In this week’s edition:

• STATES Act Reintroduced into Congress
• Republican Leaning Poll Finds “There is No Demographic Group that Doesn’t Believe Cannabis Should be Legal”
• Hemp Industry generates $5.5B for Texas economy; Lawmakers Work to Agree on Regulation for Intoxicating Hemp Products
• Hawai`i Bill Moves to Legalize Medical Cannabis for Any Condition
• Canadian Study Finds No Significant Effect of Cannabis Legalization on Car Accident Fatality Rates

Dentons Speaks

• Dentons partners Eric Berlin and Jeff Zachman will present “The Surge in Cannabis Litigation: Strategies To Navigate and Protect Your Business from Costly Lawsuits” on April 23rd at myLawCLE’s Cannabis Law webinar.
• Partners Kelly Fair and Eric Berlin will be panelists at PLI Cannabis Law program on April 29th. Kelly will speak on “Federal Framework Possibilities: Government Approaches to the Cannabis Industry” and Eric will speak on “The Current Legal Cannabis Landscape: An Overview.”
• Eric Berlin lectured on Cannabis Law & Policy at Vanderbilt University School of Law on April 3rd with clients Charlie Bachtell and John Sullivan of Cresco Labs.

Federal

Marijuana rescheduling not on agenda ‘at this time,’ White House official says – Despite Trump’s previously expressed support for marijuana reform, federal reclassification of marijuana won't happen any time soon. This response came after pro-legalization political action committee, American Rights and Reform PAC, announced a $1 million ad campaign, including a 30-second commercial in places Trump would likely see it such as D.C. and near his Mar-a-Lago home in Florida. This PAC is sponsored by some notable MSOs such as Cresco Labs and Curaleaf Holdings.

STATES Act reintroduced in Congress with bipartisan support – The STATES 2.0 Act, recently reintroduced in the U.S. House by Dave Joyce (R-OH), Dina Titus (D-NV) and Max Miller (R-OH), aims to exempt state-legal cannabis markets from federal interference, nullify the burdensome 280E tax provision for cannabis businesses, and establish a new federal regulatory framework overseen by the Alcohol and Tobacco Tax and Trade Bureau and the FDA. The bill would also allow interstate cannabis commerce and provide safe harbor for financial institutions, but its prospects remain uncertain due to the lack of a Senate companion and historical challenges in passing cannabis reform through Congress.

DEA Fails to Set Cannabis Rescheduling Briefing Schedule; No Progress Made on Interlocutory Appeal – Many in the cannabis industry were hopeful that President Trump would advance rescheduling, however no progress has been made in the past 90 days. On April 10, a less than 100 word status report was sent to the ALJ Judge Mulrooney notifying him that “To date, movants’ interlocutory appeal to the acting administrator regarding their motion to reconsider remains pending with the acting administrator. No briefing schedule has been set.” The briefing schedule would allow designated participants to file briefs with the DEA administrator in relation to the interlocutory appeal that was granted on January 13th.

Republican Poll Finds “There Is No Demographic Group that Doesn’t Believe Cannabis Should Be Legal” – A recent national poll found that 66% of respondents support legalizing adult-use marijuana, 68% believe states should set their own cannabis policies without federal interference, and 70% favor federal rescheduling. The survey revealed that support for legalization spans all political and demographic groups, with even Republican voters backing reform by a double-digit margin. Pollsters and advocates note that cannabis legalization is one of the few issues with broad, bipartisan consensus among Americans today.

Supreme Court sides with trucker who lost job for cannabis use –  Douglas Horn, a commercial truck driver for 14 years, sued Red Dice Holdings LLC, Medical Marijuana Inc., and Dixie Holdings LLC after failing a drug test after using a product that said it yielded 0% THC and was compliant with federal guidelines. The case went all the way up to the Supreme Court. In a 5-4 ruling, the Court held that “an individual can seek damages for business or property loss resulting from a personal injury under the Racketeer Influenced and Corrupt Organizations Act.”

The U.S. Supreme Court rejected a request to Take On Federal vs. State Cannabis Case– Lawyers for Lucas Sirois argued that this policy should prevent the DOJ from pursuing a case against him. Sirois was charged in 2021 with many different offenses related to his licensed medical marijuana business he started in 2010. Sirois allowed individual caregivers to rent spaces in his building to grow and sell marijuana to his business. A separate investigation tipped the DOJ that Sirois was allegedly trafficking cocaine as well. There has been no evidence of cocaine related conduct.

