Cannabis Client Alert – Week of April 5, 2021 | Dentons

In this week’s issue:

• New Mexico Passes Legalization Law; Minnesota and Rhode Island are considering the next steps
• The U.S. Senate stands ready to move forward with federal cannabis legislation despite the President’s hesitation
• KushCo and Greenlane Announce Major Merger
• NYPD memo says smoke, smell is no longer likely cause of stops or searches
• Research on synthetic cannabis is gaining momentum

Federal

Schumer says the Senate will respond to cannabis legislation with or without Biden. Senate Majority Leader Chuck Schumer (D-NY) is working with Sens. Cory Booker (D-NJ) and Ron Wyden (D-OR) on federal cannabis reform legislation. “The legalization of states has worked remarkably well,” commented Schumer in a Politico Interview. Regarding the president, he said, “I want to bring my arguments to him … But at some point we will move forward, period.” This may be necessary in light of our next two messages.

Biden’s opposition to the legalization of cannabis “has not changed”. according to the White House press secretary. While decriminalizing possession, legalizing medicinal cannabis, eradicating previous cannabis crimes, and modest re-planning of the plant have reportedly the support of the president, full legalization has not been advocated. In addition, the government fired or punished numerous employees who admitted to previous cannabis use and criticized bipartisan criticism, as well as a letter signed by 30 Congressional Democrats urging that previous cannabis use should no longer be used to retire people from duty exclude the federal government.

Cannabis is not a priority for the National Drug Control Policy Office this year. The National Drug Control Policy Office (ONDCP) published the “Biden Harris Government Drug Policy Statement for the First Year” and does not even mention cannabis. Synthetic opioids, cocaine and methamphetamine are identified as the main threats, and priorities include expanding access to evidence-based treatment, prevention, harm reduction, racial equality in drug policy and promoting recreational jobs.

conditions

HE – Iowa residents were 51 to 43 percent ahead of legalizing “recreational marijuana use in the state,” according to a March 2021 poll of approximately 700 people. Republicans were 62 percent to 32 percent more likely to be against legalization, but Democrats, third party respondents, unaffiliated respondents, and all ages under 65 were more likely than against it. The survey was part of an annual public policy survey conducted by Morningside College in Sioux City, IA.

MN – The Minnesota House of Representatives will vote on a law to legalize cannabis next month, said House majority leader Ryan Winkler (D), who supports the legislation. The bill would allow adults 21 and older to buy and own up to 1.5 ounces and grow up to eight plants. However, significant challenges to the bill are expected in the state’s Republican-controlled Senate.

MO Weekly medical cannabis sales in Missouri were over $ 2 million on March 19 after four weeks of similar sales. Missouri’s medical dispensaries opened in October 2020, less than two years after the state approved medical cannabis in 2018.

BORN – Medical cannabis legalization was pushed into Nebraska Legislature by leaving the unicameral institution’s judicial committee and sending the entire panel to a vote. However, Governor Pete Ricketts (R) is expected to veto any medical cannabis bill that is passed.

NM – New Mexico legalized adult cannabis, which will go into effect in April 2022. The new law allows adults 21 and older to purchase up to two ounces of flowers plus additional extract and groceries and to own more privately residence. The law also allows cultivation for personal use, allows consumption rooms and provides for the deletion of criminal offenses. Excise taxes will be 12 percent for the first four years and will gradually increase to 18 percent by the 2031 financial year.

NEW – An NYPD memo instructs police officers not to prevent New Yorkers from smoking cannabis in public, stating that the smell of cannabis “is no longer a likely reason” to search a vehicle or detain a probation officer, unless the probation conditions prohibit its use. While smoking or vaping remains banned in a car and officials can search a vehicle if the driver appears under the influence, the trunk cannot be searched without some other justification. The memo follows the state’s legalization of adult use.

RI – The Rhode Island legislature held an initial hearing on two competing proposals to legalize cannabis. Home growing and local opt-out are the main differences between the two. Democratic Governor Daniel McKee’s plan allows municipalities to opt out of all license types, while the Senate’s plan only allows opt-out sales. Only the Senate’s plan allows home growing. The tax rates under each would be about 20 percent.

will – Virginia Governor Ralph Northam (D) proposed making cannabis possession legal as early as July 2021, rather than three years later. Northam proposed changes to the recently passed law that will allow adult sales from 2024. Budget changes were also proposed to help law enforcement fight drug-behind-the-wheel driving, as well as a change to protect trade union organizations in the cannabis sector.

