Canada Has Issued Few Pardons for Cannabis Crimes Since Reforms Passed in 2019

6/03/2024

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Since August 2019, Canada has issued just 845 pardons for cannabis crimes, according to Board of Pardon data outlined by the CBC. The government says it also doesn’t know how many possession records have been “sequestered” under a different program.  

Canada legalized cannabis federally in 2018 and the government estimated that 10,000 citizens would be eligible for conviction relief. The Parole Board of Canada told the CBD that more than 1,300 citizens applied for pardons but that hundreds of applications were either incomplete or ineligible.  

Andrew Tanenbaum, director of the non-profit organization Pardons Canada, told the CBC that the pardon process is tedious and that some Canadians with eligible records may be apathetic about applying.

An alternative was launched in 2022 that should automatically “sequester” records for simple possession, which would prevent records from showing up on background checks. That program gave the government two years to sequester some records for cannabis possession and other drugs, the report says, but NDP MP Randall Garrison – who backed the amendment to sequester records – told the CBC that “it’s clear [the program] doesn’t work.”

“It’s a bureaucratic nightmare. The amount of bureaucracy that is required to do that is probably much more complicated than the pardon system.” — Tanenbaum to the CBC

Jean-Sébastien Comeau, a spokesperson for Public Safety Minister Dominic LeBlanc, indicated that the government intends to meet the program’s November deadline.

“The sequestration of criminal records for simple possession of cannabis is a significant undertaking that requires the cooperation of our provincial, territorial and municipal partners,” Comeau said in an email to the CBC.

“We will continue to work with them, as we have since the coming-into-force of this legislation, to ensure we meet that deadline.”

 

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Vermont Medical Cannabis Patient Appeals Denial of Unemployment Benefits to State Supreme Court

6/03/2024

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A Vermont man fired from his job for medical cannabis use has appealed the state decision to deny a portion of his state unemployment benefits to the state Supreme Court, the Insurance Journal reports. Ivo Skoric, 59, representing himself, told the justices during a hearing last week that he is legally prescribed medical cannabis by a doctor and his work performance is excellent and not impacted by the medicine.  

However, according to Skoric, in January 2023 he was terminated from his job at Marble Valley Regional Transit District in Rutland for misconduct after failing a drug test. Skoric’s job was to clean and fuel buses and drive them into and out of the garage onto a lot. The misconduct disqualified him from the benefits, according to the state.

“As a medical cannabis patient in Vermont to treat disabling conditions under Vermont’s Fair Employment Practices Act disability provisions, I should be protected by state agencies. I should not be disqualified from receiving unemployment.” — Skoric via the Insurance Journal

Skoric originally appealed to the state Employment Security Board after it was determined he was ineligible for state unemployment benefits for about a month and his maximum benefit was capped. In September 2023, the board agreed with an administrative law judge who ruled that Skoric engaged in conduct prohibited by his employer’s drug and alcohol policy, “exposing him to discipline including termination of his employment.” The judge determined that because he was discharged for misconduct, he was disqualified from those benefits.

Jared Adler, a lawyer representing the Vermont Department of Labor, argued that the court should affirm the board’s decision because “Vermont’s drug code does not guarantee unemployment benefits to people who test positive during a random drug screening” and that Skoric was discharged for misconduct for violating an acknowledged workplace safety policy.

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FDA Highlights Concerns About Research Investigating MDMA as PTSD Treatment

6/03/2024

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The U.S. Food and Drug Administration (FDA) on Friday posted its initial review of the hallucinogen MDMA, commonly known as molly or ecstasy, which highlights concerns about the substance’s potential health effects when used as a treatment for post-traumatic stress disorder (PTSD), the New York Times reports.

The FDA — which granted MDMA a “breakthrough therapy” designation in 2017, fast-tracking its research process — said initial research results were potentially flawed due to imperfections in the research process. Specifically, the agency suggested it would be too easy for the study’s participants and therapists alike to determine who had been given MDMA versus a placebo, which would create bias, the report said. The agency also noted “significant increases” in blood pressure and the increased potential for “cardiovascular events” as potential points of concern.

MDMA is currently registered as Schedule I under the Controlled Substances Act, which is supposed to be reserved for only the most dangerous and addictive drugs with “no currently accepted medical use and a high potential for abuse.”

If the drug is approved as a treatment for PTSD, it would be the second monumental shift in federal drug policy in recent times after the Biden Administration announced earlier this year cannabis would be moved from Schedule I to Schedule III. It would also be the first new therapy approved for the treatment of PTSD in more than 20 years.

The FDA released its draft rules for the research of psychedelic drugs in June.

Meanwhile, Australia last year legalized medical MDMA and psilocybin — the naturally occurring psychedelic ingredient in hallucinogenic mushrooms — as treatments for PTSD and depression, respectively.

