Kansas Advocates Launch Cannabis Justice Coalition

5/08/2024

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Advocates in Kansas have formed the Cannabis Justice Coalition, which aims to support candidates for state office that would support cannabis legalization and expunging cannabis criminal records in the state, the Kansas Reflector reports. The organization was founded by Prairie Village City Council member Inga Selders, who said it was frustrating that state lawmakers fail to deliver “fair and equitable” cannabis laws.    

“Despite a majority of Kansans wanting recreational cannabis fully legalized in Kansas, most of our state legislators aren’t listening to the constituents and have turned cannabis reform into a partisan issue, when in fact it isn’t.” — Selders to the Reflector 

The coalition’s board includes Barry Grissom, the U.S. attorney for Kansas from 2010 to 2016 under President Barack Obama; Ian Graves, a Prairie Village City Council member and advocate for cannabis decriminalization; and Leslie Byram, an estate planning and probate attorney who regularly works with clients with special medical needs.

Grissom, a former prosecutor, noted that cannabis prohibition is “a waste of taxpayer money.” 

“I know that spending money on investigation, interdiction, arrest, prosecution, incarceration of individuals involved in some level of use of cannabis is bad public policy,” he said in the report. “…It is a waste of precious resources our law enforcement needs to keep us all safe in our homes, our communities, our houses of worship and our schools.” 

Graves echoed Grissom’s assertion, calling the enforcement of cannabis laws a waste of time.  

“I tell you cannabis is being consumed in Johnson County frequently. It’s already here,” Graves said. “Folks in law enforcement know that this just isn’t something we should be wasting our time on.” 

In the October 2023 “Kansas Speaks” survey by Fort Hays State University, 67.2% of respondents supported adult-use cannabis sales. 

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Vermont Recalls Holland Cannabis Co. Products Due to Fungicide Exposure

5/08/2024

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Vermont regulators last week issued a recall for all Holland Cannabis Co. products due to potential exposure to the fungicide myclobutanil. While the Cannabis Control Board (CCB) is so far unaware of any adverse health effects related to the products, it is calling on retailers to quarantine the products and for customers to return them.

Holland has already had its license suspended and was currently operating under a “corrective action plan” after someone was made ill last year after smoking cannabis tainted with the fungicide, according to a Seven Days report. Holland now faces a $20,000 fine and could have its cultivation license revoked for its second offense.

CCB Chair James Pepper told Seven Days that the case is still being investigated.

“Some pesticides are OK for human consumption. This one is a very known toxic one. So there’s no excuse here. And the fact that they’ve been through this once before leaves very little room for any sort of leniency.” — Pepper to Seven Days

The CCB is aware of at least six dispensaries carrying Holland flower and prerolls but warned that some retailers may have older Holland products that could also be contaminated. The agency notes that while the recall affects all strains, it does not mean that all strains are contaminated.

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Florida GOP Announces Opposition to Cannabis Legalization Amendment

5/08/2024

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The Republican Party of Florida’s Executive Board last weekend unanimously passed a resolution opposing the state’s cannabis legalization amendment that voters will consider in November.

The cannabis ballot question, Amendment 3, seeks to legalize the possession and use of cannabis by adults aged 21+ and would allow medical dispensaries to begin serving adult-use customers. Republicans also formally stated their opposition to Amendment 4, which seeks to enshrine the right to abortion access in the state’s constitution.

Both ballot proposals are constitutional amendments, which will require at least 60% voter support to pass.

“Floridians are confident that their legislature has been passing laws that reflect the priorities of our state. Amendments 3 and 4 are unnecessary attempts by an increasingly shrinking minority who know the only way to win support for their radical agenda is to confuse and mislead the electorate.” — Florida GOP Chairman Evan Power, in a press release

Polling data from last September put public support for cannabis legalization at 60% — the exact threshold for victory at the ballot box — but another survey in April regarding November’s legalization vote found just 49% of respondents saying they would vote “yes” on the issue.

In the press release, Power suggested the ballot measures were funded by “outside dark money groups … looking to promote their far-left ideology by attempting to confuse Florida voters.” The legalization campaign, however, has been primarily funded by Florida‘s own Trulieve, a multistate cannabis operator the state’s largest medical cannabis operator.

In addition to contesting Amendments 3 and 4, the GOP chairman also affirmed party support for making Florida school board races “partisan,” installing constitutional protections for hunting and fishing in the state, and reforming the state’s public campaign financing rules.

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New Jersey Sets New Cannabis Sales Record But Growth Is Slowing

5/08/2024

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New Jersey adult-use cannabis sales continue to set new records but sales growth has started to show signs of slowing, the New Jersey Monitor reports.

Licensed cannabis dispensaries sold $201 million worth of adult-use cannabis during the first three months of 2024, a new quarterly sales record and a 38% year-over-year growth.

