cannabis law – Page 2 – Cannabis Industry

March 8, 2023May 30, 2023 by Robert Davydov

Application for Federal Pardons of Marijuana Possession Now Available

As we previously reported, on October 6, 2022, President Biden announced that he would pardon those convicted of simple marijuana possession offenses under the federal Controlled Substances Act. As part of his executive action, Biden directed the Attorney General to develop an administrative process to issue Certificates of Pardon to eligible individuals.

On March 3, 2023, the Department of Justice announced the launch of an online application form for individuals seeking proof that they were pardoned under Biden’s proclamation. The form requires the applicant to provide their full name, contact information, date and place of birth, and citizenship status, followed by information about their charge or conviction with supporting documentation.

In order to be eligible for the Certificate of Pardon, applicants must satisfy the following:

1. Applicant must have been charged with or convicted of simple marijuana possession by either a federal district court or D.C. Superior Court;
2. Applicant must have been a U.S. citizen or lawfully present in the U.S. at the time of the offense; and
3. Applicant must have been a U.S. citizen or lawful permanent resident on October 6, 2022, when Biden announced the pardon.

Note that the pardon neither indicates the innocence of the federal offender nor expunges their conviction. Nevertheless, it may remove civil restrictions such as the right to vote, hold office, or sit on a jury. The pardon may also alleviate limitations placed on obtaining certain licenses or employment.

However, Biden’s pardon merely affects several thousand federal offenders. As we previously reported, only about 6,500 people have been convicted for simple possession under federal law and a few thousand more have been convicted under the Code of the District of Columbia. The vast majority of cannabis convictions for simple possession occur at the state level. Those convicted of state marijuana offenses do not qualify for the pardon. Biden urged state governors to follow his lead and issue similar pardons.

Since Biden’s proclamation, several states have flirted with the idea of pardoning nonviolent marijuana crimes, some of which took more substantial steps forward. For example, on November 21, 2022, the governor of Oregon pardoned more than 47,000 people with convictions for simple marijuana possession and forgave more than $14 million in unpaid fines and fees.

As of the present, Connecticut, Missouri, Rhode Island, and Alaska have demonstrated similar relief efforts. Connecticut expunged the record of about 44,000 residents convicted of cannabis possession, while Missouri expunged the record of about 7,500 residents and ultimately expects 100,000 expungements in the coming months. The Chief Justice of the Rhode Island Supreme Court issued an executive order directing judges to establish and implement marijuana expungement procedures. Rhode Island expects 30,000 residents to be able to clear their record. Justices of the Alaska Supreme Court issued a similar order, permitting residents convicted of possessing less than one ounce of marijuana to seal the records related to such convictions. Alaska expects 800 residents to benefit from the order, which takes effect May 1, 2023.

To date, 24 states have enacted legislation to expunge marijuana-related criminal convictions. According to the National Organization for the Reform of Marijuana Laws, state and local officials have issued more than 100,000 pardons and more than 1.7 million marijuana-related expungements since 2018. More states are likely to follow in the same breadth soon.

Read the full text of the article on Law360.

February 2, 2023 by Duane Morris

How Marijuana Pardons Affect Employee Background Checks

On Oct. 6, 2022, President Joe Biden issued a blanket pardon to all citizens and lawful permanent residents convicted of simple possession of marijuana under the federal Controlled Substances Act. The move reflects a shift in attitudes towards low-level drug offenses, and should serve as an impetus to employers to review their policies on criminal record checks.

Because marijuana possession offenses predominantly fall under the jurisdictions of the states, not the federal government, the immediate impact of these pardons is limited. Only about 6,500 people have been convicted for simple possession under federal law and a few thousand more have been convicted under the Code of the District of Columbia.

To read the full text of this article by Duane Morris attorneys Danielle M. Dwyer and Jesse Stavis, originally published in Law360, please visit the firm website.

November 23, 2022 by Anna Wills

Medical Cannabis Research Bill Set to Become Law

Last week, the Senate unanimously passed H.R. 8454, or the Medical Marijuana and Cannabidiol Research Expansion Act (the “Act”), sending the bill to President Biden’s desk for signature. The bill passed the House this summer by a vote of 325 – 95, and marks the first time a standalone cannabis bill has been approved by the federal government. Essentially, the Act is intended to simplify and expand research into the medical possibilities of both cannabis and cannabidiol as a treatment for certain serious ailments. However, the Act does not de-schedule cannabis under the Controlled Substances Act, instead keeping cannabis a Schedule 1 drug. This means that cannabis will still be deemed to be a drug with a high likelihood for abuse, with no accepted medical use.