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Louisiana Lawmakers Pass Hemp Product Regulations, Reject Proposed Ban

6/03/2024

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The hemp products industry in Louisiana has avoided an industry-wide crisis after state lawmakers rejected a proposal that would have shut down about 2,000 hemp companies in the state, the Louisiana Illuminator reports.

But while the Senate proposal to effectively end the hemp industry died in the House, senators on Friday passed — with adjustments — House Bill 952, which seeks to restrict the types of products that are allowed to contain hemp-derived THC and the amount per serving of THC. The bill passed the Senate 37-1 but the House needs to approve the senators’ changes by Monday evening, which is the end of the legislative session, the report said.

Louisiana lawmakers have been considering the competing hemp product regulatory proposals for weeks. At one point on Friday, state representatives considered amendments to the Senate’s industry ban, looking for common ground by banning the use of intoxicating ingredients in hemp products. The amendments were rejected 39-60 and the bill ultimately failed to advance.

“I know there are a lot of you in this room who smoke weed, who ingest weed. If you don’t vote against this, I think you’re being a huge hypocrite.” — Rep. Mandie Landry (D-New Orleans), in a statement

Meanwhile, in the U.S. House of Representatives, lawmakers have attached an amendment to the federal Farm Bill that would effectively ban the sale of hemp-derived intoxicating products. The amendment’s future is uncertain in the divided House and Senate.

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Florida Gov. Considering Vetoing Bill to Ban Delta-8 THC

5/31/2024

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Despite coming out publicly against the state’s upcoming adult-use cannabis legalization vote, Florida Gov. Ron DeSantis is moving toward vetoing a proposal to ban intoxicating hemp products in the state, CBS News reports.

The bill, passed in March, seeks to prohibit most hemp-derived THC products and would impose strict new regulations on the state’s hemp industry, effectively killing a billion-dollar industry that brings about 100,000 jobs to the state. The governor hopes that by throwing a lifeline to the intoxicating hemp products industry, hemp companies would in turn help finance the effort to block the upcoming cannabis legalization ballot initiative, which poses a similarly existential threat to the hemp industry, the report said.

An anonymous Florida official told CBS News, “It’s been flying under the radar, but he’s going to veto. The marijuana people are furious, and they are scrambling.”

Hemp advocates and industry representatives have also started pressuring the governor to veto the hemp restrictions, Health News Florida reports.

Federal lawmakers, meanwhile, are weighing what would effectively be an outright ban on hemp-derived delta-8 THC products and other intoxicating hemp products. That proposal comes as an amendment to the Farm Bill, introduced last week in the House, that would redefine legal hemp products as either non-intoxicating cannabinoid products or “industrial hemp” products like fiber or food. The amendment would depart from the country’s original hemp legalization language, which legalized essentially all products sourced from hemp, even intoxicants that were synthesized from the plant’s naturally occurring cannabinoids.

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Minnesota Bill to Allow Early Launch of Cannabis Cultivation Signed Into Law

5/31/2024

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Minnesota will award cannabis cultivation licenses ahead of schedule this year under a proposal signed into law by Gov. Tim Walz (D), the Star Tribune reports.

The proposal seeks to better prepare the state for next year’s launch of its adult-use cannabis market. Any cannabis grown under the early licenses cannot be processed or sold until the general licensing process is completed sometime next year.

Previously, only certain social equity applicants would have been allowed to launch their cultivation businesses before next year.

Other changes to the cannabis program signed into law last Friday include expansions that would qualify between 30% and 40% of Minnesota adults as social equity applicants, and license caps to prevent oversaturation during the market’s first two years of retail dispensaries and other businesses. The bill also establishes a “qualified lottery” by the Office of Cannabis Management for next year’s distribution of cannabis licenses, the report said, but applicants will first need to meet certain qualifications including holding appropriate property and having operational plans in place.

Lastly, the bill will let Minnesota doctors recommend medical cannabis for the treatment of any condition they see fit and will allow registered patients to designate caregivers who can grow up to eight plants on their behalf.

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Study: Terpenes May Offer Pain Relief for Chemo-Induced Neuropathic Pain

5/30/2024

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A study published this month in the journal Pain suggests that cannabis terpenes – the compounds that give plants their aroma and taste – offer an alternative to chemotherapy-induced neuropathic pain relief without any side effects. The study found that terpenes were as effective as morphine at reducing chronic neuropathic pain and a combination of the two analgesics further enhanced pain relief without negative side effects.  

The study, led by John Streicher, PhD, a member of the Comprehensive Center for Pain & Addiction and a professor of pharmacology at the College of Medicine – Tucson, used a mouse model of chemotherapy-induced neuropathic pain, which occurs when highly toxic chemotherapy medications cause nerve damage that results in pain. 

