Cannabis Client Alert – July 2022 #2 | Dentons

In this week’s edition:

Senators introduce the Cannabis Administration and Opportunities Act. New York approves regulations for licensed use of cannabis for adults.

federal

Cannabis Administration and Opportunities Act (CAOA) – On July 21, Senators Corey Booker (D-NJ), Ron Wyden (D-OR) and Chuck Schumer (D-NY) introduced CAOA, his long-awaited cannabis legalization bill. Originally scheduled to be introduced last April, the bill is considered dead on arrival, at least for the current legislative session, although parts may be included in a minibus bill expected in the coming weeks .

The US House passes the Safe Banking Act as an amendment to the 2023 defense bill – This is now the seventh time the US House has passed the law in some form. The SAFE Banking Act, which would prohibit federal regulators from taking punitive action against financial institutions that provide services to state legal cannabis companies, has passed the US House twice as a stand-alone bill, but both times stalled in the senate It is very likely that this attempt will meet the same fate.

US House passes appropriations bill legalizing cannabis advertising on TV and radio – The credits invoice includes language that prohibits the Federal Communications Commission (FCC) from penalizing broadcasters for airing cannabis ads in states with legal cannabis markets at least through fiscal year 2023. Credit accounts are only valid for expected fiscal year and therefore require new annual congressional approval. . Meanwhile, in the Senate, Senator Ben Luján (D-NM) introduced similar but independent invoicethe Safe and Fair Advertising Act, which would permanently allow broadcasters to accept cannabis advertising.

The bipartisan Senate bill clarifies the “right to trial” law. – US Senators Corey Booker (D-NJ) and Rand Paul (R-KY) introduced legislation that clarifies that the Right to Trial Act allows terminally ill patients to have access to Schedule I drugs (including, for example, MDMA and psilocybin) for which a phase 1 clinical trial has been completed. Although MDMA and psilocybin show great medical promise , many patients still find it impossible to access these medicines.

CDC establishes new office with responsibilities related to cannabis – As part of a reorganization of the US Department of Health and Human Services, approved on July 1, the Centers for Disease Control and Prevention has established the Office of the Associate Director of Science. Among other responsibilities, the Office will coordinate “agency-wide and interagency cannabis-related surveillance, research and communication activities, and provide[] technical assistance for programmatic activities related to cannabis”.

DC Federal Court of Appeals Affirms FDA’s Denial of Flavored Vaping Applicants – The D.C. Circuit Court of Appeals rejected an appeal by four flavored e-cigarette makers that challenged the FDA’s denial of their premarket tobacco product applications. The applicants had originally submitted premarket tobacco product applications to the FDA in September 2020, seeking approval to manufacture and sell nicotine e-cigarette products in various flavors. This follows a similar decision by the Fifth Circuit in early July, affirming the FDA’s denial of applications from two flavored e-cigarette manufacturers.

states

Co – Colorado witnessed a drastic decline in medical cannabis sales over the past year, due in part to state legislation, HB 21-1317which went into effect on January 1, 2022. The bill limited the amount of cannabis concentrate that dispensaries could sell to patients.

Co – Colorado’s secretary of state approved a state initiative for the upcoming November ballot that would legalize psychedelics. Colorado voters will have the chance to decide whether to legalize psychedelics and create licensed psilocybin “healing centers” where people can use the substance for therapeutic purposes.

CT – The Connecticut Department of Consumer Protection announced the identity of 16 companies approved for licensing as social equity growers. Social Equity applicants must now pass background checks and other requirements before being licensed. Retail sales of adult cannabis are expected by the end of 2022.

d.c – Washington, DC Mayor Muriel Bowser (D) has signed into law local legislation that prohibits most workplaces from firing or otherwise punishing employees for using cannabis. The legislation builds on previous measures passed by lawmakers to protect local government employees from employment discrimination based on cannabis use.

IL – On July 22, Illinois issued 185 conditional recreational cannabis retail licenses. With only 110 adult-use retail licenses in operation, the move is estimated to more than double the state’s retail cannabis market. All 185 licensees are currently permitted to begin construction of their locations in anticipation of future approval for the retail sale of cannabis.

MN – Minnesota’s Medical Cannabis Program will now allow patients registered in the state to purchase cannabis gummies from licensed dispensaries starting August 1st. Perhaps unrelated, this follows recently enacted legislation that legalized hemp-derived THC edibles and infused beverages.