The House Oversight and Government Reform Committee took testimony from a U.S. Hemp Roundtable representative – Industry experts have been begging Congress for federal regulations. A memo released by the committee last week notes that the FDA has “failed to approve products and take necessary enforcement actions resulting in a flood of illicit an counterfeit products entering the country.” With rules and regulations all over the place, a main focus of the roundtable was preventing access and advertisement to children.

State

CT – Connecticut’s social equity cannabis licensees are seeking permission to sell their businesses after three years, which is four years sooner than currently permitted. Although lawmakers are considering it, there are concerns around the bill, HB 7178, regarding the impact on the state’s fledgling cannabis industry. While social equity operators understand the seven year prohibition on selling was written to protect them from being pushed out of the business, many operators believe the law to be too strict and  have told legislators that they “want more flexibility to divest when it makes sense for them.”

FL – Recent reports indicate that Florida Gov. Ron DeSantis and his wife are facing scrutiny for allegedly using millions in public settlement funds, possibly including Medicaid dollars, to support a campaign opposing cannabis legalization. During the November 2024 election, Amendment 3—which would have legalized recreational cannabis—received 57.8% of the vote but failed to meet the 60% required. Newly released documents suggest a close connection between the DeSantis family and the anti-cannabis effort, raising concerns about the appropriate use of public funds in political campaigns.

HI – A bill to legalize medical cannabis for any condition, HB 302, has been adopted by the senate in a 24-1 vote on April 8th. The bill would allow health care providers to prescribe cannabis however they see fit and would allow patients to get medical cannabis recommendations without a prior relationship to the prescribing doctor. HB 302 would also permit the DOH to issue additional medical cannabis cultivation licenses and define canopy sizes or plant counts for indoor and outdoor growers. This comes on the heels of a failed campaign to allow adult-use cannabis in Hawai’i.

IN –  Indiana lawmakers are considering a ban on all cannabis advertising in the state under an amendment to SB 73. In addition to banning cannabis ads on billboards, mailers, truck advertisements, television, and possibly online, the bill imposes civil penalties of up to $15,000 and “reasonable costs associated with the investigation and lawsuit.” This amendment was raised from concerns that communities near the Michigan border are “inundated” with cannabis ads on billboards. Indiana is one of the few states left with a complete ban on cannabis possession that can result in a misdemeanor.

KS – Gov. Laura Kelly (D) has called on Kansas lawmakers to legalize medical cannabis for patients with PTSD, chronic pain and children with Dravet’s Syndrome. Earlier legalization attempts stalled in 2021 and failed in 2024. However, Gov. Kelly recently showed support to provide patients with more choice about their medical care. She allowed SB 250, a right-to-try bill, to become law without her signature, which will provide access to experimental medications for patients with debilitating or life-threatening conditions.

MA – There are eight bills seeking to increase the ownership cap in the number of dispensaries or cannabis establishments any one individual or company can own from three to either six or nine. Supporters of this measure suggest it would provide an opportunity to obtain capital from large multi-state operators and potentially sell their companies. Yet, others oppose the ownership limitation change arguing it could disadvantage or threaten social equity business owners.

MD - Maryland lawmakers pass a bill that clarifies rules for cannabis consumption lounges, sets out a process for a second lottery round for licensing and revises rules to permit license holders to offer an employee stock ownership plan. On-site consumption lounges could offer “cannabinoid beverages” limited to 5 mg of THC in a single serving and also sell non-infused food products so long as applicable permits or licenses for traditional vendors are obtained. The bill is now with Gov. Wes Moore (D).

ME – A bill (HB 1365) to allow consumption lounges in Maine was introduced by a group of Republican lawmakers. Adults 21 years and older would be permitted to consume cannabis flower and other products, and includes an amendment to Maine’s smoking laws to permit indoor consumption. Municipal and local governments will have oversight for approval or licensing for “cannabis hospitality lounges,” but additional retail or state licensing would not be required.

MO – Missouri cannabis regulators have revoked 25 additional microbusiness licenses, bringing the total to 34 out of 96 issued since 2023, due to concerns over predatory practices and failure to meet eligibility requirements. Most revocations were linked to arrangements where well-connected groups recruited eligible individuals to apply, then limited their profit and control, undermining the program’s intent to benefit disadvantaged business owners. The state has proposed new rules to combat these predatory tactics, and some affected parties, including investor Michael Halow, plan to appeal the decisions.

NC – There are at least nine bills proposed to regulate intoxicating hemp-derived products, including edibles, beverages and vapes. Currently, there are no age restrictions in North Carolina to buy or use such products. Most of these bills seek to introduce an age requirement of adults 21 years and older and ban intoxicating hemp-derived products from school property.