However, the quarterly sales record also marked only a 4.4% increase from the previous quarter, which is the lowest growth for the industry on record — and, previously, the lowest quarterly cannabis sales growth on record was the final quarter of 2023, the report said. The slowing rate suggests that the industry’s growth could be starting to plateau after two years of explosive growth.

However, it can be normal for cannabis retailers’s first-quarter sales to slump after the holidays, New Jersey CannaBusiness Association President Scott Rudder said in the report. Sales tend to pick up again around 4/20 and with the return of spring and summer, “so your second, third, and fourth quarters are usually your best quarters,” he said.

“The significant growth in sales year over year is an indication of the strong potential of New Jersey’s cannabis market. We anticipate that as even more dispensaries open across the state, new brands are introduced to the market, and cannabis becomes less stigmatized, sales numbers will continue to go up.” — Jeff Brown, executive director of the Cannabis Regulatory Commission (CRC), in a statement

New Jersey launched its adult-use cannabis market in 2022 and the industry has so far struggled with high prices, making it difficult to compete with illicit sources and hemp cannabinoid products. But CRC Chair Dianna Houenou said the continued market growth was a sign that legal cannabis retail was chipping away at the unregulated market.

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USDA: Value of U.S.-Grown Hemp Up 18% in 2023

5/06/2024

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The value of hemp produced in the U.S. totaled $291 million in 2023, up 18% from 2022 totals, according to an April report from the U.S. Department of Agriculture (USDA) National Agriculture Statistics Service (NASS).  

In 2023, there were 27,680 acres of industrial hemp planted outdoors — or “in the open” — for all utilizations, down 2% from 2022, according to NASS statistics. The value of hemp production in the open totaled $258 million, up 22% from last year, while the area harvested for all purposes in the open totaled 21,079 acres in 2023, up 15% from the year prior. 

Floral hemp production grown in the open in the U.S. last year was estimated by the agency at 8.03 million pounds, up 18% from 2022. In the open area harvested for floral hemp was estimated at 7,383 acres, up 4% from last season, the report says. The average yield for 2023 floral hemp in the open was estimated at 1,088 pounds per acre, up 134 pounds from 2022. The value of floral hemp grown in the open totaled $241 million in 2023, up 35% from the year prior. 

National production of hemp grown outdoors for grain in the U.S. last year totaled 3.11 million pounds, up 28% from 2022, according to the NASS. The area harvested for hemp grown in the open for grain was estimated at 3,986 acres, representing a 26% decline from last season. The average yield for hemp grown in the open for grain last year was estimated at 779 pounds per acre, up 327 pounds from 2022. The value of hemp grown in the open for grain totaled $2.31 million, down 36% from the year prior.

In 2023, production of hemp grown in the open for fiber was estimated at 49.1 million pounds, up a striking 133% from 2022, while the area harvested for outdoor-grown hemp for fiber in the U.S. was estimated at 12,106 acres, up 77% from last season, according to the report. The average yield last year for hemp grown in the open for fiber was estimated at 4,053 pounds per acre, up 983 pounds from last year. The total value of hemp grown in the open for fiber in 2023 topped $11.6 million, down 59% from 2022.  

Production of hemp grown outdoors for seed last year was estimated at 751,000 pounds, up 414% from 2022. Area harvested in the U.S. for hemp grown in the open for seed was estimated by NASS at 1,344 acres – a 66% increase from last season – with an average yield estimated at 559 pounds per acre, up 379 pounds from last year. The value of outdoor hemp grown for seed in the U.S. totaled $2.91 million, up 96% from last year, the report says. 

In 2023, hemp cultivators in the U.S. used 3.24 million square feet “under protection” – or indoor cultivation – for production, down 33% from 2022, with a value totaling $32.9 million, representing a 3% decrease from last year.  

Hemp clones and transplants grown indoors in the U.S. last year totaled 934,000 plants, down 26% from 2022. The value of hemp clones and transplants grown under protection totaled $870,000, up 18% from last year, according to the NASS.

Floral hemp grown indoors in the U.S. last year was estimated by the NASS at 75,866 pounds, down 28% from 2022, with a value of $25.8 million, which marks a 4% increase from last year. Hemp grown under protection in the U.S. for seed totaled 1,236 pounds, down 45% from 2022. According to the NASS, the value of hemp grown under protection for seed totaled $6.25 million, down 26% from last year.

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Potency taxes in NY

St. Louis County Circuit Judge Rules Cannabis Tax ‘Stacking’ is Legal

5/06/2024

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A St. Louis, Missouri County Circuit judge last week ruled that municipalities can add – or stack – additional sales taxes on cannabis sales in the state, St. Louis Public Radio reports. The lawsuit was filed by Robust Missouri 3 LLC, which saw the tax rate at its Florissant dispensary rise to 14.988% after both the city and St. Louis County approved 3% sales taxes on adult-use cannabis in April 2023. 

