CANNASWEEP 

WEEK OF March 8, 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.  

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

• Sen. Fetterman (D-PA): Biden admin. making “a mistake” by exempting military from marijuana possession pardons. 
• FDA is reading Instagram and Facebook posts to figure out the health benefits of marijuana, not kidding. FDA is drawing attention to its scientific examination of marijuana, which prompted the agency to propose rescheduling. This involved a thorough analysis of research findings, as well as the examination of numerous social media posts to understand how consumers perceive the therapeutic effects of cannabis. The FDA’s efforts to reach a scheduling decision also involved a team of social scientists who spent six months conducting a detailed qualitative analysis of online and social media discussions surrounding marijuana.  
• Creating a Symbol of Best Practices in Cannabis Regulatory Standards – The failure of regulators to agree on a standardized symbol poses a significant public health risk. A harmonized symbol can help people of all ages and backgrounds to identify cannabis products rapidly and accurately. 
• National Highway Traffic Safety Administration’s Review of Technology to Prevent Alcohol-and Drug-Impaired Crashes (TOPIC) Report: Presently, the sensitivity and specificity of the systems have not been described in a robust research literature. 

U.S. Congress  

• Bicameral congressional leaders have released a spending package that contains a number of marijuana-related items—including bill provisions preserving protections for state medical cannabis programs and report language that calls for the federal government to study state legalization laws and expand scientists’ access to commercially available cannabis for research (Commerce, Justice, Science, and Related Agencies measure and appropriations bill). 
• Sen. Maria Cantwell (D-WA) tweeted, “Last year there were more than 50 robbery attempts at marijuana dispensaries in the State of Washington. This bill [the SAFER Banking Act] will take the target off the backs of our state’s dispensaries by updating federal banking laws so they don’t have to do all their business in cash.” 
• Is Mitch McConnell Stepping Down Good For Marijuana Reform? It Depends Who Replaces Him. 

• Rep. Van Orden (R-WI-3) met with the Coulee Veterans Coalition Board, stating, “Medical Marijuana never should have been illegal to begin with. I’m not on board with recreational marijuana right now but medical Marijuana works for some people, therefore we should make sure it’s available for veterans. We need to look at every single possible treatment modality that’s been proven effective to prevent veterans from committing suicide and we need to do them.” 

Cannabis Rescheduling/Descheduling 

• Rescheduling marijuana would be a huge threat to public health (Bloomberg Law) 
• Cannabis rescheduling would ‘continue the very criminalization that Biden said he would end’, according to leading US advocacy groups that have urged the government to go further. Drug Policy Alliance (DPA) held a virtual press conference alongside a number of other prominent advocacy organizations and business groups, arguing that cannabis needs to be removed entirely from the CSA. 
• Cannabis Legalization Efforts: How Far Did They Reach in 2023? How High Can They Go in an Election Year? (National Law Review) 

