BREAKING NEWS: DEA Issues Notice of Proposed Rulemaking to Move Marijuana to Schedule III

Today is another historic day in the history of cannabis control and regulation. In a much anticipated announcement, the Drug Enforcement Administration (DEA) issued a notice of proposed rulemaking to reschedule marijuana, from Controlled Substances Act (CSA) schedule I to schedule III (the “Proposed Rule”).

We have covered the implications of a schedule III placement in various posts on this blog, beginning with the Health and Human Services (HHS) recommendation that DEA undertake this rescheduling last August. See:

• Yesterday’s Marijuana Rescheduling News, Explained
• Three Myths and Three Facts on the HUGE Marijuana Rescheduling Recommendation
• What Rescheduling Means for Cannabis Investments
• Cannabis Rescheduling and Trademarks

For now, here are a couple of high-level observations on today’s Proposed Rule.

First, DEA is not proposing an interim final rule. We expected as much, but it would have been nice! Under an interim final rule, an agency finds that it has good cause to issue a final rule without first publishing a proposed rule (as DEA did here). An interim final rule would have gone effect immediately upon publication, and marijuana would have been moved to schedule III today. Instead we’ll have to wait.

Second, the Proposed Rule gives a standard 60-day comment period, from the date the Proposed Rule is published in the Federal Register. That’s a pretty standard window; although, as I’ve explained before, this can always be extended.

Third, the Proposed Rule is clear that “any drugs containing a substance within the CSA’s definition of ‘marijuana’ would also remain subject to the applicable prohibitions in the Federal Food, Drug, and Cosmetic Act (“FDCA”).” No, this does not mean FDA enforcement is going to begin; and no, this does not mean Big Pharma is coming to squash state licensed operators. Stop saying that.

Fourth, the Proposed Rule gives very specific protocols for submitting electronic and other types of comments. These protocols are not hard to follow! But if you fail to do so, your comment will not make it into the record, and it will not be considered by DEA.

Fifth, I really like this paragraph:

HHS recommended in August 2023 that marijuana be rescheduled to schedule III. See Letter for Anne Milgram, Administrator, DEA, from Rachel L. Levine, M.D., Assistant Secretary for Health, HHS (Aug. 29, 2023) (“August 2023 Letter”). The Attorney General then sought the legal advice of the Office of Legal Counsel (“OLC”) at DOJ on questions relevant to this rulemaking proceeding. Among other conclusions, OLC concluded that “HHS’s scientific and medical determinations must be binding until issuance of a notice of proposed rulemaking [(‘NPRM’)].” Questions Related to the Potential Rescheduling of Marijuana, 45 Op. O.L.C. __, at *25 (Apr. 11, 2024) (“OLC Op.”).1 After the issuance of a notice of rulemaking proceedings, HHS’s scientific and medical determinations are accorded “significant deference” through the rest of the rulemaking process.2 OLC Op. at *26.

I’ve always argued that HHS’s scientific and medical determinations are binding under the plain language of the CSA itself. But it’s awfully nice to hear confirmation that OLC agreed– especially because there was some consternation among the cognoscenti about what OLC was doing here. It seems that OLC has essentially confirmed to DEA: “you are stuck with schedule III.”

Sixth, it’s interesting to see the Proposed Rule delve into problematic international law constraints. The Proposed Rule gives a rather cursory analysis here, but OLC seems to have justified marijuana’s placement on schedule III in the context of public international law obligations, including the 1961 U.N. Singled Convention on Narcotic Drugs (to which the United States is a party). DEA states, however, at Proposed Rule page 86 that:

“[c]oncurrent with this rulemaking, DEA will consider the marijuana-specific controls that would be necessary to meet U.S. obligations under the Single Convention and the Convention on Psychotropic Substances in the event that marijuana is rescheduled to schedule III, and, to the extent they are needed if marijuana is rescheduled, will seek to finalize any such regulations as soon as possible.”

This could get pretty interesting! Expect a lot of fretting here by industry and the general public.

Seventh, it was also interesting to see DEA and HHS justify why it arrived at a schedule III conclusion, after concluding in 2016 that marijuana should stay in schedule I. I have wondered aloud about the intellectual gymnastics that might be required for this. Take a read at the rationale on the Proposed Rule at pages 11 – 13 and see if you’re convinced.

_____

OK, that’s it for now. The Proposed Rule is 92 pages and I had less than 30 minutes to read it and write this today. We will follow up as soon as next week with further thoughts on this very significant development.