NY – At least six cannabis brands are being investigated by New York’s Office of Cannabis Management (OCM) for potential “inversion.” Inversion is an illegal practice in which cannabis product sourced from out-of-state or unauthorized operators is diverted into the state’s adult-use market. In addition to a federal violation of crossing state lines, the OCM is concerned about companies undercutting regulatory and licensing requirements. Audits and investigations are ongoing despite companies denying the allegations.

OK – A constitutional amendment was filed by Oklahomans for Responsible Cannabis Action to legalize adult-use cannabis. The proposed initiative could appear on the 2026 ballot if it is cleared and, subsequently, obtains enough signatures. It would allow adults 21 years and older to purchase and possess up to eight ounces of cannabis, up to one ounce of concentrate and grow up to 12 plants. A 10% excise tax would be imposed and the legislation would provide various protections for adults and state banks servicing licensed cannabis businesses.

PA – House Speaker Joanna McClinton (D) said Democrats are prepared to pass an adult-use bill this session but requires Republican support, which will be a “heavy lift.” There has been ongoing debate, yet Gov. Josh Shapiro (D) has voiced his support to advance legalization. Separately, Senator Daniel Laughlin (R) intends to introduce legislation to create the PA Cannabis Control Board to regulate and oversee PA’s medical cannabis program and unregulated products. He suggests that PA’s medical program has regulatory inconsistency, lacks transparency and requires more expertise and resources.

RI – Rhode Island’s three-member Cannabis Control Commission approved a set of rules surrounding the state’s cannabis market. The commission will control the cannabis industry, and the new rules outline new packaging and label requirements, license award processes, and the criteria to apply for a social equity retail license.

Hemp

A trade group that represents liquor stores and bars argued that cannabis should only be sold in businesses licensed to sell alcohol – American Beverage Licensees, a trade group that represents liquor stores and bars, published a memo arguing that sales of cannabis products should be limited to only businesses that are licensed to sell alcohol. The memo also stated that cannabis should be treated and regulated like alcohol. A similar argument was made by another alcohol trade group, Wine and Spirits Wholesalers of America, who recently advocated for a federal regulatory framework for intoxicating hemp-derived beverages following the increase of products and lack of standards and requirements.

FL – The Florida Senate voted unanimously to approve a bill that will restrict hemp-derived delta-8 THC products and delta-9 THC products in the state. The bill would limit delta-9 THC in hemp-derived edibles to five milligrams per serving and 50 milligrams per container. For THC-infused hemp beverages, the bill would limit the amount to 5 milligrams per container and would only be sold in locations that are licensed to sell alcohol. 

AL – The Alabama House passed a bill to regulate consumable hemp products. The bill would authorize the Alabama Alcoholic Beverage Control Board to regulate consumable hemp products and restrict sales of the products to adults 21 years of age and older. The bill would also set a limit for consumable hemp products to 5 milligrams of THC per serving.

HI – Hawai’i lawmakers are moving to shut down shops selling intoxicating hemp-derived products, citing the rapid growth of over 84 alleged illegal dispensaries, many of which operate near tourist areas, schools, and state-approved medical cannabis dispensaries. There is a broader legislative effort to address gaps in cannabis regulations given concern about public health and youth access, including a House resolution and Senate bills to coordinate enforcement and crack down on these illegal operations.

IN – A proposed Indiana bill to regulate hemp-derived Delta-8 THC products moved to the House floor vote. The bill would further regulate the sale and purchase of such products by limiting grocery stores larger than 2,500 square feet or any drug stores from receiving a permit. The bill would also limit the number of issued retail permits, with a cap of 9,400.

MO – A Missouri Senate bill intended to regulate intoxicating hemp products such as delta-8 THC seltzers and gummies stalled after a seven-hour bipartisan filibuster, with critics arguing the legislation was an attempt by the marijuana industry to eliminate competition. Currently, these hemp-derived products are unregulated, which may be sold outside of dispensaries and without mandatory testing or age restrictions. The bill, backed by the Missouri Cannabis Trade Association, has faced repeated resistance, reflecting ongoing debate over how best to balance industry interests and public health protections.

NC – North Carolina lawmakers are pushing for stricter regulations on the sale and purchase of products containing hemp. Recently proposed bills center on restricting the age limit to buy products that contain hemp to adults 21 years of age and older. The bills would also only allow business licensed to sell alcohol to sell the products containing hemp.