The terpenes were tested individually and compared with morphine and the team found that each terpene was successful in reducing the sensation of pain at levels near to or above the peak effect of morphine. When the terpenes were combined with morphine, the pain-relieving effects of all five terpene and morphine combinations were significantly increased. 

“We looked at other aspects of the terpenes, such as does this cause reward? Is this going to be addictive? Is it going to make you feel awful? What we found was yes, terpenes do relieve pain, and they also have a pretty good side effect profile.” — Streicher, in a statement, via the University of Arizona 

“This brings up the idea that you could have a combination therapy,” Streicher added, “an opioid with a high level of terpene, that could actually make the pain relief better while blocking the addiction potential of opioids.” 

The paper, “Terpenes from Cannabis sativa induce antinociception in a mouse model of chronic neuropathic pain via activation of adenosine A2A receptors.” is the first to examine the side effects of terpenes in their role as potential pain relievers.  

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Missouri Has Spent $19M in Cannabis Taxes on Veterans, Substance Use Treatment, Public Defenders

5/30/2024

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Cannabis taxes in Missouri have generated more than $19 million for supporting military veterans, expanding the state’s substance use treatment programs, and the Public Defenders System, the Missouri Independent reports. Last fall, the programs each received $1.3 million and another $5.1 million each earlier this month. 

Amy Moore, director of the Division of Cannabis Regulation, told the Independent that “It is so rewarding to see the impact of this voter-approved program on organizations that provide vital services to Missourians.” 

The funds sent to the Missouri Veterans Commission are used to pay for health care and other services for military veterans and their dependent families; the funds sent to the public defenders system helps pay legal fees for low-income residents; while the drug treatment programs are operated out of the Department of Health and Human Services and help individuals with job placement, housing, and counseling.   

In March, the state set a new cannabis sales record, totaling $125 million.  

In January, Moore indicated that adult-use cannabis sales in the state had led to $58 million in revenues for the state from taxes and annual fees. So far, $8.2 million has been used to pay the state’s operating costs. The state also uses cannabis-derived funds to pay for costs incurred by the court system for expunging former cannabis-related crimes that are now legal under state law. 

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Minnesota Social Equity Rules Could Cover Between 30%-40% of Adults in the State

5/30/2024

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Under Minnesota’s cannabis industry social equity rules, between 30% and 40% of adults in the state could qualify as social equity applicants, the Minnesota Reformer reports. The rules were approved by state lawmakers earlier this year. 

The state’s social equity rules cover: 

  • individuals who have lived for five years in a neighborhood where more than 20% of residents live in poverty or on food stamps, or where the median income is less than 80% of the statewide or metro area;  
  • those who have lived for five years in a neighborhood with high levels of “social vulnerability” as defined by the Centers for Disease Control (CDC); 
  • military veterans or members of the National Guard; 
  • individuals convicted of a cannabis offense in the past, or had a close family member convicted of an offense; 
  • small farmers with less than $100,000 in annual sales; 
  • and those who have lived for five years in a neighborhood that has seen a “disproportionate” rate of the enforcement of previous cannabis laws, as determined in a forthcoming study by the Office of Cannabis Management. 

Minnesota Reformer estimated the data using federal Census Bureau and CDC data and found that more than a third of the state’s 1,504 census tracts – small subdivisions of cities and counties – likely qualify based on the poverty, income, food stamp, and social vulnerability criteria, as long as they’ve lived in those neighborhoods for at least five years. According to the data, about 1.1 million people, or about a quarter of the state’s 4.4 million adults, have lived within those tracts for at least five years and the state has about 327,000 veterans – of which 100,000 live in those census tracts – which brings the total to about 1.3 million adults, or about 30% of the population. 

Those figures don’t include those individuals with prior cannabis convictions – of which there are tens or even hundreds of thousands when considering family members – or the small farm operators, or those who live in neighborhoods that had been disproportionately targeted by the previous enforcement of cannabis laws.  

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DEA Says THCA Not Legal Under Federal Law

5/29/2024

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A top official at the Drug Enforcement Administration (DEA) recently wrote in a letter that the federal 0.3% cap on delta-9 THC in hemp-based products also applies to delta-9 THCA, which is a similar cannabinoid, Marijuana Moment reports. THCA is typically created by decarboxylating (or heating up) the more well-known cannabinoid delta-9 THC.

Terrence Boos, chief of DEA’s drug and chemical evaluation section, confirmed in a letter on May 13 — written in response to a query by attorney Shane Pennington about the federal legality of delta-9 THCA — that the agency believes the 0.3% THC cap also applies to THCA.

“In regards to THCA, Congress has directed that, when determining whether a substance constitutes hemp, the delta-9 THC concentration is to be tested ‘using post-decarboxylation or other similarly reliable methods. The ‘decarboxylation’ process converts delta-9-THCA to delta-9-THC. Thus, for the purposes of enforcing the hemp definition, the delta-9 THC level must account for any delta-9 THCA.” — Boos, in the letter, via Marijuana Moment

Hemp industry advocates say the interpretation could be disastrous for hemp producers and manufacturers.

