CANNASWEEP

November 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. 

Cannabis Rescheduling/Descheduling

• Navigating the Double-Edged Sword of Federal Cannabis Legalization
• A marijuana and psychedelics researcher has filed a lawsuit in federal court alleging that the Drug Enforcement Administration (DEA) violated multiple laws in setting a hearing to further consider the Biden Administration’s cannabis rescheduling proposal—and he’s asking for an order halting the proceedings until those issues are resolved.

Executive Branch/Agencies and Election

• What Does Trump’s America Mean for Cannabis?
• Trump nominates Robert F. Kennedy Jr. (RFK Jr.) for Department of Health and Human Services (HHS) secretary (Politico).
• RFK Jr. could Advance Marijuana and Psychedelics Reform Agenda As Trump’s Top Health Official.
• Trump Nominates Pro-Marijuana Congressman Matt Gaetz As Attorney General.
• Republican lawmakers will get a chance to prove whether the GOP is good for cannabis
• A pair of newly announced government grants totaling more than half a million dollars will fund research into hemp, marijuana, and processes to differentiate the two forms of the cannabis plant from one another.
  • One grant, of $300,000 to the National Institute of Standards and Technology (NIST), will fund the agency’s evaluation of the chemical composition of commercially available hemp-derived vape products, part of an effort to better understand their makeup and the accuracy of product labels.
• Hempitecture, a leading innovator in sustainable building materials, announced its selection by the U.S. Department of Energy (DOE) to receive $8.42 million in funding under the Biden-Harris Administration’s Investing in America agenda.
• Former President Donald Trump’s endorsement of a Florida marijuana legalization ballot initiative failed to convince his voters to get on board, according to a new poll showing that a vast majority of opposition to legalizing cannabis in the Sunshine State came from Trump supporters.
• Trump Chief of Staff: According to the New York Times, Susie Wiles worked for Ballard Partners, a Florida-based lobbying firm that represents Trulieve, the mega cannabis company whose female CEO Kim Rivers reportedly met with Trump just before he announced he would be voting in favor of Florida’s measure to legalize cannabis on the November ballot. 
• Chris Christie Says Trump Will Remove Federal Restrictions On Marijuana.
• The U.S. Department of Agriculture (USDA) is delaying enforcement of the requirement for hemp produced under the USDA Domestic Hemp Production Program to be tested by laboratories registered with the Drug Enforcement Administration (DEA). Due to inadequate DEA-registered laboratory testing capacity, testing can be conducted by labs that are not DEA registered until Dec. 31, 2025.

U.S. Congress

• The new Senate majority leader, who will set the legislative agenda, Sen. John Thune (R-SD, has not embraced ending prohibition, and has a track record of expressing concerns about cannabis use or even moderate policy reforms such as those endorsed by President-elect Donald Trump on the campaign trail.
• Rep. Morgan Griffith (R-Va.) is working on new legislation that would give the Food and Drug Administration explicit authority to regulate hemp-derived products and propose new labeling and manufacturing quality requirements.

