CANNASWEEP

WEEK OF JUNE 7, 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 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

• FDA questions a New Drug Application under consideration for the use of midomafetamine (also known as 3,4-methylenedioxymethamphetamine or MDMA) as a treatment for post-traumatic stress disorder (PTSD).  (AP News).
• Government Accountability Office (GAO): DEA Should Improve Its Religious Exemptions Petition Process for Psilocybin (Mushrooms) and Other Controlled Substances

U.S. Congress

• There’s been internal splintering within trade associations that supported the amendment to the 2024 Farm Bill, such as the U.S. Cannabis Council (USCC). Boris Jordan of Curaleaf, a USCC member, said officials at his company “disagree” with the proposal, calling it “an attempt to roll back the Farm Bill.”
• A GOP House committee has unveiled a large-scale spending bill that omits a longstanding rider blocking Washington, D.C. from legalizing recreational marijuana sales and separately adds new protections for banks that work with state-legal cannabis businesses.
• Rep. Chuck Edwards (R-NC) said he is “overwhelmingly concerned” with a provision of a spending bill that would provide limited protections for banks that work with state-legal marijuana businesses. He intends to file an amendment at the appropriate opportunity.
• Rep. Eleanor Holmes Norton (D-DC) tweeted, “The text of the FY 25 DC appropriations bill was released today, containing victories I secured for DC.   Significantly, the rider prohibiting DC from commercializing and regulating recreational marijuana was removed.”
• Cannabis reference in House Report on Military Construction- Veterans Affairs (VA) Appropriations bill (p. 26)
• Home Loan Income Verification —The Committee understands that as directed by House Report 116–63, VA has clarified that nothing in VA statutes or regulations specifically prohibits a veteran whose income is derived from state-legalized cannabis activities from obtaining a certificate of eligibility for VA home loan benefits. The Committee understands that the VA is improving communication with eligible lending institutions to reduce confusion among lenders and borrowers on this matter.
• Bipartisan congressional lawmakers have filed a series of new amendments that seek to authorize U.S. Department of Veterans Affairs (VA) doctors to issue medical marijuana recommendations to military veterans, prevent marijuana testing for federal job applicants in legal states, prohibit the denial of security clearances over cannabis use and support research on the therapeutic benefits of psychedelics.
• An amendment numbered 28 printed in Part B of House Report 118-535 to ensure veterans can participate in state-approved medical marijuana programs. The amendment removes the current directive that prevents VA Medical Facility staff from recommending, making referrals, or completing forms and registering Veterans for participation in state-approved marijuana programs. Congressional Cannabis Caucus Leads Divided Government on Medical Marijuana for Vets (Blumenauer Press Release).
• Rosen leads a coalition of Democratic senators in a push for robust funding to support cannabis small businesses by requesting the inclusion of provisions in an upcoming spending bill that would guarantee fair access to federal Small Business Administration (SBA) loan programs and entrepreneurial development resources to cannabis small businesses.
• Wine & Spirits Wholesalers of America sent a letter to Congress advocating for clear federal rules and regulations that define intoxicating hemp compounds and to grant states the authority to regulate these products within their borders.
• Rep. McGarvey (D-KY-3) tweeted, “As we look ahead to this year’s Farm Bill, we have to make sure it’s helping small businesses, not hurting them.”

Cannabis Rescheduling/Descheduling

• Reminder: Public comments on federal marijuana rescheduling are open until July 22. Over 10,000 comments have already been submitted thus far.
• What reclassifying cannabis as a less dangerous drug could mean for federal research. Researchers who spoke with STAT News said there are myriad unanswered questions about what happens next.
• American Veterinary Medical Association (AVMA) has released an updated version of a report meant to help veterinarians and pet owners better understand the laws, science, and research concerning cannabis and companion animals.
• NORML Op-Ed: The Beginning of the End of Cannabis Prohibition.
• Even with marijuana reclassification, this researcher says the market is way ahead of the science.

