In this week’s edition:

• Former President Trump Supports Cannabis Reform and Legalization
• Florida Democratic Party formally endorsed Amendment 3, which would legalize adult use  cannabis in the state
• Pennsylvania Adult-Use Legalization Bill Introduced
• New Federal Data Shows States Collected Over $8.7 Billion in Marijuana Taxes Since 2021
• Fourth Circuit Rules that Hemp is Legal Even if it Undergoes Chemical Synthesis

Federal

Nixon on Cannabis: “Not Particularly Dangerous” - Recently unearthed audio recordings reveal that President Richard Nixon privately admitted that cannabis was "not particularly dangerous," despite his administration's aggressive stance against the substance. The revelation adds a new layer of complexity to Nixon's legacy and the origins of the War on Drugs. The recordings have sparked renewed debate over the motivations behind federal drug policies.  In the aftermath of the Nixon revelation and Trump’s recent endorsement, Congressional Cannabis Caucus Co-Chair Rep. Earl Blumenauer (D-OR) called on House Speaker Mike Johnson (R-LA) to put cannabis reform legislation to a vote.

Trump Supports Cannabis Reform and Legalization - Former President Donald Trump again has expressed support for federally rescheduling cannabis and passing cannabis industry banking legislation. Trump also likewise endorsed Florida's adult-use legalization initiative, emphasizing the need for smart regulations and safe access to cannabis products. Despite his current stance, Trump's past record on cannabis reform has faced criticism from opponents, including Kamala Harris's campaign. His evolving position continues to influence the national conversation on cannabis policy.

Senators Speak of Difficulty in Passing Cannabis Banking Legislation Despite Trump Support - Former President Donald Trump's endorsement of a cannabis banking bill has sparked calls from Democratic lawmakers for more Republican support to advance the legislation. Senate Banking Committee Chairman Sherrod Brown (D-OH) and Sens. John Hickenlooper (D-CO) and Mike Braun (R-IN) emphasized that GOP backing is crucial to meet the 60-vote threshold for passing the Secure and Fair Enforcement and Regulation (SAFER) Banking Act.

Opinion Poll Indicates Cannabis Legalization, Banking Access a Vote-Winner in Swing States - Two new polls show strong majority support for cannabis legalization, federal rescheduling, and cannabis banking reform among likely voters in Arizona and Nevada ahead of the November election. The surveys, conducted by The Tarrance Group and commissioned by The Scotts Miracle-Gro Company, found that in Arizona, 86 percent of respondents support medical cannabis legalization, 69 percent support adult-use legalization, and 78 percent back cannabis banking reform. Similar results were found in Nevada, with 85 percent supporting medical cannabis, 71 percent backing adult-use legalization, and 80 percent favoring banking reform.

FDA Tells Congress Agency Can Seize Cannabis Edibles And Drinks But Generally Chooses Not To - A top FDA official, James Jones, stated that the FDA has the authority to remove cannabis-infused foods and drinks from the market, though such actions are rare and usually handled by local law enforcement. During a congressional hearing, Jones explained that while cannabis regulation largely falls under the DEA, the FDA can act against food or drinks containing unapproved substances like THC under the Federal Food, Drug, and Cosmetic (FD&C) Act. Regardless, the agency has typically focused on bad actors in the hemp industry with the agency issuing warning letters to companies selling misleadingly marketed hemp products.

OSHA Launches Colorado Program to Protect Cannabis Workers - The Occupational Health and Safety Administration (OSHA) has launched a new program aimed at reducing risks for workers in Colorado’s legal cannabis industry through outreach and enforcement. The "Local Emphasis Program for Cannabis Industries" will help employers address hazards like flammable liquids, electrical issues, and exposure to chemicals to ensure compliance with OSHA standards. This initiative was partly prompted by the 2022 death of a cannabis worker from occupational asthma, marking the first fatality of its kind in the U.S. cannabis industry. OSHA’s efforts include both federal guidance and OSHA-approved state plans to protect workers in 29 jurisdictions.

State

AL - The Alabama Court of Civil Appeals rejected regulators' motion to dismiss legal challenges to their medical cannabis business licensing process. As a result of the opinion, which was resolved primarily on jurisdictional grounds, companies that sued the Alabama Medical Cannabis Commission can continue making their case before a Montgomery County Circuit Court judge.

CT - The Connecticut Department of Consumer Protection announced a series of updates to its cannabis policies and procedures. The changes, which cover a range of topics from lab testing to licensing and security requirements for cannabis businesses, reflect evolving industry practices. The regulators’ goal is reportedly to align medical cannabis and adult use cannabis regulations and streamline operations, while also enhancing safety and regulatory compliance.

FL - The Florida Democratic Party formally endorsed Amendment 3, which would legalize adult use  cannabis in the state. This endorsement follows support from various elected Democrats and highlights the bipartisan backing for the measure, which seeks to end arrests for simple cannabis possession and expand individual freedoms.

