In this week’s edition:

• Federal Government Considers Additional Cannabis Reforms for Veterans
• House Agriculture Chair Signals 2023 Farm Bill May Not Cover CBD Due to Jurisdictional Issue
• Florida Enacts Law Regulating Hemp Products
• Maryland Begins Adult-Use Cannabis Sales 

Federal

Schumer Touts Cannabis Banking Bill As Bipartisan Priority – Senate Majority Leader Chuck Schumer is reportedly focusing on cannabis banking reform as one of several key legislative priorities he intends to push through using bipartisan cooperation when the Senate reconvenes in July. While Schumer is feeling “confident” about the prospects of passing the cannabis banking bill, there is still the question of whether Democratic lawmakers will seek to expand the measure in a way that will cause it to lose the support of some Republicans. At the Banking Committee hearing in May, Sen. Jack Reed (D-R.I.) raised concerns about Section 10 of the SAFE Banking Act, which he says could make it more difficult for regulators to flag relationships that could present risks to banks. Currently, the SAFE Banking Act is back at the drawing board, as lawmakers try to address these issues, though neither of the bill's sponsors, including lead GOP sponsor Sen. Steve Daines (R-Mont.) is convinced the changes are needed. Daines and Merkley are in agreement that the goal is to get a markup in the committee during the next work session, which is July 17-28.

Congressional Committee Approves Amendments to Military Bill For Cannabis “Pilot Program” and Psychedelics Study – The House Armed Services Committee approved a large-scale defense bill that includes provisions for a medical cannabis "pilot program" and a study into the therapeutic potential of psychedelics for active duty military members under the U.S. Department of Defense (DOD). The pilot program, included in an amendment introduced by Rep. Nancy Mace (R-SC), would examine the health impacts of cannabis use by veterans and service members who are U.S. Department of Veterans Affairs (VA) beneficiaries. To be eligible for the program, participants would need to have been diagnosed with post-traumatic stress disorder (PTSD), depression or anxiety, or have been prescribed pain management. The committee also approved an amendment introduced by Rep. Morgan Luttrell (R-TX) that would require the defense secretary to launch a clinical trial into the therapeutic benefits of psychedelics (including psilocybin, MDMA, ibogaine and/or DMT) for active duty service members with PTSD, traumatic brain injury or chronic traumatic encephalopathy.

Senate Committee Approves Bill Allowing VA Physicians to Recommend Medical Cannabis As a Potential Treatment For Veteran Patients – The Senate Appropriations Committee approved a spending bill that allows Department of Veterans Affairs (VA) physicians to recommend medical cannabis as a potential treatment option for veterans residing in states where cannabis is legal. The legislation will be included in the VA's fiscal year 2024 legislation, supporting mental health and suicide prevention programs, women veterans' medical care, and the expansion of caregiver's programs. The measure, sponsored by Sen. Jeff Merkley (D-OR), aligns with a bipartisan bill reintroduced by Reps. Earl Blumenauer (D-OR) and Brian Mast (R-FL), who co-chair the Congressional Cannabis Caucus.  

Labor Union Urges Biden Administration To End Federal Prohibition On Cannabis While Protecting Cannabis Industry Workers and Preventing Monopolization – The President of the United Food and Commercial Workers International Union (UFCW), Marc Perrone, sent a letter to Attorney General Merrick Garland and U.S. Health and Human Services Secretary Xavier Becerra urging the administration to comprehensively tackle cannabis reform as their departments work to complete a federal marijuana scheduling review. The letter emphasizes the need to address the harm caused by the prohibition on cannabis, protect cannabis workers and prevent monopolization in the industry.

FDA Releases Draft Guidance on Psychedelic Drug Clinical Trials – The U.S. Food and Drug Administration (FDA) released draft guidance on clinical investigations and drug development programs evaluating psychedelic drugs for treating medical conditions like substance use and psychiatric disorders. The guidance outlines nonclinical, clinical and safety considerations for running trials for classic psychedelics, including 5-HT2 agonists like psilocybin and lysergic acid diethylamide (LSD), as well as methylenedioxymethamphetamine (MDMA). The guidance applies to clinical trials conducted under an investigational new drug application (IND), including academic studies not aimed at supporting marketing applications.

