CANNASWEEP

WEEK OF MAY 10, 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

Coverage:

• Congressional Research Service (CRS) Legal Sidebar: Legal Consequences of Rescheduling Marijuana. A few notable quotes from the CRS report: “With respect to the manufacture, distribution, and possession of recreational marijuana, if marijuana were moved to Schedule III, such activities would remain illegal under federal law and potentially subject to federal prosecution regardless of their status under state law.”… “If Congress wishes to change the legal status of marijuana, it has broad authority to do so before or after DEA makes any final scheduling decision.”….“Several proposals from the 118th Congress would remove marijuana from control under the CSA or move the substance to a less restrictive schedule.”
• The U.S. Drug Enforcement Administration (DEA) will move to reclassify marijuana as a less dangerous drug, a historic shift to generations of American drug policy that could have wide ripple effects across the country. (The Associated Press)
• DEA Administrator Allegedly Absent from Cannabis Rescheduling Decision
• DOJ Plans To Reclassify Marijuana From Schedule I To Lower-Risk Schedule III Drug (Mondaq)
• As the U.S. moves to reclassify marijuana as less dangerous, could more states legalize it? (PBS)
• Possible advancement toward easing the impact of Marijuana Use on Federal Employment

Commentary:

• Opinion: Biden’s attempt to reschedule marijuana smacks of delusion (Washington Post)
• Former Governor of Arkansas and former Administrator of the DEA, Asa Hutchinson, says marijuana rescheduling ‘Reflects The Reality’ Of Public Support for Reform
• Cannabis Rescheduling FAQ: What Now? From potential timelines to 280E to SAFER Banking, legal experts explain the implications of the federal government reclassifying cannabis as a less dangerous substance.
• Cannabis rescheduling may boost the market, but banking uncertainties loom
• Cannabis Reclassification Would Trim Tax Burden, But Not Quickly

Other:

• This week’s Budget Hearing – House Appropriations Committee Fiscal Year 2025 Request for the DEA: DEA leader Anne Milgram dodges questions on Biden plan to reschedule marijuana; and, DEA Head Tells Lawmakers It Would Be ‘Inappropriate’ To Comment On Marijuana Rescheduling Proposal Due To ‘Ongoing’ Administrative Process

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

• During a C-SPAN interview, Marty Walsh, a former U.S. labor secretary, spoke out against the “slippery slope” of cannabis reform
• Internal Revenue Service (IRS) Commissioner says that “Passing Marijuana Banking Bill Would Increase ‘Integrity And Quality Control’ In Financial System”
• Marijuana Rescheduling Will Make Republicans ‘More Comfortable’ Voting For Banking And Other Reforms, Former GOP Congressman Says

U.S. Congress

• Sen. Schumer (D-NY) & Co Take Another Crack At Marijuana Legalization – The full text of the bill can be viewed here, and a summary of the introduced CAOA here.
• Blumenauer Unveils Legislative Blueprint, Additional Administrative Action Needed Following Rescheduling
• Where All 100 US Senators Stand on SAFER Banking Act – At least 59 senators support or likely support the cannabis reform legislation as Majority Leader Chuck Schumer holds keys to floor vote.
• Navigating the Regulatory Maze: Hemp Industry Calls for Additional Federal Action (National Law Review)
• Sen. Bill Hagerty (R-TN) Says Marijuana Is A ‘Gateway Drug,’ And Legalization Is A ‘Pro-Criminal, Anti-American’ Policy
• Sen. Elizabeth Warren (D-MA) wants crypto guardrails in marijuana bank bill: “I’ll take it anywhere I can get it”
• Sen. Josh Hawley (R-MO) giving DEA space on rescheduling, but says “I’m opposed” to SAFER Banking