“Most hemp growers, even fiber and grain growers, would be out of compliance,” Jonathan Miller, general counsel for the U.S. Hemp Roundtable, said in the report.

The DEA statement comes as federal lawmakers consider an outright ban on most hemp-derived THC products per an amendment added to the House’s version of the national Farm Bill last week. The amendment would re-word the 2018 Farm Bill, which federally legalized industrial hemp and all of its derivatives, to specify there are only two types of legal hemp products: those that contain non-intoxicating, hemp-derived cannabinoids; and those containing hemp-derived fiber and food products.

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New York’s Top Cannabis Regulator Resigns Following Governor’s Criticism

5/29/2024

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New York’s top cannabis regulator Chris Alexander resigned on Friday following recent criticisms of the state’s cannabis agency leveled by Gov. Kathy Hochul (D), The City reports.

The governor had announced earlier this month — during a press conference where he was notably absent — that Alexander would be stepping down at the end of his term in September as executive director role of the Office of Cannabis Management (OCM).

“I have been reluctant to write this email due to the deep connection and commitment I have to this work and to this Team. And while I planned to serve out the remainder of my term, I no longer have confidence in my ability to do my job and lead this team effectively under current circumstances.” – Alexander, in an email, via The City

Alexander said in his emailed resignation that “it has been the honor of a lifetime to lead this group of the most dedicated public servants that I have ever encountered” but that “it would be disingenuous for me to not acknowledge how difficult the last several months have been.”

Hochul appointed Alexander to be the inaugural director of New York‘s cannabis agency in September 2021. However, an audit of the cannabis industry’s botched roll-out ordered by the governor in March found that the agency had been hindered by inexperienced leadership and inefficiencies in the licensing process.

Hochul told The City, “I am grateful for Chris Alexander’s work, first in developing and securing the passage of the Marihuana Regulation and Taxation Act and then in launching the Office of Cannabis Management,” according to the report.

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California Psychedelics Advocates Considering Legalization Initiative

5/28/2024

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California psychedelics advocates are considering a state ballot measure that would legalize the use of drugs like psilocybin and MDMA, according to a KQED report.

State Sen. Scott Weiner (D) — the author of a recently failed state proposal to legalize psychedelic treatment centers — said that he expects to see the issue appear on the 2026 ballot if state lawmakers don’t take action, first.

“We are not giving up, whether that means introducing a new bill or ballot measure, this issue is not going away. We know these substances are helping people turn their lives around.” — Weiner, via KQED

California Gov. Gavin Newsom (D) last year vetoed a proposal to decriminalize certain psychedelic substances including mescaline, DMT, psilocybin, and psilocin. At the time, the governor requested that lawmakers deliver him a psychedelics bill prioritizing therapeutic applications.

Advocates have not yet decided whether the future ballot proposal would address only the therapeutic use of substances like magic mushrooms or whether it would call for a wider decriminalization of psychedelics, the report said.

Meanwhile, multiple studies have shown that psychedelic substances like MDMA and psilocybin — the primary psychedelic ingredient in magic mushrooms — show promise against treatment-resistant mental health afflictions.

Oregon became the first state to vote to legalize therapeutic psychedelics in 2020 but the program there has shown mixed success.

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Nicki Minaj Detained For Cannabis in Netherlands, Concert Rescheduled

5/28/2024

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Nicki Minaj was forced to postpone a concert in Manchester following an incident in Amsterdam. Dutch police discovered marijuana in Minaj’s bags as she was preparing to leave the Netherlands, leading to delays, according to NPR.

Promoter Live Nation announced that the performance will be rescheduled and that tickets will still be valid. “Despite Nicki’s best efforts to explore every possible avenue to make tonight’s show happen, the events of today have made it impossible,” Live Nation stated. “We are deeply disappointed by the inconvenience this has caused.”

Minaj tweeted that she was stopped at Amsterdam airport, where police found marijuana in her luggage. Cannabis is not legal in the Netherlands, though it is decriminalized and widely available. Netherlands military police spokesperson Robert Van Kapel confirmed that a 41-year-old American woman was fined and released after being caught with “soft drugs.”

Minaj suggested on Twitter that the incident was intended to make her late for the Manchester concert, accusing authorities of jealousy. The Trinidadian-born rapper is on her “Pink Friday 2” tour, with upcoming stops across Europe. She has openly discussed her cannabis consumption in the past.

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Hemp THC Products Facing National Ban Under Farm Bill Amendment

5/27/2024

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The U.S. market for delta-8 THC and other hemp-derived cannabinoids is facing the possibility of a federal ban after House lawmakers approved an amendment targeting intoxicating hemp products to the federal Farm Bill, according to The Hill.