Robert F. Kennedy Jr. Criticizes Ron DeSantis Over Position on Cannabis Policy – Democratic presidential candidate Robert F. Kennedy Jr. slammed Republican candidate Ron DeSantis for his opposition to decriminalizing marijuana, promising to change current "absurd" federal cannabis policies, if elected. Kennedy’s decriminalization position aligns with President Biden’s, who has also backed decriminalization and allowing states to set their own cannabis laws. Kennedy has also directed an administrative review into marijuana's federal scheduling that he reportedly hopes to have completed by the year's end.

State

AL – A  judge ordered the Alabama Medical Cannabis Commission to temporarily halt the issuance of licenses to growers and distributers, as two companies argue the state used a flawed and secretive process to select winners. The commission used anonymous graders hired by the University of South Alabama to score applications and then awarded them without any discussion on June 12. Alabama Always and Hornet Medicinals, two companies that applied for five integrated "seed to sale" licenses, sued the commission arguing there were problems with the process for awarding licenses. The commission has not elaborated on the problems with the scoring other than to say there were potential inconsistencies.

DE – The Delaware State Senate confirmed Robert Coupe as the state's first marijuana commissioner, responsible for overseeing the recreational marijuana sales market. Coupe, a former superintendent of the Delaware State Police, has 27 years of experience in the state police and has worked in various positions, including commissioner of the Department of Corrections, secretary of the Department of Safety & Homeland Security and chief of staff to Attorney General Kathy Jennings. He will be responsible for organizing an oversight office, outlining regulations, and issuing 125 licenses for adult cannabis cultivation and sales.

FL – In a press conference in June, Florida Gov. Ron DeSantis (R) stated that he opposes decriminalizing cannabis nationally and described medical cannabis as “very controversial.”  DeSantis recently signed SB210, which expressly prohibits sober living facilities from authorizing residents to possess or use medical cannabis, even if the patient has the proper certification from a doctor to use cannabis in compliance with state law. Residents will continue to be allowed to possess and use any other prescribed medication. While DeSantis has supported measures to further restrict access to cannabis, he also signed HB387, which extends telehealth renewals for medical cannabis patients and opens up new opportunities for Black Farmer License applicants.

MD – Maryland’s cannabis legalization law went into effect on July 1, making it legal for anyone 21 years of age or older to purchase regulated cannabis products from existing medical cannabis retailers in the state. The legislation also changed the Maryland Medical Cannabis Commission, which regulates the production and sale of medical marijuana, to the Maryland Cannabis Administration.

NH – New Hampshire's Department of Health and Human Services announced that alternative treatment centers (ATCs) will be allowed to dispense therapeutic cannabis to visitors from out of state and Canada who possess cannabis for therapeutic purposes in their state or province. Visiting patients can purchase cannabis from a New Hampshire ATC three times per year using their valid government-issued form of identification. If the out-of-state patient has a documented qualifying medical condition on the list approved by New Hampshire, they may purchase cannabis at New Hampshire ATCs at the same frequency as New Hampshire qualifying patients. There is a two ounce possession limit per patient and all patients are limited to purchasing two ounces of cannabis in any ten day period. New Hampshire is the only state in New England that has yet to legalize recreational cannabis for adults.

NV – Nevada Gov. Joe Lombardo signed Senate Bill 277 into law, increasing possession limits and allowing adult-use dispensaries to serve medical patients. The legislation doubles the possession and purchase limits for adult-use cannabis, raising the cap from one ounce to 2.5 ounces and the limit on cannabis concentrates from one-eighth of an ounce to a quarter ounce. Regulators will no longer issue new licenses for medical cannabis businesses except in local jurisdictions that ban adult-use dispensaries. Additionally, the legislation removes a rule prohibiting Nevada's cannabis industry from hiring individuals with certain past felony convictions, allowing them to petition the state to work for a state-licensed cannabis business without expunging their records. The full implementation of the bill is expected on Jan. 1, 2024.

