Major Alcohol Industry Group Pushes Congress For ‘Critical Action’ To Regulate Consumable Hemp Products, Rather Than Ban Them

A major alcohol industry association is calling on congressional leaders to create a regulatory framework for hemp-based intoxicating cannabinoids—rather than impose an outright ban as is proposed under a large-scale agriculture bill that’s advancing in the House.

In a letter sent to House and Senate Agriculture Committee leaders on Wednesday, Wine & Spirits Wholesalers of America (WSWA) urged “critical action to ensure that intoxicating hemp products sold across the country are safe for consumers” as lawmakers work to advance the 2024 Farm Bill.

“We strongly advocate for clear federal rules and regulations that define intoxicating hemp compounds and to grant states the authority to regulate these products within their borders,” the alcohol trade association said.

The letter comes about a week after the House Agriculture Committee approved an amendment to the 2024 Farm Bill that would effectively ban most consumable hemp products—a proposal that saw some ideological splintering within the cannabis sector.

Ahead of that vote, WSWA said the “attempt to ban intoxicating hemp products is merely doubling down on the failed federal policy of prohibition.” But in this latest letter, the association used more tempered language. While it said a regulatory framework would be ideal, it also suggested Congress could enact legislation that also allows individual states to ban the products altogether.

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House Passes Veterans-Focused Marijuana And Psychedelics Amendments

The U.S. House of Representatives has approved amendments to a large-scale spending bill that would authorize U.S. Department of Veterans Affairs (VA) doctors to issue medical marijuana recommendations to military veterans and support psychedelics research and access.

One day after the Rules Committee cleared the proposals for floor consideration, the full chamber adopted them as part of appropriations legislation covering Military Construction, Veterans Affairs and Related Agencies (MilConVA) in a series of votes on Tuesday.

The cannabis measure passed in a vote of 290-116, while the two psychedelics proposals were adopted on voice votes.

One of the accepted proposals from Reps. Brian Mast (R-FL), Earl Blumenauer (D-OR), Barbara Lee (D-CA) and Dave Joyce (R-OH)—who together are the co-chairs of the Congressional Cannabis Caucus—would allow veterans to access state medical marijuana programs and eliminate a VA directive barring the department’s doctors from issuing cannabis recommendations.

SEC. 419. None of the funds appropriated or other wise made available to the Department of Veterans Affairs in this Act may be used to enforce Veterans Health Directive 1315 as it relates to—

(1) the policy stating that ‘‘VHA providers are prohibited from completing forms or registering Veterans for participation in a State-approved marijuana program’’;

(2) the directive for the ‘‘Deputy Under Secretary for Health for Operations and Management’’ to ensure that ‘‘medical facility Directors are aware that it is VHA policy for providers to assess Veteran use of marijuana but providers are prohibited from recommending, making referrals to or completing paperwork for Veteran participation in State marijuana programs’’; and

(3) the directive for the ‘‘VA Medical Facility Director’’ to ensure that ‘‘VA facility staff are aware of the following’’ ‘‘[t]he prohibition on recommending, making referrals to or completing forms and registering Veterans for participation in State approved marijuana programs’’.

“My proposed amendment, I believe, is common sense. It allows doctors in the VA—those that deal with veterans—to give advice to their veteran patients,” Mast said on the floor. “That seems simple enough, but under the status quo, VA doctors are limited in essential treatment options that they can offer to their patients and treatments that patients that are not veterans can readily assess in many states.”

“Beyond the veteran population, the nation is turning the page on how we think about cannabis. It’s become a key part of the medical system in more than 30 states. It offers law-abiding Americans a low-cost and safe option,” he said. “Do not keep those who’ve fought for our country from accessing what’s proven to be a critical tool for pain management. It is time for change. Veterans deserve to have access to every possible tool, and the best medical options available and the best possible medical advice by their doctors.”

