CANNASWEEP

October 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. 

Cannabis Rescheduling/Descheduling

• The U.S. Drug Enforcement Administration (DEA) could reclassify marijuana to a less restrictive category – a drug policy expert weighs the pros and cons.
• NORML Op-Ed: Marijuana Prohibition Has Been a Fraud From the Get-Go.
• Pew Research: In 2004, a third of U.S. adults said marijuana should be legalized, but that rose to 70% by 2023. That’s just one example of how public opinion has changed in two decades of Center surveys.
• A court case filed in October 2023 in Massachusetts (Canna Provisions, Inc. et. al. v. Merrick Garland) against U.S. Attorney General Merrick Garland has captured the attention of the cannabis industry, promising to potentially reshape its future & rescheduling. Lawyers for the federal government warned this week that the legal challenge if it succeeds, could risk upsetting the Biden administration’s planned move of marijuana from Schedule I to Schedule III of the Controlled Substances Act (CSA).

Executive Branch/Enforcement

• The U.S. Department of Justice (DOJ) has urged a federal appeals court to maintain the nationwide ban on cannabis, defending Congress’s broad authority to regulate the substance despite its legalization in many states.
• A new report from the National Academies of Science, Engineering, and Medicine (NASEM) advises federal agencies to step up cannabis-focused public health measures, including placing hemp THC back on the controlled substances list.
• Kamala Harris’ record for cannabis reforms
  • Vice President Kamala Harris is pledging to federally legalize marijuana, ensuring that access to cannabis is “the law of the land.” The campaign says Harris will “fight to ensure that as the national cannabis industry takes shape, Black men—who have, for years, been overpoliced for marijuana use—are able to access wealth and jobs in this new market.”

  • Harris said that the DEA is one of the “bureaucrac[ies] that exists in the federal government that slows things down…but essentially to bring down how weed is classified—how marijuana is classified, to make it classified as a lesser harm—that took some time.”

• White House Press Secretary falsely says Biden ‘expunged’ marijuana convictions

U.S. Congress

• Sen. Bernie Sanders (I-VT) sees a path forward on SAFER Banking Act
• Sen. Wyden (D-OR) tweeted, “Enjoyed meeting with leaders in the hemp beverage industry and speaking at the Pacific NW Hemp Beverage Summit in Bend. This blossoming industry needs regulation — not prohibition — to grow and give people the safe adult beverage alternatives they are looking for.”
• Ed Perlmutter: ‘SAFE Banking Act Will Get Done’ Despite Ongoing Challenges In Congress
• Marijuana Policy Project Releases Voter Guide to 2024 Governors’ and U.S. Senate Races; U.S. Senate Candidate Survey: Cannabis Policy
• Why The Government Is Waging War Against Hemp, Marijuana’s Legal Cousin (Forbes)
• The Coalition for Adult Beverage Alternatives: A new coalition was recently formed to lobby for hemp-derived intoxicating THC beverages; making a case that these beverages should be regulated and not outlawed. Specifically, they want an amendment in the Farm Bill.  

The States

• Arkansas: The medical marijuana amendment is now in the hands of the state Supreme Court.
• California: Hemp legal fights heat up in CA and beyond; Court shuts down industry attempt to block enforcement of CA’s hemp regulations; CA’s frustrating fight to end illegal weed; An industry effort to halt CA’s enforcement of new emergency regulations banning consumable hemp products fell short on Friday, with a state judge denying a request for a temporary restraining order.
• Florida: A new campaign ad promoting a recreational marijuana amendment fact-checks critics — and does so with a Republican leader’s voice; A political committee opposing a Florida marijuana legalization ballot initiative has received a half-million-dollar contribution from an organization that Elon Musk reportedly used to quietly support Gov. Ron DeSantis (R) before he dropped out of the 2024 presidential race.; Smart & Safe FL today released “Smell,” a new ad reminding voters that public smoking is already illegal in FL and that won’t change under Amendment 3; Pot amendment supporters say it can ‘right past wrongs’ of FL drug policy
• Illinois: The IL Department of Agriculture (IDOA) announced today that proposed amendments involving provisions to the Illinois Industrial Hemp Act were moved to a Second Notice this week. The Joint Committee on Administrative Rules (JCAR) proposed the provisions on Dec. 26, 2023. The proposed amendments involve provisions for new hemp regulations, licensing, and testing methods for IL academic research institutions, government demonstration and research entities, and licensed hemp farmers.
• Hawaii: Hawaii officials are seeking proposals to assess the state’s current medical marijuana program—and also estimate demand for recreational cannabis sales if the state eventually moves forward with adult-use legalization.
• Maryland: MD is conducting its Fall 2024 MD Medical Cannabis Patient Survey (MMCPS).
• Michigan: MI cannabis sales for September fell sequentially by 9.7% from August. At $266.9 million, sales were down 2.9% from a year earlier
• Missouri: Executive order banning THC-containing foods not yet in effect; MO regulators deny certification for the majority of social-equity cannabis license winners
• Nebraska: NE medical cannabis lawsuit might not be resolved by Election Day, judge says; Hearings begin on NE ballot measures about sick leave, abortion, marijuana, scholarships
• New Hampshire: Find application forms and other documents and guidance for Qualifying Patients, Designated Caregivers, and Guardians in the Therapeutic Cannabis Program.
• New Jersey: Businesses Partially Win Lawsuit Against NJ’s Hemp Ban Law (more coverage here); It’s doomsday for delta-8, THC seltzers as federal judge tosses part of NJ hemp law
• New York: NY Cannabis Sales Continue to Surge – Weekly sales have surged 75% since May 25^th;  NY marijuana regulators gave the thumbs up to another 141 new adult-use cannabis company permits, and for the first time since 2015 added a new trio of vertically integrated licenses to the medical side of the industry, on top of the existing nine “registered organizations.” 
• North Carolina: Voter Guide: NC Senate 19 candidates on vouchers, marijuana, abortion, and more; Appellate judge invites top NC court to clarify legal issue of marijuana, hemp odor
• North Dakota: Rep. Kelly Armstrong (R-ND) and his fellow candidates in the 2024 ND gubernatorial race, Michael Coachman (I) and Merrill Piepkorn (D) participated in a debate hitting on two state ballot measures involving property taxes and marijuana legalization.
• Oregon: The OR Liquor and Cannabis Commission (OLCC) is currently conducting an administrative investigation into a fatal incident that took place at La Mota, a licensed cannabis retailer located in the St. Johns neighborhood of North Portland.
• Pennsylvania: Bipartisan PA voters in two key competitive House districts are strongly in favor of legalizing marijuana, according to a new poll. And most agree that enacting the reform this session is “crucial to stimulate economic growth.”
• South Dakota: IM 29: If voters decriminalize marijuana, lawmakers would make the call on sales
• Texas: A TX law enforcement agency has released a report advising that the state’s limited medical marijuana system “does not provide for statewide access for patients” and recommending that the number of licensed dispensaries be significantly expanded to meet demand.
• Vermont: The Cannabis Control Board is hiring a CCB Compliance & Enforcement Agent
• Washington: Cannabis Rules Updates – Employee Stock Ownership

