CANNASWEEP

WEEK OF MARCH 22, 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. 

NOTE – CannaSweep will not be posting next week, as Congress will not be in session, but we will resume on the week of April 5

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

• Vice President Harris led a roundtable on marijuana reform.  “…I’m sure DEA is working as quickly as possible and will continue to do so and we look forward to the product of their work,” the vice president said. Other readouts of the roundtable below:
  • What Happened In VP Harris’s Marijuana Meeting At The White House After Media Left The Room, According To An Activist Who Was There
  • The White House tweeted, “President Biden and Vice President Harris believe no one should be jailed just for using or possessing marijuana. That’s why our Administration has pardoned tens of thousands of people for federal marijuana possession.”

  • US At Cannabis Crossroads: VP Harris Urges DEA Action, Where Do Industry Leaders Stand? (Benzinga)

• As White House Hosts Marijuana Pardon Recipients, It’s Time For Bolder Action From Biden (Op-Ed from Last Prisoner Project)
• A new report sent to Congress by The White House Office of National Drug Control Policy (ONDCP) spotlights concerns of state law enforcement agencies that claim marijuana legalization has not diminished the market for unlicensed cannabis products from illicit sellers. Marijuana is described as a major threat in states across the country, including those where cannabis has been legalized for medical or adult use.
• IRS Office of Chief Counsel issued a memo “A Legalized Substance Industry – Frequently Asked Questions” answering several questions regarding marijuana business in Q&A format.

U.S. Congress

• Rep. Barbara Lee (D-CA-12) tweeted, “This week, my #CannabisCaucus Co-Chair RepBlumenauer and I led a letter calling on POTUS to grant clemency to individuals incarcerated for nonviolent marijuana offenses. The American people demand an end to outdated cannabis laws.”
• Sen. Tommy Tuberville (R-AL) sees some medical benefits in marijuana but “I’m not for legalizing it, no.”
• Rep. Salud Carbajal (D-CA-24) tweeted, “Recreational marijuana has been legal for nearly a decade in CA, but farmers like Farming First are still forced to operate in legal limbo. As a co-sponsor of the SAFER Banking Act, I’m committed to normalizing business operations for Central Coast cannabis growers.”
• Senate Banking Committee Chairman Sherrod Brown (D-OH) and House Majority Whip Tom Emmer (R-MN) reaffirm support for the marijuana banking bill.

Cannabis Rescheduling/Descheduling

• In a new federal court filing, Verano Holdings Corp. and the Massachusetts-based cannabis businesses Canna Provisions and Wiseacre Farm, along with Treevit CEO Gyasi Sellers, argue that ongoing broad cannabis prohibition has “no rational basis,” pointing to the government’s largely hands-off approach to the recent groundswell of state-level legalization.
• DEA’s 5-Factor Test Makes Rescheduling Cannabis Impossible – After HHS used its own two-part test to determine the plant’s ‘currently accepted medical use,’ rescheduling opponents urge DEA to keep its five-part test.
• Sen. Cory Booker (D-NJ) on DEA rescheduling marijuana soon: “I have heard a lot about it…I do not want to comment on that” and also makes a case for SAFER Banking Act even if cannabis is rescheduled.
• Biden Says He’s ‘Taking Care’ Of Federal Cannabis Laws, But Is Rescheduling Enough? (Forbes)

Farm Bill

• State attorneys general urge Congress to address risks posed by intoxicating hemp products – Congress legalized hemp under the 2018 farm bill, touting it as a boon for struggling farmers. But the market has become increasingly dominated by intoxicating products that are largely unregulated (Politico) (Hemp Today).
• The National Conference of State Legislatures said the Farm Bill Is a Safety Net in an Uncertain Ag World. The bill’s crop insurance program mitigates potential financial risks of adverse market and growing conditions. They further mention, “the crop insurance title in the 2018 farm bill increased reference prices for the majority of the acres covered by the FCIP and improved coverage options. The 2018 bill also authorized coverage for industrial hemp crops.”

