In this week’s edition:

• Harris and Walz fully Support Cannabis Legalization; Trump Hints at Support for Decriminalization
• Florida Poll Shows Majority of Voters Support State-Legalization Initiative
• Ohio Adult Use Cannabis Market Begins, Sales Expected to Exceed $1B in 2025
• Missouri Could Ban Delta-8 via Executive Order
• Uber Eats and Leafly Launch Cannabis Delivery Partnership in Canada
• FDA Declines to Approve MDMA Therapy for PTSD

Federal

Presidential Candidates State Varying Positions on Cannabis Legalization – Former President Donald Trump (R) has expressed increasing support for decriminalizing cannabis use as legalization spreads across the country, though he has not made a definitive statement on federal legalization. In contrast, Vice President Kamala Harris and her running mate, Governor Tim Walz (D), strongly advocate for federal cannabis legalization, with Harris emphasizing the failure of the War on Drugs and Walz having a solid record of supporting cannabis reform. Meanwhile, Trump’s running mate, Senator JD Vance (R) favors letting states decide on cannabis policy independently but opposes federal cannabis banking reform, citing concerns about facilitating illicit drug trafficking.

Republican Senator Supports for Cannabis Legalization Similar to Tobacco – Senator Thom Tillis (R-NC) this week stated support for a federal regulatory framework that treats cannabis like tobacco, emphasizing the need for safety measures and oversight in the market. He argues that comprehensive regulation is necessary to address public safety concerns and to allow states the option to legalize cannabis for medical or recreational use.

American Jailed in Russia for Medical Marijuana Not Included in Prisoner Swap – Marc Fogel, a teacher detained in Russia in 2021 for possessing marijuana prescribed for chronic pain, was sentenced to fourteen years of hard labor. Despite efforts by his family and Pennsylvania lawmakers to secure his release, Fogel was not included in a recent prisoner swap, prompting criticism of the U.S. government's handling of his case and renewed calls for his designation as "wrongfully detained" under the Levinson Act.

NIDA Awards $2.9M Grant to UNC for Cannabis Warning Labels Study – The National Institute on Drug Abuse (NIDA) has awarded a $2.9 million grant to researchers at the University of North Carolina to develop more effective cannabis warning labels. The study will evaluate current labels, experiment with new designs, and collaborate with state regulators to improve public awareness of the risks associated with cannabis use, especially as legalization spreads and use increases.

Federal Court Orders Further Evaluation of Cannabis-Related Payment and CSA Legality – The U.S. Court of Appeals for the Tenth Circuit in a divided ruling, has ordered a further evaluation of the legality surrounding a $6.4 million judgment in a cannabis-related case. The majority opinion suggested that the payment might be possible without breaching the Controlled Substances Act, while Senior Judge Bobby Baldock dissented, arguing that the case is fundamentally based on actions prohibited by federal law.

State

FL - Florida Senator Joe Gruters, a Republican who previously chaired the state GOP, has endorsed a ballot initiative to legalize marijuana, breaking with his party's official stance. His endorsement is significant, given his prior leadership role in the Florida Republican Party, which opposes the measure. At the same time, the opposition gained significant firepower with Ken Griffin, the billionaire investor and CEO of Florida-based Citadel Hedge Fund, announcing he donated $20 million in support of candidates that oppose the initiative. A new poll shows 64% of Florida voters likely back the state’s cannabis legalization initiative.  

MI – The Michigan Cannabis Regulatory Agency (MCRA) filed a complaint against Sky Labs, LLC, a licensed adult-use cannabis processor, accusing the company of incorrectly reporting shipments of cannabis concentrate from outside the state. According to the complaint, Sky Labs purchased over 130,000 grams of THCA isolate from a Colorado business, but reported in METRC that the THCA came from an in-state medical cannabis processor.

MN – Minnesota’s Office of Cannabis Management (OCM) published new draft cannabis regulations. According to a longtime cannabis reformer in the state, the proposed regulations would make the “cannabis purchasing experience in Minnesota . . . much more like a liquor store purchase than in other states,” including by not requiring separate, restricted areas for ID checks. Following a 30-day public comment period, OCM can choose to make changes to the proposed rules.

NC – After passing an adult-use legalization measure last year, members of the Eastern Band of Cherokee Indians (ECBI) are set to open the first legal cannabis store for all adults aged 21 and over in North Carolina. The store has been selling medical cannabis since April and has permitted adult-use sales to members of ECBI and other federally recognized Native American tribes since July. The opening will mark the first legal adult-use sales within North Carolina and its neighboring states.

ND – Law enforcement officials in North Dakota have expressed mixed reactions to legalization. While some are in favor of the proposed ballot measure, others have expressed concern that adult-use leads to more work for law enforcement given that “people aren’t going to jail for minor marijuana convictions.”