Cannabis Abroad

• Germany: Majority of Germans think cannabis legalization was wrong in retrospect
• Brazil: Brazilian plant found to contain cannabis cannabidiol (CBD) compound
• Australia: Medicinal cannabis doctors investigated by authorities after suicide and hospitalization of patients
• Thailand: The Public Health Ministry will issue a new ministerial regulation to tighten control of the production, import, export, sale and possession of cannabis and hemp extracts.
• Japan: Japan Releases More Details on Upcoming CBD Regulations, But Key Issues Remain Unaddressed

Business, Banking, Insurance

• The U.S. Supreme Court heard oral arguments in the case of a trucker who sued a cannabis company after he was fired over a positive THC test that he says was caused by consuming a hemp-derived CBD product.
• Report: The U.S. cannabis industry will need between $65.6B and $130.7B in sustainable growth capital to support new cannabis businesses and help refinance existing ones over the next decade, generating approximately $1.0 billion to $2.4 billion in potential interest revenue for financial institutions willing to lend to cannabis businesses.
• Motor Carrier Enforcement Personnel’s fifth top concern is marijuana: survey
• Leafly at risk of Nasdaq delisting, plans appeal
• Banning Hemp Products Isn’t The Way To Protect Public Health Or Foster Fairness For Marijuana Businesses (Op-Ed)
• Football and CBD: A complicated relationship (The Athletic/NYTimes)
• Tilray is more than just a cannabis company, CEO explains why
• Ross Gerber (investor) says cannabis is one of the biggest opportunities for investors that exists today outside of AI.
• CBD Skin Care Market to Reach $8.9 Billion, Globally, by 2033 at 19.5% CAGR: Allied Market Research

Other Noteworthy Updates

• Decoding Cannabis: Differentiating Hemp and Marijuana
• Cannabis Compounds Show ‘Promising Potential As Anticancer Agents’ (Forbes)
• As states around the country continue to legalize recreational and/or medical cannabis use, more are beginning to treat cannabis like alcohol when it comes to policing intoxicated driving. (The Guardian)
• Study: legal medical cannabis promotes greater physical activity in those experiencing chronic medical conditions and legal recreational cannabis promotes (even more so) greater physical activity in those not experiencing chronic medical conditions.
• Aquí y Allá: Five Things Latinos Should Know About Cannabis During Hispanic Heritage Month (Op-Ed)
• WVU researchers putting CBD to the test from behind the wheel – The five-year study is supported by a $2.2 million grant from the National Institute on Drug Abuse.
• Cannabis pills may reduce agitation in people with Alzheimer’s disease
• Study links teen marijuana usage to poor academic performance
• Survey: Adults Seeking Marijuana-Related Advice Seldom Refer to Healthcare Providers or Government Agencies
• Researchers have published a new study plan to test whether hemp-derived CBD might offer an offramp for people with marijuana use disorder, potentially enabling them to reduce their consumption of THC.
• Residents in states where marijuana is legal are more likely to engage in physical activities as compared to those who live in jurisdictions where cannabis remains prohibited, according to data published in the Journal of Cannabis Research.

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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.