The constitutional amendment that legalized adult-use cannabis sales in the state included a 6% statewide excise tax while also authorizing “any local government” to charge a sales tax of up to 3%.

In its lawsuit, Robust questioned whether the law intended for local governments to be able to impose a maximum of 3% sales combined, or if they can each impose a 3% sales tax.

Judge Brian May ruled that both of the taxes are valid and that if the company’s “interpretation were accepted, then a municipality or city would essentially be given carte blanche to ignore any county ordinance or regulation, including those related to public health and safety wholly unrelated to the taxing issue.”

In the ruling, May noted that there is no court precedent on the issue, so he interpreted the intent of the law as a whole rather than “in isolated parts.”

In a statement following the ruling, Andrew Mullins, executive director of the Missouri Cannabis Trade Association, said that the high tax rate “only helps the illicit market” which he said “deprives Missouri veterans and substance abuse programs of needed revenue.”

Robust has already filed an appeal.

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Connecticut Appellate Court Rules Companies Can Fire Medical Cannabis Patients Who Come to Work Impaired

5/06/2024

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Connecticut employers have the right to terminate employees who come to work impaired by medical cannabis, a state Appellate Court judge ruled this month, according to an Insurance Journal report. The court upheld the dismissal of a lawsuit brought against a nonprofit pre-school that had fired a teaching assistant after she showed up to work under the influence of medical cannabis, which violated the school’s drug-free workplace policy.

The court ruled that despite the state’s medical cannabis law, employers “may prohibit qualifying patients from being under its influence in the workplace” and that employees who make claims under the law must prove they were terminated solely because they are a medical cannabis patient.

The court also affirmed the right of employers to seek drug tests for employees when the employer has a “reasonable suspicion” that an employee is violating its drug-free workplace policy.

The case dates back to 2019 when the employee, who is a registered patient for epilepsy under the state’s medical cannabis program, called a child by the wrong name, which led to her behavior being questioned by a colleague, the report says. The employee responded that “her head was just not right,” according to her colleague in court records, because she likely had ingested too much cannabis and the effects carried over into the workday. Six days later she took a drug test, testing negative for cannabis but positive for Valium, which she was also prescribed, the report says. The employee was first suspended and later fired following an investigation.

In terminating the employee, the school said it was unrelated to her medical condition, rather that she had shown up to work impaired. The employee filed a grievance, but both the school’s grievance committee and board of directors upheld the termination, the report says. The employee filed an employment discrimination complaint with the Commission on Human Rights and Opportunities and in her accompanying affidavit alleged that the school “terminated her employment because of her disability” and “failed to accommodate her by prohibiting her from working while taking prescription medication for her disability.”

In the Appellate Court decision dismissing the complaint, the court said that the state’s medical cannabis law contains language making clear that it shall not restrict an “employer’s ability to prohibit the use of intoxicating substances during work hours or restrict an employer’s ability to discipline an employee for being under the influence of intoxicating substances during work hours” and that the employee “failed to follow company policy and procedures.”

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Study: Psilocybin Shows Promise in Treating Depression

5/06/2024

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A recent study in the United Kingdom found that psilocybin, the naturally occurring psychedelic compound in hallucinogenic (or “magic”) mushrooms, is an effective treatment for depression.

Researchers behind the study found that psilocybin outperformed niacin (or Vitamin B), microdoses of other psychedelics, and a placebo in the treatment of depression symptoms, according to a Medical News Today report.

The peer-reviewed research, published in The BMJ, represents a systemic review and meta-analysis of past studies. Researchers utilized seven randomized controlled trials that included studies comparing psilocybin’s efficacy as a depression treatment to other substances, and studies utilizing psychotherapy under both the experimental and control conditions so that psilocybin’s effects could be distinguished from those of psychotherapy, the report said.

The report’s authors called for more research into the subject before considering or enacting changes at the clinical level.

Dr. Akanksha Sharma — a neurologist, neuro-oncologist, and palliative medicine practitioner at Pacific Neuroscience Institute in Santa Monica, California — told Medical News Today that psychedelics like psilocybin can re-wire the brain’s response to stress and negative emotions, but that scientists do not fully understand the process.

“At this point, we know that altered states of consciousness can help patients face and process difficult emotions associated with their mental health condition or disease. In this state with the right guides, we can potentially reframe and accept our condition or find peace.” — Dr. Sharma, in the report

Meanwhile, according to research published last year in the journal Psychedelic Medicine, a majority of American Psychiatric Association members believe that hallucinogens show promise in treating psychiatric conditions.

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Voters Reject Local Cannabis Reforms In Lubbock, Texas

5/06/2024

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Voters in Lubbock, Texas on Saturday rejected a local cannabis decriminalization ballot measure, the Texas Tribune reports.

The proposal — which sought to prevent Lubbock law enforcement from arresting or prosecuting adults caught with four ounces or less of cannabis — was rejected by nearly 65% of voters during the city’s municipal election.

