CANNASWEEP

WEEK OF JUNE 21, 2024

CannaSweep will be on hiatus given the Congressional recess and federal holiday. We will resume in August.

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

• • Pro-cannabis arguments for why FDA is not the appropriate body to regulated (STAT Opinion)

• • Opposition to rescheduling marijuana from Smart Approaches to Marijuana (SAM), including complaints that the government’s planned rescheduling of marijuana to Schedule III of the Controlled Substances Act amounted to a politically motivated move, SAM requests a 30-day extension to the comment period on the Proposed Rule.

U.S. Congress

• • House GOP strips language aimed at protecting banks from cannabis crackdowns.

• • A GOP-controlled House committee has voted to maintain a federal ban blocking Washington, D.C. from creating a system of regulated adult-use marijuana sales. Rep. Eleanor Holmes Norton (D-DC) said she will work to remove anti-home rule riders as the bill moves through the legislative process.

• • Sen. Cantwell (D-WA) says DEA rescheduling marijuana without Congress “is good.”

• • Sen. Sinema (I-AZ) said, “that’s a question for Chuck Schumer,” Sinema says when asked about Senate never voting on marijuana

The States

• • Arizona: Democratic governor of Arizona has vetoed a bill to legalize psilocybin service centers where people could receive the psychedelic in a medically supervised setting.

• • Arkansas: Flora Farms cannabis dispensary flourishes at location near the Arkansas border

• • California: A new threat to cannabis users: Smuggled Chinese pesticides; How dirty is your weed? A joint investigation finds high levels of pesticides in products; Restrictions on per-serving THC limits in CBD products proposed in California could bring a setback for consumers who take high doses of over-the-counter CBD for medical conditions, some caretakers have warned; The California State Fair will allow marijuana sales and on-site consumption for the first time this summer; Cheech and Chong are opposing Assembly Majority Leader Cecilia Aguiar-Curry’s effort to blunt a legal loophole allowing laxer rules for high-inducing hemp products than for marijuana.

• • Colorado: Youth marijuana use rates in Colorado slightly declined in 2023, remaining significantly lower than before the state became one of the first in the U.S. to legalize cannabis for adults; Colorado Attorney General’s Office sues Colorado cannabis business for falsely marketing marijuana products as legal industrial hemp

• • Florida: The Cannabist Co. Holdings, formerly Columbia Care, announced June 17 that it plans to part ways with Florida’s medical cannabis market just months before citizens vote on an adult-use ballot measure this November; Gov. Ron DeSantis has agreed to change the law to abate legal wrangling over medical marijuana licenses for Black farmers; Florida has more than 700,000 medical marijuana patients and Republican Gov. Ron DeSantis — who is battling a proposal to allow recreational use of marijuana — wants them all to know what a great job he’s doing; It’s time we better protect Florida veterans – Let’s pass Amendment 3 | Opinion

• • Iowa: Iowa-based beverage companies sue the state over new THC limits

• • Kentucky: Preparing for medical cannabis in Kentucky

• • Maryland: Gov. Wes Moore of Maryland signed an executive order that forgives more than 175,000 convictions on low-level charges related to marijuana use (further coverage here and here; Congressional and other commentary here, here, here, here, here, here, here, and here)

• • Massachusetts: Legislators discussing ways to curb sale of Illegal hemp-based products; Massachusetts Senate passes HERO Act to improve support for military members; Massachusetts regulators issued a ruling late last week that will allow marijuana to be shipped across state waters for the first time.

• • Minnesota: Sales and Use Tax for Cannabis Agricultural Production; Adult-Use Cannabis: Legalizing, Regulating and Expunging

• • Montana: Lawmakers this week began considering a new cap on dispensaries in Montana, an idea that’s been percolating in local communities as the recreational industry continues to grow.