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College Enrollment Increases In States That Legalize Marijuana Without Hurting Graduation Rates, Study Finds

A newly published study of college enrollment data found that states’ adoption of recreational marijuana legalization (RML) “increases enrollments by approximately up to 9%, without compromising degree completion or graduation rate.” Increases in out-of-state enrollments further suggest the policy shift “boosts college competitiveness by offering a positive amenity,” the report says, with “no evidence that RML affects college prices, quality, or in-state enrollment.”

The findings by University of Oklahoma graduate student Ahmed El Fatmaoui were published last month in the journal Economic Inquiry. They build on past research, such as a 2022 study that found that schools in states that legalized marijuana saw larger application pools, with no apparent decline in the quality of student applicants.

As in the earlier study, El Fatmaoui used data from the Integrated Postsecondary Education Data System (IPEDS), which come from surveys conducted by the National Center for Education Statistics. He supplemented that in the new research with county-level data “to construct a panel dataset of colleges and their characteristics from 2009 to 2019.”

The main results of statistical significance, the latest study says, “indicate that RML increases enrollment by 4.6%–9%.” Increases in enrollment rates were seen in both men and women and, notably, took place after a delay following legalization.

“The results indicate that both women’s and men’s enrollments rose significantly after the fourth year of the first dispensary opening,” the report says, noting that the delay could be due to a number of factors. Among them may be “the slow and gradual development of a marijuana consumption culture,” the time it takes for students to decide on and apply to college as well as the sometimes sluggish rollout of marijuana retail markets.

Another possible explanation El Fatmaoui acknowledges is that “states may use the additional tax revenue from marijuana sales to subsidize their higher education sector,” which itself could draw higher enrollment.

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Adding CBD Or THC To Food Or Drinks Is Illegal, Massachusetts Officials Say In New Memo

Massachusetts agencies have declared that intoxicating hemp-based products can not be sold outside of licensed dispensaries and have tasked local boards of health to enforce what they say is federal law.

On Wednesday, the Massachusetts Department of Public Health and Department of Agricultural Resources released a joint notice in order to address the recent influx of hemp-based products like gummies and drinks that contain the same active ingredient as cannabis products. The notice made explicit that the “addition of CBD and/or THC to food manufactured or sold in Massachusetts is illegal.”

This action by the two state agencies reflects what they have been saying about the legality of these products. Now, with the advisory, they have made the guidance explicit and have charged local boards of health to enforce it.

Following the notice, the Alcohol Beverage Control Commission warned its licensees that their licenses could be suspended or revoked if they are caught selling hemp-derived products.

“This is a big win for both the cannabis and the hemp industry, specifically those who are licensed by the CCC and MDAR,” said Ryan Dominguez, the head of the Massachusetts Cannabis Coalition. “This is a step in the right direction for us to be able to now enforce what was already on the books so there’s no kind of gray area.”

Intoxicating hemp products have been showing up in liquor stores, gas stations and smoke shops across the state because of a 2018 federal law that removed hemp from the definition of marijuana. There are many companies that have popped up to sell hemp products.

The hemp products, which are often marketed very similarly to cannabis products, are not regulated in the same way. Whereas cannabis products face strict regulations around testing, packaging, labeling, taxation and age restrictions, the hemp products have none of these requirements in Massachusetts.

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Video Of NYC Cops’ Marijuana Raid Raises Questions About Mayor’s Enforcement Offensive

As a new mayoral task force conducts sweeps of hundreds of shops suspected of selling illegal weed, a video of a raid on a Staten Island store obtained by THE CITY captures how enlisting police to conduct regulatory inspections can lead to criminal charges, igniting concerns about potential due process violations.

The 90-second clip taken from a store surveillance camera on May 18 shows seven uniformed law enforcement officers, most of them in NYPD gear, cursing, jumping over the store counter and charging at a shopkeeper after he asked them for a court order before opening the door to the back of the store.

Instead, the man was cuffed—before any unlicensed cannabis products were found—and taken to a local precinct where he was charged with obstruction of justice, records show.

