In this week’s edition:

• Bill Streamlining Medical Cannabis Research Awaits President’s Signature
• America’s High-Level Support of Cannabis Legalization Continues
• Missouri Expects Sales of Adult-Use Cannabis to Begin Early Next Year
• Rhode Island Launches Recreational Cannabis Sales in Record Time
• The Czech Republic Moves Toward Legalizing Adult-use Cannabis
• Molson Coors Exits US CBD Drink Market

Federal

Bill Streamlining Research Into Medical Cannabis Awaits President’s Signature – On November 16, a bipartisan cannabis bill, the “Medical Marijuana and Cannabidiol Research Expansion Act,” flew through Congress with unanimous consent. If enacted, the bill would facilitate research of cannabis, encourage the Food and Drug Administration to develop and approve cannabis-derived medicines, and require the Department of Health and Human Services to report to Congress on the benefits and harms of cannabis. According to multiple media reports, President Biden plans to sign the legislation.

America’s High-Level Support of Cannabis Legalization Continues – A recent Gallup poll shows that more than two-thirds of Americans (68 percent) continue to support cannabis legalization. Young adults support legalization overwhelmingly at 79 percent. Politically, majorities in both parties support legalization, with Democrats at 81 percent and Republicans at 51 percent. Back in 1969, when Gallup first asked Americans about legalizing cannabis, only 12 percent were in favor.

Congressional Research Service Posts Summary of Recent Developments in Cannabis Law for Congress Members – The Congressional Research Service (CRS), a public policy research institute mandated by Congress to provide non-partisan research and analysis to legislators, recently published a concise summary (including helpful hyperlinks) of the latest developments in federal and state cannabis law. The CRS summary discusses President Biden’s announcement back in October of federal clemency for cannabis possession, notable federal legislative proposals and the recent state ballot initiatives in five states.

Federal Agency Requests Public Comment on Questionnaire for Potential Hires that Reflects “Changing Societal Norms” Regarding Cannabis – The Office of Personnel Management recently posted in the Federal Register a 60-day notice and request for comment regarding a questionnaire that will be used for vetting individuals interested in joining various agencies of the federal government, including for “national security positions.”  With regard to federally illicit drugs, the questionnaire notably distinguishes between the use of cannabis and all other illegal drugs. “Given the legal landscape at the state level. . .distinguishing between past marijuana use and use of other illegal drugs on the [questionnaire] may improve the pool of applicants.” The comment period will remain open until Jan. 23, 2023.

States

KY – Kentucky Gov. Andy Beshear (D) issued two cannabis-related executive orders on November 15. Through the use of the Governor’s pardon power, one order permits Kentuckians suffering from certain conditions to access and possess medical cannabis purchased from dispensaries in states where medical cannabis is legal. While the order does not per se prevent the arrest and/or prosecution of an individual for possessing cannabis, it would “pardon” the alleged offender after the fact. The second order directs the Cabinet for Health and Family Services to apply hemp product packaging and labeling requirements to delta-8 products.

KY – Despite the overwhelming majority of Kentucky residents reportedly supporting the legalization of medical cannabis, State Senate leaders have publicly balked at working with Gov. Beshear to pass any such legislation.

MN – Efforts to legalize adult-use cannabis in Minnesota reportedly received a large boost in November with the Democrats making a clean sweep of the state’s elections. With Democrats holding both legislative chambers and the Governor’s Office, Gov. Tim Walz (D) confirmed that he believes adult-use legalization will be one of the first bills he signs at the start of next year’s legislative session.

MO – Consumers may be able to buy recreational cannabis earlier than expected—indeed, by February 2023—according to Missouri’s Department of Health and Senior Services. Under the state’s new constitutional amendment legalizing cannabis, approved by voters in November, companies currently licensed for medical cannabis will be able to apply for permission to sell cannabis for adult use starting on December 8. The state is required to take action within 60 days, making February 6, 2023, the earliest date the state could approve such applications.

NY – Last month, New York’s Cannabis Control Board approved the first set of cannabis retail licenses, marking a major step toward creating a recreational market for cannabis in the state. Across New York 36 businesses and nonprofits were approved for licenses, with most owned by persons convicted of cannabis-related offenses. State regulators had previously expressed hope that retailers would be able to open for business by year’s end. However, given that approvals have come so close to year-end, it is unlikely retailers will be up and running in time to ring in the New Year.

PA – The Pennsylvania Department of Health has launched a pilot program to assist seniors with the cost of medical cannabis. As part of the program, nearly 1,400 enrolled patients will begin to receive $50 per month until June 2023.