The States

• Alabama: Alabama Medical Cannabis Commission proposes rules to facilitate patient access
• Alaska: Alaska House Panel Takes Testimony On Bill To Create Psychedelic-Assisted Therapy Task Force Ahead Of Federal Rescheduling
• Arizona: Arizona State Attorney General Kris Mayes has weighed in with a legal opinion on the sale of intoxicating hemp-derived products in her state; Why is delta-8 illegal in Arizona? What parents should know about the drug.
• Arkansas: Sanders adviser heads group trying to defeat proposed constitutional amendments on abortion, medical marijuana.
• California: California’s notoriously strong cannabis is suddenly getting weaker
• Connecticut: Attorney General William Tong and Consumer Protection Commissioner Bryan Cafferelli announced the launch of a public service announcement regarding illegal, unsafe cannabis edibles made to look like common kid-friendly snacks; Connecticut Employers Can Terminate Employees Impaired by Medical Marijuana While Working & Appellate Court Also Provides Guidance for Reasonable Suspicion Drug Tests; Lawmakers disagree on marijuana’s role in CT traffic deaths. Here’s what each side is saying.
• Florida: Florida Bill Banning Delta 8 Sent to DeSantis to sign or veto. The bill also bans hemp-derived cannabinoids HHC, delta 10 THC, THC-O, THCP, and THCV, and all synthetic cannabinoids. It also prohibits products that could be confused with food items like snacks or candy, and bans hemp product packaging defined as “attractive to children;”
• Hawaiʻi: Hemp farmers face uncertainty as marijuana legalization bill moves forward. It creates a new regulation authority that will cover both cannabis and hemp called the Hawaiʻi Hemp and Cannabis Authority.
• Iowa: Iowa lawmakers target hemp businesses with new legislation. The amendment would add restrictions on tetrahydrocannabinol concentration (THC) in products that are no more than two milligrams per serving and 10 milligrams per container.
• Kansas: Kansas lawmakers could again debate medical weed. Here’s why it has failed before; New Kansas Senate Bill To Create Limited Medical Marijuana Pilot Program Draws Early Criticism From Advocates.
• Kentucky: Businesses ready to go on Kentucky medical marijuana. Why can’t they proceed; Kentucky House Votes To Bar People With Some Drug Convictions From Enrolling In Medical Marijuana Program; Gov. Beshear was joined by Sam Flynn, executive director of the Kentucky Medical Cannabis Program, to announce significant progress as the program builds technical capabilities and a regulatory framework ahead of the full implementation of Senate Bill 47, which goes into effect Jan. 1, 2025;
• Maine: Maine Legislature attempting to rectify criminal records post marijuana legalization. The Judiciary Committee heard proposals that would seal records as well as make a permanent committee to review issues with expunging criminal records.  Maine lawmakers are considering bills (L.D. 2236, L.D. 2269, L.D. 2218) that would hide from view some criminal records, particularly for low-level marijuana-related offenses committed before the drug was legalized.
• Maryland: The Maryland Cannabis Administration (MCA) has opened the doors to its first-of-its-kind in the nation state reference laboratory. Industry stakeholders say the extra layer of oversight will be a positive for cannabis operators and customers.
• Massachusetts: Gov. Healey will pardon all simple marijuana possession charges in Massachusetts — helping hundreds of thousands of people who’ve faced charges in a state where marijuana is now legal
• Minnesota: Why Minnesota is choosing its words carefully – when the state of Minnesota legalized adult-use cannabis last year, legislators made a subtle change to the books: they struck most mentions of “marijuana” and swapped it out for “cannabis;” Proposed changes to Minnesota’s cannabis law have one eye on the future market and one eye on the courts.
• Montana: Supreme Court clears way for override poll of vetoed marijuana funds bill
• New Jersey: NJ Panel Upholds Right Of Towns To Regulate Cannabis.
• New Mexico: Opinion – The truth about the regulated cannabis market is sobering news, “the truth is that New Mexico’s regulated cannabis market is not thriving, but barely surviving. The truth is that New Mexico’s cannabis sales are likely headed for decline and contraction, rather than growth.”
• New York: New York Must Figure Out How to Fix Cannabis Mess, Hochul Orders (New York Times); NY marijuana legalization: The market for CBD and other hemp cannabinoids in New York state remains under serious threat after a federal judge tossed out a lawsuit by a group of producers and sellers Monday
• North Carolina: Delta 9 THC Policies And Restrictions In North Carolina.
• Ohio: Northeast Ohio cannabis education efforts prepare the region for the adult-use market.
• Oregon: Gov. Mills opposes bills that would hide past marijuana offenses.
• Pennsylvania: GOP attorney general debate – Sunday and Williams agreed that they do not support the legalization of marijuana for recreational purposes, a sharp contrast to the Democrats seeking the office who all support legalization; Key Pennsylvania Lawmaker Says There’s A ‘Real Opportunity’ To Legalize Marijuana And Allow Interstate Commerce
• South Carolina: South Carolina’s CBD Policies And Accessibility
• South Dakota: Governor Kristi Noem signed SB 43  into law, which establishes procedures for the imposition of fines and probation against medical cannabis establishments, increases the allowable fee for a medical cannabis establishment registration certificate, and directs the Department of Health to promulgate rules to increase the fee for a registration certificate.
• Tennessee: Guidelines proposed by the Tennessee Department of Agriculture, following a new state law, could change the way people buy and sell hemp in the state. SB0378 gave the regulatory authority to the Tennessee Department of Agriculture. The agency then proposed rules regarding the regulation of the hemp industry. The proposed rules use “Total THC” to differentiate hemp and marijuana.
• Virginia: University of Lynchburg introduces the state’s first virtual program offering a certificate in cannabis education.
• Wyoming: Wyoming Gov. Signs Bill to Ban Delta-8 THC; After delta-8 THC makes students sick, classmates spur ban on intoxicating hemp.

