CANNASWEEP

WEEK OF FEBRUARY 16, 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

• A legalization map in VP Kamala Harris’ campaign video incorrectly labeled States with medical cannabis-only legalization as having adult-use cannabis legalization, and vice versa for the adult-use states as being medical-only states.
• In a webinar hosted by the Alliance for a Stronger FDA, FDA Deputy Commissioner for Policy, Legislation, and International Affairs Kimberlee Trzeciak noted the proliferation of stores marketing CBD, kratom, and other products nationwide that likely do not meet existing FDA safety standards. She indicated the FDA is exploring regulations around labeling, reporting of adverse events, oversight of manufacturing, and identification of manufacturers while collaborating with Congress and stakeholders to establish appropriate safety guardrails and ensure consumer awareness. Trzeciak expressed hope for agreement on the need for consumer education and to minimize harm, particularly to children.
• The Environmental Protection Agency (EPA) has determined that pesticide products marketed in flexible packaging (e.g., pouches) 20 fluid ounces or less in size with labeling either directly recommending residential use or reasonably interpreted to permit residential use are subject to the Child Resistant Packaging (CRP) mitigation measures. EPA justified its policy in part by citing the numerous news stories of children ingesting cannabis-infused sweets marketed to look similar to candy products
• Navy Now Forgiving Recruits’ Prior Marijuana Use as It Looks to Cut More Losses at Boot Camp

Cannabis Rescheduling/Descheduling

• How Marijuana Could Become a Political Issue in 2024 – Reclassifying it from a Schedule I drug to Schedule III could appeal to a huge portion of independent voters.
• Senator Elizabeth Warren (D-MA) tweeted, “It is time for our federal government to join the 21st century and legalize marijuana.
• Marijuana: Top Ten Reasons for Descheduling, Rescheduling or Not
• Oregon Democratic Congressman Earl Blumenauer asked for updates on the process related to the Drug Enforcement Administration’s rescheduling review.
• A legal opinion by the Coalition for Cannabis Scheduling Reform wrote that “our nation’s treaty obligations do not stand in the way of the DEA moving cannabis down to Schedule III.”
• Marijuana Scheduling Is a Hot Topic. Hear From a DEA Pharmacologist Who Collects Data to Schedule Drugs.

The States

• Alabama: When will Alabamians get medical cannabis? Production could take months after outstanding litigation over the licensing process is resolved.
• Colorado: Colorado cannabis company files an appeal regarding the use of RFID tags. The appeal states that recent rules regarding RFID tags led to a “confusing outcome.”
• D.C.: All unlicensed dispensaries that operate in the gray market under DC Initiative-71, will no longer be exempt from enforcement unless they are one of the 76 applicants who applied for a medical license.
• Florida: Hemp bill banning some cannabinoids headed to Senate floor, advancing in House.
• Georgia: Georgia’s $150M class action lawsuit accuses STIIIZY, Cookies, and others of illegally selling marijuana products that had been intentionally mislabeled as federally-legal delta-8 hemp goods
• Hawaii: House Rep. David Tarnas (D) and Sen. Jarrett Keohokalole (D) presented House Bill 2600 and Senate Bill 3335 following Attorney General Anne Lopez’s 2023 commitment to work with lawmakers and stakeholders to advance cannabis law reform. If passed, adults aged 21 and older would be allowed to possess up to one ounce of cannabis and five grams of concentrates, with home cultivation of up to six plants permitted; Hawaii Lawmakers also  Approve the Recreational Marijuana Legalization Bill.
• Idaho: Lawmakers propose $420 fine for marijuana possession, any amount less than 3 ounces of the drug.  After Idaho legislators saw marijuana ads, bill introduced to ban advertising related to illegal products.
• Illinois: Illinois Rep. Vella introduces cannabis DUI bill.
• Iowa: Overview of THC-containing  drinks and edibles — Here’s what’s legal, what’s not, and the difference between products; Bill would double number of Iowa medical marijuana dispensaries; A bill putting stricter regulations on hemp products is moving forward in the state legislature.
• Maine: Two recent studies reveal that up to 50% of products in Maine’s medical cannabis market may be tainted with pesticides, harmful microbes, yeast, and mold. Unlike recreational-use products, medical cannabis in Maine currently does not undergo mandatory testing.
• Minnesota: The Minnesota Department of Commerce recently released guidance to provide information to Minnesota-regulated financial institutions interested in working with cannabis-related businesses and how the state intends to regulate and work with those institutions.
• Missouri: An overview of Missouri’s adult-use cannabis sales and its impacts; Push for restrictions on intoxicating hemp products spurs clash over who should regulate; Missouri sells $1.3B in marijuana during first recreational year; Hemp-derived cannabinoids operate in unregulated market. Lawmakers want to change that; Bill would require ‘marijuana usage education in public schools’.
• New Hampshire: Lawmakers advance cannabis legalization bill in New Hampshire House
• New Mexico: The House passed House Bill 239, which would make it a crime to bring cannabis into state prisons and local jails if it is  not prescribed.
• New York: A bill would allow medical cannabis patients from other states to buy marijuana at New York medicinal dispensaries. 
• Ohio: Ohio Congresswoman Warns Colleagues: Messing With Marijuana Legalization Could Mean Losing Your Seat; Legislation trying to tweak Ohio’s new adult-use marijuana law continues to be at a standstill.
• Pennsylvania: Pennsylvania Gov. Josh Shapiro (D) said, “I actually think we don’t even have a choice anymore given the way in which [marijuana legalization] is moving so quickly across our region and across the country.”
• South Carolina: the South Carolina Department of Health and Environmental Control (DHEC) has issued an order banning products that contain cannabinoids such as CBD and Delta-9 THC, in foods and beverages.  However, the agency also issued guidance around the conditions under which full spectrum extract may be added to foods and beverages.  SC Senate approves medical marijuana legalization bill
• Tennessee: Rep. Gloria Johnson tweeted, “Voters overwhelmingly agree that it’s time for Tennessee and the federal government to lighten up and legalize marijuana for medicinal and recreational use! RT if you’re one of those voters.”; Tennessee cannabis products industry worries: Could new regulations stop sales in state?
• Virginia: Virginia’s House of Delegates has given preliminary approval to a bill that would legalize and regulate the retail sale of marijuana in the commonwealth, with a final vote on the measure expected early next week; House Bill 698 passed a third and final reading of legislation, sending it over to the Senate.
• Wisconsin: Wisconsin Assembly Republicans’ highly restrictive plan to legalize medical marijuana in the state drew a lukewarm response from Senate Republicans and Democratic Gov. Tony Evers.

