CANNASWEEP

August 2024

OFW’s Cannabis Team regularly monitors cannabis news, legislation, regulation, and policy. Our monthly CannaSweep publication summarizes this coverage to keep our clients up-to-date on the latest developments impacting their business. Contact Ben Dash about our Congressional Bill Tracker for monthly tracking of cannabis-related legislation introduced in the U.S. Congress. Please contact us if you have any questions or would like more information about any of the items below.

Cannabis Rescheduling/Descheduling

• The U.S. Department of Justice’s (DOJ) proposal to downgrade marijuana to a less restrictive classification under the Controlled Substance Act (CSA) raises questions on drug testing that likely will not be answered anytime soon.
• Most voters in swing states support the legalization of recreational marijuana and back other cannabis policy reforms, a study says.
• What does the re-classification of cannabis as a schedule III drug mean for physicians? For those physicians who are unfamiliar with the medical benefits of cannabis, a report published by the National Institutes of Health (NIH) highlights some significant adult applications. 
• Op-Ed: We are on the cusp of a potentially transformative moment where the potential rescheduling of marijuana and the realization of Medicare innovation might provide seniors with a non-opioid alternative to treat many age-related medical conditions.

Executive Branch/Enforcement

• DEA delays marijuana rescheduling decisions until after the election (Forbes).
• A new poll shows President Biden’s mass marijuana pardons are the most popular acts of presidential forgiveness in U.S. history.
• The DEA has scheduled a first-of-its-kind, 10-day public hearing period on the fate of psychedelics Dimethoxy-4-iodoamphetamine (DOI) and 2,5-Dimethoxy-4-chloroamphetamine (DOC).
• Vice President Harris called on the federal government to move “as quickly as possible” to change the way it officially classifies marijuana, saying that “nobody should have to go to jail for smoking weed.”
• Cornel West, an independent 2024 presidential candidate, says Democrats need to “follow through” on federal marijuana reform.

U.S. Congress

• Sen. Jon Tester (D-MT) opposes recreational marijuana but supports DEA rescheduling and SAFER Banking Act.
• Sen. Bob Casey (D-PA) said, “I’m still looking at” SAFER Banking Act.
• Rep. Dan Goldman (D-NY-10) tweeted, “Recreational cannabis is legal in 24 states. Federal law needs to catch up. The SAFE Banking Act is a commonsense measure to ensure that entrepreneurs in the cannabis industry have access to our financial system, just like any other business in any other regulated industry.”
• Rep. Nancy Mace (R-SC-1) tweeted, “Hemp is vital to our economy. We won’t let overregulation stifle the industry either.”

Farm Bill

• The 2024 Farm Bill presents multiple scenarios that could shape the future of hemp-derived THC beverages. First, one possibility is that current regulations continue, allowing the market to grow under state-by-state rules. Another potential outcome could involve stricter regulations or even a ban on synthetic and naturally derived THC products, which would significantly impact the market.

The States

• Marijuana laws by state ahead of the 2024 presidential election.
• Arizona: What to know about the legal landscape of CBD in Arizona.
• Arkansas: Hemp farming still hasn’t taken root in Arkansas, six years after its cultivation was made legal under federal law; the Parking app used by Little Rock, Fayetteville removes cannabis rewards.
• D.C.: D.C. medical cannabis cultivators apply for $300k in total grants.
• California: Legislation that would have provided a hemp makeover to California’s regulated cannabis market came to a halt in the committee process on Aug. 15; California hemp fight signals long-term struggle with marijuana; The U.S. Hemp Roundtable is declaring victory against California Assembly Bill 2223 after news broke that the bill had been officially suspended for 2024; A California bill could legalize cannabis farmers’ markets, within certain limits. But there are doubts about how much it would help small cannabis farmers in the state, who are facing severe struggles to make ends meet; A state-funded effort is underway to analyze the genetic information of various marijuana strains to preserve the state’s rich history of cannabis cultivation.
• Florida: Inside the battle over cannabis legalization in Florida (Forbes); Voters in Florida will soon decide whether to legalize recreational marijuana. DeSantis is against it and getting support from an unlikely ally: the hemp industry.
• Georgia: The Georgia Department of Agriculture will accept written comments regarding proposed amendments to and repeals of certain of its existing Hemp Rules.
• Kentucky: Starting Jan. 1, 2025, Kentuckians with a medical cannabis card can buy and use medical cannabis. 
• Maryland: Maryland cannabis companies fined $8,000 for violating advertising rules.
• Massachusetts: Outdoor cannabis farmers provide feedback to regulators; Cannabis commissioner pushing for a forensic audit of the agency.
• Michigan: Michigan switching to surprise state inspections for cannabis businesses.
• Minnesota: Jesse Ventura to boycott Minnesota State Fair over its marijuana policy
• Missouri: Ban on Missouri hemp-THC products delayed in disagreement between the Governor and Secretary of State. Gov. Mike Parson. The ban’s implementation will now be delayed for at least six months; the Missouri court’s decision calls for the expungement of THC possession charges.
• New Jersey: The New Jersey governor’s office has released a video of a tour he recently did at a marijuana business.
• Nevada: The Nevada Cannabis Compliance Board (CCB) issued six prospective licenses for cannabis consumption lounges reserved for social equity applicants.
• New York: Governor Hochul announces progress on addressing the opioid and overdose epidemic across New York; Governor Hochul provides task force update after three-month blitz to shut down unlicensed cannabis stores.
• North Dakota: North Dakota lawmakers approve fiscal note for marijuana legalization ballot initiative, estimating $10.3 million in revenue.
• Ohio: Banking remains a challenge for dispensaries post-Ohio cannabis legalization.
• Oklahoma: Organized Crime Task Force seizes marijuana, firearms in Okmulgee County
• Pennsylvania: Hemp industry seeks strategies to raise capital.
• Rhode Island: R.I. cannabis agency plodding ahead as counterpart in Mass. in chaos; Providence, RI, overdose prevention center is set to open this fall.
• South Dakota: ‘Illegal cannabis’ cuts into medical marijuana sales, growers tell committee.
• Vermont: Medical cannabis user fired from transit job loses appeal over state’s denial of unemployment benefits.