In particular, the Act provides for a streamlined process for the approval of cannabis research applications as follows:

An applicant under the Act must submit a completed application to the U.S. Attorney General, which the Attorney General must approve, deny, or request additional information within 60 days. The application must include: 1) details relating to the applicant’s research protocol, reviewed and approved by the Secretary of the Department of Health and Human Services (the “DHS”), the National Institutes of Health, or another agency, or according to provisions in the Federal Register, and 2) the safety measures to prevent diversion of cannabis substance (including storing it in a locked, constructed cabinet).
If the Attorney General requests additional information and the applicant so provides, the Attorney General must approve or deny the application within 30 days of the applicant providing such additional information. If the Attorney General ultimately denies any application, an explanation of the denial must be provided.
A registrant may update its research protocol without informing the Drug Enforcement Administration, if the quantity and form of cannabis, the source of the cannabis, and the conditions of storage will not change. If any of the foregoing items will change, the registrant must notify the Attorney General via registered mail or an electronic means permitted by the Attorney General.
If the Attorney General does not object to the changed protocol within 30 days, it is considered approved and the registrant may go ahead with the changed protocol.

Moreover, the Act also streamlines the process for applying to manufacture cannabis products for research purposes. The application timeline is similar to the research application process, but will only begin when the Attorney General posts in the Federal Register that the Attorney General’s office will increase the number of entities able to be registered under the Act as manufacturers of cannabis for medical research purposes. Then, entities may submit applications to the Attorney General. The application must show:

The requirements of the Act and the Federal Register have been satisfied.
The applicant will only transfer cannabis to those who are registered under the Act to perform preclinical or clinical research.
The applicant will only transfer or sell cannabis under the Act with the prior written consent of the Attorney General.
The applicant has completed the review process set forth in 21 U.S.C. § 823(a) of the Controlled Substances Act, which discusses general registration requirements for manufacturing Schedule I and II Controlled Substances.
The applicant has established and actually follows a process for storing and handling a Schedule I controlled substance.
A license to operate, if the State in which the applicant operates requires one.

The Act further authorizes registered covered institutions of higher education, like medical schools and research schools, to manufacture, distribute, dispense and possess cannabis for medical research, with guidance from the DHS and the U.S. Food and Drug Administration.

Additionally, the Act allows for doctors to discuss with their patients, and their patients’ parents if the patient is a minor, the potential benefits and risks in using medical cannabis under state medical cannabis laws. Prior to the Act, it was unclear whether such an act was a punishable offense under federal law. Senate Majority Leader Chuck Schumer is hopeful this provision, and the Act in general, will help patients with conditions like Parkinson’s, epilepsy, and severe post-traumatic stress.

Lastly, the Act requires the DHS to report to Congress on particular topics of research, including but not limited to, the effects of cannabis on the human body, effects on the adolescent brain, potential impairment of cognitive ability, and barriers and solutions to studying cannabis from states with legal cannabis.

Importantly, there are a few things the Act does not do. The Act does not allow research using state-legalized products for medical research purposes; the Act only allows for using the products manufactured through the Act’s protocols. Therefore, there will not be research into the products people are currently using to treat their medical ailments under state medical cannabis laws. Furthermore, as mentioned above, the Act does not de-schedule or re-schedule cannabis. President Biden issued an executive order in October asking the Secretary of the DHS and the Attorney General to begin the administrative process of de-scheduling cannabis. Presumably, research performed under this Act may lead to either de-scheduling or re-scheduling cannabis, but it is far too soon to tell.

Additionally, the Act does not implement more widespread reform. President Biden issued a pardon last month for simple cannabis possession offenses under federal law, but further reform will not be enacted unless the Senate passes one of several reform bills on the table. Even so, critics and proponents alike across the political spectrum, are lauding the Act as a necessary step for the federal government to catch up to the state legalization wave.

To read the full text of the Act, see https://www.congress.gov/bill/117th-congress/house-bill/8454/text.

August 24, 2022 by Deanna J. Lucci

U.S. Senators May Introduce “SAFE Banking Plus” By End of Year

After finally introducing the comprehensive Cannabis Administration and Opportunity Act (CAOA) in the U.S. Senate last month, last week Sen. Cory Booker (D-N.J.) softened his prior position on a separate, narrower cannabis banking bill when he said that he would now consider the banking bill with modifications. As we previously reported, the SAFE Banking Act would allow cannabis businesses to access the federal banking system and service providers to the cannabis industry such as attorneys, accountants, bankers and landlords would be permitted to accept payment from cannabis businesses without the risk of violating federal law. SAFE Banking has passed the House of Representatives seven times in recent years but so far has not been taken up in the Senate.