“When a cop tells you to do something, you fucking do it,” one officer told the shopkeeper.

The surveillance video was shared with THE CITY on the condition that the identity of the shopkeeper be protected. The arrest and criminal charge was confirmed by police records.

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Ohio Officials Will Begin Accepting Recreational Marijuana Sales Applications This Week, But The Market Won’t Launch Immediately

Ohio’s top marijuana regulator says that while the state will open up applications for medical cannabis dispensaries to start selling to adult-use consumers by Friday, the exact timing for when they’ll be able to launch depends on whether they’ve satisfied a list of conditions.

Ohio Division of Cannabis Control (DCC) Superintendent James Canepa has previously suggested that businesses with dual licenses approved could begin selling to patients and recreational consumers as early as this month. That’s still a possibility, but he declined to commit to any specific timeline in a new interview with Cleveland.com/The Plain Dealer.

He said it’s likely there will be a “trickle in the beginning,” with a limited number of hybrid shops that are able to meet requirements to open their doors, such as enhanced security and updated point-of-sale systems to differentiate between medical and adult-use purchases.

Most dual dispensaries are expected to launch later, he said, “not that they’re not ready but that they’re a little more thoughtful about the scale for a new customer base.”

“Everybody keeps trying to get me to circle a day, and it’s impossible because like with liquor, you have to process the applicants as they are,” Canepa, who previously served as the state’s top alcohol regulatorsaid in the new interview. “You have to take them as they come to you. And there’s a whole checklist that they have to meet.”

In addition to the security and sales system updates, the superintendent also noted that businesses will need to ensure that their employees are properly badged. Their medical cannabis licenses must also be up-to-date in order to apply for a dual license.

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DEA Exemption Process For Religious Psychedelics Use Needs Clearer Timelines And Standards, Government Watchdog Agency Says

A federal government watchdog agency says in a new report that the Drug Enforcement Administration should improve the process through which it considers granting religious exemptions for psilocybin and other controlled substances, asserting that the existing route lacks clarity on timing, evaluation and other matters.

The 80-page report from the U.S. Government Accountability Office (GAO) notes that although psilocybin remains a Schedule I controlled substance under the Controlled Substances Act (CSA), people may petition DEA for exemptions to use it—or other controlled substances—for religious purposes.

“DEA has established a process for these petitions, but its guidance doesn’t set clear timeframes for the decision-making,” it continues. “Exemption petitions have taken from 8 months to over 3 years to be resolved.”

GAO focused specifically on psilocybin use under the Religious Freedom Restoration Act (RFRA), which is meant to protect religious practices from undue government burdens. The agency found that the DEA exemption procedure itself was burdensome.

“Selected stakeholders reported several barriers to the legal access and use of psilocybin for religious practices under the Religious Freedom Restoration Act,” GAO says. “For example, DEA established a process for parties to petition for a religious exemption from the Controlled Substances Act to use controlled substances for religious purposes. However, DEA’s guidance does not inform petitioners on its timeframes to make determinations on completed petitions.”

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Biden admin backs ‘harm reduction groups’ that give free drug paraphernalia to addicts

President Biden and his administration have expressed support for providing free drug paraphernalia to fentanyl and other illicit drug users, an effort made feasible by controversial harm reduction groups that believe supplying addicts with clean smoking gear would reduce overdose deaths by eliminating injection methods.

However, a study released in February by the Centers for Disease Control and Prevention (CDC) revealed that smoking fentanyl was increasingly linked to overdose deaths in 27 states and Washington, DC. Researchers found that 74 percent of overdose deaths were linked to smoking fentanyl, while fentanyl overdose deaths through injection plummeted.

The Washington Post reported that the Biden administration has embraced the approach of harm reduction groups, despite the fact that these groups have received widespread criticism, and their efforts, which have failed to create significant positive outcomes, have been banned in numerous jurisdictions.

