CANNASWEEP

WEEK OF APRIL 12, 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 contact Ben Dash. 

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

• FDA Officials Discuss Future of Cannabis Regulation at Food & Drug Law Institute (FDLI)- the conversation ranged from Congressional inaction on CBD to the myriad unregulated cannabinoid products on shelves today.
• A recent study funded by the National Institute of Standards and Technology (NIST) analyzing 53 commercially available smokable hemp products found a staggering 93% contained THC levels surpassing the federally permissible 0.3%, categorizing them as illegal under federal law.
• Cannabis Company Sues DEA Over Application to Grow for Clinical Trials – MMJ BioPharma Cultivation Inc. is seeking an order to halt the DEA’s ‘unconstitutional actions’ as it awaits approval to grow cannabis.
• 2024 Election Poll: nearly 70% said the presumptive presidential nominees of both major parties would have a stronger grasp of the cannabis market and culture if they were younger and Democrats have ‘better ideas’ for marijuana policy than the GOP.

U.S. Congress

• Majority Leader Schumer comments on Senate’s “Busy Agenda” – includes “safeguard cannabis banking.
• A congressional committee has announced that it is calling in the head of the FDA to testify on hemp regulatory issues as a way to hold him “accountable” amid ongoing industry concerns.

  • GOP Congress Member James Comer To Lead FDA Hearing On Regulating Hemp Derivatives

• Senators Chuck Schumer, Ron Wyden, and Cory Booker are pushing cannabis legalization bill – In a ‘letter to colleagues,’ seen by Politico, the three Senators have called on other Senators to co-sponsor the Cannabis Administration and Opportunity Act (CAOA).
• Cannabis trade group urges Congress to tackle ‘national crisis’ caused by intoxicating hemp products (Politico).
• Farm Bill Hemp: 21 Attorney Generals Fail To Cite Source Material And ‘Mischaracterize’ Facts And Data In Letter (Forbes).
• Sen. John Fetterman (D-PA) tweeted, “I fully believe the SAFER Banking Act is a necessary step in legalizing weed, but it can’t be the last. Full legalization is critical for jobs, revenue, justice, and our veterans—we need to pass this bill and keep pushing until the whole job is done.”
• Rep. Andy Harris, MD (R-MD-1), tweeted “It’s time to take a ‘time out’ on the Biden Administration’s efforts to further legalize marijuana so we can consider all the bad effects.”
• Rep. Pete Sessions (D-TX-17) tweeted, “Yesterday, I spoke at the Vaping & Marijuana Impact Conference in Lufkin to confront the troubling trend of vaping and marijuana normalization among our youth. I am dedicated to reducing the use of high-potency THC products to safeguard our future.”
• Will Hemp Save the World, Before the Government Kills It? An analysis of the current state of hemp and whether that industry will revolutionize the world before the government relegates it back to the ash heap of history. (National Law Review)

Cannabis Rescheduling/Descheduling

• What to expect if/when marijuana is rescheduled or de-scheduled under the Controlled Substances Act
• Senate Ag Ranking Member Sen. John Boozman (R-AR) said “I hadn’t thought about it” regarding DEA rescheduling.