NY – Gov. Kathy Hochul (D) and New York City Mayor Eric Adams (D) announced that authorities have closed over 1,000 illicit cannabis sellers since spring, including 779 sellers in New York City alone. According to Gov. Hochul, this has resulted in an increase in adult-use sales overall and a 72 percent increase in sales in New York City.

OH – The Ohio Division of Cannabis Control (DCC) has completed its first round of licensing to allow existing medical licensees to participate in the state’s adult-use market. DCC has issued dual-use certificates of operation to labs, cultivators, processors, and cannabis retailers. Adult use sales in the state began this month.

SD – South Dakota has increased annual registration fees for medical cannabis businesses from $5,310 to $9,000 per year, representing a nearly 70 percent increase. The president of the Cannabis Industry Association of South Dakota criticized the increase, explaining that the “increase is so substantial that some small businesses will be forced to close as the cost of products and the cost to patients is not sustainable.”

Hemp

Federal – In an effort to encourage the use of more environmentally friendly building materials, the U.S. Environmental Protection Agency (EPA) has awarded a nearly $6.2 million grant to a nonprofit that works with hempcrete, a concrete-like material made with hemp.  The Nashville-based Hemp Building Institute will receive the grant.  Organizers “will develop an open-source database for biogenic materials and provide extensive education, training, and technical assistance,” says an EPA description of the grant award.

MO – On August 1, Missouri Gov. Mike Parson (R) issued an executive order prohibiting the sale of foods containing unregulated psychoactive cannabis compounds unless they originate from an “approved source.”  The Department of Health and Senior Services (DHSS) will take steps to embargo and condemn these products. The order also prohibits psychoactive cannabis products from being sold at retail establishments holding a liquor license.  Currently, neither the Food and Drug Administration nor the State of Missouri recognize any "approved sources," effectively prohibiting these products from being sold in Missouri until such time the FDA or Missouri General Assembly provide the necessary regulatory framework to recognize "approved sources."

NE – Nebraska lawmakers are considering a new proposal to levy a 30 percent tax on consumable hemp and CBD products to provide property tax relief.  The discussion on how to tax what the state calls “consumable hemp,” is part of a broader debate on how lawmakers want to balance sources of state revenue.  The measure’s text defines consumable hemp products as finished products that contain hemp and that contain no more than 0.3 percent THC. Hemp products made from stalks or seed—that is, for fiber or food use—would not be included in the definition. 

TX – Texas is set to be a flashpoint in the industry battle between hemp and cannabis.  Despite an $8 billion hemp industry, the legal status of hemp in Texas remains tentative, as the Texas Department of State Health Services continues its efforts to try and outlaw hemp-derived THC products. In an interview with the Cannabis Business Executive, Cynthia Cabrera, founding member of the Texas Hemp Business Council, spoke about the industry’s efforts to battle the Texas Department of State Health and other business interests. She commented, “we have the marijuana side that is very unhappy with the hemp side, and they’re using their regulatory connections and what they’ve learned over the past 50 or 60 years trying to legalize marijuana to shut down the hemp industry in favor of the marijuana industry. For example, here in Texas, what we have is a state-sanctioned, medical marijuana monopoly.”

VA - More than 300 businesses across Virginia were collectively levied nearly $10.8 million in fines for illegally selling hemp-derived products the state banned last year. As of law July 1, 2023, Virginia closed a loophole in state hemp regulations that allowed the public sale of intoxicating hemp-derived THC products like Delta-8.  Since then, the amount of THC such products can contain is strictly regulated, and businesses that sell products are required to register with the state, and edible hemp products — especially ones that resemble candy — must be lab tested and have clear labeling.  

International

Philippines - The Philippines House of Representatives approved a bill seeking to allow qualified patients access to medical cannabis, on its third and final reading.  According to the bill, qualified patients must be diagnosed by an accredited physician as having either non-debilitating or debilitating medical conditions like cancer, multiple sclerosis, epilepsy, chronic autoimmune inflammatory disorder, and post-traumatic stress disorder, among others.  The measure also establishes the Medical Cannabis Office, which shall be the primary regulatory body for medical cannabis.

Germany – A new report from Bloomwell Group shows that there has been a 50 percent reduction in the price of medical cannabis following legalization. The report also shows increased availability of cannabis products, with pharmacies dispensing a total of 237 different varieties of medical cannabis flower strains in June 2024.

Policy Split in Latin America – Legislators from Colombia continue to push for legalization, with almost 50 representatives in the House of Representatives signing a bill to legalize adult-use cannabis. If passed, the bill would amend the Constitution to lift the existing prohibition and allow licensed use of cannabis for adults aged 18 and over. Columbia’s President Gustavo Petro remains a strong advocate for legalization, arguing that “[i]t’s time for a change in our approach to cannabis.” At the same time, cannabis legalization advocates in Costa Rica—including President Rodrigo Chaves—have pulled back from pushing for full legalization due to legislative road blocks. Current proposed legislation would instead permit domestic cannabis cultivation for personal use. 

