CANNASWEEP

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

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 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.

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