December 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.
Please contact us if you have any questions or want more information about any of the items below.
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
• Federal marijuana rescheduling raises questions after DEA hearing
• Cannabis rescheduling will boost creditworthiness, but compliance will remain key
Executive Branch/Enforcement
• DEA Administrative Law Judge John Mulrooney has ordered witness testimony to begin in the matter of marijuana’s federal classification as a Schedule I controlled substance on Tuesday, January 21, 2025.
• The Drug Enforcement Administration (DEA) is asking an agency judge to approve subpoenas to compel Food And Drug Administration (FDA) officials to testify at upcoming hearings on the Biden administration’s marijuana rescheduling proposal.
• The National Cannabis Industry Association (NCIA) has asked DEA Administrative Law Judge (ALJ) John Mulrooney whether its status as a witness with a uniquely diverse perspective on the issue means it can question the agency at the hearings.
• Cannabis Bioscience International Holdings (CBIH) continues its unwavering advocacy for cannabis as a legitimate medicine by formally petitioning to have Ms. Alexis Bortell, long-time cannabis advocate and patient, to serve as a witness in the upcoming DEA hearing on marijuana rescheduling.
• Largest single-day Clemency Act in us modern history sees Biden address cannabis reform
• Activists call on Biden to clear death row before Trump takes office – The series of open letters from human rights activists and former corrections officials aligned with a larger push from Democrats for sweeping clemency action for those in prison. (The New York Times)
• Rep. Barbara Lee (D-CA-12) tweeted, “I applaud @POTUS for this significant step towards correcting the harms of a broken criminal justice system and the failed war on drugs. I look forward to seeing the Biden Administration continue to take action to correct systemic injustices.”
• Congressional Black Caucus (CBC) Chairman issues letter urging President Biden to use clemency power to address racial disparities
• The Internal Revenue Service (IRS) is warning the marijuana industry that some companies have, without a “reasonable basis,” filled out a supplementary form in an attempt to take federal tax deductions that they’re prohibited from receiving under a provision known as 280E.
• FDA approves cannabis study for veterans with PTSD
• The Drug Enforcement Administration (DEA) is increasing the 2025 quota for the legal production of DMT in the U.S., saying it agrees with requests for the adjustment to “support legitimate research and scientific efforts” to develop a Food and Drug Administration- (FDA) approved drug based on the psychedelic.
• Even as more states have legalized marijuana, rates of teen use are on the decline. There was also a significant drop in perceptions by youth that cannabis is easy to access in 2024 despite the widening adult-use marketplace, according to the latest federally funded national survey published.
• How the legalized pot industry could change under Trump
• The federal government will explore a single, harmonized federal excise duty stamp as part of a red tape reduction measure outlined in its 2024 Fall Economic Statement.
• Nearly a year and a half after the U.S. Department of Transportation (DOT) adopted a rule change allowing the use of saliva as an alternative to urine drug testing of commercial truckers, pilots and transit workers, federal officials have yet to set up the infrastructure necessary to allow the new testing procedure to be used.
U.S. Congress
• Is it time to worry about the 2024 Farm Bill? With U.S. House and Senate 2024 Farm Bill versions now on the table, it is time to stay vigilant. Although movement on either Farm Bill version may not happen this year, the language in both bills remains concerning.
• Lawmakers push for progress on federal cannabis reforms before end of Biden Administration.
• Potential state-centric marijuana policy in the 119th Congress
• Sen. Peter Welch (D-VT) said, “War on Drugs was way overbroad when it came to marijuana.”
• Sen. Deb Fischer (R-NE) on SAFER Banking Act: “I haven’t seen it”; Rep. Pressley (D-MA-7) on clemency: Biden ‘has the power to address systemic injustices’
The States
• Alabama: Alabama Medical Cannabis Commission reduces most license fees by 25%
• Arkansas: Administrator over alcohol, tobacco, medical marijuana to step down Dec. 31
• California: California lawmaker questioned in sprawling cannabis corruption investigation; Landowner of unlicensed cannabis grow site to pay $410,000 for failure to comply with cleanup order
• Colorado: As the DOR was creating the final rules for regulating natural medicine (psilocybin), many interested parties have asked questions about how to get licensed and about other aspects of the program. The most frequently asked questions are found here.