RI – Adult-use cannabis sales in Rhode Island launched today, December 1. In a practice common to states transitioning from medical to adult-use cannabis, state regulators approved five existing medical cannabis dispensaries for “hybrid” retail. The dispensaries will be the first to serve the new recreational market. The launch of the program comes six months after the state’s Cannabis Act (H7593) was signed into law, making this implementation period the fastest to date in the Northeast.

WI – During the November referendum, 81 percent of voters in Dane County, WI, and 74 percent of voters in Milwaukee County showed their support for legalizing and regulating cannabis across the state. Eight other Wisconsin cities and counties, including in more rural areas, saw similar results, reflecting increasing support for cannabis legalization across the state.

WY – The Wyoming Highway Patrol issued a press release claiming an officer seized 221 pounds of cannabis from a vehicle on Interstate 80. The officer stopped the vehicle for a traffic infraction, and the driver was ultimately arrested on charges of felony possession of a controlled substance with intent to distribute and failure to maintain a single lane of travel.

Hemp/CBD

FDA Sends Warning Letters to Companies Selling CBD-Infused Food and Beverages – The Food and Drug Administration (FDA) sent warning letters to five companies for illegally selling products containing CBD. The FDA raised concerns over products “that people may confuse for traditional foods or beverages which may result in unintentional consumption or overconsumption of CBD” and in particular “CBD-containing products in forms that are appealing to children, such as gummies, hard candies and cookies.” The FDA’s warning letters also raised safety concerns around long-term use and flagged additional violations of the Food, Drug, and Cosmetic Act for making claims about the products’ health/therapeutic benefits.

International

European Union – The Court of Justice of the European Union (ECJ) has found that a Russian man should be allowed to stay in the Netherlands, despite the country rejecting his asylum requests, because he requires a medical cannabis treatment that is unavailable in his home country. According to a statement by the ECJ, deportations are not legal if “there are substantial grounds for believing that returning that national would expose him or her, on account of appropriate care not being available in the receiving country, to a real risk of a rapid, significant and permanent increase in the pain caused by his or her illness.” While the appropriate national court or tribunal must ultimately make a decision on the case, guidance from the Luxembourg-based court will be an important factor.

Czech Republic - Following Germany’s lead, the Czech Republic is moving toward legalizing adult-use cannabis. On October 2022 Germany introduced a plan, for legalizing cannabis for adult use. The Czech coalition government is expected to present a bill to regulate the industry within its borders in March 2023, with full legalization potentially going into effect in January 2024. Czech officials have been in touch with their German colleagues regarding plans to coordinate and share information about best practices. The Czech Republic decriminalized cannabis possession for personal use in 2010 and legalized medical cannabis in 2013.

Business

Sean “Diddy” Combs Sets Sights on Cannabis Market in NY and Beyond With $185M Acquisition – Combs is planning to purchase cannabis production facilities and retail stores in multiple states, including New York, Massachusetts and Illinois, from Cresco Labs and Columbia Care. Combs Enterprises agreed to pay $155 million in cash and seller notes upon closing the transaction, with the remainder due after the company achieves certain milestones, according to an announcement by Cresco. Combs has stated that he is eager to help diversify the cannabis industry; this acquisition would create the largest Black-owned cannabis company in the United States.

Molson Coors Exits US CBD Drink Market – Citing continued regulatory uncertainty surrounding cannabis products in the US and slow progress with federal legalization, the Molson Coors Beverage Co. is abandoning its CBD drink business in the US and ending its “Truss CBD USA” joint venture with Canadian cannabis producer Hexo Corp. at the end of this year. Molson Coors indicated that the business would consider re-entering the US market when the regulatory landscape changes and provides more opportunities for CBD beverage brands at retail outlets.

Medical/Health

Researchers in South Africa to Provide 300 Participants With Year’s Worth of Cannabis for Chronic Pain Trial –The Cannabis Research Institute of South Africa (CRI) will lead the study through collaboration with Releaf Cannabis E-Clinics. The goal is to obtain verifiable data on the efficacy of using cannabis as an alternative to opioids to treat chronic pain. Results of the study are expected to be available in late 2023.

Medical Cannabis Study in Melbourne, Australia, Shows Positive Results for Children with Autism – Twelve children who took part in a 20-week study run by the Monash Children’s Hospital reportedly showed some remission of the regular symptoms of autism. Prof. Michael Fahey, who led the trial, said families noticed significant changes in how the children were communicating and socializing. The drug used in the trial did not contain any THC, but contained a range of cannabinoids, including CBD. A larger study is set to take place to confirm the results using the same drug.

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

Authored by associate Jacob Raver and Malina Dumas.