Legal Consequences of Rescheduling Marijuana – 2024

Legal Consequences of Rescheduling Marijuana – 2024

January 16, 2024

On August 29, 2023, the Department of Health and Human Services (HHS) reportedly recommended to the Drug Enforcement Administration (DEA) that marijuana be rescheduled from Schedule I to Schedule III under the Controlled Substances Act (CSA). DEA is currently reviewing HHS’s recommendation.

When considering whether to schedule or reschedule a controlled substance, DEA is bound by HHS’s recommendations on scientific and medical matters.

However, DEA has also stated that it has “final authority to schedule, reschedule, or deschedule a drug under the Controlled Substances Act.”

A previous CRS Insight outlined policy considerations related to rescheduling marijuana. This Legal Sidebar provides additional information on the legal consequences of the possible move of marijuana from Schedule I to Schedule III.

Current Legal Status of Cannabis Under the CSA

Cannabis and its derivatives generally fall within one of two categories under federal law: marijuana or hemp. Unless an exception applies, the CSA classifies the cannabis plant and its derivatives as marijuana (some provisions of the statute use an alternative spelling, “marihuana”).

The CSA definition of marijuana excludes

(1) products that meet the legal definition of hemp and (2) the mature stalks of the
cannabis plant; the sterilized seeds of the plant; and fibers, oils, and other products made from the stalks and seeds.

Marijuana is a Schedule I controlled substance under the CSA.

Federal law defines hemp as the cannabis plant or any part of that plant with a delta-9
tetrahydrocannabinol (THC) concentration of no more than 0.3%. The non-psychoactive compound cannabidiol (CBD) falls within the legal definition of hemp. Hemp is not a controlled substance under the CSA.

Substances become subject to the CSA through placement in one of five lists, known as Schedules I through V.

Congress placed marijuana in Schedule I in 1970 when it enacted the CSA. A lower schedule number carries greater restrictions under the CSA, with controlled substances in Schedule I subject to the most stringent controls. Schedule I controlled substances have no currently accepted medical use.

It is illegal to produce, dispense, or possess such substances except in the context of federally approved scientific studies, subject to CSA regulatory requirements designed to prevent abuse and diversion.

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Unauthorized activities involving Schedule I controlled substances are federal crimes that may give rise to large fines and significant jail time. DEA is required to set annual production quotas for Schedule I controlled substances manufactured for use in approved research.

In addition to the general regulatory framework that applies due to marijuana’s Schedule I status, some provisions of the CSA apply specifically to marijuana. For instance, 21 U.S.C. § 841 imposes mandatory minimum prison sentences for persons convicted of criminal CSA violations involving set quantities of specific controlled substances, including marijuana. In addition, 21 U.S.C. § 823 creates special registration requirements for those who manufacture marijuana for research purposes.

In sharp contrast to the stringent federal control of marijuana, in recent decades nearly all the states have changed their laws to permit the use of marijuana (or other cannabis products) for medical purposes.

In addition, twenty-four states and the District of Columbia have passed laws removing certain state criminal prohibitions on recreational marijuana use by adults.

As the Supreme Court has recognized, states cannot actually legalize marijuana because the states cannot change federal law, and the Constitution’s Supremacy Clause dictates that federal law takes precedence over conflicting state laws.

So long as marijuana is a Schedule I controlled substance under the CSA, all unauthorized activities involving marijuana are federal crimes anywhere in the United States, including in states that have purported to legalize medical or recreational marijuana.

Nonetheless, Congress has granted the states some leeway to allow the distribution and use of medical marijuana.

In each budget cycle since FY2014, Congress has passed an appropriations rider barring the Department of Justice (DOJ) from using taxpayer funds to prevent states from “implementing their own laws that authorize the use, distribution, possession, or cultivation of medical marijuana.” Courts have interpreted the appropriations rider to prohibit federal prosecution of state-legal activities involving medical marijuana.

However, it poses no bar to federal prosecution of activities involving recreational marijuana.

Moreover, the rider does not remove criminal liability; it merely limits enforcement of the CSA in certain circumstances while the rider remains in effect. While official DOJ policy has varied somewhat across Administrations, recent presidential Administrations have not prioritized prosecution of state-legal activities involving marijuana.

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Scientists Discover The Reason Cannabis Causes The Munchies

Scientists Discover The Reason Cannabis Causes The Munchies

For the first time, scientists have uncovered the precise neurological impacts of cannabis use that give rise to the phenomenon famously referred to as the “munchies,” as revealed by an innovative study backed by federal funds.