• Delaware: Office of the Marijuana Commissioner (OMC) opens retail license lottery
• Illinois: More than five years after Illinois began issuing permits for legal production of industrial hemp, Gov. JB Pritzker said Friday he now favors legislation to bring the industry under tighter regulation.
• Kentucky: The Kentucky Cannabis Industry Alliance (KCIA) has appointed state Rep. Rachel Roberts as its new executive director; Nearly all Kentucky dispensary licenses granted to out of state business owners; Gov. Andy Beshear announced the results of Team Kentucky’s second medical cannabis dispensary license lottery held at the Kentucky Lottery Corporation. Twelve applicants were selected through a random number generator; State lawmaker raises concern with state marijuana dispensary lottery
• Maryland: Comptroller Brooke Lierman releases quarterly report on cannabis sales tax revenue in Maryland. Maryland collected more than $18 million in adult-use cannabis sales tax revenue between July and September of 2024, an 18% decline from the previous quarter of sales ending June 2024.
• Massachusetts: Massachusetts adult-use marijuana sales have officially exceeded $7 billion since the state’s legal market launched in 2018, regulators announced. And $1 billion of that total came in just seven months—marking a state record.
• Minnesota: Walz weighs in on canceled Minnesota cannabis license lottery: Litigation ‘happens in every state’; In his first interview with MPR News since his run for vice president, Walz also pressed for patience on the marijuana market rollout and said while his time on the presidential stage has ended, his outspokenness on major issues won’t stop. He said he remains in touch with some of the people he encountered across the country, from those who are well known to those who are fighting through everyday problems.
• Missouri: Missouri lawmakers file bills enacting new regulations on intoxicating hemp products
• Nebraska: District judge lets Nebraska medical cannabis laws go into effect as second lawsuit continues
• Nevada: CCB/DoT Release Annual Cannabis Taxable Sales Data
• New Jersey: Governor Phil Murphy announced that he is granting clemency to 36 individuals, including 33 pardons and three commutations.
• New York: A New York state judge blocked cannabis regulators from reviewing retail license applications submitted by prospective social-equity marijuana sellers who hadn’t secured store locations before November 2023, dealing another setback to the state’s rocky rollout of its adult-use market; New York’s Governor Can Help The Cannabis Industry By Signing A Simple Tax Bill On Her Desk (Op-Ed); With 264 adult-use dispensaries now operating statewide, the legal market has generated $918.7 million in revenue to date and is on pace to hit $1 billion by year-end.
• Ohio: Hemp industry workers testify against bill that would ban intoxicating hemp products; It appears unlikely that a bill restricting the sale of Delta 8 and other synthetic hemp products and making other changes to marijuana law is going to reach Gov. Mike DeWine’s desk during lame-duck session as he has urged; Recreational marijuana: Proposals would ban billboards, allow pre-rolls, super pre-rolls
• Pennsylvania: Gov. Josh Shapiro (D) told TribLive that he will put recreational cannabis legalization in his budget request again next year. He’s done so in the last two budgets without success, but lawmakers and advocates have indicated that the third time might be the charm.
• South Carolina: A senator in South Carolina has prefiled a bill for the 2025 session that would legalize medical marijuana in the state.
• Tennessee: A new survey of Tennessee voters finds strong support for legalizing marijuana in the state, with nearly two-thirds (63 percent) of respondents saying they favor the reform. That includes majorities from across the political spectrum: 53 percent of Republicans and 78 percent of Democrats; Nashville judge hears arguments in hemp industry bid to halt rules they say will tank businesses; Tennessee hemp industry makes last-minute legal bid to halt rules banning popular products
• Texas: Texas lawmakers target all THC in bid to close intoxicating hemp product loophole
• West Virginia: West Virginia Supreme Court: Medical marijuana use not guaranteed for probationers despite Cannabis Act protections
• Wisconsin: Nearly 2 In 3 Voters In Rural Wisconsin Support Legalizing Marijuana, New Poll From Conservative Groups Shows; Assembly Minority Leader Greta Neubauer says popular issues [like marijuana] could get more ‘air time’ next session; Hesselbein said she intends to reintroduce a 2022 bill that would have tasked the state’s Department of Health Services with overseeing a medical marijuana program.