The amendment, proposed by Illinois Republican Rep. Mary Miller, establishes two distinct categories of legal hemp:

  • “Hemp grown for cannabinoid extraction” — specifically, ““naturally, occurring, naturally derived and non-intoxicating cannabinoids,” and
  • “Industrial hemp,” which covers material grown for non-cannabinoid-related purposes like fiber and food.

These definitions, however, depart significantly from the 2018 Farm Bill’s language, which legalized essentially all products sourced from hemp including delta-9 THC — the main intoxicating ingredient found in cannabis — and other intoxicating cannabinoids. The change, as written, would spell disastrous consequences for the $28 billion hemp product industry.

While the amendment has been added to the House’s version of the Farm Bill, it is not guaranteed to survive the politically divided body. The amendment would also need to be considered by the Senate.

The Hemp Roundtable said in the report the changes were “hemp industry-killing” and asked lawmakers to reject the Farm Bill until the amendment is removed.

Aaron Smith, co-founder of the National Cannabis Industry Association, called for “sensible federal regulations that apply equally to hemp- and marijuana-derived cannabinoid products.”

Earlier this year, 22 attorneys general asked Congress in a letter to restrict the hemp-derived cannabinoid market, arguing that the 2018 federal Farm Bill “unleashed… a flood of products that are nothing less than a more potent form of cannabis.”

Meanwhile, many states have already adopted policies restricting products that contain hemp-derived delta-8 THC and other intoxicating cannabinoids, including some states that already have their own regulated adult-use cannabis industries.

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Delaware Lawmakers Advance Proposal for Early Adult-Use Sales

5/27/2024

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Lawmakers in the Delaware House Economic Development, Banking, Insurance, and Commerce Committee last week advanced a proposal that would launch adult-use cannabis sales early in the state by letting medical dispensaries begin serving anyone aged 21 or older, WHYY reports.

Sponsored by state Rep. Ed Osienski (D), House Bill 408 would let the state’s licensed medical dispensaries acquire temporary “conversion licenses” that would allow them to sell to medical and adult-use customers alike while the state’s adult-use market comes online. The conversion license fee would cost $100,000 and proceeds would be assigned to the state’s social equity fund.

Osienski told the committee members the proposal would benefit consumers by opening the market faster. “Part of the real issue is brand new cultivation takes a lot of time,” he said, suggesting that a full crop can take up to 18 months.

“This utilizes the existing growth facilities,” he said.

However, some cannabis advocates are concerned that the proposal would be giving certain businesses an unfair advantage during a critical time of the industry’s rollout, the report said.

“This bill will allow six businesses to basically skip the line and get guaranteed licenses when everyone else will likely be subjected to the lottery process where they may not get a license at all, and they certainly won’t get their application fees back if they’re not selected.” — Zoë Patchell, executive director and co-founder of Delaware Cannabis Advocacy Network, via WHYY

Cannabis is currently legal to possess in Delaware but as lawmakers have yet to begin the licensing process, there are no legally approved sources — and home growing is not allowed.

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Study: Daily Cannabis Use In U.S. Outpaces Daily Alcohol Use

5/24/2024

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There are more Americans who admit to everyday cannabis use than who admit to everyday alcohol use, according to an analysis of national survey data outlined by the Associated Press.

The research, published last week in the journal Addiction, found that in 2022, about 17.7 million people reported using cannabis daily or near-daily, compared to about 14.7 million daily or near-daily drinkers.

The research was based on data from the National Survey on Drug Use and Health, which is conducted annually by the Substance Abuse and Mental Health Services Administration to provide nationally representative data on Americans’ use of tobacco, alcohol, and other drugs. Researchers said they used data from 1,641,041 participants across 27 surveys from 1979 to 2022.

The report noted that alcohol is still more widely used among Americans but that people who consume cannabis are more likely to be habitual users.

“A good 40% of current cannabis users are using it daily or near daily, a pattern that is more associated with tobacco use than typical alcohol use.” — Jonathan Caulkins, Carnegie Mellon University researcher, via the AP

Cannabis is currently fully legal in 24 states and has been legalized for medical use in 38 states. The federal government still classifies cannabis as one of the most dangerous and restricted substances but President Biden recently announced the Department of Justice will move cannabis from Schedule I to Schedule III under federal law.

In March, a Pew Research poll found that 88% of Americans support legalizing cannabis for either medical or adult use, and 57% supported legalizing both forms of cannabis access.

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Owner of 7 Unlicensed New York Cannabis Shops Fined $15M

5/24/2024

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New York Attorney General Letitia James has slapped the owner of seven unlicensed cannabis shops in the state with fines amounting to $15.2 million, according to a CNYCENTRAL report.

David Tulley, owner of the “I’m Stuck” and “Weed Warehouse” unlicensed cannabis dispensary chains, ignored repeated notices and orders from the Office of Cannabis Management (OCM) to cease operations, the attorney general said.