Researchers at Washington State University (WSU) have recently published their findings in the journal Scientific Reports, shedding valuable light on the neural mechanism through which cannabis activates a specific cluster of neurons in the hypothalamus region of the brain, resulting in an increased stimulation of appetite.

The hunger-inducing effects of marijuana are well-known among consumers. However, recent findings from animal research provide valuable insights that could potentially lead to targeted therapeutics for addressing conditions such as anorexia.

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After exposing mice to vaporized cannabis, the researchers utilized calcium imaging technology, akin to a brain MRI, to monitor the changes in neuron activity. Through their investigation, they discovered that marijuana vapor attached to cannabinoid-1 receptors in the brain and activated Agouti Related Protein neurons in the hypothalamus, commonly known as “feeding” neurons.

Calcium imaging has been used to study the brain’s reactions to food by other researchers, but this is the first known study to use it to understand those features following cannabis exposure.

As part of this research, it was discovered that the cannabinoid-1 receptor, which is a target of cannabis, regulates the activity of Agouti Related Protein neurons. These particular neurons are well-known for their involvement in controlling feeding behavior and are located in the hypothalamus. This finding sheds light on the intricate connection between the cannabinoid system and the regulation of these essential cells in the brain.

With the help of this information, scientists employed a “chemogenetic” technique, acting as a molecular light switch, to specifically target these neurons in animals exposed to cannabis. By deactivating these neurons, the appetite-stimulating effects of cannabis were no longer present.

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“We now know one of the ways that the brain responds to recreational-type cannabis to promote appetite,” said Davis.

This work builds on previous research on cannabis and appetite from Davis’ lab, which was among the first to use whole vaporized cannabis plant matter in animal studies instead of injected THC—in an effort to better mimic how cannabis is used by humans.  

In the previous study, researchers discovered genetic alterations in the hypothalamus as a response to cannabis. Therefore, in this investigation, Davis and his colleagues specifically concentrated on this particular region.

Now tell us why it makes food taste so much better!

Read more here – Cannabis activates specific hunger neurons in brain

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Organized crime, from the mafia to small-time money laundering schemes, often evades criminal prosecution. To bolster efforts to fight organized crime, Congress passed the Racketeer Influenced and Corrupt Organizations Act, known as RICO, more than 50 years ago.

In addition to the criminal penalties for violating RICO, the law also authorizes private individuals to bring civil lawsuits for an injury to their “business or property” as a result of the defendant’s “racketeering activity,” which the law defines broadly to include a wide range of criminal offenses.

This week, we highlight petitions that ask the court to consider, among other things, whether someone can sue under RICO to recover lost earnings.

Marketed as “a revolution in medicinal hemp-powered wellness,” Dixie X is a CBD supplement that claims to offer a variety of health benefits. After learning about Dixie X in a magazine, Douglas Horn began using the supplement in 2012 to soothe pain and inflammation from a car accident. Although the ad claimed that the supplement does not contain any THC (the active ingredient in marijuana),

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Satisfied, Horn began using Dixie X. Shortly after, he failed a random drug test at work and was fired. Suspecting the supplement, Horn sent a batch to an independent lab, which found that the product contained THC.

Horn went to federal court in New York, arguing that the company that sold Dixie X, Medical Marijuana, Inc. – which, despite its name, deals only in hemp-based CBD products – was responsible for his termination. Part of his lawsuit alleged violations of state law, including a claim that he was fraudulently induced to purchase the supplement while unaware of its risks. But Horn also argued that the company injured his “business or property” under RICO by conspiring to commit federal mail and wire fraud that resulted in the loss of his salary.

In Medical Marijuana, Inc. v. Horn, the maker of Dixie X asks the justices to grant review and reverse the 2nd Circuit’s ruling. The company argues that economic harm stemming from a personal injury has no business, so to speak, under RICO. “If quintessential personal injuries count as injuries to ‘business or property’ just because economic damage inevitably results,” the company writes, “Congress’ careful limitation on civil RICO claims would be toothless.”

Read the Rest here at ScotusBlog

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A list of this week’s featured petitions is below:

Yim v. City of Seattle, Washington
23-329
Issue: Whether Seattle’s restriction on private owners’ right to exclude potentially dangerous tenants from their property violates the 14th Amendment’s due process clause.

Amer v. New Jersey
23-351
Issues: (1) Whether a defendant is always “unable to stand trial” under Article VI(a) of the Interstate Agreement on Detainers while a pretrial motion is pending; and (2) whether a defendant has been “brought to trial” within 180 days of his request for final disposition of charges under Article III(a) of the agreement at the point when jury selection begins.