A spokesperson for Lubbock Compact, the community advocacy group and public policy think tank behind the decriminalization campaign, said low voter turnout caused the campaign to come up short.

“We worked hard on it, we had a lot of volunteers. We just weren’t able to get the voter turnout high enough.” — Adam Hernandez, via the Texas Tribune

The Lubbock City Council had previously rejected the reforms, which kicked the issue to voters.

If the ordinance had passed, Lubbock would have joined five other Texas cities — Austin, Killeen, Denton, Elgin, and San Marcos — in passing local, low-level cannabis decriminalization reforms. Texas Attorney General Ken Paxton, however, has argued that local cannabis decriminalization policies violate state laws and the state constitution. The attorney general formally filed a lawsuit against the cities in January.

The city of Harker Heights also approved similar decriminalization reforms but the City Council there refused to enact the policy, prompting a lawsuit.

 

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Federal Cannabis Legalization Bill Filed By Senate Democrats

5/03/2024

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Lawmakers in the U.S. Senate this week reintroduced the Cannabis Administration and Opportunity (CAO) Act, which seeks to end the federal prohibition of cannabis. The bill was filed by a coalition of Democrats led by Sen. Majority Leader Chuck Schumer (NY) and Sens. Ron Wyden (OR) and Cory Booker (NJ).

“It’s past time for the federal government to catch up to the attitudes of the American people when it comes to cannabis. That’s why we’re reintroducing the Cannabis Administration and Opportunity Act, legislation that would finally end the federal prohibition on cannabis while prioritizing safety, research, workers’ rights and restorative justice. We have more work to do to address decades of over-criminalization, particularly in communities of color, but today’s reintroduction shows the movement is growing, and I will keep working until we achieve meaningful change.” — Sen. Schumer, in a press release

The CAO, which was first introduced in 2022, would remove cannabis from the federal drug schedule, automatically expunge federal non-violent cannabis offenses, and establish a grant program aimed at helping individuals who were adversely affected by cannabis prohibition with housing, economic, and community development needs. Those grants — and additional plans to expand cannabis research programs — would be funded at least in part through a new tax structure on federally regulated cannabis products.

“These common-sense policies will ensure a more equitable criminal justice system and promote public safety,” Sen. Booker said in a statement.

Lawmakers proposed the bill on the day after it was reported that the DEA intends to move cannabis from Schedule I to Schedule III under the Controlled Substances Act.

Gallup reported last November that 70% of American adults supported legalizing adult-use cannabis.

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Poll: Most Americans Think Cannabis Banking Would Benefit Public Safety

5/03/2024

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Recent polling data from the Independent Community Bankers of America (ICBA) suggests most Americans believe that giving cannabis companies access to traditional banking services would benefit public safety, according to a press release.

The data, published on Thursday ahead of the 2024 ICBA Capital Summit in Washington, D.C., found that:

  • 64% of Americans believe the Secure And Fair Enforcement Regulation (SAFER) Banking Act, which would protect federally regulated financial institutions that serve state-legal cannabis companies, would benefit public safety.
  • Additionally, 54% of Americans agree that allowing cannabis companies to utilize the traditional banking system would benefit underserved communities.

The ICBA polling data also found that 63% of American adults believe cryptocurrencies should be regulated at least as stringently as banks, and 68% believe that credit union customers should be afforded the same consumer protections as banks.

Meanwhile, the American Bankers Association (ABA) said this week that even after cannabis gets moved to Schedule III under the Controlled Substances Act, traditional banking services will not be available to state-legal cannabis markets. Rather, Congress must first adopt the SAFER Banking Act, or a similar proposal, to give the industry proper banking access.

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Banking Access for Cannabis Companies Will Remain Stymied with Federal Reclassification

5/01/2024

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Following the reported move by the federal government to reclassify cannabis as a Schedule III drug under the Controlled Substances Act, the American Bankers Association (ABA) said Congress still needs to pass the SAFER Banking Act, which would allow state-legal cannabis companies access to traditional financial services. 

In a statement, the ABA said that while it “takes no position on the legalization of cannabis, it’s important for policymakers to know that any potential decision to reclassify cannabis has no bearing on the legal issues around banking it.”  

“Cannabis would still be largely illegal under federal law, and that is a line many banks in this country will not cross. The solution is the bipartisan SAFER Banking Act, which would allow banks to provide services to the cannabis industry in those states where it’s now legal. Passing that legislation in Congress would address the ongoing legal limbo around cannabis banking, while enhancing public safety, tax collection and transparency.” — ABA in an April 30 statement 

In an interview with the Associated Press, Blair Bernstein said the decision by the feds to reclassify cannabis “has no bearing on the legal issues around banking cannabis.”    

“Cannabis would still be illegal under federal law,” Bernstein told the AP, “and that is a line many banks in this country will not cross.” 