Cannabis Abroad

• Crisis and division at UN drug summit: Unprecedented pro-reform coalition led by Colombia challenges “war on drugs”
• Czech Cannabis Reform: Anticipation Builds as Dual Bills Await Government Review
• How Thailand’s lucrative cannabis industry is under threat – BBC World Service Documentaries
• Canada’s finance minister warned about cannabis industry ‘financial distress’; Nearly six years since cannabis became legal for sale in Canada, new data shows a majority of those using the products available are exclusively buying from legal sources.
• Germany’s federal drug commissioner sent a letter urging state officials not to slow down implementation of cannabis legalization; the health minister pushed back against concerns about the reform.

Business, Banking, Insurance

• Handheld Marijuana Vaporizer Market Size to Hit USD 15.9 billion by 2031, Projected a 13.4% CAGR – Report by Transparency Market Research, Inc.
• Worker Advances Medical Cannabis Claim, Wrongful Discharge Nixed – A worker who lost her job at a scaffolding company after a positive drug test can move forward with allegations under a state medical marijuana law, but her wrongful discharge claim fell short.

Other Noteworthy Updates

• THCA legal confusion – When testing occurs is important because the U.S. Department of Agriculture requires that cannabis be tested for “total THC” – meaning THC and THCA combined – within the 30 days before harvest. The USDA does not, however, require testing after flower has been packaged or at the retail level. Many cultivators say they are able to get away with growing high-THCA flower by finding strains that don’t express the THCA cannabinoid until late in the USDA’s 30-day testing window and then testing those strains early in the 30-day window.
• Toxic metal particles can be present in cannabis vapes even before the first use – a study by American Chemical Society.
• About 11 percent of 12th graders in U.S. reported using Delta-8-THC in the past year, according to new analysis (Roll Call).
• A new study published in the journal Addictive Behaviors looked to investigate how legal cannabis laws have impacted adolescent use and examined lifetime and past 30-day (P30D) cannabis use among middle school-aged adolescents in Nevada versus New Mexico. It ultimately affirmed what many studies in the past have: Initiating state-licensed cannabis sales is not associated with an increase in cannabis use among young people.
• Cannabis vaping liquids contain lead and other toxic metals – an analysis of cannabis vaping liquids shows metals like lead are present at dangerous levels – even before the vape is used.
• Medical marijuana found to help treat depression, anxiety and improve sleep – A new study has found medical marijuana can help treat those diagnosed with depression, anxiety and improve sleep (USA Today).

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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.