NY – A coalition of anti-cannabis groups filed a lawsuit in state Supreme Court seeking to overturn New York's legalization of marijuana, comparing the industry to tobacco companies that made fraudulent claims about their products. The lawsuit asserts that cannabis consumption, sale and possession remains illegal under federal law, and that the state Legislature usurped Congress when it passed the Marijuana Regulation and Taxation Act in 2021. The groups claim that cannabis consumption is harmful and that claims made about its medicinal benefits are unfounded and dangerous. The lawsuit also cites information showing that the claims about the medical benefits of THC and CBD have not been subjected to studies that satisfy the FDA's standards for determining safety and effectiveness. Also in New York, Gov. Kathy Hochul announced that Chicago Atlantic, an asset management firm with experience in the cannabis industry, agreed to invest $150 million in the social equity fund designed to help disadvantaged people open legal cannabis businesses in the state. The state initially contributed $50 million to the fund, with the goal of increasing funding to $200 million through private investment.

OH – Advocates for enacting an adult-use cannabis law in the state filed a petition containing nearly 250,000 signatures for the issue to appear on the November 7 general election ballot.

RI – Rhode Island Gov. Daniel McKee (D) signed a law enacting an exemption for state-legal sales of cannabis from cigarette and other tobacco product taxes. The governor also signed legislation that will allow advertisements by retail licensees that sell both medical and adult use cannabis. Licensed cultivators, laboratories or non-hybrid medical marijuana compassion centers will remain subject to the advertising restrictions in the state’s medical cannabis program rules.

Hemp/CBD

House Agriculture Chair Signals 2023 Farm Bill May Not Cover CBD Due to Jurisdictional Issue – While some advocates have been pushing for the 2023 Farm Bill to include regulations for CBD, House Agriculture Chair G.T. Thompson (R-PA) reportedly stated that jurisdiction may be an issue. While hemp cultivation is overseen by the Agriculture Department, CBD regulations fall under the jurisdiction of the Food and Drug Administration (FDA), which is overseen by the House Energy and Commerce Committee. The FDA announced in January that the agency would not regulate CBD as a dietary supplement, calling for Congress to create a new regulatory pathway specifically for CBD. 

Florida Enacts Restrictions on Hemp Consumable Products – Florida Gov. Ron DeSantis signed a bill containing testing, labeling, and packaging requirements for hemp-derived consumables. Moving forward, Florida hemp food processors will need to obtain a permit from state regulators. The law also sets new packaging rules for hemp-derived food products, including containers designed to minimize light exposure, mitigate high temperatures, and comply with the Poison Prevention Packaging Act of 1970.

North Carolina Lawmakers Consider Regulations for Hemp-Derived Consumables and CBD Products – House Bill 563 would establish age restrictions on hemp-derived consumables, licensing requirements for manufacturers and distributors, and new testing requirements. The bill, which is still subject to approval from the House Appropriations Committee, would go into effect in July 2024.

The NFL Funds Research On Therapeutic Benefits of CBD – The National Football League (NFL) and its players union have jointly awarded $526,525 in funding to support independent research on the therapeutic benefits of CBD as a pain treatment alternative to opioids for players with concussions. The study, led by the American Society of Pain and Neuroscience, will explore cannabidiol and non-invasive vagal nerve stimulation (nVNS) as alternative treatments for post-concussion headache pain. The study aims to compare nVNS and CBD in contact sport athletes experiencing post-traumatic headache to their current standard of care treatment. The NFL's drug testing policy changed significantly in 2020 as part of a collective bargaining agreement.

International

United Nations Experts Calling for International Drug Decriminalization – On June 23rd, the International Day Against Drug Abuse and Illicit Trafficking, a group of experts from the United Nations (UN) issued a statement pushing for an end to the global “war on drugs.” The UN's coalition of "special rapporteurs" appointed by the Human Rights Council and the independent Global Commission on Drug Policy, along with other UN experts, are also calling for the formation of a separate drug policy commission, consisting of presidents and prime ministers from around the world. The experts are urging Member States and international bodies to replace their current drug policies with ones grounded in a comprehensive, restorative and reintegrative justice approach, emphasizing the importance of decriminalizing drug use and possession for personal use.