Morgan Fox, political director for NORML, added that he doesn’t think the federal reforms will “have a demonstrable effect” on financial institutions with regard to cannabis banking. 

Last year, a Congressional Research Service report found that about 675 financial institutions are doing business with cannabis companies. 

“However, the depth and breadth of financial services that depository institutions are providing to marijuana businesses is unclear,” the report says. “It is also uncertain whether these depository institutions are serving businesses directly involved in cultivating and selling marijuana or are serving only entities indirectly involved in the marijuana business (e.g., landlords renting office space to marijuana businesses).” 

The House has passed a version of the banking reforms, then known as the SAFE Banking Act, seven times, while the legislation has never passed the Senate.  

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Georgia Gov. Signs Hemp Industry Reform Bill

5/01/2024

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Georgia Gov. Brian Kemp (R) on Tuesday signed a bill that limits the possession and sale of hemp products to adults 21-and-older. The legislation also creates a licensing program for hemp cultivation, hemp product manufacturing, and retail hemp sales.  

The law sets cultivation licensing fees between $500 and $2,000 annually, and requires surety bonds between $20,000 and $1 million, according to the bill text. Retail license fees are set at $250 annually under the law, while wholesale license fees run between $500 and $10,000 annually, set by the commissioner of the Georgia Department of Agriculture (GDA). 

In a press release, Kemp said the bill “makes changes to the framework for hemp regulation” to allow the GDA “to have greater oversight and enforcement power and adds labeling, packaging, and marketing requirements to protect children from misleading and dangerous marketing.” 

All hemp products manufactured and sold in the state will have to include a “full panel certificate of analysis.”   

Earlier this month, Georgia Agriculture Commissioner Tyler Harper described the bill as providing “guard rails” for the state’s hemp industry.  

Some portions of the law, including the retail licensing provisions, will take effect July 1, while all other provisions will take effect on October 1. 

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Minnesota Lawmakers Consider Early Cannabis Cultivation Licenses to Prevent Industry Delays

5/01/2024

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Minnesota lawmakers are considering a proposal to begin issuing some cannabis cultivation licenses before the adult-use program rulemaking is complete, the Star Tribune reports. The proposal would give the Office of Cannabis Management (OCM) the option of using the state’s current medical cannabis rules to allow some companies to begin growing cannabis before 2025. 

The proposal aims to prevent possible delays in the adult-use rollout as OCM is not expected to issue industry regulations until 2025. Currently, only social equity applicants who have been preapproved for a cannabis business license and obtained local zoning approval would be allowed to start cultivating cannabis early. 

Ali Britton, a prospective cannabis cultivator, on Tuesday told lawmakers that if the state does not “create a pathway for well-prepared cultivators” to start building their facilities now, “Minnesota will not have a cannabis supply chain until mid-to-late 2026 at the earliest.”

“This would mean that the anticipated windfall of tax revenue from the cannabis market will not be available until at least 2027.” — Britton via the Star Tribune 

Leili Fatehi, a lobbyist who worked with lawmakers on the cannabis legalization bill, added that not allowing cultivators to begin growing now could lead to “an insufficient amount of supply coming online.” 

Interim OCM director Charlene Briner told lawmakers that the agency will use the medical cannabis rules “if that option is deemed necessary to stage the market.”   

“OCM will continue to evaluate how or if we can use that tool while still preserving our commitment to equity and our obligation to stand up the market effectively,” he said. 

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Cannabis Stocks Soar After Cannabis Rescheduling News

5/01/2024

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Cannabis company stocks surged on Tuesday following reports that the Drug Enforcement Administration (DEA) would move to reschedule cannabis from Schedule I to Schedule III under the Controlled Substances Act (CSA), Forbes reports.

  • Canopy Growth Corporation shares surged more than 65% to close at $14.88.
  • Tilray Brands shares jumped 35% to close at $2.47.
  • Aurora Cannabis shares jumped 46% to close at $9.23.
  • Amplify Alternative Harvest shares jumped 26% to close at $2.40.
  • Trees Corporation shares also jumped 26%, closing at $0.11.

The DEA announcement on Tuesday was a long-awaited development in the rescheduling process that President Joe Biden (D) started in October 2022 when he called on the Department of Health and Human Services (HHS) to investigate and reconsider “how marijuana is scheduled under federal law.” It marks the first time the U.S. government has reduced the schedule of cannabis since the CSA became federal law in 1971 and listed the plant as Schedule I, which is reserved for “drugs with no currently accepted medical use and a high potential for abuse.”

Notably, Schedule III does not mean the end of federal prohibition — rather, cannabis would still be federally regulated alongside the likes of ketamine and anabolic steroids. However, the change should lead to lower taxes for the cannabis industry and easier access to cannabis for medical and research purposes, and it signals the most significant shift in U.S. drug policy in over 50 years.

Many cannabis advocates have praised the rescheduling move as progress in the cannabis reforms effort but many more highlight concerns about discrepancies between state and federal law, and call for removing cannabis from the CSA entirely.