GA - a Georgia cannabis pharmacy is defying a Drug Enforcement Administration threat letter by selling medical cannabis products in accordance with state law, even though doing so risks losing its federal registration to dispense prescription pharmaceuticals.

ID - Proponents of cannabis legalization in Idaho are shifting their strategy to work toward getting a noncommercial adult use initiative on the 2026 ballot, after failing to collect enough signatures to put medical cannabis measures before voters in recent cycles.

KY - After the state received nearly 5,000 applications for a limited number of medical cannabis business licenses, most within the final days leading up to the application deadline, Kentucky Gov. Andy Beshear provided an update that the state brought on more staff to review applications in a timely fashion and would have the lottery for cultivator and processor licenses before the lottery for dispensary licenses. While specific dates have not been announced, in his public remarks Gov. Beshear indicated that the cultivator and processor lottery is on track to be held in October 2024, and that all licenses (including dispensaries and testing facilities) should be issued by the end of this year. 

MA - Massachusetts regulators are accepting public comment on proposed changes to rules on microbusinesses, delivery license types, telehealth options for medical cannabis patients and recommendation allowances for providers. Stakeholders will be able to provide written comment from September 16 to October 7, as well as oral testimony at a public hearing on Monday, October 7.

MS - Gov. Tate Reeves (R) signed a bill establishing the Mississippi Medical Cannabis Research Program at the University of Mississippi’s School of Pharmacy. The program—which will operate under the university’s National Center for Cannabis Research and Education—will focus on researching the safety, efficacy, and potential therapeutic benefits of medical cannabis.

NC - A new poll in North Carolina shows that 70 percent of voters were in favor of legalizing medical cannabis. Of the remaining 30 percent, 16 percent of voters were against medical legalization and 14 percent were unsure. Despite the high level of voter support, medical cannabis remains illegal in North Carolina.

ND - North Dakota’s Medical Association, Hospital Association, Peace Officers Association, Chiefs of Police Association and Sheriffs and Deputies Association announced their opposition to the cannabis legalization initiative on the November ballot, arguing that legalization could lead to increased traffic accidents, substance use disorders, and other health risks. The organizations instead encouraged a focus on prevention and education.

NE - John Kuehn, a former Nebraska state senator and ex-member of the Nebraska State Board of Health, filed a lawsuit claiming that the two cannabis ballot initiatives set to appear on the November ballot violate state constitutional procedures and federal law. Among the issues cited in the complaint are invalid signatures and procedural violations. Early voting began in the state on September 20.

NH - In their second debate, Republican gubernatorial candidates Kelly Ayotte and Chuck Morse discussed their opposition to legalizing cannabis, explaining that it could reduce quality of life, exacerbate youth mental health issues, and increase traffic deaths. Both candidates also stated that individuals in recovery for substance abuse issues have not expressed support for legalization.

OH - During the first month of legal adult-use sales, Ohio’s one hundred and twenty three licensed cannabis retailers sold over $50 million in cannabis products. According to an owner of one of these retailers, “[t]he transition from serving medical patients to including recreational customers has been smoother than expected.”

PA - A bipartisan group of Pennsylvania lawmakers introduced House Bill 2500 to legalize adult-use cannabis. The proposed legislation provides for the Department of Agriculture to oversee adult-use cannabis and includes provisions intended to prioritize participation in the adult-use market by small businesses and minority-owned firms in the cannabis industry. Cannabis legalization was included in Gov. Josh Shapiro’s (D) annual budget proposal.

TX - In a recent political campaign ad, Sally Duval, a Democratic candidate for the Texas House of Representatives, smoked cannabis on camera while advocating for cannabis legalization in Texas. According to Duval, the current state hemp and cannabis laws have created a “confusing and unclear” regulatory environment in Texas.

Hemp

4th Circ. Sets Legal Hemp Standard In THC Firing Case - On September 4, 2024, the Fourth Circuit declined to find that THC-O products were per se illegal, absent additional evidence of the products delta-9-THC concentration, contrary to earlier DEA guidance on the legality of THC-O under the CSA. This decision aligns with a precedent set by the Ninth Circuit and also rejected the DEA's guidance related to delta-8 THC products. The case involved a worker who claimed she was fired for testing positive for THC, but the court found she lacked evidence that the products she were legal (again based on lack of evidence regarding the delta-9 THC concentration), thus failing to invoke protections under North Carolina law.

CA - California Governor Gavin Newsom's recent emergency regulations aimed at regulating hemp-derived cannabinoids have sparked backlash from industry advocates, who argue the rules could severely limit access to vital products for disabled and chronically ill individuals. Groups like One Hemp and the U.S. Hemp Roundtable are considering legal challenges, asserting that the regulations, which target products with any detectable THC, bypassed the legislative process and could harm legitimate businesses. While Newsom's intent is to address public health concerns related to intoxicating hemp products, critics claim the proposed measures are overly broad and could inadvertently impact essential medicinal uses of hemp.

