In this week’s edition:

• White House Not Planning Further Relief for Cannabis Industry
• California’s Department of Cannabis Control Seeks Formal Opinion From State AG Regarding Interstate Cannabis Commerce
• Oklahoma Federal District Court Declares Gun Ban on Cannabis Users Unconstitutional
• Hong Kong Outlaws CBD Products
• Study Finds Cannabis Smoking Does Not Contribute to Reduced Lung Function

Federal

White House Not Planning Further Relief For Cannabis Industry – In a recent press briefing, White House Press Secretary Karine Jean-Pierre referred to Congress those asking pointed questions regarding the lack of progress on cannabis reform. “I don’t have any new policy announcements. . . [W]e understand that there’s interest in legislation and action, but I would refer you to Congress.” In October 2022, President Biden announced the pardon of thousands of people convicted federally for simple possession of cannabis as well as an official request to the nation’s Secretary of Health and Human Services and Attorney General to initiate a review of cannabis’ placement on Schedule I. As yet, the Biden administration has not disclosed any information regarding a timetable for any potential rescheduling decision.

Republican House Representative Reintroduces Bill Rescheduling Cannabis to Schedule III – In late January, Rep. Gregory Steube (R-FL) submitted his “Marijuana 1-3 Act ” which, if enacted, would move cannabis from Schedule I to III. This marks the third time that Rep. Steube has introduced this legislation, having filed similar bills in 2019 and 2021.

Oklahoma Federal District Court Declares Gun Ban on Cannabis Users Unconstitutional – Taking its cue from the recent Supreme Court case New York State Rifle & Pistol Association v. Bruen(which set new standards for the interpretation of the Second Amendment), the US District Court for the Western District of Oklahoma dismissed an indictment against a man charged last summer for allegedly violating a decades-old federal firearms ban on cannabis users. The defendant, Jared Harrison, was arrested after a routine traffic stop where, during a search of the vehicle, police discovered a loaded revolver and cannabis. “Here we are, with the federal government now arguing that Harrison's mere status as a user of marijuana justifies stripping him of his fundamental right to possess a firearm. . . This is not a constitutionally permissible means of disarming [the defendant].”

Americans for Safe Access Publish Report on Medical Cannabis Access in the US – The medical cannabis advocacy organization Americans for Safe Access (ASA) recently published its 2022 State of the States Report. Among other things, the report notes that in 2022 alone, 99 pieces of legislation were introduced across the US regarding the booming hemp-derived cannabinoid market. The report also includes detailed “report cards” for each state regarding various aspects of their cannabis regulatory regime.

State

CA – California’s Department of Cannabis Control (DCC) is seeking a formal opinion from the office of California Attorney General Rob Bonta (D) regarding whether permitting interstate cannabis commerce would put the state at “significant risk” of federal enforcement action. The DCC request comes in response to a 2022 law that would allow cannabis commerce to and from California and other cannabis-legal states, contingent on official assurances that the activity would not present undue federal risk. The movement to push interstate commerce of cannabis—despite the substance’s ongoing federal illegality—has been growing since Oregon first enacted similar legislation in 2019. However, while Oregon’s law would permit interstate commerce only upon federal legalization, California’s law, in tandem with recent and ongoing litigation, raises the possibility of interstate commerce opening up even without federal approval.

FL – Last week, Florida’s Office of Medical Marijuana Use (OMMU) posted new emergency rules establishing a 4-day application window in April for 22 additional medical marijuana treatment center licenses. Coming after more than five years of delays and dozens of lawsuits challenging the issuance of various licenses, observers are now expecting a flood of new applicants. The OMMU currently oversees 22 vertically-integrated licensees in the state’s relatively large medical-use-only market and indeed, the OMMU recently announced plans to triple its headcount in anticipation of the new licenses.

GA – New polling shows Georgians increasingly support the legalization of cannabis for both medical and recreational use. Of those surveyed in the state, 53 percent now support cannabis legalization for recreational use, as compared with 46 percent in 2017. Meanwhile, nearly eight years after the state legalized certain low-potency forms of cannabis for medical use, Georgians are still waiting on the opening of the state’s first cannabis dispensaries.

IA – A new bill permitting the vaporization of cannabis flower bud was recently referred to Iowa’s Senate Judiciary Committee. While the state currently permits the sale of cannabis for medical use, only certain forms—such as capsules, vape oil and tinctures—are permitted. The new bill, if enacted, would bring Iowa in line with a number of other states (e.g., Ohio and Utah) that permit the vaping but not smoking of cannabis.

MN – Draft legislation legalizing cannabis for adult use is working its way through both chambers at the state capitol. But unlike the 21 states that presently enjoy adult-use cannabis sold by highly regulated retailers, Minnesota is considering a market that would permit, among other things, the sale of cannabis-infused products at breweries, liquor stores and supermarkets. The draft legislation appears to build on the state’s unique hemp-derived product market, largely unregulated, which allows the sale of hemp-derived edibles (containing up to five milligrams delta-9 THC) at, for example, gas stations and convenience stores.

MS – House legislators in Mississippi voted last week to pass HB 1158, which includes a number of amendments to the state’s medical cannabis regime. Among other things, the bill is intended to make cannabis easier to obtain for patients and will also allow persons 21 years and older to purchase cannabis topical products regardless of medical registration status.

WA – The state Senate is currently reviewing a bill (SB 5069) that would permit interstate commerce between Washington’s licensed cannabis businesses and licensed cannabis businesses in other states, pending changes in federal cannabis policy. Specifically, the bill would provide the Governor with the authority to enter into compacts with other cannabis-legal states regarding cannabis imports and exports once certain changes occur at the federal level, including, for example, an amendment to federal law expressly permitting interstate transfers of cannabis.