Cannabis Abroad

• Thailand bans cannabis use in a policy reversal.
• Australia: Cannabis Battle Shows Up Alcohol Hypocrisy.
• When it comes to ‘novel food’ and CBD in the UK, more questions than answers
• In two weeks, Germany will vote on the legalization of cannabis. At Lanz, Health Minister Lauterbach explains what he expects from legalizing the drug.
• A bill in the Philippines House of Representatives that allows marijuana or cannabis for medical purposes will incorporate safety nets to prevent aggravating the country’s problems on drug abuse; FDA chief open to medical marijuana as doctors warn of harm.
• US Virgin Islands pushes forward on stalled law allowing recreational marijuana use.

Enforcement

• Dr. Aggarwal submitted federal appeal to challenge the DEA’s rejection of the use of psilocybin for therapeutic use, claiming they gave no explanation.
• New Forensic Methods to Accurately Determine THC in Seized Cannabis – NIJ-funded researchers address the need for simple, cost-effective ways to differentiate hemp from marijuana.

Business, Banking, Insurance

• Cornerstone Risk Solutions, a subsidiary of IMA Financial Group, today announced the launch of CLIC Risk Retention Group Inc. (CLIC RRG), to meet the needs of the cannabis industry.
• Lykos Therapeutics Announces FDA Acceptance and Priority Review of New Drug Application for MDMA-Assisted Therapy for PTSD

Other Noteworthy Updates

• CBD Nationwide’s latest study reveals a 90% spike in Delta 8 THC searches in states banning recreational cannabis, highlighting the significant influence of legal status on cannabinoid interest.
• A review article, authored by a Georgia State University School of Public Health researcher and her colleagues, examines the impact of warning labels on tobacco, cannabis and prescription opioids. The article appears in the early online edition of the journal Annual Review of Public Health.
• The National Cancer Institute (NCI) issued a Notice of Special interest (NOSI) to encourage currently funded NCI investigators to apply for administrative supplement funds to active NCI-funded grants to support research and to advance our understanding of the impact of contemporary modifiable exposures (e.g. cannabis use) on cancer.
• A new study demonstrated that cannabis extract reduced the growth of human melanoma cells and helped begin their self-destruction. A similar study was conducted by researchers from Charles Darwin University (CDU) and RMIT.
• Drexel University research found nearly a quarter of binge eating study participants have used cannabis in the past three months.
• Hemp-Derived Intoxicants Need Better Cannabis Law Guardrails (Bloomberg)
• Cannabis for Psychiatric Disorders? ‘Not Today,’ Experts Say (Medscape)

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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.