The post BREAKING NEWS: DEA Issues Notice of Proposed Rulemaking to Move Marijuana to Schedule III appeared first on Harris Sliwoski LLP.

from Canna Law Blog™ https://ift.tt/gP1dLp9
via IFTTT

Can lemon-smelling weed cause less anxiety than others?

THC test subjects with limonene aboard reported a smoother flight.

The post Can lemon-smelling weed cause less anxiety than others? appeared first on Leafly.

from Leafly https://ift.tt/adEVtnS
via IFTTT

Germany Legalizes Recreational Cannabis

Germany has legalized recreational cannabis

Germany’s new laws legalize possession by adults of up to 25 grams (around 1 ounce) of cannabis for recreational use. It also allows for adults to grow up to three plants. Use is prohibited within 100 meters of the entrance to a playground or school. This part of the legislation is already in force in Germany and come July 1, German adult residents can join nonprofit “cannabis clubs” with a maximum 500 members. Individuals 21 and older will be allowed to buy up to 25 grams per day, with a maximum of 50 grams per month; whereas those between the ages of 18 and 21 will be limited to 30 grams per month. Membership in multiple clubs will not be allowed.

Germany’s cannabis clubs

Germany’s cannabis clubs will be prohibited from locating within 100 meters of a school or playground, and each city or town can have no more than one club for every 6,000 residents. Each cannabis club will need a permit to operate, and this permit will be valid for up to seven years, with the possibility of an extension.

Germany’s impact on cannabis in Europe and the world

Germany is only the third EU country to legalize cannabis for recreational use — after Malta and Luxembourg. Since Germany has so many more people than Malta and Luxembourg, put together, how legal cannabis fares in Germany will likely have a significant impact on whether recreational cannabis legalization happens elsewhere in Europe — perhaps even further afield as well.

Recreational cannabis around the world

Contrary to what many believe, Uruguay, Canada, Thailand, and the United States (but not every state) are the only countries that have both legalized recreational cannabis and moved forward with licensing its actual sale. South Africa, Mexico, Malta, Luxembourg, and Australia (but not every state) have legalized recreational cannabis, but have yet to provide anyone with the necessary licenses needed to actually sell it. Portugal has legalized growing cannabis and it exports large quantities of it.

The economic implications of German cannabis legalization 

A study completed by the University of Dusseldorf in November of 2021 estimated that approximately $4.7 billion Euros in total would be generated from the taxes on cannabis products sold to German citizens, from the tourists coming to Germany for cannabis, and from the money German courts and law enforcement will save by not prosecuting recreational cannabis cases.

____

For context on the run-up to German cannabis legalization, check out the following:

• Germany Unveils Sweeping Cannabis Legalization Plan
• Germany’s Cannabis Act
• Recreational Cannabis in Germany is Coming
• A Peek at German Marijuana Legalization

The post Germany Legalizes Recreational Cannabis appeared first on Harris Sliwoski LLP.

from Canna Law Blog™ https://ift.tt/EAZvFNP
via IFTTT

Minnesota Cannabis Producers Given the Greenlight after Momentarily in Limbo

Minnesota cannabis producers have raised concerns over the availability of products when the legal market finally opens. In response, the Minnesota legislature has acted quickly to allow an avenue for early cultivation providing key guidance for the forthcoming Minnesota legal cannabis market. Noting these concerns, industry participants have asked the Minnesota Office of Cannabis Management (OCM) and their local legislators to consider opening cultivation and production of cannabis products early, in order to supply retailers with legal products to sell once licenses are awarded and retailers open for business.

The OCM’s problematic decision not to endorse or seek immediate changes for Minnesota cannabis production

The OCM issued a statement recently indicating it will not ask for changes to the current laws that would allow some cannabis cultivators to start growing plants early as a way to have products available and ready for retail when stores open sometime in early spring of 2025. The OCM notes that they remain receptive to proposals that could pave the way for early production, but are not seeking immediate action at this time. This recent decision highlights the issues and complexities of introducing a new legal cannabis market into an already existing marketplace. The main issue surrounds how legal retailers could open for business if they do not have any legal cannabis products to sell.