Since the introduction of the CAOA last month, which would not only permit cannabis companies to access the banking system but would legalize and decriminalize recreational cannabis with an eye toward supporting communities that have been most impacted by the war on drugs, Sens. Booker and Schumer (D-N.Y.) have said they would be willing to consider more incremental cannabis reform such as SAFE Banking with added equity provisions. Many are referring to the as-yet proposed bill as “SAFE Banking Plus,” which would ensure equitable access to financial services for minority-owned cannabis businesses and require financial institutions to prove compliance with anti-discrimination laws, among other things.

Schumer and Booker have been meeting with other lawmakers to work on a compromise bill, and Booker said a proposal might come after the November elections and before the new Congress starts in January.

May 16, 2022June 13, 2022 by Deanna J. Lucci

California Governor Proposes a Cannabis Tax Reduction in an Effort to Shore Up the Legal Market

On Friday, May 13, California Gov. Gavin Newsom introduced proposed revisions to his 2022-2023 budget proposal, which would eliminate the cannabis cultivation tax rate beginning July 1, 2022.

The 15% excise tax on cannabis sales would remain, and the collection and remittance of that tax would be limited to retail sales beginning January 1, 2023. Currently, the cultivation tax rates are $10.08 per ounce of flower, $3.00 per ounce of trim, and $1.41 per ounce of fresh cannabis plant, and these taxes are paid on all recreational and medicinal cultivation of cannabis. Continue reading “California Governor Proposes a Cannabis Tax Reduction in an Effort to Shore Up the Legal Market”

February 28, 2022 by Michael D. Schwamm

New York Conditional Cultivation License – Advanced Preparation (What You Can Do Now To Be Ready)

As we noted is our blog post earlier this week, New York recently adopted legislation to allow licensed hemp farmers to grow and process cannabis for the adult use market with the aim to have product available once retail sales are permitted.

While the New York Office of Cannabis Management has yet to release the form of application (and any implementing regulations), that doesn’t mean that potential applicants should sit idly by and wait. In reviewing the legislation, its clear that there is plenty of work that can be done now. Continue reading “New York Conditional Cultivation License – Advanced Preparation (What You Can Do Now To Be Ready)”

November 10, 2020 by Deanna J. Lucci

Update: House to Vote on Historic MORE Act in December

As an update to our September 4th blog post, the House of Representatives was scheduled to vote on the historic MORE Act on September 21. However, days before that vote House Democrats postponed the vote indefinitely. It was reported that moderate Democrats expressed concern about voting on the MORE Act before voting on a second Coronavirus relief package. House Judiciary Committee Chairman Jerry Nadler (D-N.Y.), the bill’s sponsor, suggested the vote could be delayed until after the November elections. However, House Majority Leader Steny Hoyer (D-Md.) said in an emailed statement that Democratic leaders were “committed” to scheduling a vote on the bill before the end of the year.

On Monday, November 9, Hoyer wrote in a letter to colleagues that the House would vote on the MORE Act in December. Hoyer’s letter did not specify which week the vote will take place, but the House is scheduled to be in session Dec. 1-4 and Dec. 7-10.

As discussed previously on this blog, if enacted The MORE Act (Marijuana Opportunity Reinvestment and Expungement Act of 2019 – H.R. 3884) would legalize marijuana and cannabis at the federal level, by removing them from the Controlled Substances Act and eliminate some cannabis criminal records. As Hoyer wrote in his letter this week, the MORE would “decriminalize cannabis and expunge convictions for non-violent cannabis offenses that have prevented many Americans from getting jobs, applying for credit and loans, and accessing opportunities that make it possible to get ahead in our economy.”

While it is unlikely that this legislation would pass in the Republican-controlled Senate – ensuring it will die this Congress – proponents of cannabis legalization have hailed the House vote as historic, and an important first step toward generating the momentum and support needed to favorably position the measure for future congressional consideration. And whether the measure would be approved by the next Congress likely depends on the outcome of the two Georgia Senate runoff elections set to take place on January 5, 2021. If both Democratic Senate candidates, Jon Ossoff and Rev. Raphael Warnock, win the runoffs, then the Democrats will control both the House and Senate.

