CANNASWEEP

WEEK OF MAY 31, 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

• Drug Enforcement Administration’s (DEA) Drug & Chemical Evaluation Section Chief Terrence Boos clarified in a new letter that “cannabis-derived THCA does not meet the definition of hemp”—an interpretation of the Farm Bill that a hemp stakeholder says would “destroy” the industry.
• Former United States Surgeon General Jerome Adams, MD, tweeted, “A society where individuals are constantly self-medicating with a mind-altering substance is a health recipe for disaster. We need an honest conversation about the risks of normalizing widespread marijuana use- especially for kids/ pregnant women/ before driving/ while at work.”

U.S. Congress

• The U.S. Just Got One Step Closer to Banning Intoxicating Hemp Products – The recent amendment, proposed by Rep. Mary Miller, seeks to close the loophole which allows the sale of “intoxicating” hemp-based products such as delta-8-THC. It changes the definition of legal hemp to only include non-intoxicating cannabinoids that are derived naturally from the cannabis plant.
• Prohibition Never Works: Wine & Spirits Wholesalers of America (WSWA) Responds to Proposed Farm Bill Amendment
• Leading Law Enforcement Groups Endorse Bipartisan Cannabis Legislation – the Peace Officers Research Association of California (PORAC) and the Oregon Coalition of Police and Sheriffs (ORCOPs) announced their endorsement of the bipartisan Strengthening the Tenth Amendment Through Entrusting States (STATES) Act. The legislation would align federal policy with state policy to ensure legal cannabis markets are safer, in addition to aiding states that have decided to legalize medicinal and adult-use cannabis while protecting states that have decided to keep cannabis prohibited.
• Sen. Lankford (R-OK) said, “Biden’s plan to be able to win the election is to get more people to smoke marijuana”
• Sen. Smith (D-MN) tweeted, “Marijuana has for decades been classified as one of the most dangerous drugs – as dangerous as heroin.   President Biden’s move to reclassify cannabis was the right step to start repairing the damage from the War on Drugs that disproportionately hurt Black and Brown communities.
• Sen. Coons (D-DE) said SAFER Banking is “overdue” and “we have to harmonize banking laws.”
• Rep. Goldman (D-NY-10) tweeted, “The War on Drugs failed to make our communities safer while disproportionately imprisoning people of color. As its deficiencies become clearer, especially related to marijuana—we must decriminalize marijuana and expunge convictions, allowing the impacted to rebuild their lives.”

Cannabis Rescheduling/Descheduling

• A Q&A with Biden’s drug policy chief Rahul Gupta on rescheduling marijuana. Gupta said rescheduling is “going to be really important to remove barriers to critical research and perhaps drug development, and it could also lead to more research into the benefits of medical marijuana.”
• DEA Administrator, Anne Milgram, has come under fire from GOP congressmen over the apparent divergence of opinion surrounding cannabis rescheduling.
• Rescheduling marijuana could attract more research – the DEA’s plan to ease regulations around marijuana won’t get rid of all red tape, but researchers hope some barriers will be reduced.
• ‘Removing Barriers Can Only Help’ – Dr. Robert Strongin, professor of organic chemistry at Portland State University, says he’s cautiously optimistic. “As far as research and the new scheduling plans, I am hopeful that this will facilitate research.”
• How marijuana’s reclassification could change U.S. drug policy (PBS)
• American Trucking Associations has expressed safety concerns over a DEA proposal to downgrade the classification of marijuana from Schedule I to Schedule III, a less serious category.
• The Enemy of the Good: Comparing Administrative v. Legislative Approaches to Cannabis Reform
• Stephen Colbert jokes about cannabis rescheduling here.

