CANNASWEEP

WEEK OF JANUARY 22

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.

Update on Potential Marijuana Rescheduling  

• Rescheduling Cannabis: 4 Potential Effects Of A Shift To Schedule III
• The U.S. Department of Justice has filed its motion to dismiss the cannabis-industry lawsuit, Canna Provisions, Inc., et. al., v. Garland, No. 23-cv-30113 (D. Mass.).  The lawsuit sought to block federal enforcement of state-legal marijuana.  The DOJ argues that the scheduling decisions should be allowed to move forward first (with the HHS recommendation now with the DEA).  The DOJ makes other arguments, including that the plaintiffs’ lack standing. 
• WSJ Opinion: Marijuana Is More Dangerous Than Biden’s HHS Lets On; In easing restrictions, it brushes past the long-term effects, from anxiety and depression to psychosis.
• A majority of Americans support President Joe Biden’s efforts to loosen federal marijuana restrictions, and the biggest backing came from the youngest voters, according to a recently conducted nationwide poll conducted by Lake Research Partners. Among likely voters, 58 percent expressed support for the Biden administration’s recent recommendation to move marijuana to a less stringent classification under federal law, while just 19 percent indicated opposition.
• GOP 2024 presidential candidate Nikki Haley says she will ‘go with the scientists’ on federal marijuana rescheduling, saying it ‘obviously’ doesn’t belong in same class as heroin.

Federal Executive Branch — Office of the President, Departments and Agencies

• USDA’s-NASS sent the Hemp Production and Disposition Inquiry to over 6,000 U.S. producers on Jan. 19. This year’s survey will collect information on the total planted and harvested area, yield, production, and value of hemp in the United States in 2023. NASS estimated the total value of hemp production at $238 million in 2022. NASS will publish the survey data April 17, 2024, on the NASS website.
• The legal question over the constitutionality of a federal gun ban for people who use marijuana is now before the U.S. Supreme Court, where justices are expected to decide whether they will hear an appeal of a circuit court ruling that found the restriction violates the Second Amendment. A CRS report provides more context.
• Cannabis use among younger persons has been declining, but less is known about sex-specific trends, says recent CDC report.

The States

• General – 11 States That Could Legalize Cannabis in 2024.
• Arkansas: Group proposes easing access to medical marijuana in Arkansas after record sales. (Axios).
• Florida: Florida to vote on marijuana legalization on 2024 ballot, DeSantis suggests (Forbes); Hemp entrepreneurs say changes will devastate their businesses, FL lawmakers appear unmoved; Hemp bill banning alternative cannabinoids, capping THC advances in Senate with bipartisan support.
• Iowa: Bill would expand Iowa’s medical cannabis program to include flower products.
• Kansas: Trio of Kansas groups call on 2024 Legislature to pass bill legalizing cannabis for medicinal use – Gov. Laura Kelly supports concept, but House and Senate have yet to make a deal.
• Maryland: Maryland Republicans push back against cannabis odor law, but repeal seems unlikely.
• Missouri: Missouri legislators push back on adding marijuana to workers’ compensation law. Both Democrats and Republicans questioned current science and testing to determine is someone is impaired by marijuana use.
• New York: Q&As with state Sen. Liz Krueger and Assembly Majority Leader Crystal Peoples-Stokes on what other states are learning from New York. Homegrown pot plants may soon be legal in N.Y.; Hinchey bill would regulate cannabis owners’ energy consumption
• Ohio: Ohio Gov. Mike DeWine encouraged the Ohio General Assembly to work quickly to regulate intoxicating hemp to prevent its sale to children; Gov. DeWine said in an interview that legal weed, with no place to purchase regulated cannabis, has created a “goofy situation” and “is fostering a bigger black market”; Hemp farmers: Future uncertain with no plan from Ohio lawmakers on adult-use
• Oklahoma: Oklahoma senator modifies bill that would make it a felony to expose children to secondhand marijuana smoke.
• South Dakota: The South Dakota Senate passed SB71, an Act to remove a prohibition on the ability of law enforcement and various governmental entities to inspect, search, seize, prosecute, or impose disciplinary action on cannabis dispensaries, cultivation facilities, manufacturing facilities, and testing facilities.; SD bill seeks to ban unregulated cannabis products.
• Tennessee: Advocates are collecting comments on proposed Tennessee hemp regulations.
• Virginia: The Virginia Cannabis Control Authority (CCA), which assumed oversight of Virginia’s medical cannabis program from the Board of Pharmacy as of January 1, has promulgated regulations to govern medical cannabis operations in Virginia.
• Wisconsin: A proposal by Assembly Republicans would create the Office of Medical Cannabis Regulation in the Department of Health Services. Policy experts discuss cost, accessibility, other details in Assembly GOP medical marijuana plan.

Cannabis Abroad

• The newest version of the Canadian Free Trade Agreement (CFTA) has now been expanded to include trade in non-medical cannabis, but cross-province sales not likely any time soon.

  • What’s the ideal approach to regulating cannabis? After five years of recreational cannabis legalization, many industry observers believe that Canada’s regulatory environment is lagging behind both industry requirements and societal expectations.

• Germany’s health minister says marijuana legalization vote on track for next month despite growing criticism in parliament.

Business, Banking, Insurance

• Michigan Chamber Of Commerce Calls On Congress To Pass Marijuana Banking Bill (SAFER Banking Act), Citing Raft Of Retail Break-Ins.
• The following 2024 NCSL table includes states that have some kind of statutory or constitutional language requiring employers to not refuse employment or otherwise discriminate against a qualifying medical cannabis patient (or medical cannabis “cardholder” in some states).

Other Noteworthy Updates

• The National Association of State Departments of Agriculture (NASDA) sets its federal policy focus for 2024 – they include the 2024 Farm Bill, food safety, labor reform, pesticide regulation and PFAS.
• What Overturning Chevron Could Mean for Cannabis.
• Does using weed make you a nicer person? Results can vary. The findings, published in the Journal of Neuroscience Research, suggests there could be a connection between cannabis use and empathy. (The Washington Post).
• In this study evaluating the use of CBD in children with infantile epileptic spasms syndrome (IESS), 19/28 (67.8%) had a more than 50% epileptic spasms reduction with good tolerability.
• The global market for cannabis testing services is expected to grow at a Compound Annual Growth Rate (CAGR) of 14.23%, projecting an increase from US$1.7 billion in 2023 to US$4.4 billion by the end of 2030.
• The Rise of CBD in the Wellness Industry.
• A study highlights several cases of individuals experiencing seizures or seizure remission following psychedelic use, with the overall trend being that psychedelics are safe for use in a controlled, supervised clinical setting.
• Marijuana: Everything You Need To Know About How It Affects Health (Forbes).
• A review of existing evidence on the efficacy of medicinal cannabis has found benefits in the treatment of neuropathic or nerve pain associated with conditions such as multiple sclerosis, diabetes or spinal cord injury.
• Dogs given CBD see ‘significant reductions’ in stress and anxiety regarding riding in cars, study finds.

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We would be happy to assist you in any of you 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.