Tulley’s businesses — located in Cayuga, Oswego, and Wayne counties — are accused of illegally selling cannabis without a license and selling cannabis to underage customers. The fines include $7 million as disgorgement of the companies’ illegal profits and $8.2 million in penalties for operating without a license and ignoring multiple warnings and notices from officials.

“These illegal and unlicensed stores are budding up throughout the state and are hurting our communities. Today, David Tulley is paying the $15 million price for his repeated illegal activity and will be permanently banned from the cannabis industry in New York. This punishment should serve as a clear warning for all unlicensed cannabis stores in the state: we will enforce the law and shut down your operations.” — AG James, in a statement

New York law imposes a $10,000 penalty per day of selling cannabis without a license, and a $20,000 penalty per day of continuing to sell cannabis after having been ordered to stop by officials.

The move is the state’s most significant enforcement action against illegal cannabis shops since Gov. Kathy Hochul (D) called the legal industry’s rollout a “disaster” in February, ordered an extensive audit of the state’s cannabis regulations in March, and, earlier this month, announced the impending departure of the state’s top cannabis regulator.

 

 

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DEA, DOJ Publish Proposal to Reschedule Cannabis & Open Public Comment Period

5/22/2024

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The Drug Enforcement Administration and Department of Justice on Tuesday published the proposed rule to downgrade cannabis from a Schedule I to Schedule III drug under the Controlled Substances Act (CSA). The proposed rule, which is backed by the Biden Administration, seeks to “transfer marijuana from Schedule I of the Controlled Substances Act to Schedule III of the CSA, consistent with the view of the Department of Health and Human Services that marijuana has a currently accepted medical use as well as HHS’s views about marijuana’s abuse potential and level of physical or psychological dependence.”

“If the transfer to schedule III is finalized, the regulatory controls applicable to schedule III controlled substances would apply, as appropriate, along with existing marijuana-specific requirements and any additional controls that might be implemented, including those that might be implemented to meet U.S. treaty obligations. If marijuana is transferred into schedule III, the manufacture, distribution, dispensing, and possession of marijuana would remain subject to the applicable criminal prohibitions of the CSA. Any drugs containing a substance within the CSA’s definition of ‘marijuana’ would also remain subject to the applicable prohibitions in the Federal Food, Drug, and Cosmetic Act” — Schedules of Controlled Substances: Rescheduling of Marijuana, May 21, 2024 

The publication of the proposed rule and 61-day comment period is required under the CSA.

In a statement, NORML Deputy Director Paul Armentano said the organization will be submitting its “own comprehensive comments substantiating the evidentiary record that cannabis possesses accepted medical utility and comparatively low dependence liability” and “will also be addressing a number of the issues raised by political opponents with respect to cannabis’ impact on public health, making it clear that these concerns do not warrant the continued classification of cannabis as a Schedule I substance.”

“NORML is in a unique position to mobilize interested parties to provide their perspectives throughout the public comment period and we will be encouraging advocates and experts to do so in the coming weeks,” Armentano said in the statement. “In particular, it is important that the voices of both physicians and patients are heard and considered, as the Justice Department weighed the real-world experiences of doctors and their patients in medical cannabis states when making their recommendation to reclassify.”

The public comment period ends July 22.

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Iowa Gov. Signs Bill Limiting Concentration in Hemp-Derived CBD, THC Products

5/22/2024

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Iowa Gov. Kim Reynolds (R) last week signed a bill imposing THC caps on intoxicating hemp products and other industry reforms, the Times-Republican reports. The law, which takes effect July 1, limits THC content to 4 milligrams per serving and 10 milligrams per container. 

In an interview with the Times-Republican, Tyler Underberg, the owner of Pure Releaf, said the measure will ban every single THC product the business sells. He added that the majority of his customers are between 50- and 95-years-old and use CBD products, which are also limited under the law, for “relief from pain, anxiety, for sleep.” Underberg noted that he had already removed THC products from his shelves.  

“No one sells CBD single servings,” he said in the report. “For a tincture, you don’t buy a dropper full. [The container limit] will make all products on the market obsolete.”

Josh Brown, manager of Marshall Tobacco and Vape Outlet, told the Times-Republican that the law will take all but two hemp products from his shelves.

“I don’t understand why we’re going backwards. I have people come in here with cancer, broken bones, people who have all kinds of different, serious medical illnesses that would rather lean on cannabis products and THC than take pharmaceuticals.” — Brown to the Times-Republican 

Brown added that all of the products’ packaging indicate they are not for sale for individuals under 18 and that he doesn’t sell to anyone under 21 – and he doesn’t believe that any Iowa retailers sell to individuals under 21.  

