In this week’s edition

• House Democrats introduce resolution to investigate AG William Barr for abuse of power in targeting cannabis businesses
• Federal judge orders US Customs and Border Protection to produce documents regarding its cannabis policies at borders
• Local governments in Tennessee and Texas take action to end arrests for cannabis possession
• Treasury releases new guidance on hemp banking regulations
• US cannabis markets show increasing sales in 2020
• And more…

Federal

• House of Representatives Introduces Resolution Calling for an Investigation into Attorney General William Barr - Members of the US House of Representatives have introduced a resolution calling for an investigation into the possible impeachment of Attorney General William Barr for abuse of office. Led by Rep. Steve Cohen (D-TN), chairman of the House Judiciary Committee’s Subcommittee on the Constitution, Civil Rights, and Civil Liberties, the resolution (Res. 1032), calls for an investigation to determine if AG Barr abused his power by improperly investigating cannabis businesses. The resolution cites the testimony of a DOJ whistleblower who claims that Barr initiated antitrust investigations of cannabis businesses because of his personal dislike for the industry.
• US Judge Issues Deadline for Customs and Border Protection in US-Canada Border Lawsuit - US District Judge Ricardo Martinez has issued an order giving US Customs and Border Protection (CBP) until July 31, 2020, to respond to a pending lawsuit involving the agency’s approach to cannabis at the US-Canada border. Employees and investors within the Canadian cannabis industry filed the action in 2018 in response to CBP’s refusal to allow them passage across the US-Canada border. The plantiffs claim CBP has failed to cite any established policy as a basis for its actions. Judge Martinez has ruled that CBP must produce any documents pertaining to its cannabis border policies. Under this order, it must now do so by the end of this month.

States

• AZ - Cannabis advocates in Arizona, despite being forced to halt their signature-collection efforts in response to the COVID-19 pandemic, have officially collected enough signatures to qualify a cannabis legalization measure for the November ballot. Advocates collected 420,000 raw signatures, handily surpassing the 237,645 signature requirement to qualify a ballot measure. If passed by voters, the measure would legalize recreational cannabis use for individuals 21 years and older.
• AR - A new report from the Arkansas Department of Finance and Administration analyzing revenues from the state’s medical cannabis program has revealed the popularity of the program among patients. Participating dispensaries have reported $99.16 million in sales on 15,838 pounds sold since the program launched in 2019. Data from the report reveals that Arkansas medical cannabis patients spend approximately $500,000 per day on cannabis products.
• IL - The Illinois Department of Agriculture has announced that it will delay awarding 80-plus licenses to businesses seeking to participate in the state’s new recreational cannabis market in response to the pandemic-driven demand. Gov. J.B. Pritzker (D) issued an executive order delaying the approval of 40 craft grow licenses, 40 infuser licenses, and an undetermined amount of transporter licenses. Industry advocates in the state have warned that additional delays could be catastrophic for state businesses given the uncertainty surrounding the pandemic.
• MA - Employees of Massachusetts-based cannabis company New England Treatment Access (NETA) became the first workers in the industry to vote to unionize. Employees in NETA’s cultivation facility in Franklin, MA, cast the majority of their votes in favor of unionizing. Once the results have been certified, they will be represented by United Food and Commercial Workers (UFCW) Local 1445. NETA is the largest cannabis based employer in the state, with 750 employees, according to a 2019 industry survey.
• MI - Michigan’s Cannabis Regulatory Agency has issued guidance pertaining to the retesting and remediation of packages that failed state-mandated compliance-testing prior to June 22^, The new guidance will require noncompliant packages to pass two new tests to be released from quarantine.
• NM - Under a change to its medical cannabis laws, New Mexico now allows “reciprocal” patients to purchase medical cannabis products from dispensaries within the state. As of July 1, patients living outside New Mexico who can show proof of authorization from another state medical cannabis program may purchase medicinal products within the state.
• NV - Nevada officials have officially launched a state Cannabis Compliance Board to regulate the state’s growing cannabis industry. The new board came into effect on July 1 and its inaugural meeting is slated for July 21.
• TN - The Nashville District Attorney’s Office has announced that it will no longer prosecute simple cannabis-possession charges. City DA Glenn Funk defended the policy shift, noting that such charges “do little to promote public health and even less to promote public safety.”
• TX - The Austin Police Department has announced a policy shift that will officially end most arrests and ticketing for personal cannabis possession. According to Department Chief Brian Manley, the Department will only conduct personal cannabis possession citations or arrests if there is an immediate threat to a person’s safety or if doing so is part of the investigation of a high priority, felony-level narcotics case.
• VA - After being signed into law by Gov. Ralph Northam (D) earlier this year, Virginia’s new cannabis decriminalization law finally went into effect. As of July 1, individuals found with possession of up to one ounce of cannabis will receive a $25 fine with no threat of jail time and no criminal record.

Hemp/CBD

• CO - Colorado Gov. Jared Polis (D) has signed into law SB20-197, which aligns the state’s hemp statutes with federal guidelines. In addition, the new law enhances the oversight capacity of the state’s Hemp Advisory Committee.
• US Treasury Department - The Financial Crimes Enforcement Network (FinCEN) within the Treasury Department released updated guidance for banks and credit unions that service hemp businesses. This new guidance addresses changes in reporting requirements and emphasizes that because the crop is no longer a controlled substance, financial institutions no longer have to automatically flag transactions associated with hemp business accounts.

International

• Mexico - The Mexican Ministry of Health announced that it plans to issue rules governing the country’s medical cannabis program by September 9, 2020, citing the COVID-19 pandemic as the reason for the delay. Separately, approval of a bill to fully legalize cannabis, which has also been delayed several times, has a current deadline of December 15, 2020.

Business/Technology

• Nabis Holdings Inc. - A Canadian cannabis holding firm with properties in the US, Nabis Holdings has invoked force majeure provisions to delay making an interest payment on $35 million in debt. The company cited the global coronavirus pandemic as the reason for its inability to raise capital and make payments on its debt.
• The Clinic - A pilot program to use CO² captured as part of the beer fermentation process to stimulate the growth of cannabis plants has been declared a success. The joint project—conducted by Earthly Labs, Denver Beer Co. and The Clinic—was able to reduce the commercial CO² cost for a 16-week cannabis harvest by 15 percent.
• S. Retail Cannabis Markets Poised for Continued Growth - New studies and projections from cannabis industry groups are predicting continued high levels of growth for the US cannabis industry. Domestic retail sales of medical and recreational cannabis are expected to surpass $15 billion in revenue by the end of 2020. This would represent a 40 percent increase from 2019 industry sales figures.

Medical

• Yale Journal of Biology and Medicine - A new study published in the Yale Journal of Biology and Medicine conducted research on the effectiveness of cannabis flower for helping individuals suffering from depression. The study concluded that, at least in the short term, cannabis flower assisted a majority of patients with temporary relief from symptoms of depression.

Dentons

• Dentons US LLP has launched a New Dynamic Hub and toolkit to provide general counsel and in-house legal teams with top-shelf legal insight and guidance on effective solutions for operating in the new dynamic.