Medical Marijuana, Inc. v. Horn
23-365
Issue: Whether economic harms resulting from personal injuries are injuries to “business or property by reason of” the defendant’s acts for purposes of a civil treble-damages action under the Racketeer Influenced and Corrupt Organizations Act.

Bhattacharya v. State Bank of India
23-390
Issue: Whether, to establish a “direct effect in the United States” under 28 U.S.C. § 1605(a)(2), a plaintiff must make an extratextual showing that either the sovereign engaged in a U.S.-based “legally significant act,” or that the U.S. effects were “legally significant” in addition to being direct.

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New laws for 2024 – Buckle Up

New laws for 2024 – Buckle Up

States nationwide will welcome the upcoming year with the implementation of laws tackling crucial matters such as gun violence, book bans, and the introduction of gender-neutral toy sections. These legislative advancements are set to take effect throughout 2024, reflecting a commitment to address critical issues and promote a more inclusive society.

Michigan to get new gun laws

Michigan’s Legislature passed a package of legislation to reduce gun violence that’s set to go into effect early this year.

The package, passed in the Democratic-controlled Legislature largely along party lines, encompasses red flag laws, stricter background checks, safe gun storage requirements, and an eight-year prohibition on individuals convicted of domestic violence from purchasing, owning, or transporting firearms.

Monisha Henley, the senior vice president of government affairs at the gun violence prevention group Everytown for Gun Safety

Henley said she believes Michigan’s new laws can serve as an example for other states, given that the state has “everything from a large city to a rural population to high gun ownership.”

SAO

Several states have new laws regulating guns.

A new law in Minnesota will enable authorities to seek court orders known as “extreme risk protection orders” to temporarily confiscate firearms from individuals considered an imminent threat to themselves or others. With this development, Minnesota becomes the 20th state to implement such a red-flag law.

Colorado is joining a group of twelve states in banning ghost guns, firearms that are assembled at home or 3D-printed without serial numbers. These practices have allowed owners to circumvent background checks, which the new law aims to address.

The U.S. Supreme Court’s decision to allow an Illinois law prohibiting high-powered semiautomatic rifles and high-capacity magazines to take effect on Monday showcases a significant development. Conversely, a California law aiming to ban the carrying of concealed guns in several public places was recently halted by a federal judge. These contrasting rulings highlight the ongoing debates surrounding gun control regulations in the United States.

TAXES AND WAGES

The new year heralds the introduction of a diverse range of laws concerning taxes and wages; enduring subjects for state governments.

More than 20 states are set to increase their minimum wages, exacerbating the disparity between state mandates and the long-standing federal minimum of $7.25 per hour, which has remained unchanged since July 2009. In multiple states, the newly established minimum wage will surpass double the current rate.

Maryland, New Jersey, Connecticut, New York City, California, and Washington will all see an increase in their minimum wages. The new rates for these states will be $15, $15.13, $15.69, $16 (in most of the state), $16, and $16.28 per hour, respectively.

Residents in certain states will receive financial benefits as they will pay fewer taxes, aligning with the ongoing three-year trend in which almost every state has taken measures to decrease, refund, or pause various types of broad-based taxes. Discover how these tax reductions can positively impact your financial well-being today.

In Kansas, families will experience a significant reduction in the sales tax on groceries, with it decreasing from 4% to 2%.

This step towards eliminating the tax altogether will result in an annual savings of $208 for a family spending an average of $200 weekly on groceries. Gee thanks alot.

About 1 million tax filers are expected to benefit from Connecticut’s first income tax rate reduction since the mid-1990s.

Lower-income workers and retirees can also expect to reap the rewards of enhanced tax breaks.

Missouri also will reduce its income tax rate while expanding tax exemptions for Social Security benefits and military training pay.

Businesses can benefit from tax credits when they hire interns or apprentices.

Alabama will exempt overtime pay from the state’s income tax, though that lasts only until June 2025 unless renewed by lawmakers.

Gender-neutral toy aisles

Starting in January, major retailers in California will be required to feature gender-neutral toy sections in their stores. These new sections must offer a “reasonable selection” of toys that can be enjoyed by children of any gender, eliminating the practice of marketing toys exclusively towards boys or girls. This move towards inclusivity aims to provide an equal and diverse toy-buying experience for all children.

The law does not mandate the removal of boy- or girl-focused toy sections within stores, but instead encourages the expansion of these sections to encompass toys that are inclusive and suitable for children of any gender.