“If you call any store at all in Iowa, I guarantee you 100 percent, they will tell you the exact same thing,” he told the Times-Republican. “So, how are minors getting a hold of it? What’s going on is parents are buying it for their kids so they are not going out and getting stuff off the street. That’s exactly what’s happening, and has been happening since the dawn of alcohol.” 

State Rep. Sue Cahill (D) said that the businesses “got the shaft” and that “the healthcare purposes of the products were not taken into consideration.” 

Retailers have filed a class action lawsuit against the law which is still moving through the courts. 

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Martha’s Vineyard, Massachusetts Dispensary Sues for Right to Transport Cannabis to Island by Boat

5/22/2024

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A Martha’s Vineyard, Massachusetts cannabis dispensary is suing the state Cannabis Control Commission (CCC) over rules prohibiting the transport of cannabis products by boat across the Vineyard Sound to the island, the Vineyard Gazette reports. The lawsuit, filed by Island Time owner Geoff Rose, argues that the ban on transporting cannabis from the mainland to the island is arbitrary and puts an undue burden on dispensaries on the island who must rely on cannabis grown only on the island. 

State officials say the ban is necessary due to federal law and state regulations that prohibit the transporting of cannabis across the water and airspace between mainland Massachusetts and Martha’s Vineyard, the report says. Rose, in an interview with the Gazette, pushed back on those claims, saying the Vineyard Sound operates under state jurisdiction.

“For more than 11 years, my efforts have centered on providing safe and responsible cannabis to local residents and visitors alike. I’m hoping that the court will mandate the commission take immediate action to allow us to transport the product from the mainland.” — Rose to the Gazette

The lawsuit comes after the island’s only commercial cannabis facility, Fine Fettle, announced it would close this year, leaving the Martha’s Vineyard dispensaries without product. Rose said that earlier this year he ordered products from a supplier on the mainland who transported them aboard a vehicle aboard the Steamship Authority ferry but the said that also ran afoul of state rules and ordered Rose not to sell the product – a position they later revered.

“[Island Time] is being starved to death by the Commission’s arbitrary, unreasonable and inconsistent policy against transporting marijuana and marijuana products over state territorial waters,” the lawsuit states. 

A statement from the CCC indicated that the agency “has been discussing what may be possible in terms of extending additional accommodations to these licensees and will be scheduling a public meeting on Martha’s Vineyard within the next month to continue the conversation” but that “transportation of marijuana from the Commonwealth mainland to the island counties is not one of those accommodations.”      

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California Assembly Passes Bill to Let Cannabis Cafes Sell Food & Non-Alcoholic Drinks, Host Live Music

5/22/2024

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The California State Assembly has passed the bill allowing licensed cannabis cafes to offer non-infused food and non-alcoholic beverages, KTLA5 reports. The proposal would also allow cannabis cafes to host events including live music, comedy, and other performances.

Lawmakers passed Assembly Bill 1775 on Monday with a 56-5 vote after the bill’s third reading.

People are allowed to consume cannabis at licensed dispensaries in California but the state does not currently allow cannabis businesses to sell other consumables, such as food and beverages. The bill would require the sale and display of non-infused food and beverages to be handled separately from the cannabis sales.

Gov. Gavin Newsom (D) last year vetoed a similar bill citing concerns the bill could violate the state’s smoke-free protections, which prohibits people from smoking in enclosed spaces while at work. But the bill’s sponsor Assemblymember Matt Haney (D) said in the report his goal was “fairness” for cannabis operators, who must face the combined hurdles of strict regulations and competition from the illicit market.

“It’s really about fairness and supporting businesses that follow the rules. If we keep allowing unnecessary regulations to strangle California’s legal cannabis businesses, we’re just encouraging illegal drug sales and all of the problems that come with that.” — Haney, in a statement

The bill still has to pass the Senate before reaching the governor’s desk.

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Report: Cannabis Operators Are Optimistic for Industry

5/22/2024

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Nearly half of U.S. cannabis operators (48%) believe that the cannabis industry is going to perform “somewhat better” or “much better” in the coming year, according Marijuana Business Daily reports.

The survey data, released with the 2024 MJBiz Factbook, also found that 34% of respondents predict the industry will perform “about the same” in the coming year, with just 19% of operators expecting things to get worse.

The data was collected from February 13 to March 15, before the federal government had formally initiated the process of rescheduling cannabis from Schedule I to Schedule III under the Controlled Substances Act. Surveyors collected more than 600 responses from primarily (72%) cannabis cultivators, manufacturers, processors, or retailers, the report said. Additionally, 90% of respondents were either owners, founders, or executives of their company.

The report found that people representing younger companies — particularly companies still in the planning or prelaunch phases of their business — were more optimistic than other operators. People whose businesses had closed were the most pessimistic about the industry, with 25% predicting that the industry will get “somewhat worse” or “a lot worse” in the near future.

