CANNASWEEP

WEEK OF APRIL 19, 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.  Learn more about our Congressional Bill Tracker and reach out to Ben Dash with any questions.

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

• Cannabis rescheduling review is now with the Department of Justice (DOJ). The White House Press Secretary, Karine Jean-Pierre, confirmed this week that HHS has concluded its independent review and the scheduling review is now with DOJ. Any input should be directed to the DOJ Press Secretary Jean-Pierre. If you would like assistance providing timely input, please contact us.
• DOJ Is Investigating Marijuana-Related Businesses Over COVID Relief Loans, Industry Sources Say.
• Marijuana companies seeking to shield their in-state activities from federal enforcement are asking a judge to schedule oral arguments to respond to arguments the DOJ made in a recent briefing in the case—including its position that cannabis legalization attracts out-of-state tourism, empowering it to uphold prohibition under the Constitution.
• Last Friday, DOJ hosted an event commemorating “Second Chance Month” that included a handful of mentions of Biden’s marijuana pardon proclamations.
• Harris remarks on cannabis at FY25 Budget Hearing for the U.S. Food and Drug Administration (FDA) – “First, as a doctor I have serious concerns about the actions FDA took when recommending to the Drug Enforcement Administration the rescheduling of marijuana. The two-factor authentication test utilized by FDA lacks both susbtance and data. It seems the FDA ignored several important factors when considered marijuana’s potential for abuse and harm to public health…”

U.S. Congress

• McHenry, Waters, and Schumer discuss the cannabis banking bill with the Federal Aviation Administration (FAA) (Politico).
• A congressional committee approved a GOP-led bill that would instruct the U.S. Department of Veterans Affairs (VA) to notify Congress if any psychedelics are added to its formulary of covered prescription drugs. VA came out against it, arguing that it’s “unnecessary.”
• Could Crypto Legislation help pass the SAFER Banking Act?
• Congressional lawmakers from across the aisle are weighing in on the prospects of the marijuana banking bill—sharing predictions about the prospects of passage, different legislative vehicles to advance the reform, and for one GOP senator, his concern that the cannabis legislation could inadvertently benefit illicit fentanyl traffickers.
• Push for Stablecoin Law Gets Surprise Boost from Sherrod Brown (D-OH) – The Senate Banking Committee chairman said Tuesday that he’s open to advancing such legislation in a package with a bill authorizing banks to do business with marijuana businesses and another measure clawing back compensation for executives at failed lenders.
• Former U.S. Sen. Cory Gardner told a panel in Florida that several ranking Congress members are intending to attach the SAFER Banking Act to the must-pass Federal Aviation Administration reauthorization.
• Sen. Patty Murray (D-WA) tweeted, “Great to see Charlie Clark, director of @dficonsumers, to talk about my work to protect legal cannabis businesses through the SAFER Banking Act, and how we can work together to protect consumers from fraud and predatory lending.”
• Sen. Cory Booker (D-NJ) tweeted, “Our cannabis policy has lagged behind science and the states for too long, I am proud to move forward on introducing this bill to create just and modern cannabis policy.”
• Rep. Lou Correa (D-CA-46) said, “let’s go after fentanyl. Let’s go after the stuff that really hurts people” regarding Biden’s marijuana seizures.
• Rep. Troy A. Carter (D-LA-2) tweeted, “I hosted my 3rd annual #CrawfishAndCannabis Reform event to discuss the urgent need for cannabis reform in the U.S. and equity in the industry. I also honored @RepBarbaraLee and @repblumenauer for their leadership in this space.”
• Rep. Darren Soto (D-FL-9) tweeted, “We met with the American Healthy Alternatives Association to discuss hemp issues in the #FarmBill. From health and biofuel to plant-based plastics and industrial uses, hemp offers a wide range of important products for consumers and our economy.”

Cannabis Rescheduling/Descheduling

• Navigating the complexities of cannabis rescheduling.