Morocco – Following a 2021 law allowing cultivation of medical and industrial-use cannabis in three provinces, the number of legal cannabis cultivators in Morocco has reached new highs, cutting into the market for illegal cannabis. The country reported an output of 296 metric tons in its first harvest of legal, low-potency cannabis in 2023. 

Slovenia – Voters in Slovenia approved decriminalization and domestic cannabis production for medical purposes in June. While these changes are not binding, they could allow Slovenia to become a hub for international cannabis research and development.

Business

Sustainable Cannabis Cultivation Methods – As more states have legalized cannabis and cannabis cultivators are able to operate openly, new information is emerging about how sustainable cultivation methods can boost efficiency and profits. Such methods include, as an example, using LED lights (instead of high-pressure sodium lights) and chilled-water systems (instead of direct expansion air conditioning systems).

More States Drop Adherence to Section 280E – More than 20 states have dropped strict adherence to Section 280 of the IRS code, allowing cannabis companies to take deductions for medical or recreational cannabis operations. The most recent state to adopt such a change is Pennsylvania.

CEO of U.S. Anti-Doping Agency Criticizes Cannabis Ban for Olympic Athletes – U.S. Anti-Doping Agency (USADA) CEO Travis Tygart criticized the continued ban on marijuana for athletes in international sports, arguing that cannabis does not enhance performance and should not be prohibited. Despite calls for change from U.S. officials and a review by the World Anti-Doping Agency (WADA), the organization decided to maintain the ban, citing concerns over the "spirit of sport" and athlete safety.

Snoop Dogg Opens Cannabis Café in Amsterdam – Only weeks after launching his flagship cannabis store in Los Angeles, Snoop Dogg announced the opening of his cannabis coffeehouse in Amsterdam. The cafe is decorated with graffiti and other artwork that honors the rapper’s legacy. On the bottom floor, there is a section devoted to hosting events such as product launches.

Uber Eats and Leafly Launch Delivery Partnership in Canada – Uber Eats combined the company’s expertise in ecommerce and delivery with Leafly, an online cannabis marketplace and information resource, to provide cannabis delivery to residents of Alberta, Canada. Albertans eighteen years of age or older can now place orders from local licensed cannabis retailers in the Uber Eats app and have it delivered to their door by the retailer’s provincially certified staff.

Medicine

Government Survey Shows Nearly 20 Percent Decline in Teen Cannabis Use – Data provided by the Substance Abuse Mental Health Services Administration shows that the percentage of minors ages 12 to 17 who reported having ever tried cannabis fell 18 percent from 2014 to 2023. Those reporting having consumed cannabis during the past year fell 15 percent. The percentage of teens reporting current cannabis use fell 19 percent over the past decade.

Study Finds CBG "Reduces Global Feelings of Anxiety and Stress" – The study, published in the journal Scientific Reports in July, found that cannabigerol, or CBG, caused a “significant overall reductions in anxiety as well as reductions in stress” among study participants compared to the placebo. According to the researchers from Washington State University and the University of California at Los Angeles, “CBG also enhanced verbal memory relative to placebo,” with “no evidence of subjective drug effects or impairment.”

Psychedelics

FDA Rejects MDMA Therapy – The Food and Drug Administration declined to approve MDMA (ecstasy) as a treatment for post-traumatic stress disorder, citing concerns about the safety and effectiveness of the therapy, including poorly designed studies, allegations of misconduct, and potential health risks. This decision, seen as a setback for the growing movement to use psychedelics in mental health treatment, came despite intense political pressure and marked the first time the FDA considered a Schedule 1 psychedelic for medical use.

Lykos Therapeutics Announces New Initiatives for MDMA-Assisted Therapy – In a press release, Lykos announced that if approved by the U.S. Food and Drug Administration, the company will implement new initiatives and measures for additional oversight for midomafetamine capsules in combination with psychological intervention for the treatment of post-traumatic stress disorder in adults.

Oregon Licenses First State-Legal Psilocybin Edibles Manufacturer – Spiritus Oregon, maker of the Horizon Edibles brand of psilocybin products, said that it was “granted the state’s first Psilocybin Edibles license [in July], making it the first legal psilocybin edible company in the United States.”

Dentons Speaks

Dentons Partners Eric Berlin and Kelly Fair presented at the International Cannabis Bar Association (INCBA) Cannabis Law Institute in Chicago, IL. Dentons Partners Hannah King presented on cannabis land uses at the American Bar Association 2024 Annual Meeting, also in Chicago, IL.

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

Authored by associates Malina Dumas, Lauren Estevez, Seena Forouzan, Jacob Raver, and Margo Wilkinson Smith.