Hemp / CBD

Rand Paul reintroduces the HEMP Act. Senator Rand Paul (R-KY) reintroduced a bill to raise the THC limit for hemp to 0.75 percent instead of 0.3 percent. According to the senator’s summary of the proposed Hemp Economic Mobilization Plan (HEMP) bill, “THC levels in hemp plants are significantly affected by environmental factors that farmers cannot control,” while hemp processors can control the THC levels of their derived products. The recently enacted USDA Final Rule states that farmers do not commit a “negligent violation” if their crops are tested below 1.0 percent, but that crops above 0.03 percent must be destroyed or remediated.

International

Mexico – The Mexican Senate has reached an agreement that it will pass a new cannabis ordinance by April 30th, according to Senate President Eduardo Ramirez. This is the deadline set by the Supreme Court, which in 2018 found the ban on personal use and cultivation to be unconstitutional.

United Kingdom – The UK’s National Health Service has just set up a registry for cannabis patient records. While proponents see this as a step towards normalizing the evidence-based medical discussion of cannabis, there are concerns about the low number of expected participants and the fact that it will not include data from the private sector, which has 10 times as many patients prescribed cannabis.

Switzerland – Supply chains for adults in Switzerland are developed according to draft ordinances that were published and recently updated by the Federal Office of Public Health (FOPH). “Pilot projects” allowing legal production, import and distribution to registered users are allowed for the express purpose of developing scientific knowledge such as the socio-economic impact of legalization and can last up to five years, with a possible extension of two years.

business

KushCo and Greenlane – Last week, a merger between KushCo Holdings (KSHB) and Greenlane Holdings (GNLN) was announced, bringing together two of the largest manufacturers of cannabis accessories and child-resistant packaging. The all-stock deal gives Greenlane shareholders a slight majority of 50.1 to 49.9 percent. Nick Kovacevich, Co-Founder and CEO of KushCo, will be the CEO of the combined company, and Bill Mote of Greenlane will be its CFO. The merger is scheduled to close in the second or third quarter.

Youtube – YouTube relaxed it Content guidelines on recreational drugs, which allow content creators to monetize and generate advertising revenue from content that is focused on buying, producing, or distributing drugs in educational or “unglorified” ways, such as: B. “News reports on cannabis farms”. While advertisers were previously required to “sign up” for certain recreational drug videos, the new policy has reportedly used ads by all advertisers by default. However, more graphic or less educational content is still limited. For example, no monetization is allowed for videos that focus on “selling or finding drugs … in a graphical and detailed manner” or “guides” containing consumption and effects.

ParallelThe Atlanta-based cannabis company recently took a giant leap into the Illinois adult market, acquiring six Windy City cannabis dispensaries valued at more than $ 100 million. At the same time, founded by the chewing gum heir William “Beau” Wrigley Jr., has more than 40 retail stores as well as cultivation and production facilities in four other states. Parallels announcement emphasized social justice, noting that 40 percent of its leadership team are women and minorities. Along with an earlier deal with Curaleaf, this deal will liquidate Windy City Cannabis, an early player in the Illinois market.

Medical health

Synthetic cannabis research – The “godfather” of medical cannabis research Raphael Mechoulam (who discovered the endocannabinoid system in 1988) is once again making news with his research on cannabis-derived acids. These acids are more effective, but also more unstable than the cannabinoids that are present after the plant has dried. Synthesized molecules developed in Mechoulam’s lab may offer promising medical treatment and could attract funding from pharmaceutical companies to the medical cannabis room.

Dentons speaks

Governor Howard DeanEric Berlin, David and Ashley Bell at Dentons hosted a policy-making webinar this week. Available on YouTube, “How to leverage and create opportunities in the cannabis industry through government relationships”Covers, among other things, the productive understanding of the role of governors, local government and the banking sector in issues such as taxes, social justice, vertical integration and license transferability.