CANNASWEEP

WEEK OF FEBRUARY 23, 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

• In response to the Administration’s directive to explore whether marijuana should remain listed as Schedule I under the Controlled Substances Act, FDA conducted an expansive review of numerous data sources to inform a scientific and medical assessment called a Eight Factor analysis (8FA). This is outlined in their recently released Drug Safety Priorities Fiscal Year 2023. FDA’s Center for Drug Evaluation and Research (CDER) outlined their fiscal year’s priorities here.
• FDA tackles safety challenges related to “misinformation” about CBD, food additives, and how it makes science-based decisions – even as FDA stands by its decision that CBD is not safe for use in foods, beverages, and dietary supplements, the agency is considering how best to ensure it is clearly labeled, safely manufactured and consumers understand what it is, according to a senior agency official. Further coverage is found here.
• FDA tweeted, “Expecting a little one? 🤰 [pregnant women] Think twice before using marijuana — it could impact your baby’s brain 🧠 growth and birth weight. Learn more here.”
• VP Kamala Harris’s Office is reaching out to marijuana pardon recipients after talking about legalization and the next steps with staff.
• The National Institute for Health and Care Research said two trials relating to the use of cannabis for epilepsy are yet to begin.

U.S. Congress

• Former Rep. Ed Perlmutter lobbying on cannabis banking bill (Politico). Subscribe to our CannaSweep Bill Tracker for more coverage.
• Senator Jacky Rosen (D-NV) released a two-minute video solely dedicated to her support for furthering cannabis reform at the federal level.
• DOJ: What’s Known and Unknown About Marijuana (Part Two) – National Institute of Justice (NIJ) Communications Assistant Josh Mondoro hosts a conversation with NIJ Scientist Frances Scott about marijuana toxicology, including comparing its effects to alcohol, measuring impairment, and maintaining public safety as more states legalize recreational marijuana.

Cannabis Rescheduling/Descheduling

• Law enforcement leaders urge Biden to reclassify marijuana to lesser status.
• Senator Elizabeth Warren again calls on the DEA to Deschedule marijuana here.
• American former professional boxer, Mike Tyson, tells the Guardian it’s time for President Biden to grant clemency to those in prison and “end cannabis prohibition once and for all.”
• For marijuana users, even legalization doesn’t guarantee safety – mold, pesticides, and heavy metals can contaminate pot products, threatening to sicken users (WSJ).
• There is a big push to decriminalize marijuana. But is it safe for teens and young adults?