Critics of harm reduction groups believe supplying addicts with free drug paraphernalia only enables their addictions, and think alternative methods such as rehabilitation and therapy are better options. Those who favor harm reduction measures believe that providing clean drug equipment to users, such as smoke pipes and needles, and creating so-called “safe injection sites,” would prevent overdose deaths and the spread of infections caused by sharing needles. However, their methods have been proven as failed experiments.

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Minnesota Marijuana Regulators Destroy Hundreds Of Thousands Of Dollars’ Worth Of Illegally Sold Hemp Flower

Since Minnesota began cracking down on the illegal sale of raw cannabis flower in many registered hemp retailers, its agents have confiscated a lot of product worth a fair amount of money.

According to numbers released by the Office of Cannabis Management (OCM), inspectors have confiscated and destroyed 12,094 units of flower—such as bags, jars or pre-rolled joints—with an estimated retail value of $278,000. The illegal products were taken from 58 different retail locations and amounted to nearly 73 pounds of raw cannabis flower.

While it has been legal to possess and use cannabis in Minnesota since last August, it is not yet legal to sell it and won’t be until sometime next spring. And while many hemp-derived low-potency products like gummies and beverages have been legal to sell since the summer of 2022, raw cannabis flower falls into a gray area. That is, if it has low THC content, it could be legal. But most of what has been sold exceeds the potency levels that separates hemp from marijuana.

If the confiscated products have likely been illegal under both the 2022 hemp-derived products law and the 2023 recreational cannabis law, why did it take this long for the state to crack down? Blame an inadvertent gap in the 2023 law that attempted to provide temporary state regulation of hemp products while the new Office of Cannabis Management was being set up.

The Office of Medical Cannabis was given temporary say over the two-year-old hemp-derived market but was not given control over raw flower, only products made from the plant like gummies and drinks.

That gap identified by regulators late last year allowed some stores to sell the flower that looks, smells and intoxicates like marijuana. At the same time, other retailers who wanted to follow the new law were left at a competitive disadvantage.

The raw flower was often sold as a hemp plant with high concentrations of THCA (tetrahydrocannabinolic acid). The same products are offered for sale from out-of-state businesses and mailed to customers where cannabis is not legal, or not yet legal as in Minnesota.

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Another Missouri Judge Approves Stacking City And County Marijuana Taxes

Buchanan County can collect a special marijuana sales tax on dispensaries within St. Joseph city limits, a judge ruled Wednesday in the second decision granting counties the right to stack taxes on top of city levies.

Circuit Judge Daniel Kellogg wrote in his two-page ruling that provisions in the recreational marijuana constitutional amendment passed in 2022 do not limit the taxing power of counties within corporate limits of towns and cities.

“To put it bluntly, the court cannot accept [the] plaintiff’s interpretation of ‘Local Government’ to prohibit the power of the county to impose such tax within the Saint Joseph city limits,” Kellogg wrote. “The definition of ‘Local Government’ includes both the city and the county. As such, both are authorized to impose and collect the tax.”

Vertical Enterprises, which is licensed for retail sales, cultivation and marijuana product manufacturing in St. Joseph, sued the Buchanan County Collector’s office, the Missouri Department of Revenue and the Buchanan County Clerk’s office to block enforcement of the tax.

Along with regular sales taxes—which in some locations approach 12 percent—people purchasing marijuana for recreational use also pay a special 6 percent state tax and a local tax of 3 percent if approved by voters.

The ruling will cost Vertical’s customers about $30,000 a month, said Chris McHugh, CEO of the company. There are two other dispensaries in St. Joseph and he estimated their tax payments would be comparable to his.

“Consumers should be outraged,” McHugh said. “They’re paying this.”

Statewide, consumers purchased $1.1 billion worth of marijuana in the first year of recreational use sales.

“This is millions and millions of dollars that never, never should be taken from consumers,” McHugh said. “It’s nothing but an anti-marijuana tax.”

McHugh said he will appeal Kellogg’s decision.

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