The States

• Arkansas: Arkansas’ Alcoholic Beverage Control Division revoked a Hot Springs medical marijuana dispensary’s license Thursday, the first revocation of its kind in the five years medical cannabis sales have been legal in the state.
• Connecticut: A Connecticut employer has the right to terminate an employee who is impaired by medical marijuana in the workplace.
• Florida: Florida Republicans officially oppose adult-use cannabis legalization; Florida Marijuana Legalization Campaign Activates New Veterans Coalition To Win Over Voters
• Georgia: Georgia Gov. Brian Kemp signs new bill that regulates hemp products; Georgians Have High Hopes That Rescheduling Will Make It Easier For Patients To Obtain Medical Marijuana Through Pharmacies
• Illinois: Legislation would allow more government oversight on hemp products
• Indiana: Federal move to reclassify cannabis as less dangerous could prompt action in Indiana
• Kentucky: With medical marijuana set to become legal in Kentucky in 2025, cities in Kenton County have to decide whether they’ll allow medical cannabis businesses to operate in their jurisdictions
• Louisiana: What would marijuana reclassification mean for Louisiana?
• Maine: U.S. Attorney Darcie N. McElwee issued a statement today to update the community on the Office’s ongoing efforts to combat illegal marijuana grows in rural Maine; A responsible cannabis industry in Maine – if we can keep it (opinion)
• Maryland: Marijuana reclassification would give Maryland’s cannabis industry a major tax cut; The future scheduling of cannabis in America is changing
• Michigan: Cannabis Regulatory Agency’s Compliance Best Practices
• Minnesota: MN Senate green lights speedier timeline for launching licensed cannabis businesses, growing; What Fueled Minnesota’s THC Takeover?
• Mississippi: City Councilman Pleads Guilty to Selling Doctored CBD Products
• Missouri: Marijuana manufacturer reacts to DEA’s proposal to reclassify weed; Missouri judge rules local governments can stack sales tax on marijuana
• New Hampshire: State Governor Will Sign Marijuana Legalization Bill If Senate Makes Changes, He Says
• New Jersey: Marijuana reclassification could clear hurdles for NJ businesses; Growth of recreational cannabis market slowed in the first quarter of 2024. Recreational sales totaled $201M in the first three months of the year; Tough Times For New Jersey’s Medical Cannabis Program
• New York: What reclassifying marijuana in U.S. could do for New York’s cannabis market; NY Mayor Leads Effort to Shut Down Illegal Cannabis Sales in City’s Neighborhoods
• Pennsylvania: Federal proposal to reclassify pot an ‘important step,’ Shapiro administration says
• South Carolina: Week in Review: Medical marijuana in SC may be dead after House inaction
• South Dakota: Jackley: DEA move to reschedule marijuana won’t impact South Dakota; Recreational marijuana backers try to overcome rocky history in South Dakota; South Dakota Marijuana Activists Turn In Signatures To Put Legalization On The November Ballot
• Texas: Lubbock voters reject attempt to end arrests for possessing small amounts of marijuana. A ballot proposition would have instructed police not to arrest people who have four ounces or less of marijuana; Texans have helped fuel New Mexico’s cannabis industry. But here, changes to pot laws seem unlikely; Marijuana to be reclassified as a less dangerous drug- What’s Your Point?
• Washington: Feds appear poised to ease restrictions on weed. Here’s how the change could impact WA.
• Wisconsin: Ho-Chunk Nation decriminalizes cannabis, but that doesn’t mean it’s legal
• Wyoming: The federal government’s reclassification of marijuana will be a significant change if it goes through, but it won’t change any of the penalties associated with possessing pot in Wyoming.

Cannabis Abroad

• South Africa: Over 100 cannabis activists took to the streets of Johannesburg on Saturday to participate in the Global Cannabis March, an annual rally held around the world on the first Saturday in May.
• Germany: Germany’s Government Seeks To Launch Marijuana Sales Pilot Program Through Regulations Instead Of Another Bill, Report Says
• Thailand to recriminalize cannabis as PM vows to get tough on drugs
• Pakistan bets on a cannabis high as its economy struggles
• Canadian Government Support For Hemp Processing Plant
• Progress for UK CBD Industry: FSA Issues First Positive Safety Assessments in Novel Food Process
• Australia: Victoria treasurer commits $5.2m to cannabis driving trial in state budget

Customs and Trade

• Marijuana reclassification unlikely to end cannabis seizures near border

Business, Banking, Insurance

• Top public cannabis companies lost more than $2B in 2023 despite nearly $9B in revenue. Twenty of the largest publicly traded marijuana companies in the U.S. lost a cumulative $2.3 billion last year, and only one of them turned a profit.
• Adult-Use Cannabis Legalization States Surpass $20 Billion in Tax Revenue
• Cashing In on Cannabis: 3 Stocks Primed to Surge as a result of Federal Reform
• Supreme Court Will Hear Case by Trucker Claiming CBD Product Got Him Fired

Other Noteworthy Updates

• Cannabis In Sports Medicine: Here’s What Doctors Really Think
• Cannabis and psychedelics: stigmatized substances or powerful therapeutics? Dr. Kevin Boehnke talks about cannabis, psychedelics, and the increasing body of evidence for their legitimization as therapeutics. (University of Michigan Medicine)
• American Journal of Psychiatry: The Developmental Trajectory to Cannabis Use Disorder
• CBD Effectively Treats Dental Pain And Could Provide A Useful Alternative To Opioids
• Could cannabis treat cancer someday? Here’s what the science says so far
• Cannabis might lower blood pressure in older adults, says study

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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.