The States

• Alabama: AL Cannabis Commission director John McMillan tried to paint his commission as a victim of frivolous lawsuits, but such a characterization defies logic and the truth (opinion).
• Alaska: The Marijuana Control Board proposes to change regulations dealing with the location requirements for a pick-up or drive-through exterior window area for a retail marijuana store.
• Connecticut: CT hires first-in-the-nation cannabis ombudsperson
• Delaware: Gov. John Carney has signed HB 285 into law, which expands medical cannabis access to seniors and others.
• Florida: Recreational marijuana amendment vote coming in 2024. When will weed be legal in Florida?
• Illinois: Hemp Consumer Products Act passes Illinois Senate.
• Iowa: Governor Kim Reynolds of Iowa recently signed a measure that bans synthetically produced delta-8 THC and other laboratory-made intoxicating compounds. Other popular intoxicating hemp compounds that are banned include THCP, THC-O-acetate, delta-10 THC, and THCA.
• Kansas: Marijuana should be legalized in Kansas (opinion).
• Louisiana: Senators in LA decided this week to advance two separate pieces of cannabis-related criminal justice legislation (here and here) after previously voting them down; Louisiana’s GOP-led Legislature has sent a bill to the state’s Republican governor that would transfer the state’s two medical cannabis cultivation licenses from public universities to private companies.
• Massachusetts: Cannabis regulator calls intoxicating hemp products a ‘public menace’ and says ‘gas station weed’ is unregulated, untested, and not age-restricted.
• Minnesota: Gov. Tim Walz signs cannabis bill allowing for cultivation to start this year; What impact would reclassifying marijuana federally have on MN cannabis businesses?; Farm Bill draft includes restrictions on hemp-derived THC products. What would it mean for MN’s market?
• Missouri: The Division of Cannabis Regulation (DCR) is hosting three Licensee Workshops across the state of MO in June 2024; Legal cannabis in MO has generated $19 million for veterans, treatment, and public defenders.
• Nebraska: A look at three proposals to legalize marijuana in Nebraska.
• Nevada: The Cannabis Compliance Board will hold a Public Hearing at 9:00 a.m. on Thursday, June 20, 2024.
• New Hampshire: NH’s Senate passed a marijuana legalization measure on Thursday, returning the bill to the House of Representatives before it would potentially head to the governor’s desk to be signed into law; NH lawmakers must legalize marijuana this session, even with a less-than-ideal bill (Op-Ed).
• New York: The head of the state cannabis agency resigned on Friday following weeks of public turmoil between the agency and Governor Kathy Hochul’s office; Governor Hochul announces a historic $15.2 million fine on illegal cannabis operator; This document is intended to assist licensees authorized to cultivate cannabis.
• Ohio: Is the OH highway patrol following the recreational marijuana law? New research into paraphernalia gives some answers; Recreational marijuana rules go into effect today as the state continues to finalize applications for dispensaries.
• Pennsylvania: Though some politicians treat recreational marijuana in Pennsylvania as an inevitability, others remain skeptical; Medical Marijuana Act Permit Applications Question and Answer (Q&A) Document.
• Rhode Island: Gov. Dan McKee on Thursday nominated Michelle Reddish as the first administrator of the Rhode Island Cannabis Office.
• Tennessee: At least one Chattanooga area lawmaker is open to medical marijuana.
• Texas: TX Hemp Business Council Tells TX Lawmakers ‘Don’t Mess with Hemp’.
• Virginia: VA to standardize data on marijuana-related child ER visits; Gov. Youngkin vetoes retail sale of recreational marijuana bill, faces opposition.

Cannabis Abroad

• UK: George Freeman MP leads new task force to establish the UK as a global leader in cannabinoid science
• Philippines: Legalizing medical marijuana in the Philippines would enable an award-winning company that developed a cannabis-based product to further develop and commercialize it locally, according to the Department of Science and Technology.
• Ireland: Planning permission granted for the first medical cannabis production facility in Ireland
• Canada: Following the legalization of edible cannabis for non-medical use in January 2020, emergency department (ED) visits in Ontario, Canada more than tripled compared with the pre-legalization period; The Alberta Government is looking into the impact of cannabis legalization on young people in the province.
• South Africa: South Africa’s president has signed a bill to legalize marijuana possession and cultivation by adults.
• Germany: Federal Court of Justice Sets Limit of THC for Aggravated Cases in New Cannabis Act
• Nepal: Govt to formulate law for commercial cultivation of marijuana for medicinal purposes
• New Zealand: Judge voices concerns about legal cannabis scheme’s ‘illicit’ sourcing of seeds and plants
• South Korea: Koreans who smoke weed overseas to face criminal charges, gov’t warns
• Ireland: Anti-cannabis group met privately with drugs minister to discuss possible RSA-style ad campaign

Customs and Trade

• Organigram expects to supply 1,700 kilograms of high-quality medical cannabis flower to Avida Medical, with 500 kilograms expected to be delivered in the first year of the agreement. Avida Medical to become Organigram’s second international medical cannabis customer in the UK. To date, Organigram has established international supply agreements with a total of seven medical cannabis customers in Australia, Germany, Israel, and the UK, aligned to its strategy to extend its reach beyond Canada into global markets.

Business, Banking, Insurance

• Organic Payment Gateways, a leading provider of alternative payment processing integrations, is excited to announce the launch of its new Authorize.Net payment gateway solutions tailored specifically for businesses in the CBD, nutritional supplement, and Farm Bill-compliant cannabis seed industries.
• Cannabis reclassification opens up new opportunities for software developers interested in tapping into this lucrative, but challenging, market.
• Reclassification of Marijuana is Underway, but Approval for Workers’ Comp and Auto Injuries Will Take Time.
• Considering Safe Banking for the Cannabis Industry (Cato Institute)
• Survey Says: No To Letting Big Industry Shape Marijuana Legalization Policies (Op-Ed)
• Cannabis businesses can pay up to 80 percent in taxes. Could easing federal restrictions provide relief?

Other Noteworthy Updates

• Changes in self-reported cannabis use in the United States from 1979 to 2022: A growing share of cannabis consumers report daily or near-daily use, and their numbers now exceed the number of daily and near-daily drinkers.
• Hemp (cannabis sativa l.) Is an effective carbon-depositing crop.
• Marijuana lab testing accuracy improving, a study in new science journal finds.
• Research shows regular marijuana users may have traces of metal in their system.
• New research has revealed up to a 9% increase in college first-year enrollments in US states that have legalized recreational marijuana compared with states without such legalization.
• What Is THCA, And Why Doesn’t The DEA Consider It Legal Hemp? (Forbes).
• Study: CBD was therapeutically safe with no serious adverse events, well tolerated, and effective for the treatment of mild to moderate anxiety disorders, as well as associated depression and sleep quality disturbances.
• A better way of measuring THC in cannabis.
• Teenagers who use marijuana are much more likely to develop psychotic disorders
• Discussing delta-8 THC: Q&A with the Medical University of South Carolina scientists who study cannabis.
• Country superstar Jelly Roll says cannabis keeps him “sober” from codeine, cocaine, and other substances: “Marijuana has helped me stay sober.”

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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.