The States

• ‘State-legal’ cannabis is not what it may seem – on average, Cannabis sales are prohibited in nearly 50% of municipalities in states with adult-use programs, and many states have no idea how many local governments have bans, adding to the industry’s vast challenges.
• Marijuana is taxed similarly to alcohol and tobacco – Why state tax revenues fell so short.
• Arkansas: Supreme Court rules in favor of River Valley Relief in marijuana cultivation license dispute.
• California: You might be surprised by how much illegal weed is seized in CA: A new task force is being used in CA to stop illegal pot farms.
• Colorado: Polis calls for ‘common sense’ federal cannabis regulations at NoCo Hemp Expo; CO Cannabis Sales Fall Again In February, As Industry Struggles To Offset Decline; The Marijuana Enforcement Division is issuing this notice to set clear expectations for the use of hemp-derived products in the manufacture of Regulated Marijuana Products; Ten sheriffs challenge CO marijuana laws in federal court.
• Connecticut: CT tells medical cannabis patients to stock up before 4/20; These CT universities are preparing students for jobs in the evolving cannabis industry.
• Delaware: Marijuana commissioner preps for the new era of DE cannabis.
• D.C.: D.C. Enacts Medical Marijuana Patient Card Extension and Tax Holiday.
• Florida: FL medical cannabis patient growth slows again; FL faces crucial decision on cannabis; These marijuana companies are funding FL’s legalization ballot campaign; FL Commissioner of Agriculture Wilton Simpson announced that FL Department of Agriculture and Consumer Services (FDACS) inspectors uncovered over 186,000 packages of hemp products that were designed to target children; FLvoters could legalize recreational cannabis this fall: here’s what employers need to know; FL marijuana legalization campaign recruits military veterans for media and voter outreach.
• Illinois: IL lawmakers call for a ban on intoxicating hemp products, but retailers call for regulations; IL’ largest cannabis business association is pushing to ban the sale of delta-8 THC, an increasingly popular psychoactive substance that’s popped up in corner stores across the country in recent years; In the state’s fifth year of recreational cannabis sales, it’s already made nearly $180 million in tax revenue. But it is losing sales to neighboring states with lower taxes; IL looks to put intoxicating hemp products under marijuana programs; IL bills SB 3922 and HB 5809 also would offer a significant change to the Cannabis Regulation and Tax Act, including, among other provisions, allowing curbside pickup of cannabis products for recreational customers.
• Iowa: IA retailers warn of ‘unintended consequences’ of capping THC content in hemp products – Lawmakers earlier this month passed House File 2605 that would restrict the potency of hemp-derived products sold in IA and place several regulations on retailers; Iowa’s medical marijuana program is 10 years old. How does it compare with other states?
• Kansas: House, Senate negotiators unimpressed by late-breaking plea for hemp farmer crackdown; KS GOP senator forces vote on reviving medical marijuana legalization bill.
• Kentucky: A year out from legal medical marijuana, legislatures make final updates; KY lawmakers expedite medical marijuana licensing, and pass on extra conditions.
• Louisiana: LA lawmakers to decide the fate of THC gummies, seltzers, and other consumable hemp products via a bill.
• Massachusetts: The court case that could change the cannabis industry forever and how it affects rescheduling – A groundbreaking court case filed in MA against U.S. Attorney General Merrick Garland has captured the attention of the cannabis industry; The Healey-Driscoll administration awarded 50 grants to cannabis social equity businesses in 28 communities, totaling $2,350,000, through the Cannabis Social Equity Trust Fund (CSETF).
• Michigan: MI marijuana sales hit a new record high in March.
• Minnesota: MN marijuana sales could be delayed or in short supply if planting doesn’t start soon.
• Mississippi: MS looks to put intoxicating hemp products under marijuana programs.
• Montana: Identifying a licensed marijuana business; the Billings City Council heard an update on the community impact of legalized marijuana from a treatment expert, informing about higher THC in marijuana and cannabis products.
• Nebraska: The amended NE bill reduces the proposed hemp and CBD tax rate from 100% down to 25%.
• Nevada: Cannabis lounges provide a new lure for Las Vegas visitors.
• New Hampshire: NH Governor indicates he won’t sign house-passed marijuana legalization bill unless senate makes changes; NH legalization efforts advance amid legislative hurdles.
• New York: Governor Hochul announces over 400 adult-use cannabis licenses issued in 2024; Do not flood market with legal pot shops, NY cannabis industry warns; Governor Hochul Announces Agreement on FY 2025 State Budget, featuring – Shutting down illicit cannabis storefronts by authorizing the Office of Cannabis Management (OCM) to padlock businesses for a full year; allowing local governments to pass laws to execute padlock orders; establishing fines for landlords knowingly renting to retailers selling cannabis without a license.
• North Carolina: Recreational cannabis remains unlikely in NC; Which cannabis substances are legal and illegal in NC? Here’s how they compare; Local business owners left in limbo as AG Calls for Change in Hemp Law.
• North Dakota: Nearing 10,000 in ND with a Medical Marijuana card.
• Ohio: OH retailers keep an eye on state regulation of ‘intoxicating’ hemp
• South Carolina: Support for medical marijuana among residents of SC remains incredibly strong according to a recent survey.
• Texas: Delta 8 And Delta 9 Hemp Products Could Soon Be Illegal In Texas – TX Lt. Gov. Dan Patrick is making it a priority to make these products once again illegal in TX. It’s listed in his goals for the 2025 legislative session.
• Vermont: VT Senate Panel Previews Amendment Narrowing House-Passed Safe Drug Consumption Site Bill To Single Facility.
• Virginia: In the wake of a recent veto of a VA recreational marijuana bill, proponents are still holding out hope for future change — but not for at least a couple years.
• Wisconsin: Milwaukee ranks one of the worst cities for marijuana ahead of 4/20, study says.