The law, passed by the Legislature and signed by Gov. Gavin Newsom in 2021, is aimed specifically at retailers with at least 500 employees across their state locations, which excludes smaller stores. Retailers will be fined $250 for not following the law, followed by $500 fines for repeat offenses.

Assembly member Evan Low, a primary supporter of the bill, emphasized that this measure aims to facilitate the comparison of similar products offered by major retailers, without perpetuating harmful gender stereotypes that negatively impact vulnerable children.

Read The Law

Komorn Law is Michigan’s top cannabis law firms when it comes to licensing, consulting and legal defense.

Call them if you’re thinking about venturing into the marijuana business in Michigan (248) 357-2550

Illinois’ anti-book ban law

Illinois will be the pioneering state in enforcing a groundbreaking law against book bans. This legislation mandates the adoption of the American Library Association’s Library Bill of Rights by the state librarian and library staff members across Illinois.

This crucial document firmly asserts that reading materials should never be proscribed or removed solely due to partisan or personal disapproval. To ensure compliance, public libraries must embrace the association’s language or establish equivalently worded prohibitions, failing which they will be deemed ineligible for state grants.

An increasing number of books have faced bans in multiple states. According to the nonprofit free speech advocacy group PEN America, they found 3,362 instances of individual books being banned during the 2022-23 school year, impacting 1,557 unique titles. This marks a 33% increase from the previous academic year. The states where these bans were most prevalent include Texas, Florida, Missouri, Utah, and South Carolina, as indicated in the group’s report.

PEN America’s report revealed that 30% of the books that were banned during the first half of the 2022-23 school year focused on race, racism, or included characters of color.

Another 26% of the banned books featured LGBTQ characters or themes. Furthermore, a broader range of titles have been impacted by bans this year — 44% of them depict violence and abuse, 38% address topics of health and well-being, and 30% delve into death and grief. These bans are a direct response from school districts to “unclear legislation,” leading to the removal of a significant number of books even before any formal review takes place, as stated in the report.

“The concept of banning books contradicts the very essence of what our country stands for,”

said Illinois Secretary of State Alexi Giannoulias, who initiated the legislation and serves as the state librarian.

“It also defies what education is all about: teaching our children to think for themselves.”

See the 2022 List 

See The List in Databse Format

Free to dangle in Illinois.

Starting Monday, motorists in that area can now drive without the concern of being pulled over by the police simply because they have items hanging from their rearview mirror. This policy change means that items such as air fresheners, parking placards, and even dice are now allowed to be displayed without fear of retribution.

New York cracks down on ‘puppy mills’

New York state is taking a crucial step this year by implementing a ban on pet stores from selling dogs, cats, and rabbits. This progressive move aims to safeguard these animals from the distressing treatment and substandard conditions prevalent in certain commercial breeding facilities referred to as “puppy mills” by critics. It is important to note that this law does not prevent shops from featuring animals obtained from shelters, offering them for adoption and giving them a chance at finding a loving home.

Gov. Kathy Hochul proudly signed the legislation in December 2022, expressing her satisfaction with the significant strides that will be taken to reduce cruel treatment and safeguard the well-being of animals throughout the state.

Over-the-counter contraceptives

The Food and Drug Administration’s decision in July to approve the first nonprescription oral contraceptive is expected to greatly expand access to birth control in 2024 when Opill becomes available.

Additionally, some states are now allowing pharmacists to prescribe hormonal birth control, making it even easier to obtain without visiting a doctor.

Since 2016, a total of 29 states have enacted legislation permitting pharmacists to prescribe hormonal birth control methods without the need for a doctor’s involvement. This empowers individuals seeking hormonal birth control to conveniently access it without scheduling doctor’s appointments. Notably, in 2024, Rhode Island and New Jersey will join the ranks of states implementing such measures.

New laws in Montana and Nevada will provide greater access to contraceptives for individuals.

In Montana, the law ensures that insurance coverage allows for 12-month prescriptions of contraceptives. Nevada has already made contraceptive prescriptions accessible through pharmacists and permits 12-month supplies. Additionally, the government will be prohibited from imposing any limitations or requirements that hinder people’s access to birth control or reproductive health services. These legislative advancements ensure that individuals can acquire the necessary contraception and reproductive healthcare without unnecessary obstacles.

DATING and PORNOGRAPHY

Several state laws extensively address appropriate online activities. A new Connecticut law requires online dating operators to adopt policies for handling harassment reports by or between users, ensuring a safe and respectful environment for all individuals involved.