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California Gov. Directs Action Against ‘Illegal Hemp Products’ to Protect Youth

5/01/2024

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Gov. Gavin Newsom (D) last week directed the California Department of Public Health (CDPH) and the California Department of Alcoholic Beverage Control (ABC) to take action to protect youth from “mislabeled and potentially harmful hemp-infused products,” according to an April 26 press release.

“Mislabeled and misleading products do not belong in the marketplace — especially when they put our kids’ health and safety at risk. Today, the state is taking action to protect Californians, especially our kids, as we work to further close loopholes and increase enforcement to prevent children from accessing hemp and cannabis products.” — Newsom, in a statement

Per the governor’s request, CDPH and ABC officials have since warned their respective licensees it is illegal to sell hemp products that do not satisfy the specific labeling requirements under the state’s Health and Safety Code.

Under the rules, all packaging of industrial hemp products must include:

  • A link (via QR code or a similar method) to the product’s certificate of analysis by an independent testing laboratory providing the product batch’s name, manufacturer, batch number, total cannabinoid content, and levels of contaminants.
  • A product expiration or best-by date, if applicable.
  • A warning that children or people who are pregnant or breastfeeding should not use the product without first consulting a healthcare professional.
  • A statement that cannabinoid-infused products should be kept out of reach of children.
  • The statement, “THE FDA HAS NOT EVALUATED THIS PRODUCT FOR SAFETY OR EFFICACY.”

“Distributing or selling products that do not meet these requirements is a crime, and can result in the loss of an applicable license,” the governor’s office said in the press release.

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BREAKING: DEA Reportedly Agrees to Move Cannabis to Schedule III

4/30/2024

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In a landmark move, the Drug Enforcement Administration (DEA) has proposed reclassifying “botanical cannabis” from a Schedule I to a Schedule III substance under the US Controlled Substances Act, as reported by the Associated Press. This decision, following an endorsement from the US Department of Health and Human Services (HHS), marks a significant shift in federal drug policy, suggesting a reduced perception of cannabis’s danger and a recognition of its medical uses.

The reclassification initiative, first urged by the Biden Administration in October 2022, signifies the first presidential request of its kind. Schedule I substances, which include drugs like heroin, are defined by their high abuse potential and lack of accepted medical use. The move to Schedule III, which includes drugs like ketamine and anabolic steroids, recognizes that cannabis may be safely prescribed for medical use and possesses a lower potential for abuse.

Many in the cannabis industry have expressed relief at the prospect of loosening financial restrictions associated with the plant’s Schedule I status. However, others have pointed out potential issues related to Schedule III that could become problems for brands operating in state-legal markets, as well as the fact that Schedule III status does not inherently benefit those who are still incarcerated for cannabis-related convictions.

A statement from NORML highlighted that this change does not resolve the broader issues of conflict between federal and state cannabis laws. While acknowledging the shift as a step forward for federal recognition, NORML Deputy Director Paul Armentano emphasizes that true reform should bridge the divide between state regulations and federal policy, suggesting that cannabis should be removed from the Controlled Substances Act entirely.

The DEA will now enter a period of public comment and potential judicial review before issuing a final rule, which would take effect 30 days after publication. This process allows for further debate and adjustments based on public and stakeholder input. The decision could lead to further calls for Congress to establish new regulatory frameworks for cannabis, similar to recent actions regarding hemp-derived CBD products.

Editor’s note: this is a developing story. Please submit any insights/commentary to editor@ganjapreneur.com for inclusion in our expanded coverage.

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MedMen Declares Bankruptcy With $410 Million In Liabilities

4/30/2024

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Capping a spectacular public downfall, the multistate cannabis operator MedMen announced on Friday that it has filed for bankruptcy.

“The difficult decision to shut down operations and commence the Bankruptcy Proceedings and Receivership Proceedings was made after careful consideration of the current financial condition of the Company and its subsidiaries, their inability to pay their liabilities as they become due and the anticipated enforcement actions of secured creditors.” — MedMen statement, in a press release

Having once held the industry’s largest cannabis retail footprint in the US, MedMen filed for bankruptcy under Canada’s Bankruptcy and Insolvency Act. The company said its Los Angeles-based subsidiary owes more than $410 million and entered receivership on April 23 in the Los Angeles Superior Court for the dissolution and liquidation of its assets, Forbes reported.

“It is contemplated that ancillary receivership proceedings will be sought in those U.S. states where [MedMen] controls or owns assets,” the company said. “As a result of such receivership proceedings, the operations and assets of MedMen’s subsidiaries will be dissolved or liquidated pursuant to applicable laws in the United States.”

Chief Financial Officer Amit Pandey and the company’s other directors resigned before the bankruptcy proceedings, according to the press release.

