WEEK OF JUNE 14, 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
- The White House opposes the Marijuana section of the National Defense Authorization Act (NDAA). Prohibition of Cannabis Testing for Enlistment or Commission in Certain Armed Forces – The Administration appreciates Congress’ desire to increase the available military accessions pool. However, the Administration opposes Section 532, which would prevent the U.S. Department of Defense (DoD) from testing applicants for delta 9-THC and delta 8-THC contained in marijuana. The use of marijuana by service members is a military readiness and safety concern.
- President Joe Biden’s health secretary is suggesting that federal drug enforcement officials are not necessarily on board with the administration’s plan to reschedule marijuana. Asked about the status of the proposed move of cannabis to Schedule III of the Controlled Substances Act at a recent event in Sacramento, U.S. Health and Human Services (HHS) Secretary Xavier Becerra said his agency “took action” based on available science and evidence, saying that the ball is now in the Department of Justice’s (DOJ) court.
- The Drug Enforcement Administration (DEA) has formally canceled a scheduled Monday Administrative Hearing on its proposed ban of two psychedelic compounds as the constitutionality of the scheduling process is being challenged in federal court.
U.S. Congress
- House appropriators release Agriculture-U.S. Food and Drug Administration (FDA) funding bill with budget cuts – Many hemp products would be banned under the House spending proposal. The provision defines legal hemp as cannabis plants and derivatives with no more than 0.3% THC, the plant’s primary psychoactive component. It also outlaws any products with cannabinoids that were not “naturally produced” in the plant, which would prohibit Delta-8 THC products and other intoxicating cannabinoids that have proliferated across the country since hemp was legalized under the 2018 farm bill. See the relevant bill language in Section 740 and Section 760 here
- U.S. Senator John Boozman (R-AR), ranking member of the U.S. Senate Committee on Agriculture, Nutrition, and Forestry, unveiled the Senate Republican-drafted framework for the Farm Bill. Find an overview of the framework and title-by-title highlights are available through the links here.
- Commentary on hemp Farm Bill amendment: (1) Criminalization will make Delta-8, Delta-10 THC, etc., ‘All the More Dangerous’ says Harvard medical instructor and leading cannabis expert. (2) Speaking to Business of Cannabis, Partner and Principal at Minnesota-based cannabis consultancy Blunt Strategies, Leili Fatehi, believes those worried about the amendment should look to the birthplace of hemp-derived THC beverage and edibles explosion. (3) Hemp provisions in the U.S. spending Bill could speed up the crackdown on hemp intoxicants. (4) The now infamous ‘hemp killing’ amendment has been added to a second key piece of legislation by the government which stands accused of ‘turning their backs on farmers, veterans, and small businesses’. (5) The Miller Amendment: Redefining Hemp to Protect Public Safety and Fair Competition in the Cannabis Industry.
Cannabis Rescheduling/Descheduling
- Reclassifying cannabis as a lower-risk substance could bring significant changes to the real estate sector associated with cannabis. If the change leads to relaxed lending regulations, more funds could be directed toward facilities.
Enforcement
- FDA issued an advisory warning consumers and retailers to not eat, sell, or serve any flavor of Diamond Shruumz- Brand Chocolate Bars, Cones, and Gummies. FDA does not state what may be causing the illnesses but does note that the products “can be purchased online and in person at a variety of retail locations nationwide including smoke/vape shops, and at retailers that sell hemp-derived products such as cannabidiol (CBD) or delta-8 THC.”
The States
- Cannabis Facts by State
- Arizona: Social equity – Critics say AZ cannabis program did ‘exact opposite’ of what voters intended
- California: CA hemp bill could bring ‘clarity,’ squash intoxicating derivatives; State lawmakers and cannabis workers voice support for hemp bill; A CA Senate panel has approved a bill to legalize cannabis cafes in the state, months after the governor vetoed a previous iteration of the proposal.