The States

• 4 states had cannabis on the ballot Tuesday: Here’s what happened (The Hill; Newsweek)
  • Ballot measures to legalize recreational use of cannabis fail in Florida, North Dakota and South Dakota (The Conversation)
• Arkansas: Arkansas agency proposes more community notice, public input before placing medical marijuana dispensaries
• California: Attorney General Bonta Raises Awareness of Intoxicating Industrial Hemp-Infused Food Products and Highlights New Emergency Regulations
• Florida: Florida’s  marijuana measure fails, and lawmakers unlikely to make change; Florida GOP Lawmaker Weighs Marijuana Home Cultivation Bill After Ballot Measure Failure, But Leaders Oppose Reform; DeSantis, Trump, state lawmakers: What’s next for marijuana in Florida?
• Georgia: Marijuana restrictions could soon be eased in US | What it means for Georgia
• Idaho: Idaho Activists File Cannabis Legalization Ballot Measure For 2026
• Illinois: Marijuana social equity transporters in Illinois file civil rights complaint; Hemp businesses advocating for responsible industrywide regulations urge members of the Joint Committee on Administrative Rules to reject an Illinois Department of Agriculture proposed rule regulating hemp; Municipal and county cannabis retailers’ occupation tax rate to change Jan. 1
• Iowa: Opinion – Iowa created a consumable hemp crisis with lawmakers’ overreach
• Maine: Maine Office of Cannabis Policy Issues Health and Safety Recall for Adult Use Flower Produced by Leb City Greeneries
• Maryland: Baltimore voters have approved a local ballot initiative to create a city fund meant to support communities that were disproportionately impacted by marijuana prohibition before the state enacted legalization. The initiative will be supported by tax revenue from cannabis sales;Town Hall this Thursday: The Washington County Office of Budget and Finance, on behalf of the Maryland Office of Social Equity (OSE), is sharing information about a town hall in Hagerstown hosted by OSE to discuss the Community Reinvestment and Repair Fund (CRRF).
• Michigan: Michigan cannabis firm pushes back against ‘defamatory’ allegations from state regulators – Trucenta pledged to cooperate with state investigators after it was accused of trying to deceive inspectors
• Minnesota: Online applications are now open for anyone wanting to grow or process hemp in Minnesota in 2025. A license from the Minnesota Department of Agriculture (MDA) is required for individuals and businesses.
• Missouri: Appeals court rules counties cannot stack Missouri marijuana taxes – Counties cannot collect a 3% local tax allowed for adult use within incorporated areas, the Eastern District decision states.
• Nebraska: Nebraska voters approve legalization of medical marijuana. Here’s what to know; A paid petition circulator for Nebraska’s two successful medical cannabis ballot measures pleaded guilty Friday to a misdemeanor and a $250 fine, down from an initial felony charge; Medical cannabis prevails at Nebraska’s ballot box, but fate depends on legal challenges
• New Jersey: Cannabis agency announces new statewide hemp ban will be enforced; Retailers still waiting for cannabis officials to move forward with consumption lounges
• New Mexico: Nearly three and a half years after New Mexico’s governor signed legislation legalizing marijuana for adults, a Bernalillo County commissioner has announced plans to introduce a local measure that would treat off-duty cannabis use by government employees more like alcohol use.
• New York: The 60-day public comment period for the proposed Public Convenience & Advantage regulations is open until Mon, 12/23. These updated regulations allow the Office to consider changing distance rules between dispensaries if it benefits the community; The New York state Office of Cannabis Management approved a six-month extension for provisional licenses for retailers with former marijuana convictions who want to open a recreational store
• Ohio: Panel of Ohio lawmakers from both parties talk next moves for legislature in lame duck and beyond – “We’re going to see if the governor is more into fiscal responsibility or if his opposition to both gaming and marijuana is going to not have him look at those two sources of funding for the state when all this federal money is no longer here,” DeMora said; Ohio Republican lawmaker wants to prohibit selling intoxicating hemp products; A Republican state senator pitched legislation that would ban the sale of intoxicating hemp – smoked, edible or other products that are often marketed as marijuana-adjacent and sold at gas stations and convenience stores.
• Oklahoma: Watch as our Director of Government Affairs breaks down the latest emergency rules, proposed permanent rules and public comment opportunities.
• Oregon: The Lesson from Oregon: Drug Decriminalization Is a Partial Solution, at Best (Cato Institute)
• Pennsylvania: Following last week’s election in which Democrats retained control of Pennsylvania’s House of Representatives, Majority Leader Matt Bradford (D) says there’s a “will in the House to move forward” on marijuana legalization in the next session, though he noted that the push could run into opposition in the GOP-controlled Senate; Pennsylvania’s secretary of health has rejected a pair of proposals that would have expanded the types of medical professionals who could recommend cannabis to patients.
• Tennessee: Advocates Worry About Future of Hemp Sales Amid New State Rules – New rules from the Tennessee Department of Agriculture limit the distribution of certain hemp products
• Texas: Texas Cannabis Election: Dallas, Lockhart, Bastrop Voters Say Yes To Marijuana Decriminalization
• Vermont: An application window for Tier 2 cultivation licenses closed late last month as part of a temporary licensing pause in response to concerns from regulators about market saturation in Vermont’s cannabis industry.

