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IN THE KNOW BLOG

Commentary on Evolving Industry Developments and Marketing Trends

CBDA Insider’s Update: Week of March 1, 2021

by | February 25, 2021

North Dakota House Passes Recreational Marijuana Legislation 

On February 24, 2021, the North Dakota House took the first step towards opening a legal adult-use marijuana market. The legislation will now head to the state Senate for further review. Here are a few of the key elements of the legislation:

  • Adults over the age of 21 can possess up to one ounce of marijuana;
  • Marijuana can only be consumed in private residences or on private property;
  • It will remain illegal to consume marijuana in the presence of individuals under the age of 21; 
  • Home cultivation of marijuana will remain prohibited;
  • The number of registrations will be limited by the state to 7 marijuana manufacturing facilities and 18 dispensaries;
  • The State Health Council will be charged with creating the regulatory framework that will govern the growth and sale of marijuana; and
  • The legal market will open on July 1, 2022.

Over the past few years, there have been many advocacy groups in the state that have been pushing to get a legalization measure placed on the November 2022 ballot, but if things continue to progress in the state legislature, such a measure may become unnecessary. 

NFL Begins to Examine CBD as Possible Alternative to Opioids  

Last week, the NFL and the NFL Players Association put out a request to the scientific community for research focused on the health benefits and risks of CBD for pain management. Specifically, the request asked about: “The potential therapeutic role of medications and non-pharmacological interventions that are considered to be alternatives to opioids in routine pain management of NFL players. Medications may include, but are not limited to, cannabinoids such as cannabidiol (CBD).” The request also sought to gather information regarding “the impact of cannabis or cannabinoids on athletic performance in NFL players.” 

While cannabis remains a banned substance in the league, many current and former players have become spokespersons for CBD companies, with the likes of Travis Kelce, Carson Palmer, and Calvin Johnson aggressively pushing for the NFL to look to CBD as an alternative to the pain killers that have had a dramatically negative impact on the health of many players.  

A change may very well be on the horizon. With other leagues like the NBA removing cannabis testing protocols and promoting a more relaxed attitude towards cannabis use, the NFL may soon follow suit. And if this happens, expect the league’s marquee players to cash into lucrative sponsorship opportunities. 

New York Legislature Convenes for First Joint Session Regarding Marijuana Legalization 

This week, New York legislators held their first joint budget meeting on Gov. Cuomo’s proposals to legalize marijuana in the Empire State. The Senate Finance Committee and Assembly Ways & Means Committee heard from three advocacy groups – two in favor of legalization and one opposed to the opening of an adult-use market in the state. The two proponents of legalization voiced an opinion similar to that of many legislators over the past month–that Gov. Cuomo’s proposed tax structure and social equity budget provisions are insufficient and must be amended prior to the April 1 budget deadline. 

Earlier this month, the Governor’s office attempted to quash these concerns by introducing amendments to his budget proposal that would allow for home delivery and better define how social equity grants for cannabis businesses would be allocated. But even these proposals seem to have fallen short of the Finance Committee’s wishes.  

Despite the current dispute over some of the nuts and bolts of the budget proposal, all roads still appear to be headed towards the opening of an adult-use market in the state at some point this year. What may ultimately happen is that the legislature first passes the Marijuana Regulation and Taxation Act (MRTA), and then works out the specific budget concerns with the Governor’s office. Stay tuned to future CBDA insider updates for more details, as our team is tracking the progression of the legislation very closely.  

 

ABOUT THE AUTHORS

Matthew Lewis

Matthew Lewis

Senior Counsel & Director of Government Affairs

Matthew Lewis is an experienced attorney specializing in the practice areas of non-profit, political, and regulatory law at both the state and federal levels.  Lewis has worked closely with trade associations and other advocacy organizations to provide counsel as well as develop fifty-state compliance programs for issues including, but not limited to: (1) lobbying compliance; (2) government ethics; (3) tax-exemption; and (4) political activity. Lewis is a subject matter expert regarding the vast state and federal issues facing the CBD marketplace, including (1) FDA and state agency regulation; (2) criminal enforcement; (3) business risks and rewards; (4) supply chain accessibility; (5) political implications; (6) international trade; and (7) access to ancillary services (e.g., banking, insurance, logistics). Lewis is a frequent keynote speaker at corporate, association, and non-profit conferences as well as consults with clients on a full spectrum of CBD compliance and regulatory issues.

Morgan Davis

Morgan Davis

Founder, Davis Legal, PLLC

Morgan Davis is the founder of Davis Legal, PLLC, a boutique business law firm with a focus in cannabis serving clients in Raleigh, NC. Davis is an experienced attorney whose practice focuses on matters of criminal and corporate law. Davis has become a subject matter expert in cannabis and routinely provides legal counsel to cannabis cultivators, processors, retailers, investors, and retail product manufacturers.

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