DEA suffers its first post-Chevron blow on hemp

OH, CHEVRON
DEA suffers its first post-Chevron blow

Driving the news: In June, the Supreme Court overturned a decades-old, landmark ruling known as the Chevron Deference.

In short, the new Supreme Court ruling undermines the authority of federal agencies to set rules and regulations in areas of their specific expertise. That means it’s now up to the courts to interpret the law in the absence of Congressional action or clarity.

There were all sorts of prognostications about what this means for the cannabis industry, specifically President Joe Biden’s push to reclassify cannabis as a less dangerous drug. 

What happened: Last week, we got our first look at how the courts view the Drug Enforcement Administration’s authority in a post-Chevron world. 

A federal court ruled that intoxicating compounds derived from hemp are, in fact, legal based on the 2018 Farm Bill. 

Put simply, the court ruled that the DEA isn’t entitled to deference — meaning, they’ll rely on laws as Congress writes and passes them, not agency interpretation.

Why it matters: This specific ruling obviously impacts the broader hemp versus legal cannabis fight. 

Some cannabis companies have said that the Farm Bill didn’t intend to legalize intoxicating products derived from hemp, legally defined as cannabis plants containing less than 0.3% THC. 

They call it a loophole, where THC can be synthesized from hemp plants that contain the legally required miniscule amount in their natural state. (It’s important to note that intoxicating hemp companies can sell products across state lines and don’t have to adhere to expensive and costly regulations that their legal cannabis counterparts do). 

Multiple state governors and attorneys general have agreed, and have even begun to crack down on intoxicating hemp products, including in California and Missouri. 

But without Chevron, this crackdown may not hold up in court, or will at least be subject to challenges. That is, unless the intoxicating hemp loophole is closed in the next Farm Bill.

This case may also have bearing on the Schedule III fight, given that a court has already tossed out the DEA’s standing on intoxicating hemp. But in any case, any change in the federal classification of cannabis will be stronger coming from Congress, rather than the executive branch.

We’ll be watching.

-JB

“I'm not a stoner. It's not because I want better stuff. But it’s a winner, no political downside. And now people are deciding that if you're looking to win — I think it's always been smart,” Pennsylvania Sen. John Fetterman said, calling legalizing cannabis a political “bazooka.”

Missouri hemp task force 🛑

Missouri Attorney General Andrew Bailey is creating a new unit to crack down on intoxicating hemp products, The Missouri Independent reports. The move comes days after state officials visited more than 50 stores to inspect for intoxicating hemp products. Missouri’s crackdown on hemp follows California, which banned intoxicating hemp products entirely last week. 

Florida Young Republicans endorse legalization 🦩

Florida’s Young Republicans joined the state’s Democratic Party and Former President Donald Trump in endorsing Amendment 3, the ballot initiative to legalize cannabis in the state. Please, we beg you, read that sentence again. “We’re ready to move past the outdated stigma surrounding marijuana consumption,” their statement reads. But, some young Republicans were evidently not so happy about what they called the “rushed” endorsement. 

Cannabis companies file appeal 👩‍⚖️

A group of cannabis companies suing the federal government over cannabis prohibition filed their appeal in the First Circuit court on Tuesday. To back up, a federal judge dismissed the case this summer, and the lawyers, including David Boies, immediately signaled their intention to appeal. The legal team says that Congress lacks the power to regulate legal cannabis within states — Attorney General Merrick Garland’s response will come on October 10.

Medical cannabis can help patients suffering from arthritis and other rheumatic conditions move off of opioids, sleep aids, and other drugs, according to new research published in the American College of Rheumatology.

Shannon O’Brien, the embattled Massachusetts cannabis commissioner, has been fired. O’Brien was suspended last year over accusations of “racially insensitive” statements. She was first appointed to a five-year term in 2022.

Cannabis staffing firm Vangst is acquiring GreenForce, a cannabis temporary staffing agency operating in Oregon & Arizona. GreenForce CEO Ryan Rosenfeld will join Vangst’s leadership team as Chief Business Officer.

The nonprofit Last Prisoner Project launched its #Countdown4Clemency campaign on Tuesday, to urge President Joe Biden to use his clemency power to release every last federal cannabis prisoner before his term ends. We fully support this action — get involved here.

Thousands lined up for adult recreational marijuana sales in Cherokee | ABC News

'The obvious choice': Florida Young Republicans endorse recreational marijuana on ballot | Tallahassee Democrat

Trump’s support of Florida marijuana legalization may show growing bipartisan consensus | Iowa States Newsroom