The OCM suggests additional delays could occur

One option would be to rely on existing medical cannabis rules for early cultivation. However, concerns that issuing producer licenses contemporaneously with retail licenses would cause unnecessary delays, are met with concerns over unnecessary delays from the OCM. The OCM notes that reliance on the existing medical cannabis rules presents inherent flaws, particularly in accommodating outdoor farms and ensuring equitable opportunities for social equity applicants. Allowing for early cultivation under the existing medical cannabis requirements only exacerbates challenges faced by social equity applicants and would place legal producers outside of the existing medical regulatory framework at a disadvantage.

Despite concerns legislators took action and have provided a proposal for early cultivation

Senator Lindsey Port spearheaded amendments, which culminated in floor debate lasting over six hours. In response to the challenges facing producer and retail licenses, as well as accommodating outdoor farms, ensuring equal access for social equity applicants, or allowing early cultivation under the existing medical cannabis regulatory framework, legislators are took up the issue and provided additional proposals. The amendments were aimed at facilitating early cultivation, an essential step towards nurturing a robust and inclusive cannabis market. These amendments seek to grant permission for early production to social equity producers, addressing the imperative of equitable participation in the anticipated Minnesota legal cannabis industry. By integrating the existing medical cannabis regulations with newly proposed social equity pre-approved licenses, Senator Port’s amendments offer a pragmatic framework for expediting cultivation timelines while safeguarding the interests of diverse stakeholders.

Early cultivation is key to a strong launch

The significance of early cultivation cannot be overstated in the context of Minnesota’s nascent legal cannabis market. Not only will Minnesota’s legal cannabis market be forced to compete with the existing illegal market, the same as every other state, but the new legal market will also be competing with the existing THC beverage and lower-potency hemp edible markets. Early cultivation holds the key to undermining the influence of illicit markets and channeling demand towards legal and regulated avenues, but only if the legal cannabis market can get a strong launch. Moreover, early cultivation will serve as a lifeline for small businesses and social equity applicants, affording them a crucial head start and robust launch in an industry characterized by fierce competition and evolving regulatory dynamics.

Licensing and lottery system concerns for Minnesota cannabis producers

Understanding the nuances of licensing is integral to navigating Minnesota’s cannabis marketplace. Although licenses will not be issued until early 2025 at the earliest, and the full regulatory framework has not been finalized, producers and cultivators will have access to three distinct production license categories – bulk cultivators, mezzo licenses, and micro licenses. Each category carries with it separate requirements and allowances regarding canopy space, facility size, quality control requirements, staffing protocols, and more. Notably, lower-potency hemp cultivation and sale remain exempt from canopy caps, presenting another wrinkle or opportunity within the overall regulatory framework.

Although the outline has been set regarding cultivation, mezzo and micro licenses, uncertainty remains regarding the license lottery system. This uncertainty was also exacerbated by the issues surrounding whether, and how, Minnesota would allow early cultivation. Some cultivators raised concerns over what might happen if they are able to begin early cultivation but then lose out on the later license lottery. Others worried that if they do not begin cultivating early, they could forfeit additional points that could have secured them a license. Disruptions to the point-based allocation mechanism also raise pertinent questions regarding fairness and transparency through the licensing process. Addressing apprehensions surrounding straw applicants and ownership transparency is paramount to fostering trust and accountability within the OCM and its regulatory framework. It’s promising to see Minnesota legislators and regulatory agencies working in conjunction to address these issues early in hopes of fostering a robust market.

Leadership is critical for Minnesota cannabis program success

Establishing a flourishing cannabis market will require a form of early cultivation and production to ensure retailers are stocked with products to sell at launch and both the Legislature and the OCM are aware of that fact and working towards addressing these issues. The OCM’s leadership and decision-making on these issues have the potential to reshape and drive the trajectory of Minnesota’s legal cannabis market as we approach the much-anticipated retail launch in early spring of 2025. As Minnesota moves towards that launch, the discourse surrounding early cultivation serves as a litmus test for regulatory agility and stakeholder collaboration. By navigating the complexities of licensing, and regulatory concerns, and addressing the imperative early cultivation period, Minnesota is poised to address many tough questions and policy dilemmas before a single seed is sown or a single flower is sold under the new legal cannabis market.

The post Minnesota Cannabis Producers Given the Greenlight after Momentarily in Limbo appeared first on Harris Sliwoski LLP.

from Canna Law Blog™ https://ift.tt/hfKCIaB
via IFTTT

Give mom her flowers with Pink Runtz—May 2024’s Leafly HighLight

Pretty, fragrant, and relaxing—Pink Runtz is our Leafly HighLight strain for May.