GA - Georgia's new hemp law introduces strict guidelines on sales, advertising, and store locations for hemp products. The law bans sales to individuals under 21 and prohibits CBD-infused food products like chocolates while allowing gummies and oils. Bill 494, effective October 1, 2024, aims to regulate the rapidly growing hemp industry in the state.

MO - Missouri health regulators have conducted inspections at retailers to ensure compliance with a ban on intoxicating hemp-derived THC edibles. Some store owners have been asked to destroy non-compliant products, leading to legal challenges from the Missouri Hemp Trade Association. The inspections follow an executive order issued by Governor Mike Parson on August 1, 2024. Missouri regulators announced they would not enforce most of Gov. Mike Parson's executive order banning intoxicating hemp products, focusing instead on products potentially attractive to children, and will release currently embargoed products within 30 days after referral to the Attorney General's Office, following Secretary of State Jay Ashcroft's rejection of the emergency rules.

NJ - New Jersey has implemented a temporary ban on the sale of hemp products without a cannabis license, following Governor Phil Murphy's signing of a controversial bill aimed at addressing the availability of potentially harmful intoxicating hemp products to minors. While Murphy acknowledged the bill's flaws, he emphasized the immediate health risks posed by unregulated products and committed to working on amendments later. The law mandates that businesses remove any hemp products containing THC from their shelves within 30 days, placing oversight under the state's Cannabis Regulatory Commission. However, the bill has raised concerns among industry stakeholders regarding its vague definitions and potential loopholes, as well as fears that regulatory processes could be slow and cumbersome.

UT - Public comment has opened regarding changes posed to hemp product testing rules by Utah Regulators.  The regulations, which concern hemp cannabinoid product testing, states that cannabinoid products may not contain certain “artificially derived cannabinoids,” defined to include HHC, THCP, and THC-O.

International

France - The rollout of medical cannabis in France, initially projected for 2025, is likely to be delayed until 2026 due to regulatory hurdles.  To meet the 2025 deadline, the French National Agency for the Safety of Medicines (ANSM) required prior notification to the European Commission by mid-2024, which has not occurred due to political uncertainties. While the ANSM has completed its preparatory work, it now awaits necessary political decisions that could further stall the process.

Pakistan -  The National Assembly of Pakistan has passed "The Cannabis Control and Regulatory Authority Bill, 2024," aimed at regulating the cannabis industry to enhance public health and safety while promoting economic growth. This legislation establishes a framework for the cultivation, manufacturing, and sale of cannabis, with the goal of generating government revenue and attracting foreign direct investment. It also emphasizes the development of local medicinal and industrial cannabis products, as well as collaboration for research and capacity building in the sector.

Italy - Italy’s Lower House approved language in a security bill banning the sale of “cannabis light,” hemp flowers and products with an extremely low level of THC. Italy’s opposition party heavily criticized the move, claiming it would hurt small businesses. 

Business

New Federal Data Shows States Collected Over $8.7 Billion in Marijuana Taxes Since 2021 - States with legalized marijuana have reported more than $8.7 billion in cannabis tax revenue since mid-2021, according to the U.S. Census Bureau. California leads with over $2 billion in tax income, followed by Washington State, Colorado, and Michigan, highlighting the significant economic impact of legal cannabis markets. This data underscores the growing financial importance of the cannabis industry to state economies.

11 States Projected to Be Billion-Dollar Cannabis Markets in 2024 - Eleven states are expected to surpass $1 billion in total retail sales at licensed cannabis dispensaries in 2024. California remains the largest market despite a projected decline, while Michigan shows significant growth potential. The projections highlight the expanding market opportunities within the cannabis industry.

Americans for Safe Access (ASA) Releases Cannabis Safety Guide - Americans for Safe Access (ASA) has released a new guide titled "What’s in Your Cannabis? A Patient & Consumer Guide to Navigating Cannabis Safety" in response to a series of cannabis recalls due to contamination. The guide aims to educate patients and consumers about the safety of cannabis products, emphasizing the importance of understanding potential contaminants and the variability in product labels. ASA President Steph Sherer highlighted the need for rigorous safety testing and the guide's role in helping users make informed decisions.

Medicine

AARP-Supported Study Shows Increased Marijuana Use Among Older Adults - A new study supported by AARP reveals that marijuana use among Americans aged 50 and older has nearly doubled in the past three years. Most older consumers report using cannabis for pain relief, sleep aid, and mental health benefits, with usage expected to rise as more states legalize marijuana. The study highlights the growing acceptance and use of cannabis among older adults.

Endometriosis Pain Management with Cannabis - A review of existing literature suggests that cannabis holds promise for managing endometriosis-related pain by interacting with the endocannabinoid system. While self-reported surveys indicate positive outcomes, there is a need for well-designed clinical trials to confirm the efficacy and safety of cannabis for this condition. The review calls for further research to validate these findings.

Dentons Speaks

Dentons Partner Kelly Fair is featured on the webcast “Will DEA Complete the Rescheduling Process?”, hosted by Zuanic and Associates.

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

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