The States

• A Guide to Cannabis Laws In States Close to Texas.
• How Marijuana Legalization Changed Use in States.
• Arkansas: Attorney general rejects ballot wording for a proposed amendment to legalize recreational marijuana.
• California: Why are so many illicit businesses still blunting LA’s cannabis industry?; Despite Legalization, Black Market Cannabis Flourishes in California.
• Colorado: Colorado Governor Says Marijuana Rescheduling And Banking Reform Are First ‘Dominoes’ On Path To Federal Legalization; State Senate Honors Charlotte Figi, Late Medical Marijuana Icon; Bill permitting supervised illicit drug-use sites passes Colorado House.
• Connecticut: CT-based cannabis farm eyes Shelton for a first retail location.
• D.C.: Controversy over D.C. medical cannabis dispensary near school leads to first-ever ABCA cannabis protest hearing.
• Florida: Only 3 states have passed recreational weed ballot measures by more than 60%. Will FL be next?; Florida Marijuana Initiative Will ‘Improve Quality Of Life’ By Providing Alcohol Alternative, Top Cannabis CEO Says, Pushing Back Against DeSantis.
• Guam: Bill to waive lab testing for regulated cannabis business receives support.
• Hawaii: With Legalization Dead For The Session, Hawaii Lawmakers Advance Incremental Bills (here and here) To Expand Decriminalization And Provide Expungements; Few people have successfully expunged their marijuana possession records.
• Illinois: New online registration portal for medical patients coming soon.
• Kansas: KBI chief, Stand Up for Kansas says marijuana’s more menace than medicine | Opinion.
• Maryland: Legislation before Gov. Wes Moore would ensure dispensaries cannot be subject to stricter zoning rules than alcohol stores. County leaders want more control; Maryland collected more than $14.5 million in cannabis sales tax revenue between October and December 2023.
• Massachusetts: The Justice Department is again asking a federal court to dismiss a lawsuit from major marijuana companies seeking to block enforcement of prohibition against state-legal activities—in part because the government says cannabis legalization attracts out-of-state tourism, empowering it to intervene under the Constitution; Democratic Governors tweeted, “Thanks to Gov. @Maura_Healey, tens of thousands of people will have misdemeanor marijuana convictions expunged from their records.”
• Minnesota: Marijuana law modifications are on tap before legal sales take root – State lawmakers are working through a number of modifications to the law Gov. Tim Walz signed last year legalizing recreational marijuana in the state.
• Missouri: Unions – St. Louis cannabis company could have a major impact on national labor law; The Division of Cannabis Regulation (DCR) is taking a proactive step towards advancing cannabis research by hosting a listening session aimed at engaging the following stakeholders on this issue; Missouri Warns Marijuana License Applicants Of ‘Predatory Practices’ Around Social Equity Status.
• Montana: Personal possession limits for cannabis have been established by Montana laws. Here are personal possession limits for adult-use consumers and medical cardholders.
• Nebraska: Survey research mines delta-8 usage in Nebraska.
• Nevada: ACLU to argue cannabis case before Nevada Supreme Court.
• New Mexico: Rep. Stansbury (D-NM-1) tweeted, “Marijuana has been legal in New Mexico since 2021. Just like @VP said, ‘Nobody should go to jail for smoking weed.’ We must do what is right and release those incarcerated for simple marijuana possession.”
• New York: NY shops selling illicit weed could lose licenses to sell tobacco, booze, lottery tickets; NY Judge’s Cannabis Ruling Opens Door for More Challenges; ‘Witnessing the collapse’: NY rescue bill for cannabis farmers in jeopardy; Social equity cannabis fund eyed to quell N.Y. illicit market.
• Ohio: A look at new proposed rules for Ohio’s recreational marijuana law – The rules address who can enter a dispensary and ensure only those over 21 can access the facility, with the exception of marijuana patients; Five months after Ohio voters legalized the use of recreational marijuana, the product remains unobtainable — and Republican infighting is the likely culprit.
• Oregon: Oregon State receives grant to work with 13 Tribes on hemp economic development
• South Carolina: Promised as a ‘cash crop,’ hemp has plummeted in price. SC farmers are leaving it behind; Supporters urge SC representatives to take up medical marijuana bills soon.
• Utah: Utah Department of Agriculture and Food (UDAF) Releases 2023 Utah Medical Cannabis Market Analysis; Report: Most Utah MMJ patients still buy from underground market
• Virginia: Virginia Governor Signs Medical Marijuana Workplace Protection Bills (here and here) For Firefighters And Other Public Sector Workers.

Cannabis Abroad

• Mexico publishes medicinal cannabis regulation, creating new market
• German Officials Under Pressure To Unveil Marijuana Legalization’s Second Step Focused On Commercial Sales
• Switzerland: As part of a study in the city of Bern, several hundred people can now obtain cannabis products in five selected pharmacies. The aim is not to promote cannabis consumption but to gain insights for future drug policy. 
• Canada’s canceled licenses, ‘uncollectible’ cannabis taxes soar; B.C. cannabis industry calls for government action – Industry urges government to implement Cannabis Act final report recommendations
• UK: Magic mushrooms should be available on NHS, says Labour MP; How this UK-based firm is growing more sustainable cannabis; ‘Zombie’ drug xylazine found in cannabis THC vapes in UK – the sedative, designed to put big animals such as cows and horses to sleep, can be lethal for humans.
• Netherlands: Majority of Dutch in favor of legalized cannabis cultivation, sales

Customs and Trade

• Federal officials have been seizing hundreds of thousands of dollars worth of marijuana from state-licensed cannabis businesses in New Mexico in recent weeks—detaining industry workers in what appears to be a localized escalation of national prohibition enforcement even as the federal government has largely refrained from interfering with the implementation of state legalization laws in recent years.