- Colorado: CO’s Weed Market Is Coming Down Hard and It’s Making Other States Nervous – Businesses are shuttering or laying off workers as sales have plunged by $700 million; The CO Department of Revenue (CDOR) has released the Average Market Rates (AMR) for retail marijuana.
- Connecticut: CT is on track to allow access to medical cannabis for the treatment of female orgasmic disorder (FOD) following a decision on Friday by the state Medical Marijuana Program Board of Physicians.
- D.C.: Two community organizations are suing D.C. for granting medical marijuana licenses to dispensaries located near schools in the Palisades and Penn Quarter.
- Florida: DeSantis’ ‘Freedom Fund’ PAC will target abortion, pot amendments on FL ballot; The hemp community in FL is breathing a collective sigh of relief this weekend following Gov. Ron DeSantis’s veto of a bill that they say, if signed, would have presented an existential threat to their livelihoods; Fox News Poll – Nearly 7 in 10 Floridians support legalizing marijuana and establishing the right to abortion.
- Iowa: Is the new law the end of the state hemp industry?
- Kentucky: Federally reclassifying weed means marijuana businesses will flourish in KY. Here’s why.
- Massachusetts: Martha’s Vineyard is about to run out of pot. That’s led to a lawsuit and a scramble by regulators; Alcoholic Beverages Control Commission Issues Advisory Concerning Immediate Removal of Food and Beverages Containing Hemp Derived CBD and THC from Sale; ‘Frankenstein-like chemical product’ – Spread of hemp concoctions worries lawmakers; Through new pilot project, medical marijuana could become more accessible to senior citizens
- Mississippi: Medical cannabis changes coming next month in MS
- Missouri: Slow process of MO marijuana expungement drags on months after constitutional deadlines
- Montana: Three separate Republican calls for a special session failed to get enough votes from legislators – SB 442 would have changed how marijuana revenue was allocated to include funding for county roads and conservation efforts
- Nebraska: NE activists are putting out an urgent call for voters to sign petitions to place a pair of medical marijuana legalization initiatives on the state’s November ballot, with just under four weeks left to collect about 30,000 more signatures to qualify each measure.
- New Hampshire: NH lawmakers move toward potentially making the state the 25th in the U.S. to legalize recreational marijuana, separate legislation to significantly expand the state’s existing medical cannabis program is also advancing toward final passage; Cannabis, immigration, freedom accounts, and bail: What to watch in the final legislative session
- New Jersey: A new wave of entrepreneurial talent is ready to transform NJ’s cannabis industry as 48 recipients of the NJ Economic Development Authority’s (NJEDA) Seed Equity Grant Program proudly graduated from a rigorous nine-week Cannabis Technical Assistance Program (CTAP) at a celebration held at Hub 13 in Trenton last month
- New York: Most NY cannabis operators to save big without potency tax; NY lawmakers have sent a bill to the governor that would make marijuana farmers markets a permanent feature of the state’s cannabis market; Governor Kathy Hochul today announced three new leadership appointments at the Office of Cannabis Management, part of a sweeping operational overhaul of the agency launched last month; NY’s Cannabis Control Board has issued 105 new adult-use licenses and legalized home cultivation amid an ongoing overhaul of the state’s cannabis regulators; The City, which obtained a swathe of internal OCM emails, alleging that state officials ignored attempts from the regulatory body to ward them off of an unfavorable finance deal; NY marijuana regulators have formally approved rules to allow adults 21 and older to grow their own cannabis plants for personal use.
- North Carolina: Sale and use of marijuana permitted under ordinance Cherokees in North Carolina approved
- North Dakota: The campaign collected more than half of the signatures required to put the proposal on November’s ballot
- Ohio: Applications open for Ohio recreational marijuana dispensaries via the Division of Cannabis Control (DCC); Colorado’s marijuana market has nosedived. Is it an ominous sign for Ohio?
- Oregon: Cannabis industry looks to expand into eastern OR’s biggest city through public vote.
