As vaccination prevalence increases and COVID -19 case numbers go down business has started to go back to normal, for better or for worse. Some of the changes resulting from the COVID-19 emergency proved to be beneficial to regulated marijuana businesses, patients, and consumers. In Colorado some of these measures expired on June 11, 2021.
The Marijuana Regulation & Taxation Act (the “Act”) was signed into law by Governor Andrew Cuomo on March 31, 2021. Not only does the Act create the foundation for the adult-use marijuana program, it contains sweeping changes to the current medical marijuana regulatory framework as well as criminal reform elements.
Per the Act, the administration of the adult-use and medical marijuana programs will be two pronged. The Act provides the criteria for the composition of a Cannabis Control Board which will be charged with creating regulations for the medical and adult-use programs. The implementation and enforcement of the policies will be conducted through the Office of Cannabis Management which will enforce the policies. It will be a bit more than a “New York Minute” before these regulators are ready to release the more specific provisions of the regulations or application process here is what we do know:
Delta-8 has been the topic of many conversations over the last year in various cannabis circles. Is it legal? How will hemp-derived Delta-8 THC impact the state-legal marijuana industry? How is Delta-8 THC extracted from hemp and in what quantities? Much of this was already covered in a recent webinar hosted by our firm a
The Federal Trade Commission (“FTC”) has joined the U.S. Food and Drug Administration (“the “FDA”) in enforcing laws related to marketing CBD products. The FDA has historically issued warning letters and pursued companies that illegally market CBD products with claims the products may treat medical conditions. The FTC has joined the FDA is this pursuit and announced settlements with six different CBD companies involves fines ranging between $20,000-$85,000 in addition to notifications provided to consumers. Pursuant to these settlement agreements the respondent companies are also prohibited from similar marketing efforts in the future, any health claims must have scientific evidence to support them.
Industry actors making any health or therapeutic claims are vulnerable to action by agencies such as the FDA and FTC, however, they may also be subject to civil suits based on enforcement by those agencies. In April of 2020 Charlotte’s Web Holdings, Inc. (“CWB”) was served with yet another (its second) class action lawsuit due to how their products are labeled. Benson v. Charlotte’s Web Holdings, Inc., No. 1:20-cv-00418 (N.D. Ill.) The suit based a significant portion of the allegations on FDA guidance:
“Based on available evidence, FDA has concluded that THC and CBD products are excluded from the dietary supplement definition under section 201(ff)(3)(B) of the FD&C Act [21 U.S.C. § 321(ff)(3)(B)]. Under that provision, if a substance (such as THC or CBD) is an active ingredient in a drug product that has been approved under section 505 of the FD&C Act [21 U.S.C. § 355], or has been authorized for investigation as a new drug for which substantial clinical investigations have been instituted and for which the existence of such investigations has been made public, then products containing that substance are excluded from the definition of a dietary supplement”
Companies facing enforcement actions by the FTC may similarly be subject to civil allegations.
WHAT DOES THIS MEAN FOR YOUR BUSINESS
Earlier this year the City of Denver Department of Excise and Licenses created the Marijuana Licensing Work Group (the “MLWG”). This week the MLWG released draft legislation regarding a continued license cap, licensing categories, and Social Equity Applicants. If passed the legislation would have some noteworthy impacts.
On Friday, December 4, 2020 the US House of Representatives passed the Marijuana Opportunity Reinvestment and Expungement Act of 2019 (the “MORE Act”), which would effectively legalize cannabis by removing marijuana from the Controlled Substances Act. The bill (H.R. 3884) has several key components.
The below discussion is an analysis of the current legal environment in light of the recent COVID-19 pandemic. This analysis highlights the ability of both medical and retail marijuana businesses to continue operating in light of several emergency orders from the State of Illinois and emergency variances from regulatory agencies. This summary is not a
The below discussion is an analysis of the current legal environment related to the recent COVID-19 pandemic. This analysis highlights the ability of both medical and retail businesses to continue operating in light of several emergency orders from the State of Colorado and emergency rule changes from the Marijuana Enforcement Division (“MED”). This summary is not a legal opinion, but rather perspective and analysis on the current status of such emergency rules and orders. The content provided herein is subject to change as the laws and interpretation of such laws change.
STATE ANALYSIS
Below is a summary of the current status of Governor Polis’ Executive Orders, Colorado Department of Public Health’s (“CDPHE”) Public Health Orders (“PHO”), Emergency Rules, and MED Guidance (the “Releases”) updated as of March 30, 2020. For ease of reference, at the end of this summary is a link to all applicable Releases.
Last week, the US Center for Disease Control and Prevention (the “CDC”) announced what the agency considers to be an important breakthrough in their investigation on vaping illnesses. While the CDC has not ruled out other possible factors, the investigation has revealed a correlation between those suffering from symptoms and Vitamin E acetate. The