  • An audio recording obtained by The Paper. details an arrest.

• GOP senator highlights security threat in Border Patrol’s weakened drug use standards – Oklahoma Republican Sen. James Lankford said the policy ‘undermines the security and integrity of the Border Patrol workforce’ (Fox News)
• Rep. Earl Blumenauer (D-OR), founding co-chair of the Congressional Cannabis Caucus, says recent reports of U.S. Customs and Border Protection (CBP) agents seizing marijuana from state-licensed businesses in New Mexico underscores how the Biden administration is “not doing enough to protect states who are not waiting for the federal government to catch up.”

Business, Banking, Insurance

• Publicly traded marijuana multistate operators exited regulated cannabis markets through late 2023, continuing a pattern fueled by increased capital costs, high taxes, and the slow pace of federal reform (This map pinpoints where the large MSOs are operating.)
• York views Flora Match, an AI-powered platform, as a game-changer in how cannabis products are selected and purchased, bringing unprecedented personalization to the consumer experience.
• Don’t punish marijuana workers in bankruptcy proceedings – As the Biden administration drags its feet on bringing pot out of the legal shadows, employees of cannabis companies often find themselves stuck in legal gray areas, including in bankruptcy court.
• GW Pharmaceuticals (inventor of Epidiolex, the first drug derived from the marijuana plant approved for use in the U.S.) stock dropped 20% in October.

Other Noteworthy Updates

• Price no longer a differentiator for THCA hemp, regular cannabis
• 9 facts about Americans and marijuana (Pew Research Center)
• Research: A whopping 3 in 4 respondents (74%) hold no negative views toward cannabis users, and a majority (62%) have experimented with cannabis themselves. Support for cannabis legalization remains strong, with 55% of respondents supporting full legalization. Conversely, 23% oppose legalization, while an additional 22% remain undecided.
• Amid Marijuana Legalization, a Civic Problem Lingers: That Smell – The pungent odor of cannabis has emerged as a quality-of-life issue from New York City to Amsterdam. Here’s how cities are dealing with it. (Bloomberg)
• Record Number Of Truck Drivers Refuse To Take Drug Tests As More States Legalize Marijuana
• Cannabis Products May Harbor Fungal Toxins Harmful To Human Health, But Safety Regulations Are Uneven Or Nonexistent – certain types of fungi such as Aspergillus and Fusarium pose potential health concerns, particularly for the immunocompromised, both through direct infection and consumption of the toxins they produce.
• Almost No One Is Happy With Legal Weed (The Atlantic)
• Decoding THC Gummies: Legal Landscapes and Health Implications You Should Know
• New Henry Ford Health, Michigan Medicine Study Will Explore CBD Replacing Opioids After Surgery
• The approval of marijuana for medical use has had little effect on the mental health of the general population in the US. However, legalization for therapeutic purposes does benefit those for whom it is intended. This is the conclusion of a study by researchers at the University of Basel.
• Navigating Anxiety: The Role of Pharmacists in Cannabis-Based Harm Reduction
• A psychedelic cannabinoid? Effects of THC-O-acetate have been greatly exaggerated, study finds
• Analysis: Medical Cannabis Associated With Decreased Use Of Opioids, Alcohol, And Tobacco
• Possible Role of Cannabis in the Management of Neuroinflammation in Patients with Post-COVID Condition
• CBD Effectiveness in Treating Chronic Pain Remains Questionable
• Is it dangerous to smoke weed? What you need to know about using marijuana – Using marijuana at a young age can have lifelong consequences. The drug interferes with the development of the brain. (USA Today)
• Researchers affiliated with the University of California at Davis affirmed that there is “no direct relationship between impairment and THC concentrations” in subjects’ bodily fluids – a finding that is consistent with the opinions of numerous traffic safety groups, including the National Highway Traffic Safety Administration and the American Automobile Association.

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If you are interested in exploring commercial opportunities in the cannabis space, we would be happy to assist you with 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.