The States

• Alabama: Alabama grower nears first medical cannabis harvest amid licensing delays.
• Arizona: Social equity: Critics say Arizona’s cannabis program did the ‘exact opposite’ of what voters intended.
• Arkansas: A ballot initiative to expand access to medical marijuana is poised to garner enough signatures to qualify for the November ballot.
• California: The California Department of Public Health is warning consumers not to drink Mary Jones hemp-infused sodas because they are mislabeled and contain specific ingredients prohibited under state law; California officials have awarded another round of community reinvestment grants to nonprofits and local health departments, funded by marijuana tax revenue; As of July 1, 2024, the Department of Cannabis Control (DCC) will no longer accept electronic checks, or e-checks, as a form of electronic payment; California cannabis product recalls are on the rise.
• Colorado: Colorado’s Marijuana Enforcement Division investigating reports of hemp-derived THC coming into the state; The Denver Department of Excise and Licenses has completed annual updates to the Marijuana Facility Location Guide, which contains information about neighborhoods of undue concentration in Denver for stores and cultivation facilities, proximity requirements, zoning requirements, and other location requirements for marijuana licensing.
• Delaware: City of Newark proposal for marijuana regulation gets a public hearing in June.
• Florida: Governor DeSantis likely to veto Senate Bill 1698, which come October 2024 would restrict the sale of THC products, such as Delta 9. It would also prohibit the manufacturing and sale of increasingly popular and more potent products containing Delta 8 and Delta 10. Hemp supporters have said that if the bill became law, it would decimate the hemp industry, throw thousands of people out of work, and cost the state billions in revenue.
• Hawaii: State-legal cannabis use was the leading cause of gun permits being denied (40.7 percent), according to data from Hawaii’s attorney general’s office.
• Illinois: Those in the hemp industry say it’s impossible to create products at a THC potency level that doesn’t exceed 0.3%.; Illinois sold $144 million of cannabis in April; Congressman LaHood addresses recent farm bill amendment.
• Kentucky: State records reveal Rep. James Comer (R-KY), when running for governor, failed at importing Chinese hemp seeds through his office at the agriculture commission. The imports were to benefit a campaign donor’s company that Comer had fast-tracked for his industrial hemp pilot program. While evidence shows parties intended to import only legal hemp, two rounds of tests revealed the plants contained illegally high levels of THC.
• Louisiana: Lawmakers pull THC edibles from corner stores. Miller’s legislation will, among other things, lower the potency of recreational hemp edibles from 8 milligrams to 5 milligrams of THC per serving and ban them from convenience stores that sell fuel. Restaurants and bars that currently hold alcohol and hemp permits will be able to continue selling hemp products, but the bill will stop the state from issuing any new hemp permits for alcohol establishments.
• Maine: Republican CD1 candidates both said they are against federally reclassifying marijuana as a less dangerous drug; U.S. Senator Susan Collins (R-ME) spoke with Inside Maine host Shawn Moody about the growing problem of illegal marijuana grows in Maine linked to Chinese criminal organizations.
• Massachusetts: Massachusetts cannabis regulators say intoxicating hemp products constitute a “public menace” to the health of the state’s citizens and are harming regulated marijuana dispensaries that operate under strict rules; More turmoil at the Cannabis Control Commission; The state’s Alcoholic Beverages Control Commission issued a bulletin on Thursday reminding license holders the sale of alcoholic or non-alcoholic beverages containing CBD and/or THC is forbidden; ‘Gas station weed’: How Mass. is addressing unregulated hemp.
• Minnesota: Marijuana, hemp industries go to battle in farm bill – Amendment in U.S. House bill would outlaw hemp-based edibles and other products that are allowed under Minnesota law; Minnesota regulators destroy $278,000 worth of raw cannabis flower ahead of legal retail sales; Former Minnesota Gov. Jesse Ventura tells Moorhead crowd cannabis saved his family.
• Mississippi: Changes are coming to Mississippi’s medical marijuana program
• Missouri: 2nd Missouri judge rules counties can stack taxes at marijuana dispensaries; The Division of Cannabis Regulation (DCR) of Missouri announced updated guidance for facility licensees regarding labeling requirements.
• New Hampshire: The debate over whether to legalize cannabis for recreational use continues in the New Hampshire State House.
• New Jersey: The governor of New Jersey, Gov. Phil Murphy (D), wants to build upon the state’s legalization law to provide “more equity, more reward and redemption” for people impacted under prohibition; A slim majority of New Jersey residents approve legalizing Psilocybin treatment, according to research released today by the William J. Hughes Center for Public Policy at Stockton University.
• North Carolina: We asked, you answered: North Carolinians share thoughts on legalizing marijuana in NC.
• North Dakota: Takeaway from Republican governor candidate debate – Armstrong said if the measure is on the ballot in November he will vote no, and that he thinks North Dakota has already done a good job reducing penalties for marijuana-related offenses.
• Ohio: Ohio Gov. Mike DeWine talked about marijuana; Lordstown passes ordinance banning recreational marijuana sales in the village; Ohio’s cannabis regulator has issued licenses to four more dispensaries ahead of the expected rollout of dual medical and adult-use licenses this week; Ohio’s Medical Cannabis Sales Fall Across the Board as State Prepares for Adult-Use Rollout; Ohio’s top marijuana regulator says that while the state will open up applications for medical cannabis dispensaries to start selling to adult-use consumers by Friday, the exact timing for when they’ll be able to launch depends.
• Oregon: How Making Cannabis a Schedule III Drug Could Affect Oregon’s Green Future.
• Pennsylvania: DA talks medical marijuana misnomers at Adams County Council of Governments (ACCOG) meeting – approximately 50% of the office’s caseload have involved driving under the influence (DUI) offenses with more than half of them being drug-related, according to Sinnett.
• South Dakota: South Dakota to vote on marijuana legalization in 2024; Secretary of State Monae L. Johnson announced on June 3, 2024, that her office validated a petition for Initiated Measure 29 to appear on the Nov. 5, 2024, ballot. Cannabis advocacy group South Dakotans for Better Marijuana Laws (SDBML) submitted the measure.
• Vermont: Vermont Gov. Phil Scott (R) signed a bill into law to create a psychedelic-assisted therapy working group but vetoed a separate legislation, however, that would have established a safe drug consumption facility in Burlington as part of a harm-reduction pilot program.