The company’s downfall has been playing out publicly for some time:

  • MedMen announced last month it was dropping all of its California locations.
  • The company last year sold all of its assets in the Arizona and Nevada cannabis markets.
  • The company’s deal to sell its New York-based assets to Ascend Wellness fell through due to concerns about MedMen’s allegedly ‘deteriorating’ assets.
  • The company sold off its Florida-based assets last March.

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Study: Cannabis Consumers Are Not More Lazy or Unmotivated

4/30/2024

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A new study published in the journal Social Psychological and Personality Science debunks the stereotype that people who consume cannabis are lazy or unmotivated, according to a U of T News report.

In the study, researchers from the University of Toronto interviewed 260 cannabis consumers five times per day over a week. The participants — who were considered “chronic” consumers, using cannabis at least three times per week — would log their answers through an app that asked if they were currently high, and other questions designed to determine their emotional state, motivation levels, and willpower, the report said.

The study was led by Prof. Michael Inzlicht, a Professor of Psychology at the University of Toronto and a cross-appointed Professor in the Rotman School of Management. Inzlicht said the study sought to investigate the effects of cannabis on the daily lives of chronic users.

“There is a stereotype that chronic cannabis users are somehow lazy or unproductive. We found that’s not the case – their behaviours might change a bit in the moment while they’re high, but our evidence shows they are not lazy or lacking motivation at all.” — Inzlicht, in the report

The study also noted that chronic consumers were more likely to experience positive emotions while high, and less likely to experience negative emotions. More chronic users, however, were found to experience more negative emotions in general.

Inzlicht specified the study does not endorse heavy cannabis use and that there is already research highlighting the risks of cannabis use, especially for adolescents.

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North Dakota Advocates Can Begin Collecting Signatures for Cannabis Legalization Question

4/28/2024

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Advocates in North Dakota have been given the green light by the secretary of state’s office to begin collecting signatures for a cannabis legalization question, the Associated Press reports. Earlier this month, the campaign, New Economic Frontier, submitted their petition to state officials to put the issue on November ballots.  

The measure would set maximum purchase and possession amounts of 1 ounce of dried cannabis leaves or flowers, 4 grams of concentrates, 1,500 milligrams of total THC in the form of a cannabis product, and 300 mg for edible products. 

In an interview with the AP, Steve Bakken, a Burleigh County commissioner and former Bismarck mayor who is leading the legalization effort, said he is backing the reforms because law enforcement resources “should be directed someplace a little more effectual,” such as combating harder drugs, and that initiatives crafted by other groups could wind up being “untenable to work with.” 

In North Dakota, cannabis possession by people under 21-years-old is a low-level misdemeanor while delivery of any amount of cannabis is a felony. Last year, 4,451 people in the state were charged with possessing or ingesting cannabis, according to state data outlined by the AP. 

In 2016, voters approved a medical cannabis legalization ballot measure and the program has about 10,000 active patient ID cards. In 2022, North Dakota voters rejected an adult-use proposal 55%-46% and had previously voted down a similar measure in 2018 59%-41%. 

The group needs to collect 15,582 valid signatures to put the issue on the ballot.

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Pennsylvania Bill Would Let Medical Cannabis Patients Own & Possess Firearms

4/28/2024

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A bill proposed in Pennsylvania would clarify that the state’s Uniform Firearm Act does not consider patients enrolled in the state’s medical cannabis program as “unlawful users,” The Center Square reports. The bill, proposed by Republican state Sen. Dan Laughlin, is meant to clarify the state’s rules around firearm possession and medical cannabis use.  

Under federal law, medical cannabis patients are technically not allowed to purchase or possess firearms.   

“I can’t change federal law, but this is an attempt partly to raise awareness of the issue. A lot of medical marijuana card folks aren’t even aware of the infringement on their Second Amendment rights. … We’re in this gray area right now. It’s almost like we’re in this ‘Don’t ask, don’t tell’ period of time.” — Laughlin to The Center Square 

Laughlin added that if firearm owners had to give up their guns if they were prescribed a “run-of-the-mill antidepressant” it’s likely they would stop taking the medication to protect their Second Amendment rights. 

“That seems counterproductive to me,” Laughlin told The Center Square. “We’re in kind of a bad situation right now and I’m just trying to make it better.” 

He also noted that many veterans are enrolled in the state’s medical cannabis program for post-traumatic stress disorder. 

“They’ve all universally told me that cannabis helps them a lot in that space,” he said. “I know it needs to be studied; but if it works for them … then what’s the harm?” 

The proposal is currently in the Senate Judiciary Committee. 

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Poll: Massachusetts Residents Would Prefer Intoxicating Hemp Products Only Sold at Licensed Dispensaries

4/28/2024

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A majority of Massachusetts residents – 55% – say intoxicating hemp products should only be sold in state-licensed cannabis dispensaries, according to a MassINC Polling Group survey outlined by the Commonwealth Beacon. About a fifth of respondents said they didn’t know or didn’t want to answer with 28% saying the products should be allowed to be sold in other places. 

