Shipman Team Green Monthly Cannabis Update

Connecticut Update

The vote to legalize recreational marijuana in Connecticut may happen next week. Governor Lamont’s administration is confident that the bill will pass this session, but some legislators expressed skepticism that both chambers could reach agreement on a bill before the legislature adjourns on June 9th.  In broad strokes, the Governor’s bill would:

• Allow Connecticut residents age 21 and over to possess up to 1.5 ounces of marijuana, and up to 5 ounces if kept in a locked container in one’s residence, as of January 1, 2022;
• Decriminalize possession of fewer than 4 ounces, imposing a civil fine instead of possible jail time;
• Permit sale and distribution of recreational marijuana starting in May of 2022;
• Limit licenses to sell recreational marijuana to equity applicants and existing medical retailers through January of 2024;
• Allow up to 6 homegrown plants by approved medical marijuana patients;
• Impose excise and municipal sales tax on cannabis;
• Allow for erasure of criminal convictions for possession, sale, or distribution of less than 4 ounces or less than 6 plants;
• Allow municipalities to prohibit cannabis establishments from opening within their jurisdiction, but prohibits municipalities from banning cannabis delivery;
• Add cannabis smoking and vaping to the areas where tobacco is restricted under the Clean Indoor Air Act; and
• Ban smoking and e-cigarette use in workplaces, regardless of the number of employees.

A competing bill that passed the House labor committee imposes more stringent requirements for social justice initiatives and allows homegrown marijuana for recreational use.  The main sticking points, according to political insiders, relate to racial equity and restorative justice reforms, including preference for dispensary licenses and allocation of tax dollars to communities hit hardest by the war on drugs.  We are watching this bill very closely and will report any updates as they become available.    

Around the Nation

Last week, Senators Ron Wyden and Jeff Merkley of Oregon and Rand Paul of Kentucky introduced a bill that would legalize CBD as a dietary supplement and a food additive, bringing certainty to a gray area in the law.  We have discussed this tension before: while the sale and distribution of CBD is legal under the Farm Bill, FDA regulations treat CBD as illegal when marketed as a dietary supplement or used as a food additive.  In recent months, FDA has dug in to its unpopular stance on CBD by issuing Warning Letters to several companies related to their marketing practices. FDA’s reluctance to update its regulations and enforcement position on CBD has left industry participants frustrated to say the least.  FDA is notoriously slow moving and it is clear that, quite literally, an act of Congress is necessary.

Enter the Hemp Access and Consumer Safety Act.  The bill would accomplish the following:

• Allow hemp-derived CBD products to be lawfully used in dietary supplements, foods and beverages under the Federal Food, Drug and Cosmetic Act (FD&C Act);
• Require manufacturers to comply with all existing federal regulations for the products that contain CBD; and
• Allow FDA to establish packaging and labeling requirements for CBD products.

If passed, hemp farmers and other CBD industry players will breathe a collective sigh of relief, knowing that they can market and sell their products without fear of FDA censure.  Consumers will also benefit from improved quality control that comes with defined and consistent FDA oversight.  The bi-partisan bill has widespread support from hemp industry groups.  A similar bill was introduced in the House last September, and reintroduced in February.

Federal cannabis legislation is mounting but the forces of inertia and the demand for concomitant social equity reforms have stalled several bills in Congress.  Stay tuned for more updates.