However, it is unclear if President-Elect Joe Biden would sign the bill since he has proposed rescheduling cannabis as a schedule II drug so researchers can study its positive and negative impacts as opposed to removing it entirely from the list of scheduled substances. While Biden has expressed support for decriminalization of marijuana, expungement of prior cannabis use convictions, and legalizing cannabis use for medical purposes, he has said he wants to leave decisions regarding adult recreational use to the individual states. Nonetheless, marijuana legalization advocates believe even a symbolic vote on the legislation could send a strong signal to the Biden administration.

October 7, 2020 by Duane Morris

Paul Josephson Named to List of People Shaping New Jersey’s Cannabis Industry

Paul Josephson, Duane Morris partner and team lead of the Cannabis Industry Group, has been named to the “CannaInfluencers” list of people shaping the cannabis industry in New Jersey.

NJ Cannabis Insider writes:

Paul Josephson remembers his time at the University of Michigan, a decade after the city of Ann Arbor had decriminalized marijuana.

“It was an issue everybody was aware of,” Josephson said. “You could walk past a cop with a joint hanging out of your mouth. You’d get a $15 summons you would have to pay.”

Not true for the Black students he encountered for the first time at a large university. He said he learned that their experiences with police officers was very different than his.

“If you were Black or poor, it could especially derail your career,” he said.

Combine that with Josephson’s history in politics, beginning with him being elected president of UM’s student government and then choosing to go to law school in the nation’s capital, and you can explain why he got involved in efforts to legalize marijuana in New Jersey.

To read Mr. Josephson’s full profile, please visit nj.com.

September 4, 2020 by Deanna J. Lucci

House to Vote on Marijuana Legalization Bill This Month

For the first time ever, the U.S. House of Representatives will vote this month on legislation that if enacted would legalize marijuana and cannabis at the federal level, by removing them from the Controlled Substances Act and eliminate some cannabis criminal records.

The MORE Act (Marijuana Opportunity Reinvestment and Expungement Act of 2019 – H.R. 3884) would decriminalize marijuana at the federal level by removing it from the list of scheduled substances under the federal Controlled Substances Act, and would further eliminate criminal penalties for an individual who manufactures, distributes, or possesses marijuana. While the bill represents a first step toward legalizing cannabis, states would need to adopt similar measures to fully decriminalize its use – currently, 11 states and the District of Columbia have legalized cannabis for adult recreational use, and 33 states and the District of Columbia have legalized medical cannabis.

The bill also makes other changes, including:

Replaces statutory references to marijuana and marihuana with cannabis,
Requires the Bureau of Labor Statistics to regularly publish demographic data on cannabis business owners and employees,
Establishes a trust fund to support various programs and services for individuals and businesses in communities impacted by the war on drugs,
Imposes a 5% tax on cannabis products and requires revenues to be deposited into the trust fund,
Makes Small Business Administration loans and services available to entities that are cannabis-related legitimate businesses or service providers,
Prohibits the denial of federal public benefits to a person on the basis of certain cannabis-related conduct or convictions,
Prohibits the denial of benefits and protections under immigration laws on the basis of a cannabis-related event (e.g., conduct or a conviction), and
Establishes a process to expunge convictions and conduct sentencing review hearings related to federal cannabis offenses.

The bill, which is expected to be brought to the floor for a vote and pass sometime this month, was originally introduced last year by Rep. Jerrold Nadler, D-N.Y. and approved by the House Judiciary Committee in November. While a counterpart bill (S.2227) has been introduced in the U.S. Senate by Sen. Kamala D. Harris (D-CA) – the Democratic Vice Presidential nominee – its passage in the chamber is unlikely as Senate Majority Leader Mitch McConnell (R-KY) has declined to endorse the bill, making its chances of successfully moving through committee and to the Senate floor for a vote virtually impossible. Without action in the Senate, the bill will die this Congress. However, proponents of cannabis legalization – as well as civil rights and civil liberties organizations, and criminal justice reform advocates – are still hailing the House vote as historic, and an important first step toward generating the momentum and support needed to favorably position the measure for future congressional consideration.

Prospects for the successful consideration and approval of the measure by the next Congress will likely hinge on the outcome of the November election.

Vice President Joe Biden, the Democratic presidential nominee, has proposed rescheduling cannabis as a schedule II drug so researchers can study its positive and negative impacts. Biden has expressed support for decriminalization of marijuana, expungement of prior cannabis use convictions, and legalizing cannabis use for medical purposes – but wants to leave decisions regarding adult recreational use to the individual states. If elected, Biden and Harris would likely seek to decriminalize cannabis but stop short of advocating for federal adult use legalization, allowing the individual states to decide.

July 10, 2020 by Duane Morris