The States

• Alabama: Alabama medical marijuana access could take months, even after licensing lawsuits end.
• Arizona: Arizona cannabis industry trending toward sales record as medical continues to flounder; Another Arizona Senate Committee approves bill to legalize psilocybin service centers, Sending it to the floor; Borelli’s bill regulating hemp moves forward despite opposition from the marijuana industry. SB1271 keeps hemp byproducts Delta-8 and Delta-9 largely deregulated; AZ lawmakers push for interstate marijuana commerce. HB2770 would allow marijuana to be sold across state lines, but the bill is contingent on the federal legalization of cannabis.
• California: The Department of Cannabis Control (DCC) is issuing this consumer advisory to recall Nfuzed AIR metered-dose inhalers and Nfuzed Cannabis Infused Inhalers.
• Connecticut: Adult-use marijuana sales decline for the first time; Discounts and promos on cannabis in Connecticut would be outlawed under the new proposal. Also, among the changes being considered by the state is a provision that could impact the sale of some THC products.
• Delaware: The Office of the Marijuana Commissioner accepting public comment until March 29.
• Florida: Florida bill would blunt recreational marijuana potency if the ballot measure passes. If passed, the bill would limit the amount of Delta-9 THC at 30% in smokable flower and 60% in concentrates. Under the law, each package of edibles is capped at 200 mg, and vaporizer cartridges are restricted to one gram; A bill banning Delta-8 and capping THC milligrams in hemp products divided House Republicans, raising concerns about the economy and sick patients who use hemp to cope with their illnesses.
• Georgia: Legalizing marijuana would safeguard users and increase Georgia’s revenue (opinion).
• Hawaii: Hawaii panel advances therapeutic psilocybin bill that would protect patients from penalties; House marijuana debate shows softening support for legalization in Hawaii
• Iowa: Legislation expanding state regulatory oversight of hemp products passed the House Public Safety Committee unanimously Thursday, despite some lingering concerns that the legislation might negatively affect children with medical conditions. House Study Bill 665 includes measures allowing the state Department of Health and Human Services to more directly regulate the sale of hemp-derived and cannabis products.
• Ohio: Gov. Mike DeWine has urged lawmakers to pass House Bill 86 which would allow recreational marijuana to be sold and increase the tax rate to 15%.
• Oregon: Commissioners of the Oregon Liquor and Cannabis Commission (OLCC) reviewed the agency’s alcohol and marijuana compliance activity that took place in 2023.
• Maine: The feud between Maine lawmakers and Janet Mills’ marijuana regulators; Both the Senate and the House accepted the recommendation of the Criminal Justice Committee and voted down a bill (LD 1789) that sought to remove all marijuana-related provisions from the Maine criminal code and expunge all convictions involving marijuana.
• Maryland: The question of where new cannabis dispensaries should set up shop in Prince George’s County divided the council last fall, igniting a layered debate about quality development and the potential for legalization to advance social equity in a county harmed by the War on Drugs; Bill outlining that one may not be denied the right to purchase, own, possess, or carry a firearm solely on the basis that the person is authorized to use medical cannabis passes Senate; Maryland Medical Cannabis Patient Survey Report 2023.
• Massachusetts: Outlook 2024 | Survey Course: Cannabis sales growing despite industry speed bumps and challenges; The federal government may soon loosen restrictions on marijuana. Here’s how that could impact Massachusetts.
• Minnesota: MN State Sen. Lucero (R) and Rep. Novotny (R) claim legal marijuana will lead to power grid failure by grow lights.
• Missouri: Missouri marijuana sales bring in $1.3 billion in 2023; Missouri marijuana regulators announce an extension for packaging and labeling compliance.
• Nebraska: New polling finds 70% support for legalizing medical cannabis. Respondents also say they would approve a consumption tax, which is also seeking a spot on the 2024 ballot.
• New Hampshire: New Hampshire House to take up adult-use cannabis bill, which would limit a regulated marketplace to 15 dispensaries, is scheduled for floor consideration this week.
• New Jersey: Public opinion on the expenditure of adult-use cannabis tax revenue: Evidence from New Jersey; N.J. weed businesses to rake in $1B this year, regulators say.
• New Mexico: Getting higher: The risk of cannabis sickening NM kids; Cannabis bill aims to deter access by kids; New Mexico Senate Passes Psilocybin Therapy And Research Resolution In Unanimous Vote.
• New York: Legal weed in New York was going to be a revolution. What Happened?  Lawsuits. Unlicensed dispensaries. Corporations pushing to get in. The messy rollout of a law that has tried to deliver social justice with marijuana; NY expands rules for homegrown cannabis cultivation; Regulatory shift may offer lifeline to NY’s cannabis industry; ‘ask me anything’ about cannabis legalization with NY attorney Jeffrey Hoffman; Gov. Hochul tweeted, “on Friday, New York’s cannabis control board granted more than 100 licenses to entrepreneurs across the state. it’s welcome news for our businesses and our economy as our legal cannabis industry continues to grow!”
• Oklahoma: Oklahoma hemp task force won’t deal with flowers, likely leaving CBD to marijuana regulators.
• Oregon: Attorney Andrew DeWeese published a LinkedIn post on Oregon’s outlying stance on THCA and the priorities of local industry advocates.
• Rhode Island: Marijuana growers are making more campaign donations to legislative leaders and governor in hopes of cutting through red tape.
• South Carolina: South Carolina’s Hemp Cannabinoid Tussle Continues – The South Carolina Department of Health and Environmental Control (DHEC) has issued a warning letter concerning the use of hemp-derived cannabinoids as food ingredients.
• South Dakota: Gov. Noem signs bill into law that authorizes certain employer actions regarding the use of cannabis by an employee or a prospective employee.
• Utah: A bill advancing in the Utah State Legislature threatens to cut funding from cities that refuse to recognize medical cannabis as a legitimate prescription drug.
• Vermont: As the recreational cannabis market flourishes, lawmakers ponder the future of medical-use dispensaries.
• Virginia: State lawmakers have advanced bills (House and Senate) that would allow public sector employees to use medical cannabis without losing their jobs; Virginia Edges Closer to cannabis legalization amid legislative progress and potential gubernatorial hurdle.
• West Virginia: Bill introduced to legalize edibles for patients prescribed marijuana.
• Wisconsin: Assembly Republicans’ medical marijuana bill, which received criticism from Democrats and Senate Republicans, likely won’t pass this session, according to Assembly Speaker Robin Vos. The bill would instruct the state Department of Health Services to operate five dispensaries across the state where registered patients with a qualifying medical condition could obtain medical marijuana products; According to a recent Marquette Law School Poll, 86% of registered voters in Wisconsin support legalizing medical marijuana; Dispensary owners express concerns over lost revenue, marijuana legalization hits dead end.
• Wyoming: Bipartisan Cannabis Decriminalization Bill Introduced in Wyoming House of Representatives