Cannabis Abroad

• UK: The Advisory Council on the Misuse of Drugs responds to the government on their proposal to amend the licensing regimen for industrial hemp.
• Australia: Tasmanian independent MP Craig Garland returns positive roadside cannabis test
• Canada: United States Federal Cannabis Reform is on the Horizon: What are the Implications for Canada
• Philippines: Lawmakers have dared former President Rodrigo Duterte to attend the next hearing of the House of Representatives quad committee on the drug war following his threat to “kick” its members.
• Poland: The Polish Parliamentary Committee on Petitions recently considered a petition seeking to decriminalize cannabis. The committee decided to send a formal request on the matter to Prime Minister Donald Tusk.
• Ireland: Taoiseach Simon Harris has pushed back on proposals from both Fianna Fáil and the Green Party to liberalize Ireland’s drug laws, saying that he is concerned about moving to decriminalizing drug taking.
• Italy: Italy plans to restrict nascent ‘cannabis light’ industry

Business, Banking, Insurance

• The nation’s largest cannabis company, Curaleaf, says it is already engaging with Donald Trump’s transition team, betting the president-elect’s pro-business stance and campaign promises could revive an industry rattled by Florida’s failed legalization bid and ongoing federal prohibition.
• As more states aim to legalize marijuana, Here’s what federal employees need to know. For example, federal employees are still subject to drug testing and are not protected under their state labor or cannabis laws.
• Pot stocks dive as Florida rejects legalization of recreational marijuana (Reuters; New York Post)
• 420 with CNW — Cannabis Stocks Retreat as Rescheduling Hearing Slated for December
• Hemp Market Surge: How New Regulations Could Impact Growth
• Cresco Labs Demonstrates Success of Cash Flow Focused Strategy with Third Quarter 2024 Financial Results
• Agrify Corporation Announces Plans to Acquire the Señorita Brand of THC Beverages
• Canopy Growth Reports Second Quarter Fiscal Year 2025 Financial Results
• Innovative Industrial Properties Reports Third Quarter 2024 Results
• Leafly Holdings, Inc. Reports Third Quarter 2024 Financial Results
• Cronos Group Reports 2024 Third Quarter Results
• AWH Reports 2024 Third Quarter Results

Other Noteworthy Updates

• How Cannabis Use is Changing Across the U.S. – As voters weigh in on measures that would broaden marijuana access, recent data reveals unexpected trends in who uses it, and how (The New York Times).
• Cannabis can help some people – but not everyone – sleep: Study explains THC can help young adults with depression or anxiety but otherwise could worsen sleep problems (The Guardian).
• How to handle pot: Licensed lounges. Clearer labels. FDA regulation. – Opinion (The Washington Post)
• People with a history of cannabis use are less likely than non-users to be obese, according to data published in the journal Cannabis and Cannabinoid Research.
• Significant proportions reported cannabis use led to “less” alcohol (60%), synthetic cannabinoid (60%), morphine (44%) and methamphetamine (40%) use. Those who reported using “less” had lower frequency and amount used of other drugs.
• A notable and significant decrease in symptoms related to depression and anxiety at the time of cancer diagnosis, improvement in quality of life, and improvement in psychological well-being were seen through the use of psilocybin as an adjuvant treatment.
• Cannabis-based products for medicinal use (CBPMs) and cannabis-based medicines (CBMs) improve the fibromyalgia symptoms.
• A new study led by the one of the only people permitted by the U.S. government to grow marijuana for research purposes finds that cannabis available across the country is “basically the same” in terms of its primary cannabinoid content.

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If you are interested in exploring commercial opportunities in the cannabis space, we would be happy to assist you with 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.