Hemp/CBD

FDA Leading Cannabis Advisor Discusses Congressional Involvement in Creating Framework for Hemp-Derived Products – Among other things, FDA’s Norman Birenbaum discussed the thinking behind the FDA’s announcement that congressional involvement is needed given that existing regulatory frameworks (including food and dietary supplement pathways) would not be suitable for CBD products. Birenbaum, a former cannabis regulator in New York and Rhode Island, joined the FDA’s Center for Drug Evaluation and Research last September as a senior public health advisor.

International

Australia – Beginning in July, Australian psychiatrists should be able to prescribe psilocybin and MDMA, commonly referred to as “ecstasy,” for the treatment of certain disorders. The Therapeutic Goods Administration made the announcement to recategorize the substances to Schedule 8 – the third-strictest tier of drug control in the country – as the result of an administrative process to reclassify the substances.

UK – Celadon Pharmaceuticals PLC became the first company to receive a good manufacturing practice (GMP) registration to produce medical cannabis within the UK’s borders. The UK legalized medical cannabis in 2018, with patients relying on imported products since that time. Celadon will need to obtain an updated license reflecting its GMP status before launching the sale of high-THC medical cannabis.

Germany – Despite delays, German Health Minister Karl Lauterbach told reporters he is “certain” that the EU will approve the country’s adult-use cannabis legalization measure by the end of March. Once implemented, the law would allow for individuals over the age of 18 to possess up to 20 grams of cannabis. Cannabis sold to customers between the ages of 18 and 21 would have a cap on THC content of 10 percent, whereas up to 15 percent THC would be allowed for adults over the age of 21. The law would also authorize cultivation of up to 10 plants for personal use.

Hong Kong – Cannabidiol (CBD) is now officially categorized as a “dangerous drug” and banned in Hong Kong. The legislation, which passed in 2022 and went into effect on February 1, puts CBD in the same category as cannabis/marijuana. The possession and consumption of any amount of CBD is punishable by seven years in prison and a fine equivalent to US$127,607. Manufacturing, importing or exporting CBD is now punishable by life imprisonment. In making the decision, the Hong Kong government cited the difficulty of isolating pure CBD from cannabis, the possibility of contamination with THC during the production process, and the relative ease by which CBD can be converted to THC.

Business

Appeals Court Affirms Cannabis Business Cannot Sue for Fraud Under Federal Statute – The US Court of Appeals for the Ninth Circuit found that a licensed cultivator in California was barred from suing a former group of business partners under the Racketeer Influenced and Corrupt Organizations Act (RICO) because operating a state-legal cannabis business is still a federal crime. The decision affirmed a judge’s ruling from more than two years ago that a remedy could not be available for actions that are indisputably illegal under federal law. 

US Cannabis Vape Distributor Prevails in Patent Infringement Investigation – Advanced Vapor Devices, a cannabis vaporizer manufacturer and distributor, received a favorable ruling from the US International Trade Commission after Shenzhen Smoore, the Chinese parent company of rival CCELL, initiated a patent infringement investigation against the Seattle-based company. The initial ruling by Chief Administrative Law Judge Clark Cheney is subject to review by the full Commission.

Medical/Health

New York Study Shows Medical Cannabis May Reduce Opioid Prescriptions – The results of a peer-reviewed study, Changes in Prescribed Opioid Dosages Among Patients Receiving Medical Cannabis for Chronic Pain, show that medical cannabis has the potential to reduce the amount of opioid-based medications needed to treat chronic pain. The study found that the reductions were larger among individuals who were prescribed higher dosages of opioids at baseline.

Legalization of Adult-Use Cannabis Shown To Have Limited Effects on Adult Social Behaviors and Disorders – A study published by Cambridge University Press examined a broad range of psychiatric and psychosocial outcomes and did not find any increased vulnerability or detrimental effects of cannabis legalization on substance use, substance dependence, disordered personality, externalizing and legal issues, relationship agreement, workplace behavior, civic engagement, or cognition in adults.

Cannabinoid Found To Potentially Protect the Brain From Aging – Research by Gary L. Wenk Ph.D., a professor of Psychology & Neuroscience & Molecular Virology, Immunology and Medical Genetics at The Ohio State University and Medical Center, shows that the dietary cannabinoid palmitoylethanolamide (PEA) helps control inflammation and the sensation of pain by activating two key receptors in the brain. Long-term brain inflammation has been tied to pathological mechanisms underlying diseases such as Alzheimer’s and Parkinson’s, among others. PEA is found in egg yolks, soybeans and peanut oil, and while the compound mimics the diverse actions of THC, it has no apparent psychoactive effects.

Study Finds Cannabis Smoking Does Not Contribute to Reduced Lung Function – A recent study examined whether cigarette smoking or cannabis use and co-use have an impact on changes in lung function. The study found that while persistent cigarette smoking was associated with reduced airflow even in young adults, smoking cannabis does not appear to impact lung function even after years of use.

Heavy Drinking in Young Adults Tied to Endocannabinoid Pathway – A study appearing in Biological Psychiatry shows that reductions in fatty acid amide hydrolase (FAAH)—an enzyme that degrades a neurotransmitter that activates the cannabinoid 1 receptor—may play a role in hazardous drinking behaviors and risk for alcohol use disorder (AUD). Studies suggest that reduced FAAH activity leads to increased alcohol seeking and consumption as well as decreased negative effects of intoxication.

Hemp Roots Found To Have Anti-Inflammatory Effects – A study published in the Journal of Cannabis Research found that phytochemicals isolated from hemp roots extract exerted anti-inflammatory effects, which could provide useful information for utilizing cannabis roots in the development of bioactive natural products.

Please click here for more information on the Dentons US Cannabis group.

Authored by associates Jacob Raver and Malina Dumas.