Bob Groesbeck, co-CEO of the multistate cannabis operator Planet 13 Holdings said in the report that people tend to enter the industry “with high expectations” but fail to fully understand “how complex this business is.”

“Once you open your doors, you realize there are many challenges, including layers of regulatory changes by different jurisdictions that need to be constantly navigated.” — Groesbeck, via MJBizDaily

Another report published in April found that the cannabis industry tacked on 22,952 new full-time equivalent jobs in 2023 and has grown to support more than 440,000 positions.

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Glass House Withdraws Defamation Lawsuit Filed Over Product Diversion Allegations

5/21/2024

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Glass House Brands Inc. has announced the withdrawal of its defamation lawsuit against Catalyst Cannabis Co., citing concerns over Catalyst’s financial stability and potential harassment of Glass House’s customers. The lawsuit, filed against Catalyst and its principals Elliot Lewis and Damian Martin, accused them of making unfounded claims that Glass House was selling cannabis into the unlicensed market.

Catalyst’s allegations, disseminated through social media, asserted that a significant portion of Glass House’s products were diverted to illicit markets, a claim Glass House denied. Rather than specific evidence of wrongdoing, the allegations made by Lewis were based on mathematical calculations highlighting sales & production metrics.

The decision to dismiss the lawsuit against Catalyst was reportedly influenced by several factors, once of which stemmed from doubts about Catalyst’s ability to pay a potential judgment, with Glass House’s statement noting Catalyst’s recent financial struggles, including layoffs and store closures.

In a response posted to LinkedIn, Lewis pointed out that although his company faces obstacles and often does not have much cash on hand due to the nature of the industry and California’s cannabis market, to suggest that his business wouldn’t be able to afford a judgment would be to ignore the “enterprise value” of Catalyst’s retail footprint in the state and its various assets. Lewis argued that the timing of the announcement also was suspicious, and seemed to coincide with Glass House needing to hand over documents related to the discovery phase of the lawsuit.

In a post celebrating the dismissal of the suit, Lewis’s legal representative, Jeff Augustini, wrote: “To get to this day, we had to win nearly a half dozen discovery motions, defeat a motion for reconsideration, and file additional motions to compel compliance after Glass House continued to evade the discovery. But ultimately, when faced with the prospect of finally having to produce the ordered information, Glass House chose to dismiss the case entirely rather than produce the information.”

Defending its decision to withdraw the suit, Glass House highlighted the potential risk of customer harassment. Pursuing the lawsuit would have required disclosing details about its customers, exposing them to further subpoenas from Catalyst. In its statement, Glass House maintained that all its sales are conducted legally through California’s track-and-trace system, METRC, and that its customers are all licensed operators.

Although the detailed records of Glass House’s business dealings may never come to light, it is a widely-known “secret” that many licensed cannabis operators engage in some form of product diversion to remain profitable, and the company’s move to end the suit is likely to spark further speculation. In fact, when Glass House’s defamation lawsuit was originally filed, Lewis seemingly alluded to this eventual outcome when he posted on Instagram: “I want to thank Kyle and Graham for bringing it, because you’ve opened up the discovery floodgates.”

The withdrawal of this lawsuit does not mark the end of the legal dispute between the two companies, however. Glass House still remains involved in separate litigation initiated by Catalyst, which alleges unfair competition practices.

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New Hampshire Senate Passes Cannabis Legalization Bill that Includes State-Run Shops

5/20/2024

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The New Hampshire Senate last week approved a bill to legalize cannabis in the state, InDepthNH reports. The bill would permit a state-run system favored by Republican Gov. Chris Sununu and marks the first time the chamber has approved the reforms.

The bill is not the same as the House version passed last month, which did not include state-run shops, but rather a more familiar licensing system. The House has passed adult-use cannabis reforms during the last three sessions.

The Senate bill would allow 15 state-run, or franchised, shops by 2025, allowing a maximum of one per municipality, with the exception of Nashua and Manchester, which would be allowed more. The state-run plan is based on New Hampshire’s liquor store model. 

During the debate, Sen. Daryl Abbas (R) noted that New Hampshire is “surrounded” by states that have legalized cannabis for adult use and New Hampshire residents are buying cannabis legally in other states already.

“We have no control on what is going on outside the border. We are dealing with the negative impact without any benefits at all.” — Abbas, during the debate, via InDepthNH

The bill would direct cannabis taxes to children’s behavioral health (10%), public safety (10%) and alcohol abuse and prevention (15%). Smoking in public would be prohibited with a $100 fine for a first offense and $500 for a second and police would be permitted to confiscate the cannabis possessed by individuals smoking in public.

The legislation also bans nicotine and alcohol sales where cannabis is sold, and cannabis industry lobbying would also be banned in the state.

The measure still has to be approved by the House before moving to Sununu who has indicated he would sign a bill that meets his demands, despite his opposition to the reforms.

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