Cannabis Abroad
• Portugal: Portugal dreams of becoming a medical cannabis hub. The country is fast becoming a European hub for medical cannabis.
• Malta: 39 prosecuted for smoking cannabis in public since law was changed in 2021
• Germany: A top German official has signed off on a plan to allow for research-focused commercial marijuana pilot programs to test legal and regulated access to cannabis for consumers—the latest iteration of the country’s legalization law.
• Ukraine: Following the legalization of medical marijuana in Ukraine earlier this year, a lawmaker said this week that the first registered cannabis medicines could become available as soon as next month.
• Japan: Japan tightens cannabis laws amid rising youth usage
• Italy: Govt to safeguard medical weed users amid DUI crackdown
• Philippines: Former President Rodrigo Duterte is accused of being at the center of a “criminal enterprise” that used the war on drugs as a front to profit from the same problem he vowed to eliminate. This was revealed in a preliminary report from a House investigation.
Business, Banking, Insurance
• Infused beverage executives seek path forward for hemp, marijuana
• More Athletes Turn to CBD for Performance and Recovery (Sports Illustrated)
• The Impact of Legalized Marijuana in the Construction Industry
• THC beverage brand Rebel Rabbit says it closed a distribution deal with Anheuser-Busch wholesalers to bring its products to 30 new markets.
• Pioneering cannabis lifestyle brand helmed by Seth Rogen, Evan Goldberg, and Michael Mohr–Houseplant–announced its expansion into the beverage industry with Houseplant THC-infused sparkling waters.
• Liquor stores make room for cannabis and CBD beverages
• CBD Life Sciences Inc. (CBDL) looking to acquire a cannabis growth license in north Las Vegas
• The newest episode of a podcast hosted by Entrepreneurship at Cornell, Startup Cornell, features Breanna Neff ‘16, founder and chief food scientist at brelixi, a company that makes drink mixes infused with nano-CBD or THC, as well as electrolytes, adaptogens and nootropics.
• Tilray Brands, Inc. appoints Steven M. Cohen as Class III Board Member
Other Noteworthy Updates
• DOJ/DEA: Cannabis Use Among Youth in the United States: The percentage of students who reported using cannabis remains substantial for eighth, 10th, and 12th grade students: Eighth graders: 8.3% reported using marijuana in 2023; 10th graders: 17.8% reported using marijuana in 2023; and12th graders: 29% reported using marijuana in 2023
• Gabriel Warren discusses how the future of medical marijuana remains uncertain, with ongoing debates about its long-term effects, the need for federal reform, and the role of healthcare providers in guiding patients on its use.
• ASHP Midyear: Nearly Half of Adults With Epilepsy Use CBD Products. Marijuana use linked to shorter hospital stays for patients with epilepsy. Studies show that cannabis-based treatments could significantly improve the quality of life for kids with autism spectrum disorder and treatment-resistant epilepsy.
• For the first time ever, researchers are administering LSD to patients in a Phase 3 clinical trial. The new study focuses on whether the psychedelic can be used to effectively treat generalized anxiety disorder (GAD).
• Are tobacco and cannabis economic substitutes or complements? New research suggests it changes with age.
• Male cannabis users seem to show less cognitive decline, Study Finds – A decades-long study of more than 5,000 men in Denmark has now uncovered “no significant harmful effects of cannabis use on age-related cognitive decline.”
• New government-funded research on terpenes produced by the cannabis plant finds that some of the aromatic compounds could be promising therapeutics to help manage pain from fibromyalgia or during recovery from an operation.
• As the marijuana legalization movement has expanded—and psychedelics policy has increasingly entered the mainstream conversation—a new survey shows that Americans don’t view cannabis and LSD as harmful as they once did.
• Let’s take a closer look at the studies on marijuana use – now that it’s legal, we all deserve to know.
• Study: Changes in Marijuana’s Legal status do not soften public’s stance toward driving under the influence.
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.