TX - Texas lawmakers are debating legislation to restrict intoxicating hemp products, with ongoing differences between the House and Senate and the outcome uncertain as the session nears its end. While the House is also considering expanding its medical cannabis program, Senate Republicans remain strongly opposed to allowing intoxicating cannabinoids, rejecting amendments that would have softened the proposed ban. Meanwhile, some legislators warn that a full ban could devastate the hemp industry, which according to a recent study showed that hemp products are generating $5.5B annually for the Texas economy.

International

Brazil – In a landmark decision, Brazil's Supreme Federal Court has decriminalized the possession of up to 40 grams of cannabis and the cultivation of up to six plants for personal use. This ruling clarifies previous legal ambiguities and aims to reduce the incarceration rates for minor drug offenses, which currently account for approximately 25% of the nation's prison population. Public consumption remains subject to administrative penalties and trafficking is a criminal offense. This move is expected to influence future legislative actions and may prompt further reforms in Brazil's drug regulation.

Canada – A study found that adult-use legalization in Canada is meeting a goal of “displacing the illegal cannabis market” and that medical users appear to be transitioning to the recreational market. Another Canadian study finds found no statistically significant effect of cannabis legalization on car accident fatality rates, insurance claim frequency, or the average cost per claim. The research showed that seasonal trends and pre-legalization patterns in Canadian vehicle insurance data persisted unchanged after legalization. In the U.S., factors like time and weather were more reliable predictors of vehicle accident rates than cannabis legalization.

Czech Republic – A recent study projects that legalizing adult-use cannabis in the Czech Republic could yield annual net social benefits between €34.4 million and €107.6 million. The analysis considers tax revenues, reduced law enforcement expenditures, treatment and harm reduction costs, and quality-adjusted life years. The study concludes that the benefits of legalization surpass the associated costs. These findings bolster ongoing efforts to reform Czech cannabis policy, which already includes expanded medical cannabis access (starting April 1, 2025, all licensed doctors in the Czech Republic can prescribe medical cannabis) and upcoming regulations for low-THC products.

Germany – Germany's governing coalition has announced that it will maintain the current Cannabis Act permitting adult-use, despite prior speculation about potential changes. The New Association of Judges has cautioned against reversing the law, citing concerns over increased judicial burdens and potential compensation claims from cannabis clubs, which hold seven-year licenses. Members of the pharmacy industry also oppose the reclassification of medical cannabis as a narcotic, arguing that it would complicate patient access. The government will reevaluate the law in late 2025 after ongoing assessment.

France –  France is moving forward with the implementation of a fully regulated medical cannabis framework after four years of development, having recently submitted three key decrees to the European Union for approval. The first decree establishes the overall regulatory system for cannabis-based medicines, while the other two outline technical standards and operational conditions for the new market. This progress marks a significant step toward creating one of Europe’s largest and most structured medical cannabis programs, following delays caused by political instability in the French government.

Israel – Israel’s Minister of Economy and Industry, Nir Barkat, threatens tariffs of up to 165% on medical cannabis imported from Canada. The proposed tax is in the spirit of boosting domestic supply and mitigating unfair competition. The Finance Minister must approve the tax within 14 days. All Canadian cannabis imports would face a 165% tax rate, except for 70% on Tilray Brands, 53% on Organigram Global, 28% on Village Farms International, and 12% on Decibel Cannabis Co.

Italy – The Italian government has issued a temporary decree banning the cultivation, processing, and sale of hemp flowers, immediately impacting approximately 22,000 individuals in the country’s €2 billion hemp industry. This measure classifies all hemp flowers as equivalent to high-THC cannabis, regardless of actual THC content. By invoking emergency powers, the government sidestepped standard legislative procedures, and critics argue it potentially contradicts prior court rulings and EU trade principles. Parliament now has 60 days to formally convert it into law before it expires.

Business

How President Trump’s Tariffs Impact Cannabis Consumers – New tariffs imposed by President Trump are expected to raise prices for U.S. cannabis consumers, as many cannabis-related products such as vape hardware, tin containers, and specialized glass are imported from Asia, particularly China. Analysts and company executives warn that firms heavily reliant on these imports will need to either absorb the additional costs or revise their supply chains. Most companies are expected to pass on these increased costs to consumers, potentially pushing more buyers into the illicit market and tightening already thin profit margins. Some cannabis companies saw their shares fall between 5% and 10% following the announcement.

Mainstream Companies Crossing Over to Hemp-Derived THC Market – Major cannabis and consumer brands are increasingly entering the hemp-derived THC beverage market. Canadian cannabis producer Organigram Global has a THC beverage manufacturer, and Curaleaf Holdings has introduced a new hemp-derived energy drink. Traditional retailers are also joining the market; DoorDash and the parent company of Edible Arrangements have launched e-commerce sites offering a range of hemp-derived THC products. Despite market expansion, these companies must navigate complex regulatory landscapes and legislative attempts to restrict or ban such products.