The States  

• Arizona: Artificial Intelligence can transform, maximize cannabis industry 
• California: The Department of Cannabis Control (DCC) is issuing this consumer advisory due to the presence of Aspergillus sp., in Grizzly Peak Premium Indoor Flower products; Corruption allegations highlight risk-reward of limited cannabis licenses; Department of Cannabis Control—Legal and Administrative Hearing Costs 
• Delaware: Commissioner Coupe and Rep. Osienski discuss the timeline for recreational marijuana, upcoming cannabis bills, and other issues. 
• Florida: House poised to allow more THC in hemp extract than Senate-passed bill permits 
• Georgia: ‘Gas’ Station: Convenience and Cannabis. Is delta-8 really legal? 
• Hawaii: Hawaii Senate Passes Recreational Marijuana Legalization Bill, Sending It To Floor Vote Expected Next Week. 
• Idaho: Idaho bill proposing $420 mandatory minimum fine for marijuana possession goes up in smoke. 
• Illinois: The Illinois Criminal Justice Information Authority (ICJIA) released a notice of funding opportunity to provide Restore, Reinvest, and Renew (R3) programming in historically underserved Illinois communities. R3 provides 25% of Cannabis Regulation and Trust Act tax revenues in grants to restore communities impacted by economic disinvestment, violence, and the severe and multilayered harm caused by the war on drugs. 
• Iowa: Iowa Medical Cannabis industry feels the impact of lax hemp regulations. 
• Kansas: Farming hemp could get easier in Kansas. HB 2168 would lower the barrier for farmers looking to grow hemp by reducing the maximum license and registration fee. 
• Kentucky: How will Kentucky’s medical marijuana program be regulated? Here’s where things stand; Medical marijuana eligibility would expand in Kentucky under a new GOP bill; Official: Legalization of medical marijuana could increase DUI rates 
• Maine: A Maine lawmaker is fighting current cannabis laws and how they are enforced across the state. 
• Massachusetts: MassHire Career Center released a workforce issuance to ensure staff time, benefits, and the following services are not being supported or provided utilizing federal funding in relation to or on behalf of the marijuana industry. 
• Michigan: The Michigan Department of Treasury announced that more than $87 million is being distributed among 269 municipalities and counties as a part of the Michigan Regulation and Taxation of Marijuana Act. Here’s how much money local municipalities are receiving from the marijuana tax. 
• Minnesota: Minnesota issues Dual-Training Pipeline Competency Model for Legal Cannabis Industry. 
• Missouri: Hearing on recall of 60,000 Missouri marijuana products set to begin. The heart of the argument is whether delta Extraction violated state law by selling THC concentrate derived from out-of-state hemp; VIDEO: State Division of Cannabis Regulation issues new packaging rules; Timeline for second round of cannabis microbusiness licensing announced. 
• Nebraska: LB262 clears first round. It would clarify and combine terms within the Nebraska Pure Food Act to align with the federal Food and Drug Administration Food Code. An amendment includes provisions of a proposals introduced by the committee: one would remove conflicts between state law and the USDA Final Rule implementing the hemp provisions of the 2018 Farm Bil. 
• Nevada: Nevada Cannabis Compliance Regulations (NCCR) are being revised to incorporate changes from the 2023 legislative session, establish requirements relating to the packaging and labeling of cannabis, clarify advertising requirements, and other matters. 
• New Mexico: Governor signs bill strengthening New Mexico cannabis regulations; Cannabis in New Mexico officially a billion-dollar industry – Sales top $1 billion, $75 million excise tax reported through January. 
• New York: Practitioners’ rights to discuss the use of medical cannabis with patients are now protected, thanks to measures taken by both federal and New York State governments – NYS Office of Cannabis Management; Governor Hochul tweeted, “I’m calling on tech companies to make it clear where consumers can find licensed cannabis shops, instead of unlicensed vendors that undermine our legal market. The vast majority of consumers want to buy safe, tested product, so let’s make it easier for them to do it!”; The Office of Cannabis Management said rules governing cannabis special event permits are currently being drafted, and that the agency hopes to have them out for public review in the next few weeks – or months. 
• North Carolina: Eastern Band of Cherokee cannabis dispensary to open on 4/20; 2 US Senators Urge DEA, Other Agencies to ‘Uphold’ Law on Tribal Cannabis Sales in North Carolina. 
• Oklahoma: Oklahoma medical cannabis is frequently less potent than advertised, according to the manager of licensed lab Havard Industries. 
• Oregon: After months of discussion, Oregon Legislature sends drug addiction proposal to Gov. Kotek. 
• Pennsylvania: Pennsylvania Edges Toward Marijuana Legalization: Economic Boom or Safety Risk? 
• South Carolina: South Carolina’s restrictive medical marijuana bill – cannabis health expert concerned. The bill would only allow access for patients with specific conditions such as cancer, multiple sclerosis, glaucoma, sickle cell anemia, autism and diagnoses related to PTSD. 
• South Dakota: Bill to ban the widely available, hemp-derived “diet weed” products that induce highs similar to marijuana goes to the governor to sign; Gov. Noem signs SB 42, modifying provisions related to medical cannabis, into law. 
• Vermont: Vermont Lawmakers Consider Removing Psilocybin Legalization Provision From Psychedelic Study Group Bill. 
• Virginia: Virginia Dems push Youngkin to approve legal weed sales bill; If retail cannabis were legalized, it would be Virginia’s biggest cash crop; Commentary: For safety and equity, greenlight recreational marijuana sales; Virginia’s Rocky Road to Green: Navigating the Haze of Marijuana Legalization; Virginia Bill To Provide Marijuana-Related Resentencing Relief To Hundreds Of People Heads To Governor’s Desk. 
• Washington: The majority of marijuana waste in Washington ends up in the landfill. New legislation aims to redirect it; Washington Senate approves education on dangers of high-potency cannabis products. 
• Wyoming: Wyoming ban on delta-8, similar hemp products nears finish line. 