Cannabis Abroad

• Morocco Unveils Official Logo for Legalized Cannabis Products
• Canada’s legal cannabis industry is not getting any excise-tax relief from the Liberal government’s 2024 budget; Avicanna has launched a new version of its proprietary oral cannabidiol (CBD) formulation, called RHO Phyto Micro Drop 10, in Canada – The oral CBD formulation is found in Trunerox, an add-on treatment for seizures in people with Dravet syndrome and Lennox-Gastaut syndrome (LGS) that’s approved in Colombia.
• Germany: The Christian Democratic Union of Germany (CDU) is calling for a strict catalog of cannabis fines in Hamburg – Hamburg abstained from voting on the legalization law.
• Jersey politician to propose decriminalizing cannabis for personal use.

Customs and Trade

• Sen. Cory Booker (D-NJ) said that he is unaware of Customs & Border seizures of locally legal recreational marijuana.

Business, Banking, Insurance

• Q&A: U.S. Hemp Authority President Chris Fontes – The industry group is creating a certification program for intoxicating hemp products, reflecting heightened concerns about the burgeoning market. (Politico)
• Organic Payment Gateways Announces a “Square Payment Processing Alternatives for CBD” Support Program – Reacting to increased interest from both retail and e-commerce CBD and hemp businesses, OrganicPaymentGateways.com has announced that it will provide a free, expedited CBD merchant account consultation and placement service for any legal CBD website owner based in the US.
• America’s Top States for Cannabis Consumers and Sellers.
• Medical marijuana sector is said to witness tremendous growth; predication worth $ 30 billion by 2032
• Could 4/20 Light Up a Cannabis Stock Rally?

Other Noteworthy Updates

• Last Prisoner Project (LPP) has mobilized the largest coalition of bi-partisan cannabis advocacy, industry, and grassroots organizations, as well as individual activists to convene in Washington D.C. on April 18, 2024, for a 420 Unity Day of Action. – Advocates will be joined by elected officials who have been leading the fight for cannabis reform including Sen. Ron Wyden (D-Oregon), Rep. Earl Blumenauer (D-Oregon), and others to encourage their colleagues on both sides of the aisle to end the cannabis criminalization.
• In a new position paper on widespread accessibility of delta-8 THC, Doctors for Drug Policy Reform (D4DPR), a nonprofit that generally advocates for the legal regulation of drugs such as marijuana, says it is crucial to regulate certain other cannabinoids derived from federally legal hemp to protect public health.
• As the cannabis industry comes of age, collective action by entrepreneurs is needed (Op-Ed)
• A new report published by the American Medical Association (AMA) finds that neither adult-use marijuana legalization nor the opening of retail stores in U.S. states led to increases in youth cannabis use.
• Americans under the age of 20 made up 56 percent of all 2022 exposures to Delta-8 THC. While teenagers comprised 15 percent of these exposures, children 12 and under constituted 41 percent, according to data from America’s Poison Centers 2022 Annual Report of the National Poison Data System.
• Study Details Benefits, Therapeutic Effects of Medical Marijuana on Patients’ Quality of Life.
• New meta-analyses show mixed findings on cannabis and PTSD.
• UI study finds cannabis use among older adults is growing.
• Cannabis law courses are growing—but not fast enough.
• Cannabis use associated with lower mortality among hospitalized COVID-19 patients using the national inpatient sample: an epidemiological study.
• JAMA Pediatrics: Legalization laws are linked with fewer teens using marijuana and other intoxicants.
• 6 diseases that can be treated with medical marijuana (MSN)

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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.