A North Carolina law mandates that operators of pornographic websites verify the age of viewers using a widely accessible database, ensuring they are at least 18 years old.

The law empowers parents to take legal action against companies if their children were granted access to explicit content.

Another new Illinois law will allow lawsuits from victims of deepfake pornography, in which videos or images are manipulated without their consent.

LGBTQ+ ISSUES

Over the past few years, there has been a significant conservative effort to limit the accessibility of gender-affirming treatments for transgender minors. Currently, 22 states have implemented bans, with some jurisdictions pausing enforcement as they deliberate on the policies’ validity.

New restrictions on the availability of puberty blockers, hormone therapy, and surgery for minors, which are not commonly performed, are set to be implemented on January 1st. IdahoLouisiana and West Virginia. 

The West Virginia law Contains an exception: Adolescents, under the condition of parental consent and an official diagnosis of severe gender dysphoria from two doctors, can still access treatment.

A law taking effect Monday in Hawaii requires new marriage certificates to be issued to people who request to change how their sex is listed.

The state also is replacing gender-specific terms in state law; “mother” is being replaced with “birthing parent” and “father” with “non-birthing parent.”

In Colorado, new buildings wholly or partly owned by government entities will be required to have on every floor where there are public restrooms at least one that does not specify the gender of the users.

The conservative push on LGBTQ+ policies also has come with efforts to keep certain books out of school or public libraries. An Indiana law taking effect makes it easier for parents and others to challenge books in school libraries. By contrast, a new Illinois law would block state funding for public libraries that ban or restrict books.

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Biden Issues More Cannabis Pardons but…

Biden Issues More Cannabis Pardons but…

Joe Biden has extended pardons for individuals charged with simple cannabis possession and use, yet disappointingly, he has refrained from granting clemency to those currently incarcerated for cannabis-related offenses.

In an extension of the previous year’s extensive federal pardons for cannabis possession, Joe Biden has issued additional pardons for thousands of individuals convicted of simple cannabis use and possession on federal lands and in Washington D.C., according to the Associated Press.

The White House recently announced granting clemency to 11 individuals who have been incarcerated for nonviolent drug offenses, acknowledging the unjustly lengthy sentences they have served.

However, it is essential to note that these pardons do not lead to the immediate release of any current prisoners serving time for cannabis-related offenses.

Rather, the purpose behind these pardons is to tackle the obstacles that individuals face in seeking employment and housing opportunities due to their past cannabis convictions.

This signifies a symbolic shift in the federal government’s approach to cannabis convictions, aiming to support individuals reintegrating into society.

Komorn Law is Michigan’s top cannabis law firms when it comes to licensing, consulting and legal defense.

Call them if you’re thinking about venturing into the marijuana business in Michigan (248) 357-2550

Biden said that the pardons would help make the “promise of equal justice a reality,” the report said.

“Criminal records for marijuana use and possession have imposed needless barriers to employment, housing, and educational opportunities. Too many lives have been upended because of our failed approach to marijuana. It’s time that we right these wrongs.” – President Joe Biden, via the AP

President Biden has restated his desire for U.S. governors to nullify state cannabis convictions. He emphasizes the importance of this action, aligning with his ongoing commitment.

“Just as no one should be in a federal prison solely due to the use or possession of marijuana, no one should be in a local jail or state prison for that reason, either.”

Officially, cannabis remains federally prohibited under the Controlled Substances Act as a Schedule I substance. This classification is reserved for substances that are considered to lack any currently accepted medical use and have a high potential for abuse.

However, the U.S. Department of Health and Human Services recommended in August that cannabis be moved from Schedule I to Schedule III.

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Cannabis operators face IRS Revenue Code 280E restrictions, but smart tax planning and strategies allow entrepreneurs to mitigate its impact on their business.

Komorn Law is Michigan’s top cannabis law firms when it comes to licensing, consulting and legal defense.

Call them if you’re thinking about venturing into the marijuana business in Michigan (248) 357-2550

Being a legal cannabis company, you are likely familiar with the IRS Tax Code 280E. This tax code sets forth financial hurdles directly related to the amount of tax liability you owe the government at the end of the year.

From cultivators to retail shop owners, whether operating in the medical or adult-use sector, the burdensome financial implications of 280E pose significant challenges for legal businesses in the cannabis industry. The ambiguity surrounding the IRS guidelines on acceptable business write-offs creates substantial obstacles for company owners, hampering their ability to navigate the complex landscape effectively.

Read the rest of the article and more here at Ganjapreneur

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