificate holders and applicants, hemp vapor item manufacturers, and medical marijuana processors and dispensaries.

• • Pennsylvania: Pennsylvania’s path to legalizing cannabis faces numerous hurdles; Rep. Stender’s perspective on legalizing recreational marijuana.

• • Texas: Legal cannabis sellers want Texas CBD market regulated.

• • Virginia: Youngkin vetoes eight bills, including a marijuana bill, as Va. assembly wraps up without arena; Marijuana marketplace advocates in Virginia frustrated over unlikely future following sports arena debate (also here); Virginia Department of Forensic Science Releases Report on THC Blood Detection – The Virginia study used federal funds to identify methods of detecting different cannabinoids in blood samples.

• • Washington State: Washington state to eliminate 37% tax on medical marijuana. Initially introduced in 2023, HB 1453 aimed to align the current medical exemptions from general sales and use taxes with the 37% excise tax applied to marijuana sales.

• • Washington, D.C.: Biden again proposes blocking marijuana sales in D.C. in budget, despite promoting pardons and scheduling review.

Cannabis Abroad

• • South Africa: No limitations for THC – proposed update to Medicines and Related Substances Act.

• • German Lawmakers Recommend Marijuana Legalization Amendments, increasing chances of delayed enactment.

• • French Authorities confirm flower will not be included in medical cannabis program.

Customs and Trade

• • USDA’s National Weekly Hemp Report continued to report a low value of $13,831 worth of imports of Hemp (True hemp (Cannabis sativa L.)) classified under the US Harmonized Tariff Code (HTSUS) 5302.10.000 for this past week, bumping the total value to $194,599 thus far in 2024. Indicating that the main source of Hemp is domestic, while the Netherlands continues to be the lead importer of raw hemp followed by the France who nearly surpassed the values imported by Dominican Republic.  Interestingly, a value of $835,867 was recorded in imports of Hemp Seed for Consumption (Oil Seed & Oleaginous Fruits, Broken or not) classified under HTSUS 1207.99.0360 in this past week alone, making the value for the year grow to $8,331,198. Canada continues to lead in the volume and value of imports in this category of product followed by China and Colombia entered the import market this month with a low value of 1,379.00.

• • Seizures of marijuana seeds affect the travel records of importers of records who are now subjected to secondary inspection, revocation of Global Entry, and TSA pre-check. Failure to understand the federal legality of cannabis when operating state-lawful marijuana farms is not sufficient to overcome Customs and DHS enforcement.  

Other Noteworthy Updates

• • This map provides an insightful view of news stories surrounding THC-related emergency department visits and hospitalizations across the country.

• • Daily marijuana users 25 percent more likely to have a heart attack (The Washington Post)

• • Exploring cannabis as medicine: Q&A with researcher Jean Talleyrand.

• • What’s claimed to be the first-of-its-kind peer-reviewed safety study of long term usage cannabidiol (CBD) products in healthy dogs has returned positive results.

• • EmpowerPharm Finishes phase 2 trial on potential cbd treatment for Social Anxiety Disorder

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If you are interested in exploring commercial opportunities in the cannabis space, we would be happy to assist you in any of your cannabis law questions, comments, or concerns. Please contact Tish Pahl (tpahl@ofwlaw.com), Kyla Kaplan (kkaplan@ofwlaw.com), Denise Calle (dcalle@ofwlaw.com), and Ben Dash (bdash@ofwlaw.com) for assistance.