- Pennsylvania: The Governor’s Economic Development Strategy and 2024-25 budget proposal prioritize agriculture as a key pillar of opportunity – and the Governor’s $10.3 million agriculture innovation program will support our farmers and attract new businesses.
- Rhode Island: RI Cannabis Control Commission tweeted, “This week, @RISenate approved the appointment of Michelle Reddish to serve as the RI Cannabis Office’s first-ever Administrator. We look forward to working with her to carefully expand the #cannabis market in Rhode Island.”
- Tennessee: DEA looks to reclassify marijuana: What that could mean for TN hemp dispensaries
- Texas: Dallas voters could get the chance to decriminalize small amounts of marijuana; THCA looks, smells, and smokes like THC. TX might close the loophole that makes it legal; Texas Attorney General Ken Paxton sues Austin over marijuana ordinance
- Vermont: Governor Scott allowed H.612, An act relating to miscellaneous cannabis amendments, to become law without his signature and sent a letter to the General Assembly.
- Virginia: VA Beach Police Chief Paul Neudigate said 90% of the city’s violent crime is fueled by marijuana.
- Washington: WA medical cannabis users get a break from the nation’s highest pot taxes
Cannabis Abroad
- Canada: Health Canada released numerous proposed regulatory changes to the federal cannabis rules and regulations on June 7, as part of a 30-day consultation process ending on July 8, 2024. The proposed changes include regulatory amendments that are aligned with the findings and recommendations from the federal government’s expert panel’s final report on the Legislative Review of the Cannabis Act.
- Germany: German lawmakers have approved a series of changes to the country’s marijuana legalization law, imposing restrictions related to impaired driving and giving states more authority to set limits on cannabis cultivation within their borders; Frankfurt-based cannabis company Bloomwell Group GmbH announced that is combining its existing brands and operations to form Germany’s largest digital platform for medical cannabis
- Slovenia: Voters in Slovenia approved a pair of cannabis-related ballot measures over the weekend, one on whether medical marijuana patients should be able to cultivate the plant for personal use and the other on whether all adults should be able to grow and possess marijuana legally.
- South Africa: It’s now legal for South Africans to grow and use cannabis. The next battle — making it legal to trade. A continent is watching.
- Thailand: Thailand Unveils Rules to Classify Cannabis as Narcotics Again
- UK: Milestone for UK as first domestically grown medical cannabis arrives
Customs and Trade
- Captives of Cannabis: Inside smuggling across U.S. highways
- Witnesses at a House Natural Resources Subcommittee on Oversight and Investigations hearing mentioned marijuana drug cartels are growing operations on U.S. tribal lands.
Business, Banking, Insurance
- Marijuana brand Stiiizy has triggered a public health crisis among teens by “marketing dangerous, high potency marijuana vaporizers” to youth, according to a lawsuit filed by an unidentified California high school student.
- Biden’s DEA Marijuana Scam: MMJ BioPharma Awaits Marijuana Registration to Grow Pharmaceutical Cannabis
- Curaleaf Holdings, Inc., a leading international provider of consumer products in cannabis, announced a new cannabis packaging recycling initiative available at select NY dispensaries in partnership with TerraCycle, the international leader in recycling hard-to-recycle waste streams.
Other Noteworthy Updates
- Study: Heavy cannabis use is associated with a significantly increased risk for cardiovascular disease (CVD) mortality among women.
- One in six patients in primary care reported cannabis use, with 35% of those using at levels indicating moderate- to high-risk for cannabis use disorder, new UCLA research finds.
- Cannabis-Psychosis Connection Weaker Than Previously Thought, Study Of 201,000 Individuals Shows
- Study: Americans are far more likely to report secondhand harms from alcohol than from cannabis
- Despite the risks associated with self-medicating for mental health issues, cannabis use may not be as disruptive to typical posttraumatic stress disorder (PTSD) therapy as once assumed, a Rutgers study has found.
- Consumer Poll: Strain Preferences & Desired Effects
- Randy Gregory sues NFL, Broncos over fines for THC use
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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.