CANNASWEEP

March 2025

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

• New court documents are said to provide new evidence of the US Drug Enforcement Administration’s bias against cannabis rescheduling, a process which it is overseeing.
• Will marijuana rescheduling happen under Trump? Industry’s doubts grow.

Executive Branch/Enforcement

• The White House announced Terrance Cole, of Virginia, to be Administrator of Drug Enforcement.
• The Food and Drug Administration warned a California cannabis company that its injectable hemp CBD could be posing “serious harm” to public health, telling the company that its product is violating federal law.

U.S. Congress

• The No Deductions for Marijuana Businesses Act, proposed by U.S. Sens. James Lankford and Pete Ricketts, would codify the application of Section 280E of the Internal Revenue Code against cannabis businesses operating in compliance with state laws – even if marijuana were to be reclassified as a Schedule 3 drug under the Controlled Substances Act. Elimination of the 280E tax burden is by far the biggest impact a Schedule 3 classification would have on the cannabis industry (Op-ed).
• U.S. Senate passed the Halt All Lethal Trafficking of Fentanyl (HALT) Act (S. 331) in an 84-16 vote. The bill now heads back to the House for a procedural vote where it’s expected to pass again and then it will advance to President Trump who is expected to sign it into law. 
• Rep. Jack Bergman (R-MI), co-chair of the Psychedelics Advancing Therapies (PATH) Caucus, spoke with Marijuana Moment about the momentum behind psychedelics reform in the new Congress.

The States

• MMJ.com Reports The Top 5 Fastest-Growing Medical Marijuana States in 2025: Patient Enrollment is Booming.
• Alabama: Alabama businesses continue to push back against bill regulating THC hemp products.
• California: California’s total ban on products with any detectable level of hemp-derived THC is poised to continue until at least June; The U.S. Forest Service has informed California’s Department of Fish and Wildlife that it will not be able to proceed with a nearly $1 million grant awarded by the state for the purpose of removing waste left by illegal cannabis cultivation sites on federal lands; The Department of Cannabis Control (DCC) is providing notice to the public of its intent to revise existing regulations to remove redundant and duplicative provisions; streamline operational and administrative burdens for licensees and the Department; and establish minimum sanitation standards.
• Colorado: Consumer Alert – Be Aware of Natural Medicine Fraud & Scams.
• Florida: For the third year in a row, Florida lawmakers have begun debating a proposal to regulate THC-derived hemp products, which have evolved into a multibillion-dollar industry in the Sunshine State; Florida House and Senate panel have approved sweeping agriculture legislation that, among other changes, would explicitly outlaw the distribution of psychedelic mushroom spores and mycelium.
• Georgia: The ‘Wild West’: What Georgia learned from Colorado’s cannabis experience
• Hawaii: A Hawaii House committee has amended and passed a Senate-approved bill to support clinical research on psychedelic-assisted therapies using substances such as psilocybin and MDMA.
• Idaho: Will Idaho legalize medical marijuana? State lawmakers open discussion
• Illinois: The Illinois Department of Public Health (IDPH) released its February 2025 medical cannabis sales totals. Retail sales of medical cannabis for February slumped to $19,748,199.87, which was the lowest total since June 2019. This followed January 2025 totals of $21,459,882.77, which was the lowest total since July 2019.
• Kansas: Two marijuana bills introduced at Kansas statehouse.
• Maryland: The Maryland Senate committee has passed a bill to protect for fire and rescue workers from being penalized for off-duty use of medical marijuana; The Maryland Office of the Comptroller reported that the state collected nearly $73 million in tax revenue from adult-use cannabis sales in 2024, with $17.6 million generated in the final quarter.
• Massachusetts: Jordan Wellington hosts Shawn Collins of the Homegrown Consulting Group for a discussion about the cannabis policymaking process. 
• Michigan: Michigan cannabis sales for February fell from a year ago and fell sequentially by 2.4%, which was up on a per-day basis. At $241.3 million, sales were down 7.6% from a year earlier.
• Minnesota: Minnesota considers ‘bong water’ to be a controlled substance; MN cannabis business application system shuts down hours before licensing deadline; Judge rules Minnesota can prosecute marijuana crimes on reservations even after legalization; Move to require taxes, more transparency over tribal cannabis compacts fails in Senate committee.
• Mississippi: Senate debates access to hemp-based consumable products including drinks.
• Missouri: Lawmakers vote down a second bill to regulate intoxicating hemp products in Missouri; The Missouri Division of Cannabis Regulation has recently communicated a change in its interpretation of the Missouri Constitution, impacting the ability of medical marijuana patients to purchase as adult use consumers; DHSS solicits proposals for a Missouri cannabis market study.
• New Jersey: Proposed NJ bill could allow medical cannabis for sickle cell patients; A former New Jersey Senate leader who’s now running for governor says “it is time” to give medical marijuana patients an option to grow their own cannabis plants for personal use.
• New Mexico: New Mexico bill proposes health coverage for medical marijuana; A New Mexico House committee has approved a Senate-passed bill to establish a therapeutic psilocybin program in the state.
• New York: New York State has formally launched a grant program that will award up to $30,000 apiece to retail marijuana businesses to help cover startup costs; New York state office of cannabis management promotes safe cannabis storage during national poison prevention; NYS Senator Murray and Assemblywoman Giglio Release Statement in Response to Recent Edible Gummy Consumption Issues Involving Children; A coalition of 60 drug policy reform, civil rights and community organizations is calling on New York policymakers to block an attempt to make the odor of marijuana a pretext for police to force motorists to take drug tests—and it’s also pushing for policies that prioritize harm reduction, including expanded access to safe consumption sites for illegal substances.
• North Carolina: Major tax revenue, job creation cited in renewed push to legalize marijuana in NC.
• Ohio: Cannabis-beverage bill clears House committee; Ohio lawmakers’ push to change voter-passed marijuana law would curtail consumer rights and reinstitute criminalization, advocates say; State lawmakers are preparing to dump Gov. Mike DeWine’s proposed tax increases on cigarettes, marijuana, and sports gambling from the state’s budget bill in the next couple weeks.
• Oklahoma: Trump Administration drops opposition to Oklahoma’s tough anti-illegal immigration law. “As we had hoped and anticipated, President Trump and the DOJ have taken action that will enable Oklahoma law enforcement to crack down on the illegal marijuana operations that have infested our state,” Drummond said.
• Pennsylvania: The Pennsylvania House of Representatives has approved a bill meant to strengthen safety standards and oversight of the state’s medical marijuana program as lawmakers separately work to advance adult-use legalization; As Pennsylvania lawmakers once again consider proposals to legalize marijuana, the governor is emphasizing that the state is “losing out” to others that have already enacted the reform, while maintaining a policy that’s enriched the illicit market.
• South Dakota: South Dakota governor signs bill loosening one of nation’s harshest drug laws.
• Texas: The ongoing debate over a proposed Senate Bill 3, which seeks to ban THC in Texas, has reignited amid delays from both regulating bodies and legislators; A Texas senator has introduced a bill to require studies on the therapeutic potential of psychedelics in the treatment of serious mental health conditions.
• Utah: A majority of Utah voters support legalizing adult-use marijuana in the state, according to a new poll.
• Virginia: With Virginia Gov. Glenn Youngkin (R) widely expected to veto a lawmaker-passed plan to legalize retail marijuana sales in the commonwealth, a new fiscal impact statement makes clear that rejecting the proposal would mean missing out on tens of millions of dollars in annual state revenue—including for pre-kindergarten programs, community reinvestment and substance use treatment.
• Washington: Should cannabis be treated like wheat or hops? Washington bill could reshape industry.
• Wyoming: Wyoming paid to settle a lawsuit brought by a hemp farmer whose crop was seized by law enforcement agents based on erroneous allegations she grew and trafficked marijuana, court filings show.