California, Metrc Conspired to Ignore Cannabis Diversion, Lawsuit Alleges – A federal lawsuit filed in Oregon alleges that California state regulators and their track-and-trace software partner, Metrc, enabled the illicit cannabis market to thrive while collecting taxes from diverted products. Filed by former Metrc executive Marcus Estes, the complaint accuses the CA Department of Cannabis Control of conspiring with Metrc to overlook illegal sales and failing to flag suspicious activity, thus allowing a vast illegal marketplace to flourish. Metrc denies the claims, attributing them to retaliation from a disgruntled former employee.

Scotts Miracle-Gro Co. Spins Off Cannabis-Related Subsidiary – The company announced the transfer of its subsidiary, The Hawthorne Collective Inc., to an independent strategic partner as part of a plan to focus on its core lawn and garden business. The Hawthorne Collective, created in 2021, was designed to invest in various areas of the cannabis industry and included investments in the vertically integrated cannabis company Fluent. The move aims to reduce the impact of cannabis sector volatility on Scotts Miracle-Gro's stock and create value through increased investments in its consumer business.

Medicine

Cannabis Demonstrates Clinically Meaningful Quality of Life Improvements – A 12-month longitudinal clinical study on medical cannabis (the QUEST Initiative) found clinically meaningful improvements in Health Related Quality of Life (HRQL), including in fatigue levels, sleep, anxiety, depression, sleep disturbance, and pain. The QUEST Initiative is one of the largest longitudinal clinical studies on medical cannabis and involved Australian-made cannabis oils provided at a discounted cost to patient participants. The study was sponsored by Little Green Pharma Ltd, supported by Health Insurance Fund of Australia and endorsed by various national bodies.

Centers for Medicare & Medicaid Services: Cannabis Not Eligible for Coverage – The Centers for Medicare & Medicaid Services (CMS) has promulgated a rule clarifying that cannabis products, including CBD, are not eligible for coverage under certain health plans for chronically ill patients because they are illegal under federal law. This policy, effective June 3, also includes alcohol and tobacco on the list of non-primarily health-related items that cannot be offered as special supplemental benefits for the chronically ill.

Cannabis Effective Sleep Aid, Per Patient Survey – A survey of over 1,000 medical cannabis patients  with sleep disorders found that nearly 70% reported cannabis as a more effective sleep aid than prescription sleeping pills, and over 91% found it more effective than over-the-counter (OTC) sleep remedies. The survey highlighted that 95% of respondents felt sleep disorders significantly impacted their daily life, with almost 93% having tried OTC aids and 83.5% having used prescription sleeping pills. The survey was conducted by Bloomwell Group GmbH and is the largest survey in Europe on this topic.

Psychedelics

VA and HHS Secretaries Discuss Psychedelics' Therapeutic Potential – The Secretaries of the U.S. Department of Veterans Affairs and U.S. Department of Health and Human Services, Doug Collins and Robert F. Jennedy Jr., respectively, reportedly had an "eye-opening" discussion about the therapeutic potential of psychedelic medicine with Collins now planning to urge Congress to take action. Collins has expressed openness to the idea of providing government vouchers for veterans to access psychedelic therapy outside of VA services and highlighted that the VA's clinical trials on psychedelics for PTSD and Traumatic Brain Injury have shown promising results.

European Medicines Agency’s New Guidelines for Depression Trials Include Psychedelics - The European Medicines Agency (EMA) has published the third revision of its “Guideline on the clinical investigation of medicinal products for the treatment of depression”, set to take effect in September 2025. A key update is a dedicated section on psychedelics (Section 4.2.3.4). While the draft version released in 2023 had already signaled this development, the final guideline expands and formalizes the European regulatory perspective on how psychedelic compounds should be studied in clinical trials.

Connecticut Legislature's Joint Judiciary Committee Approved Bill to Decriminalize Psilocybin - Connecticut lawmakers have advanced a bill to decriminalize psilocybin for adults. The bill was passed by the Joint Judiciary Committee with a 29-12 vote. If enacted, possession of up to one-half ounce of psilocybin would be punishable by a $150 fine, without jail time. A second or subsequent possession violation would carry a fine of $200-$500 and referral to a substance misuse treatment program. The bill does not legalize psilocybin or driving under its influence. Separate legislation has been introduced to establish a psychedelic-assisted therapy pilot program.

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

Authored by associates Lauren Estevez, Seena Forouzan, Kristina Grimaldi, Blair Johnson, and Jacob Raver.