Cannabis Group Weekly Alert - Week Of September 17, 2019
In this week's edition:
Plans to vote on cannabis banking legislation announced in both chambers of Congress, with predictions that House will pass the SAFE Act by the end of October DEA increases the cannabis research quota Battle heating up over Florida ballot initiative to legalize cannabis for adult use FTC issues three CBD warning letters, reiterating that established FTC substantiation standards apply when advertisers make health-related representations for CBD products California Governor Gavin Newsom issues executive order targeting cannabis- and tobacco-containing vape products Data indicates cannabis-containing vaping products losing market share to other cannabis products after recently reported health concerns And more Federal
Senate Banking Committee Chairman Mike Crapo (R) announced that the committee will vote on cannabis banking legislation that would allow banks to serve cannabis-related businesses. The vote is anticipated by the end of the year. The Secure and Fair Enforcement (SAFE) Banking Act was approved by the House Financial Services Committee in March by a significant bipartisan margin. House Majority Leader Steny Hoyer (D) intends to put the cannabis banking legislation on the floor by the end of September. The bill currently has 206 cosponsors. Rob Nichols, president and CEO of the American Bankers Association, predicts that the House will pass cannabis banking legislation by October.
The Drug Enforcement Administration (DEA) announced annual quotas for the manufacture of controlled substances for research purposes, providing for 7,000 pounds of cannabis to be used in scientific studies. This represents a 30 percent increase from the 2019 cannabis quota. Last month, the DEA finally announced that it will license additional cultivators beyond the University of Mississippi, which, for decades, has been the only federally legal source of cannabis for use in research. The DEA's research quotas also include 384,460 grams of tetrahydrocannabinols, 40 grams of LSD, 50 grams of MDMA and 30 grams of psilocybin.
Three US citiesNew York (No. 1), Los Angeles (No. 4) and Chicago (No. 8)were ranked among the top ten cities with the highest consumption of cannabis per year. The remaining top ten cities include Karachi, Pakistan (No. 2), New Delhi, India (No. 3), Cairo, Egypt (No. 5), Mumbai, India (No. 6), London, UK (No. 7), Moscow, Russia (No. 9) and Toronto, Canada (No. 10). Total consumption in metric tons ranged from a high of 77.44 metric tons in New York to a low of 22.75 metric tons in Toronto. Notably, only two of the top ten cities, Karachi and Toronto, have legalized cannabis.
California's 2019 legislative session has ended, with a number of significant cannabis and hemp bills tabled for January 2020 when the State Legislature reconvenes. Among those bills, SB 51 would permit private banks and credit unions to apply for a limited-purpose, state-chartered bank license to avoid interacting with the federal system. Another stalled bill, SB 475, would allow free cannabis trade samples to be given to an employee or another licensee. Three bills were approved by the Legislature and are awaiting Governor Gavin Newsome's signature. AB 1529 will change the universal symbol labeling requirement on vape cartridges to 0.25 x 0.25 (from 0.5 x 0.5). AB 404, which seeks to make cannabis testing more...
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