The poll explained that “Hemp is a type of marijuana plant that contains a much smaller amount of THC than the marijuana sold in dispensaries. Products containing THC from hemp are not regulated in the same way as marijuana. They are now being sold at liquor stores, convenience stores, gas stations, and some bars and restaurants.” 

The survey asked: “Do you think that products containing THC from hemp should only be sold at licensed dispensaries, or should they be sold in other places?” 

Another 65% of the 1,001 residents polled between April 4 and 17 said they believed that legalizing cannabis for adult use was the right thing to do.   

On The Horse Race podcast, MassINC Polling Group President Steve Koczela said that the survey results are “different than what we have seen, by and large, so far, in that people think it should be legal to buy marijuana, but not in this way,” referring to intoxicating hemp products sold outside of the licensed dispensary system.   

Nearly 60% of those polled described the state’s cannabis sales system as “good” or “excellent.” 

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Congressional Lawmakers Urge DEA to Remove Cannabis from Schedule I

4/25/2024

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Congressional Democrats are pushing for the Drug Enforcement Administration (DEA) to “swiftly” remove cannabis from Schedule I under the Controlled Substances Act, The Hill reports.

Led by Sens. Elizabeth Warren (MA) and John Fetterman (PA) and Reps. Barbara Lee (CA) and Earl Blumenauer (OR), the lawmakers wrote their request in a letter to Attorney General Merrick Garland and DEA Administrator Anne Milgram.

“We are now nearing eight months since the Department of Health and Human Services (HHS) recommended rescheduling marijuana to Schedule III — and 18 months since President Biden directed HHS and the Department of Justice (DOJ) to begin the process of reviewing marijuana’s scheduling,” the letter reads. “It is time for [DEA] to act.”

“While we understand that the DEA may be navigating internal disagreement on this matter, it is critical that the agency swiftly correct marijuana’s misguided placement in Schedule I. We trust that the DEA is working as quickly as possible toward a decision on how marijuana is scheduled, as Vice President Kamala Harris recently reassured stakeholders.” — Letter excerpt, via The Hill

From the Senate, the letter was signed by Independent Sen. Bernie Sanders (VT) and Democrats Chuck Schumer (NY), Kirsten Gillibrand (NY), Ron Wyden (R), Alex Padilla (CA), Peter Welch (VT), Jeff Merkley (R), John Hickenlooper (CO), and Cory Booker (NJ). From the House, Del. Eleanor Holmes Norton (DC) joined Democratic Reps. Robert Garcia (CA), Jan Schakowsky (IL), Dina Titus (NV), Val Hoyle (OR), Becca Balint (VT), Jim McGovern (MA), and Katie Porter (CA) in signing the letter.

Meanwhile, FDA Commissioner Robert Califf said earlier this month there is “no reason” for DEA to delay its decision on whether to remove cannabis from the nation’s top federal drug schedule.

DEA claimed in January the agency had the “final authority” on the rescheduling decision.

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Missouri Cracking Down on Illegal Cannabis and Vape Products

4/25/2024

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Missouri Attorney General Andrew Bailey last week launched an investigation into illegal vape and cannabis products after receiving reports that some distributors may be violating the Missouri Merchandising Practices Act (MMPA) — which focuses on fraudulent or deceptive business practices — and selling products that are harming children.

“Under state law, Missourians have a right to live free from fraud and deception in the marketplace, and they have the right to know exactly what is in the products they consume. When purchasing products, Missourians have a right to know if they will be subject to serious and potentially dangerous side effects like psychotic episodes, severe confusion, hallucinations and other life-threatening problems. This is especially important when potentially dangerous products appear to be marketed directly at children. As Attorney General, I will use every tool at my disposal to halt the sale of dangerous, illicit products that harm Missouri consumers, especially children.” — Bailey in a press release 

According to Bailey’s office, the investigation targets delta-8 THC products, citing an incident in March when six elementary school students in St. Louis County had to be picked up from school after consuming “Nerds Rope Bites” and “Mad Monkey Sour Strawberry Premium Gummies,” which contained delta-8 THC, and getting sick. 

The AG’s office has sent civil investigative demands (CID) to businesses that sell delta-8 and delta-9 products and businesses that sell e-cigarettes or illegal vapes. 

“This investigation will inquire into the activities and representations of [certain sellers] in connection with the manufacturing, sale, marketing, advertisement, promotion, and/or distribution of products containing CBD, Delta-8, and Delta-9 THC,” the CID states. “The Attorney General has reason to believe that [the company being investigated] has used deception, fraud, false promise, misrepresentation, unfair practices, and/or the concealment, suppression, or omission of material facts in connection with the sale or advertisement of CBD, Delta-8, and Delta-9 THC products.” 

In all, 22 CIDs were sent to Missouri businesses believed to be violating state law. 

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