Cannabis Abroad

• The United Nations Commission on Narcotic Drugs (CND) has voted to ban the marijuana component hexahydrocannabinol (HHC) under an international treaty, with every country present except the United States casting a vote in favor of placing the substance under Schedule II of the 1971 Convention on Psychotropic Substances.
• Canada: Health Canada has published their scheduled updates to the Cannabis Regulations, Hemp Regulations, and Cannabis Act, streamlining some aspects of the regulations to benefit the legal cannabis market.
• UK: King Charles has turned to medicinal cannabis as a cure for killer cancer
• Netherlands: Dutch government presses ahead with cannabis experiment despite strong opposition
• EU: European Union clarifies that hemp-derived CBD is permitted in cosmetics.
• Australia: A cross-party parliamentary committee in Victoria has recommended decriminalizing the cultivation and possession of small quantities of cannabis after finding a similar move in the Australian Capital Territory has not triggered any significant issues.
• Moldova: Moldova grants first authorization for hemp cultivation, ushering in a new era

Business, Banking, Insurance

• High Tide Reports First Quarter 2025 Financial Results Featuring Record Revenue of $142.5 Million.
• Charlotte’s Web Reports 2024 Fourth Quarter and Year-End Financial Results.

Research

• Cannabis Use Linked to Epigenetic Changes, Scientists Find.
• CBD oil could serve as a viable, plant-safe biopesticide, offering a promising alternative to traditional synthetic pesticides.
• A receptor that cannabis latches onto in the brain could be a promising target for future mental health treatments.
• New federally funded research examining drug policing and overdose data out of San Francisco suggests that law enforcement-related drug seizures are associated with increases in nearby opioid-related overdose deaths immediately following the police actions.
• Study reveals what cannabis does to your brain – and the risks it poses to young adults.
• AAA Conducts Surveys to Reduce Driving After Cannabis Use.
• Scientists Just Found a THC-Free Cannabis Compound That May Replace Opioids.
• Three in four young adults say they use marijuana as an alcohol alternative at least once a week, survey finds.
• Newly published research suggests that mouthwash containing cannabidiol (CBD) and another botanical extract could be a useful tool for promoting oral health, controlling bacteria and reducing inflammation.
• Ending drug testing for marijuana during pregnancy ‘improved racial parity’ without harming babies, American Medical Association study says.
• Medical marijuana is ‘a cost-effective adjunctive therapy’ for PTSD, new study shows.

Other Noteworthy Updates

• Most commercially available hemp-derived intoxicating products are infused with synthetic cannabinoids, including novel cannabinoids like THCP and HHC, according to an analysis of 104 products by the San Diego/Imperial Counties Joint Labor Management Cannabis Committee (NORML).
• Bill Burr Credits Mushrooms For Improving His Personality.
• Weed raids are happening, even with federal reform.
• America’s Marijuana Legalization Experiment Is Going Up in Smoke (Newsweek).
• Marijuana consumers are self-reporting higher levels of stress since President Donald Trump was inaugurated compared to the overall population, according to a new survey.

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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.