Cannabis Abroad

• Japan: The Japanese government confirmed last week that a public comment period on its cannabis reform bill is officially open; the Japanese government has published detailed proposals on the limits it intends to set for both finished CBD products and hemp farmers.
• Israel: Israeli researchers use synthetic biology to grow improved cannabis.
• Thailand: A near six-fold jump in costs of cannabis for medical purposes triggered the need to restrict consumption of the herb, according to Thailand’s Health Ministry.
• Australia: Senate report rejects proposed laws to legalize recreational cannabis use in Australia.
• Italy: Italy’s Push To Ban Hemp Flower Products Is Bad For Public Health Strategies (opinion).
• Canada: Very few pardons for pot possession have been granted since 2019.
• Zimbabwe: Zimbabwe, Africa’s largest tobacco producer, has asked its tobacco research body to look into the viability of large-scale cannabis production.

Customs and Trade

• USDA’s The National Weekly Hemp Report reported a value of nearly $25,000 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, making it a total of $297,455 for 2024. Indicating that the main source of Hemp is domestic, while the Netherlands continues to import more than any other country.  Interestingly, a value of over 20 million was recorded in imports of Hemp Seed for Consumption (Oil Seed & Oleaginous Fruits, Broken or not) classified under HTSUS 1207.99.0360 in 2024. Manitoba, Canada leads in the volume and value of imports in this category of product followed by Saskatchewan, Canada, and China.
• These products were permitted entry because hemp seeds and plants can be imported into the U.S. The importation is regulated U.S. Customs and Border Protection (CBP) and the USDA. Importantly, all compliance must be performed prior to importation to avoid detention or seizure by either or both agencies which can easily lead to the forfeiture of the imported goods.

Business, Banking, Insurance

• How a Farm Bill amendment could ‘significantly impact’ hemp brands.
• Two West Coast police groups have changed their positions and now support federal cannabis legalization efforts, marking the first time that a statewide police officers organization has called for an end to the nation’s prohibition of marijuana.
• Cannabis producer Green Thumb Industries has expressed interest in merging with Boston Beer, the maker of Sam Adams lager. (The Wall Street Journal).
• Trulieve opens its 200th dispensary as the world’s largest cannabis retailer.
• Mira Pharmaceuticals Announces DEA Rules MIRA-55, a Novel Oral Pharmaceutical Marijuana Analog, Is Not Classified as a Controlled Substance.
• Forecasting Changes in the Cannabis Real Estate Sector: A Conversation with Christian Tremblay and Sandy Kronenberg.
• Farm Bill 2024: 3 Stocks That Would Get Smoked if Hemp Ban Passes.
• Canopy Growth exercises the option to acquire US marijuana operator Acreage.

Other Noteworthy Updates

• A recent comprehensive scientific review suggests that biotechnological tools, such as genetic engineering, tissue culture, and molecular breeding, may help produce cannabis varieties that are more stable and more tailored to specific medicinal needs. (Forbes)
• In states with recreational legalization of cannabis, resource use was less likely among children with cannabis poisoning.
• Underfunding cannabis research hampers sensible policymaking and boosts the black market (opinion).
• American Medical Association study: most patients (76.1%) reported using cannabis to manage a health symptom, and very few patients identified as medical cannabis users.
• Moms for cannabis? Pro-marijuana ad says a legal market is a safer one.

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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.