Colombia Senate Rejects Cannabis Legalization Bill – On June 20, the Senate in Colombia rejected a bill that would have allowed recreational cannabis sales, with a 43-47 vote. As the bill to legalize the sale of recreational cannabis is a proposed constitutional amendment, it had to successfully be approved by each chamber twice and in separate calendar years in order to pass and enter into effect.

Luxembourg Votes to Legalize Cannabis – Luxembourg's Parliament approved a bill to legalize marijuana possession and cultivation for adults, making it the second European country to do so, following Malta's 2021 vote. The law allows adults to possess up to three grams of cannabis and grow up to four plants in a secure location within their private residence. The legislation lays out penalties for possession and cultivation exceeding the allowable amount, with a prison sentence of up to six months for buying and possessing more than three grams. Public consumption remains prohibited.

Business

Super PAC Created to Advance Cannabis Reform – The U.S. Cannabis Council (USCC) has formed the "Legalize America" super PAC to raise the profile of cannabis as a national issue in the 2024 election and beyond. The coalition is committed to ending cannabis prohibition and advancing expungement efforts and responsible use. The super PAC will use tools like scorecards, endorsements, and targeted independent expenditure campaigns to advance cannabis reform, with the goal of creating a prosperous and equitable cannabis industry. Legalize America's membership overlaps with that of USCC, which includes ATACH, Canopy Growth, Columbia Care, Curaleaf, Cresco Labs, Cronos Group, Dutchie, Houseplant, Marijuana Policy Project, PAX, PharamCann, Scotts Miracle-Gro, and Vicente.

Green Thumb CEO Confident Regulators Will Approve Deal With Circle K Gas Stations – Green Thumb Industries (GTI) CEO Ben Kovler told reporters he expects Florida regulators to sign off on a deal to open medical cannabis dispensaries near Circle K gas stations. The agreement allows medical cannabis patients to buy snacks and pump gas at Circle K convenience stores and purchase cannabis products from nearby Rise dispensaries. GTI operates 10 Florida dispensaries under its Rise brand and plans to start a "test and learn" rollout this year with about 10 stores across the state. Under this arrangement and Florida rules, dispensary operators would need to submit a variance request with regulators. Circle K, based in Laval, Quebec, has over 600 stores in Florida.

Twitch Bans Cannabis Product Advertising – The live streaming service Twitch updated its branding policies to ban cannabis companies from advertising or sponsoring streamers. The new policy allows for the promotion of alcohol products, which must be marked as mature content. Twitch also prohibits advertisements for tobacco products, weapons, adult-oriented products, medical services, financial services and political content. Consuming cannabis on Twitch is allowed if the streamers are located in countries or states where cannabis is legal. Amazon, the parent company of Twitch, has recently endorsed national cannabis policy reforms, including the 2021 MORE Act and the States Reform Act.

Medical/Health

German Study Shows Symptom Improvements For Fibromyalgia Patients Following Oral THC Treatment – German researchers found that patients with fibromyalgia respond favorably to oral THC administration. The study found that those taking THC experienced fewer depression bouts and improved quality of life compared to untreated patients. Patients consuming THC were also more likely to reduce or discontinue pain medication use. The study suggests that THC could be a medicinal alternative to previously recommended substances.

THC/CBD Combination Reduces Tic Frequency In Patients With Tourette Syndrome – Australian researchers found that plant-derived cannabinoid extracts can reduce tic frequency and severity in patients with Tourette Syndrome). The study, which the National Organization for the Reform of Marijuana Laws (NORML) highlighted with several other studies this month, concluded that oral 1:1 THC:CBD is an effective treatment for tics and psychiatric comorbidity in severe Tourette syndrome without major adverse effects.

Study Finds Feeling High Correlates with Greater Symptom Relief for Medical Cannabis Patients – A study by the University of New Mexico published in Frontiers in Pharmacology found that patients who feel high after using cannabis often experience greater symptom relief. The study, which involved nearly 2,000 medical cannabis patients and over 16,000 administration sessions with cannabis flower, found that 49% reported feeling high, which correlated with positive effects like "chill" or "happy." Negative side effects included dry mouth and red eyes. 7.7% experienced greater symptom relief and increased feelings of relaxation and peace, while 20% reported negative side effects.

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

Authored by associates Malina Dumas and Lauren Estevez.