Cannabis Abroad

• Canada: Opinion – Cannabis sector needs more rigorous testing requirements; Aurora remains a leader in the export of Canadian medical marijuana (MMJ), accounting for more than 30% of Canada’s MMJ exports; Canada’s Federal Court has agreed with British Columbia’s minister of mental health and addictions that she should be a respondent to a court challenge against the province’s decision to dial back its drug decriminalization policy; Canadian cannabis sales growth plunges.
• Bahamas: Rastafarians seek legal help over cannabis bill concerns.
• Antigua and Barbuda: The government of Antigua and Barbuda is set to amend the Cannabis Act to introduce fines for individuals caught smoking cannabis in public spaces.

Business, Banking, Insurance

• Home Depot, one of the largest employers in the United States, is shifting its employee drug testing policies to remove cannabis from screening panels entirely and stop pre-employment drug testing of most of its workers.
• Trulieve Cannabis Corp., a leading and top-performing cannabis company in the U.S., today announces a partnership with the Carvana PPA Tour (“PPA Tour”) and MLP by Margaritaville (“MLP”) to sponsor premier pickleball events in Arizona, Florida, and Georgia.
• CAB announces $529 million in cannabis sales.
• Recent findings backed by the National Football League (NFL) point to the increasing acceptance of therapeutic cannabis in the world of sports, but also underscore the impediments created by federal prohibition. The study asserts that the ban of marijuana at the federal level has thwarted deeper exploration into the pros and cons of therapeutic marijuana for athletes.

Other Noteworthy Updates

• Hemp-derived intoxicating products typically contain greater quantities of THC than are allowable under federal law and some products also contain elevated levels of pesticides, according to an analysis of commercially available products by the American Council of Independent Laboratories (ACIL).
• Labeling Inaccuracies in Hemp-Derived CBD Products – a recent study found that a high percentage of various types of hemp-derived cannabidiol (CBD) products contained inaccurate claims on their labels. The 97 products tested in this study consisted of haircare and cosmetic items, food, drinks, and edibles that were purchased in 2020 in Maryland from both retail stores and online. All the products’ labels claimed they contained CBD or specified amounts of CBD that the product contained.
• A new study finds that rates of delta-8 THC exposures reported to poison centers in the U.S. are significantly lower in states where marijuana is legal and regulated and in those that banned the specific cannabinoid.
• A decade into states legalizing marijuana, underage use has plummeted (The Hill).
• Researchers at Augusta University have identified a new method to treat fentanyl addiction using a cannabidiol, or CBD-based therapy. The new research, which was published in “Cannabidiol reverses fentanyl-induced addiction and modulates neuroinflammation” by Cold Spring Harbor Laboratory’s bioRxiv, offers a promising alternative approach to combat the opioid epidemic, which has claimed hundreds of thousands of American lives.
• The number of Americans using both cannabis and tobacco is increasing, with a particular surge among older adults, a new study finds.
• Patients authorized to consume state-legal medicinal cannabis products report improvements in their health-related quality of life and less reliance on prescription medications, according to data published in The Journal for Nurse Practitioners.
• In a new study that could pave the way for new treatments targeting age-related cognitive decline, researchers have discovered that low-dose, long-term administration of a key cannabis component can reverse aging processes in the brain and has an anti-aging effect overall.
• Using marijuana daily for years may raise the overall risk of head and neck cancers three- to five-fold, according to a new study that analyzed millions of medical records.
• Dutchie and Last Prisoner Project Reach $2M Fundraising Goal with Leading Tech Platform Matching $1M in Donations to Help End Victimless Cannabis Criminalization.

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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.