The post Give mom her flowers with Pink Runtz—May 2024’s Leafly HighLight appeared first on Leafly.

from Leafly https://ift.tt/cE3J2mZ
via IFTTT

California Awards $12 Million In Local Cannabis Equity Grants To Repair Drug War Harms

California’s path to cannabis social equity: from arrests to advocacy

Data from the California Department of Justice reveals that nearly half a million individuals were arrested on cannabis charges in the state between 2006 and 2015. Even after Governor Schwarzenegger authorized a statewide decriminalization program in 2010, thousands continued to face serious misdemeanor charges related to cannabis. Despite California’s pioneering legalization of cannabis through Proposition 215 in 1996, just two years after the 1994 Crime Bill, the state legislature’s approach to cannabis legal reform was not as progressive as one might expect. The impact of the War on Drugs during this period was profound, with marijuana possession arrest rates increasing by 124% in 2010, even as rates for other serious crimes decreased significantly.

Proposition 64, passed a few years later, lacked any discussion addressing the damage caused by past policies. However, with social equity becoming a prominent topic in the cannabis industry, California officials have started investing significantly in social equity policies. Initiatives like the California Cannabis Equity Act of 2018 and the Budget Act of 2019 reflected this shift, aiming to support the economic development of communities and individuals adversely affected by previous harsh cannabis policies in what is now a multi-billion dollar industry.

Investing in justice: California’s cannabis social equity journey

In November 2023, California officials finally announced the application process for aspiring social equity business owners via the Cannabis Equity Grants Program for Local Jurisdictions which itself is an extension of Governor’s Office of Business and Economic Development. As the substantial costs of running a fully legal cannabis business in California can often get obscenely expensive, these large grants are meant to fund and lessen the financial burden of these exorbitant costs.

The overall purpose of this multi-million dollar initiative is “to advance economic justice for populations and communities impacted by cannabis prohibition and the War on Drugs by providing support to local jurisdictions as they promote equity in California and eliminate barriers to enter the newly regulated cannabis industry for equity program applicants and licensees,” according to the website. In February of 2023, the Governor’s Office of Business and Economic Development distributed approximately $15 million in social equity-focused funding to 16 different cities and counties throughout the Golden State.

Breaking barriers: California’s social equity initiatives in cannabis

At the end of last month, California officials finally awarded those patiently awaited funds. Funded by a $12 million portion of the billions in tax revenue raised by California cannabis sales, the grants will go to a total of 10 different cities and counties. While most awarded counties reside in Northern California, the city of Coachella also received $350,000 in funding. In particular, Oakland received $3 million and the city and county of San Francisco received over $2 million. “California’s cannabis industry is not just about business; it’s about righting past wrongs. Through initiatives like the Cannabis Equity Grants Program, the state is investing in communities once harmed by harsh drug policies, creating opportunities and economic justice for those affected,” said California Cannabis Attorney Karen Albence.

From prohibition to inclusion: California’s cannabis equity evolution

The possibilities with this funding are nearly endless. Funds will go towards local programs offering technical support, regulatory compliance and assistance. One notable grantee includes San Jose’s Cannabis Equity Business Academy. Social equity advocates have even more progress to celebrate, as the Governor’s Office of Business and Economic Development and Governor Gavin Newsom’s new budget proposal would invest $15 million further in similar programs by October of 2024.

Although it has taken a while for these programs to be created and even longer to be implemented, we are hopeful for this new era. This $12 million in local, social equity grants is a drop in the bucket, considering the damage that was done. But a drop is better than an empty bucket. With substantial investments and ongoing support, California is starting to pave the way for a more equitable and inclusive cannabis industry– one where all individuals, regardless of background, have the chance to participate and succeed. As the state continues to allocate resources and expand such programs, the future holds promise for further progress in achieving social equity within the California cannabis landscape.

The post California Awards $12 Million In Local Cannabis Equity Grants To Repair Drug War Harms appeared first on Harris Sliwoski LLP.

from Canna Law Blog™ https://ift.tt/d1SGlJH
via IFTTT

Weedy Mother’s Day gifts for the cool moms of 2024

Stash upgrades for every mom too busy upgrade her own.

The post Weedy Mother’s Day gifts for the cool moms of 2024 appeared first on Leafly.

from Leafly https://ift.tt/MIBj81F
via IFTTT