Cannabis Abroad

• The global legal marijuana market is experiencing exponential growth, fueled by increasing legalization and acceptance of cannabis for medicinal and recreational use – the legal marijuana market is projected to reach USD 102.04 billion by 2030 as revealed in a new report.
• Strategic Talent Acquisition in Europe’s Cannabis Industry: Lumino’s Visionary Approach.
• Guam: Finance certifies $517,868 in cannabis revenue.
• Officials in Germany fear that legalizing cannabis will increase organized crime; The German parliament is gearing up for a decisive week as at least eight committees are poised to review a comprehensive bill aimed at legalizing cannabis.
• Czech Republic To Ban Hexahydrocannabinol (HHC) Products Amid Child Hospitalizations. Manufacturers and retails increasing production and sales of sweets and confectionary products containing HHC are being marketed to children and can be bought from street vending machines in the form of candy.
• Thailand Aims Clampdown on Recreational Cannabis by Year-End.
• Philippines: After the approval in principle of a substitute bill legalizing the use of cannabis for medicinal purposes, Camarines Sur 2nd Rep. LRay Villafuerte is seeking to clear up the supposed ambiguity involving drugs that contain cannabidiol.

Customs and Trade

• USDA’s National Weekly Hemp Report continued to report a low value of $9,751 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 $188,234 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 Dominican Republic.  Interestingly, a value of $767,571 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 (not nearly as high as the previous 1 million mark entered last week), making the value for the year grow to $5,545,006. Canada continues to lead in the volume and value of imports in this category of product followed by China.      
• 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.  

Business, Banking, Insurance

• Cannabis stocks eye US Federal legalization after difficult year.

Other Noteworthy Updates

• Lawsuit Highlights the Complexity of Regulating the Intrastate Use of Marijuana[BED1] 
• Cannabis: Origins Of The 0.3% THC Threshold.
• CBD down, fiber up, as early signs show U.S. hemp harvest stabilized in 2023. The latest indicator is in a report released last week by the U.S. Department of Agriculture’s Farm Service Agency (USDA-FSA), which said 22,248 acres of total hemp fields were planted across the U.S. in 2023.
• NOT ‘Just Weed’: Four Times More Dangerous in Three Decades. Operation Parent, a group dedicated to giving parents, coalitions, schools, and churches the information they need to combat drug use, hosted a February webinar during which psychology and genetics professor Dr. Danielle Dick presented some of these facts and more regarding marijuana.
• The Role of Celebrities in Expanding Cannabis Markets (The Rolling Stone)
• Cannabis products may harbor fungal toxins harmful to human health, but regulations are uneven or nonexistent.
• Twitter Goes Green: What This Means For Marijuana Advertising.
• Is Marijuana Bad for Health? Here’s What We Know So Far (Scientific American).
• Understanding the Impact of Cannabis on Driving: A Closer Look at Recent Studies.
• Cannabis and addiction: New research suggests a role in combating stimulant cravings.
• Cannabis may be the gateway out of drug addiction.
• Selling Weed, but Making It Fashion – A day with Brett Heyman, the designer who is trying to push the legal cannabis market in a more stylish, sunny direction (The New York Times).
• What Is Cannabis Use Amongst Seniors Like These Days?
• Marijuana is still a banned substance for athletes, but new research is chipping away at the idea that it makes you faster.

***

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.