• • New Jersey: A New Jersey Assembly committee has adopted an amendment to a psilocybin bill that aligns its provisions with a Senate companion version, removing language to more broadly legalize the psychedelic and instead focusing on therapeutic use; The NJ Cannabis Regulatory Commission (NJCRC) reviewed New Jersey medical marijuana program issues and approved 34 adult-use licenses.

• • New York: NY rules overview on home cultivation for all adults 21+; Two more higher-ups let go from NY’s Office of Cannabis Management

• • North Carolina: NC’s medical marijuana bill finds new life as state moves to regulate hemp-derived consumables

• • Ohio: Marijuana sales are coming to Ohio. Will growing pains derail program?

• • Oklahoma: Gov. Stitt signs House Bill 1734 requiring criminal background checks for owners and employees of medical marijuana facilities.

• • Pennsylvania: A pair of Pennsylvania House legislators have released their proposal for legalizing recreational marijuana; Outgoing state Rep. Aaron Kaufer, R-120, of Kingston, is throwing his support behind a plan to legalize marijuana for recreational use in Pennsylvania.

• • South Dakota: Lawsuit filed against HB 1125 regarding hemp products; Most South Dakotans oppose the latest attempt to legalize recreational marijuana in the state.

• • Vermont: Vermont has authorized a safe consumption site (SCS) pilot, after a General Assembly vote against overturning Governor Phil Scott’s veto was itself overturned; Vt. marijuana company questions authority of Cannabis Control Board; The CCB will begin issuing licenses for Propagation Cultivators after July 1.

• • Washington: The Board adopted final rules amending WAC 314-55-080 for medical cannabis endorsement holders, requiring the posting of cannabis consultant available hours and creating an opportunity for medical cannabis endorsement holders to fix rule violations before having endorsements discontinued.

• • Wisconsin: How delta-8 is shaping the marijuana debate in Wisconsin

Cannabis Abroad

• • Netherlands: The Dutch experiment with regulated marijuana production, which aims to pave the way for a closed chain of growers and retailers, expands nationwide on Monday, with 10 towns and cities now taking part.

• • Canada: Marijuana companies owe over a quarter-billion in taxes

• • Australia: Legalize Cannabis WA MP Brian Walker has vowed to keep fighting for reform – and hopes for “saner minds” to soon debate cannabis legalization – after the party’s personal use bill was formally rejected by the state Labor Government.

Customs and Trade

• • U.S. border patrol agents would be prevented from using its funds to seize marijuana from state-licensed businesses under a newly filed amendment to a large-scale spending bill.

Business, Banking, Insurance

• • Marijuana Testing Regulations and Employer Policies: Impacts on Public Transportation Employment

• • For the first time ever, a sports team will sell THC products at a live sporting event

• • Cannabis Found Less Harmful Than Alcohol In New Study: Where Is The Demand Heading? Investor Market Tips (Business Insider)

• • Charlotte’s Web Appoints Erika Lind as Chief Financial Officer

• • Medical Marijuana Packaging Market to Hit Valuation of USD 117.2 Billion By 2032

Other Noteworthy Updates

• • Prescription-Pain-Pill Use Fell As Medical-Cannabis Use Grew, Report Says

• • What Are Your Experiences With Marijuana and Driving? As more people use marijuana, we’re exploring the implications for road safety. (The New York Times)

• • As many as four out of every 10 teenagers and young adults who vape are modifying their e-cigarettes in ways that could expose them to burns, lung injury, and covert use of marijuana, a team of Yale Department of Psychiatry scientists found.

• • Medicinal cannabis is a ‘life-changing treatment’ for people with Tourette syndrome.

• • Teens who use cannabis are 11 times more likely to develop a psychotic disorder

• • A new study estimates that over their lifetime, more than a third of U.S. adults or 113 million people are harmed from someone else’s drinking while 46 million experience harms from someone’s else’s drug use.

• • ABC 33/40’s medical marijuana special wins Emmy

• • Flying with marijuana: Will TSA stop you for edibles, CBD products in your luggage?

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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.