Legislative and Licensing Update: November 11, 2021

Feds Want Suit Over Cannabis Machinery Imports Snuffed Out

Starting with Federal news, the US government urged a trade court to toss a machinery manufacturer’s claims that the federal government illegally blocked imports of cannabis paraphernalia to Washington, where cannabis is legal. The company, Eteros Technology, makes equipment that separates leaves from flowers, and is seeking an exception to federal code.  

Cannabis research bill heads to Biden’s desk

Congress sent President Joe Biden a large-scale infrastructure bill that contains provisions aimed at letting scientists study the actual marijuana that consumers buy from dispensaries—instead of using only government cannabis.

Senators’ Defense Bill Amendment Would Legalize Medical Cannabis For Military Veterans

In other Federal news, a new amendment would add language to the National Defense Authorization Act (NDAA) to federally legalize medical marijuana for military veterans who comply with a state program where they live. Physicians with the U.S. Department of Veterans Affairs (VA) would also be allowed for the first time to issue such recommendations.

Nevada suspends marijuana edibles maker’s license over rules violations

Nevada marijuana edibles manufacturer Kindibles has temporarily lost its business license after regulators found that a product line was not inspected per state rules and was found to have added “thousands of additional products” to a batch of tested products, essentially bypassing state-mandated lab safety testing.

Curaleaf to buy Arizona-based cannabis operator Tryke for $286 million

Cannabis multistate operator Curaleaf Holdings signed a definitive agreement to acquire Tryke, an Arizona-based MSO, in a cash and stock transaction valued at $286 million. The deal is expected to close in the second half of 2022.

Virginia election results throw future of state’s recreational marijuana market into question

The electoral triumph by the Republican party in Virginia this week has thrown into question the rollout of the state’s recreational marijuana market. Over the summer, his campaign did tweet that Youngkin “will not seek to repeal” adult-use legalization…“I’ve never met anybody who habitually used marijuana and was successful,” Youngkin said during an April campaign rally,

SoCal public officials targeted in broadening federal investigation into pot licensing

In southern California, the commercial cannabis licensing program, which was approved by the City Council in 2017, has been mired in allegations of bribery, conflict of interest, and bias, including a sworn declaration filed last year where three operators have complained about questionable practices in the city and “having to pay $250,000 in a brown paper bag to city officials.”

Marijuana company pushes for cannabis waste regulation in New York

In New York,  a cannabis company called Vessel is urging lawmakers to consider bill language that would regulate cannabis waste..The company is proposing a model bill that would set up a recycling process for current and future cannabis products, including vape pens and cartridges.

State Cannabis Control Board approves new rules for hemp products

Also in New York, the Cannabis Control Board approved rules for manufacturing, testing, and packaging hemp products, including CBD products. Businesses have six months to get in line with the new regulations.

New York irons out recreational cannabis in the workplace

Elsewhere in the state, the latest update by the New York State Department of Labor outright prohibits employers from marijuana testing either when hiring or on suspicion an employee is impaired.

Michigan: Governor Signs Measure Expanding Eligibility for Participation in Medical Marijuana Industry

Michigan Governor Gretchen Whitmer (D) signed a bill into law Thursday that would expand the pool of individuals who are eligible to receive medical marijuana business licenses. House Bill 4295 removes the ban on those with previous felony and misdemeanor marijuana convictions from participating in the legal medical marijuana industry. 

Regulators Allowing Cannabis Licenses As Collateral For Loans In Maryland

The Maryland Medical Cannabis Commission passed a new rule this week that will allow cannabis business owners to use their licenses as collateral for bank loans.

New Mexico regulators say they are moving to process marijuana production business licenses as fast as they can, but questions are being raised about whether they will be able to meet the expected April launch of legal sales.

New Jersey Begins Accepting Applications for Adult-Use Licenses

And finally, on Tuesday the New Jersey Cannabis Regulatory Commission announced that it will begin accepting license applications for cultivation and manufacturing on December 15, and retail licenses on March 15. There are no application deadlines, and no limits on the number of licenses, notwithstanding the cap at 37 on cultivation centers until February 2023.