New York –The New York Cannabis Control Board has approved it regulations for conditional adult retail dispensary licences. Eligibility is generally limited to those who had a cannabis-related conviction before March 31, 2021 and have owned at least 10% of a qualified, profitable business for two years in state

PA – Pennsylvania Gov. Tom Wolf (D) has signed into law a banking and insurance reform bill that contains language that specifically allows state banks and insurers to service cannabis-related companies that operate in the medical cannabis market of the state Under the bill, banks and insurers can still refuse to serve these companies, if they choose.

SD – More than a year and a half after voters approved medical cannabis, South Dakota’s first state-licensed medical cannabis dispensary is set to open this week. Before that, medicinal cannabis was only available on tribal lands in the state.

TX —In a recent editorial, Texas Agriculture Commissioner Sid Miller expressed his support for the legalization of medical cannabis next year. To achieve this, Commissioner Miller plans to “urge” the state legislature and governor to make medical use “a top priority in the upcoming legislative session.”

Hemp/CBD

Congress will hold hearings on hemp – Members of the House Biotechnology, Horticulture and Research Subcommittee on Agriculture will hold a hearing on hemp next week. While details have yet to be released, the hearing is expected to cover expanding hemp regulations as part of the upcoming Farm Bill package.

Study finds evidence of mislabeling of CBD products – A new study published by Johns Hopkins Medicine found “significant evidence of inaccurate and misleading labeling of CBD content” in more than a hundred topical CBD products. In addition, the study found that some products contained trace amounts of THC, despite claims to the contrary.

Several Minnesota cities are temporarily banning THC edibles – Following the passage of a state law allowing the sale and consumption of edibles containing THC, at least three Minnesota cities have issued moratoriums temporarily banning the manufacture and sale of THC edibles to give officials time of the city to investigate the problem and delete ordinances that regulate the sales of these products.

Sales of Delta-8 THC products continue in Tennessee – Despite efforts by Tennessee State Senator Richard Briggs (R) to ban the sale of Delta-8 THC in the last legislative session, Tennessee hemp growers continue to grow CBD and Delta-8 THC hemp-derived products . In the next legislative session, Senator Briggs plans to shift his efforts from banning sales to stricter regulations of products containing hemp-derived ingredients.

international

European union – As numerous countries in Europe pursue cannabis reform, officials from Germany, Luxembourg, Malta and the Netherlands met to discuss plans and challenges for legalizing the recreational use of cannabis. Although no decisions were made at this meeting, the four countries have a “common understanding” that “the status quo is not a sustainable option.” Future multilateral discussions are expected and may include countries outside the EU.

Belgium – The mayor of Brussels, Philippe Close, announced his support for the legalization of cannabis. According to the mayor, the legalization of cannabis could help deal with criminal activity, including the increase in armed incidents between drug dealers.

United Kingdom – The UK Home Office, which is responsible for the country’s drug policies, proposed “a new regime for how the criminal justice system deals with drug possession offenses for so-called recreational users”. The proposal, detailed in a white paper titled “Swift, Certain, Touch. New Consequences for Drug Possession,” establishes a system of tiered penalties for drug possession, with penalties ranging from fines to revocation of passports and driver’s licenses.

Thailand –Thailand’s Ministry of Public Health has yet to issue official guidelines for food products containing THC after the country became the first in Southeast Asia to legalize such products. According to a study by a Thai university, 30 percent of THC drinks sold today contain THC levels above the legal limit.

Indonesia – Indonesia’s Constitutional Court rejected a review of the country’s narcotics law that could have allowed for the legalization of medical cannabis. Although the judges found insufficient research to justify this decision, they urged the government to conduct research into the therapeutic use of cannabis and other narcotics.

business

Cannabis flower remains the best-selling product – A new market report from New Frontier Data revealed that sales of cannabis flower products accounted for 44 percent of total cannabis sales last year. Cannabis vapors followed with 27 percent, while edibles accounted for 11 percent of sales.

Clemson University partners with medical cannabis company for tissue culture research – Clemson University has partnered with Maryland medical cannabis company Curio Wellness on a two-year study of cannabis tissue culture. Using industrial hemp, the study “objective[s] to protect plants from viral pathogens while improving production efficiency.”

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