Cannabis Abroad 

• The International Narcotics Control Board (INCB) Reaffirms That Marijuana Legalization Violates International Treaties, While Addressing Germany Cannabis Reform And U.S. Psychedelics Movement in New Report. 
• A Roadmap for Cannabis Equity in Canada to Inform the Legislated Review of the Cannabis Act by the Centre on Drug Policy Evaluation. 
• New Thai government likely to crack down on both marijuana and CBD. 
• Germany: The Bundestag has decided on a controlled release of cannabis. Hesse wants to stop the implementation of the law in its current form; With the planned legalization of cannabis, Germany is violating international and European law, according to the Union parliamentary group leaders. 
• Philippine Senators: Ensure safeguards in medical marijuana bill. 
• EU-Italian funded project aims to develop hemp supply chains in Sicily. 
• Drew Harris says potent cannabis in Ireland ‘causing psychosis’, cocaine prices soaring 
• Netherlands: Rotterdam mayor calls for end to lax stance on middle-class drug use; Amsterdam will not take part in the regulated marijuana experiment which started last December in Tilburg and Breda, MPs agreed on Tuesday. The experiment aims to assess if cannabis cafes, or coffee shops, can operate legally by buying the soft drug from official growers. Coffee shops are currently licensed by their local authority but buy the drug on the illegal circuit. 
• Cambodia: PM affirms no marijuana legalization under his leadership. 
• South Africa: Cannabis bill sparks mixed reactions among stakeholders. 
• Malta: A total of 750 people have joined cannabis associations in their first month of operation, the Reforms Parliamentary Secretary said on Monday. Three legal cannabis clubs have each started distributing the drug to 250 members since the end of January. 

Business, Banking, Insurance 

• It’s 2024 And federal Law Still Does Not Protect Medical Marijuana Users From Getting Fired For Testing Positive (Mondaq). 
• Cannabis Tax Frenzy (Forbes). 
• Medical marijuana companies have stronger 280E argument: Former U.S. Justice Department’s Tax Division Official’s Opinion. 
• Navigating Hemp THC Beverages – beverage producers looking to enter this emerging market should become familiar with the ambiguities involved. 

• Options for buying a cannabis business in a dry capital market. 

Other Noteworthy Updates  

• 79% of Americans live in a county with legal cannabis dispensary (Pew Research). 
• Global standards organization ASTM International signed a memorandum of understanding (MoU) with the Federation of International Hemp Organizations (FIHO). The purpose of the MoU is to outline a framework of cooperation between ASTM and FIHO for the development of standards for industrial hemp. 
• Canadian study: Non-medical cannabis legalization was associated with a decline in beer sales in Canada, suggesting that consumers may be substituting non-medical cannabis for beer. However, there was no change in spirits sales following the legalization. 
• Powerful Psychedelic Gains Renewed Attention as a Treatment for Opioid Addiction – New research is stirring interest in ibogaine, which appears to help ease the agony of detox and prevent relapse. Used in other countries, it remains illegal in the U.S. (The New York Times). 
• Cannabis and weight loss drugs found to impact nuclear medicine gastrointestinal scans. 
• Investigating the Impact of Cannabis Consumption on Hospital Outcomes in Patients With Primary Spontaneous Pneumothorax: A Nationwide Analysis. 
• Brains Bioceutical Corp announced a significant breakthrough in the journey to a world’s first solid Tetrahydrocannabinol (THC) as an Active Pharmaceutical Ingredient (API). 
• Cannabis May Help Treat Melanoma Skin Cancer, New Study Suggests (Forbes). 
• Study: Vaporizing Cannabis Blend Effective for Sustained Migraine Relief. 
• CU Boulder study says CBD can quell anxiety. 
• New Study Reveals Marijuana Users Walk More, Challenging Lazy Stereotypes – this insight could reshape attitudes towards cannabis. 
• DaySavers Ultimate Stoner Dream Job. 
• Celebrities Embrace CBD for Wellness: Tyson to Kardashian Share Their Stories. 
• CBD Skin Care Market calculated Expansion to $3.5 Billion Market Value by 2026. 

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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.