Scientists call for the federal government to lead cannabis policy

THE FEDS
A new report calls for the CDC to take a larger role in cannabis policy

What happened: A new report from the National Academies of Sciences calls for the Centers for Disease Control and Prevention to take a larger role in shaping cannabis policy.

The report advocates for the federal government to take more leadership in cannabis policy — so far, it’s been led by states — and that financial interests have played too-large a role in developing cannabis policy. 

But the report does not call for a return to the federal government’s ‘Reefer Madness,’ abstinence-only approach. Rather, it calls for coherent federal cannabis policy led by evidence-backed, public health concerns. 

You can download and read the full 341-page report. 

What they’re saying: “We’d like the federal government to step up to provide some leadership in this area,” the committee’s chair, Dr. Steven Teutsch of the University of California, told The Associated Press. 

He added that public health has taken a “back seat,” to industry concerns. “Financial interests played a substantial role in influencing those policies,” he said. 

Zoom in: The report was co-written by some of the biggest names in cannabis science and research, including Dr. Ziva Cooper of the University of California, Los Angeles, Beau Kilmer of RAND, and Dr. Yasmin Hurd of Mt. Sinai. 

The report’s chief concerns are around increased cannabis potency and its effect on adolescent brains, as well as the recent, oft-cited statistic that more Americans are using cannabis daily than drinking alcohol.

The report also advocates to close the loophole that allows intoxicating hemp products to be sold in states without legal cannabis regulations, and to remove restrictions for federal agencies to study the drug.

It also advocates for states to automatically expunge low-level cannabis offenses, and for the CDC to develop health campaigns around cannabis use as well as monitor usage and health data. Beyond that, it calls for more training of dispensary staff. 

Why it matters: The report takes a public health first approach to cannabis policy. That differs from many advocates, who see legalization as a criminal justice issue foremost, as well as the industry itself who understandably want to guide regulations to their advantage. 

As we’ve written in this newsletter, regulatory capture is an under-covered issue in the cannabis industry.

Often in emerging industries, the earliest companies are able to influence policy and regulation to entrench their position in the market. There are real downsides to cannabis consumption, and smart policy would look to capture the benefits — of medical research, taxation, and job growth — and limit the externalities.

When industry voices are the loudest, the public often loses. It’s also a cudgel that anti-legalization groups use. Instead of fighting the often losing battle of staking out a position against reform, which two-thirds of Americans support per recent polls, they rely on the fact that legalization campaigns are bankrolled by the companies that would benefit.

Take Florida’s legalization fight, for example. You hear a lot more about how much Trulieve, a cannabis company and the biggest backer of the initiative, and other “giant corporations,” would gain from the anti-legalization side, than you do a robust discussion of the harms and benefits of legalization. 

Our take: The report is a far less fear-mongering approach than anti-legalization groups and industry critics like Smart Approaches to Marijuana have taken in the past. They rely on arguments that often have slippery relationships with the truth. 

This report gives us a path forward to have a more robust, evidence-based discussion of cannabis policy between the industry, advocates, and researchers. 

- JB

“I know firsthand the ostracizing and debilitating effects the criminalization of cannabis can have,” ex-NFL star Ricky Williams said, endorsing Florida’s Amendment 3.

“I want to pay my experiences forward, end the unjust criminalization and prejudice over cannabis, and bring Florida to the same level of freedom that over half of the country already enjoys. We can accomplish this by voting ‘Yes’ on 3 this November.” 

Williams famously “retired” from the NFL as a Miami Dolphin after he was suspended for cannabis use, though his on-field performance was, to say the least, incredible.

Tim Walz says legalization is for ‘the states’ 🌿
Vice presidential candidate and Minnesota Gov. Tim Walz said that cannabis legalization is an issue that’s best left to the states, in an interview with Spectrum News. He added that he believes electing more Democrats in Congress would help move the needle on federal cannabis reform. It’s the first time either Walz or Vice President Kamala Harris has addressed cannabis reform so far on the trail — and it’s notable Walz declined to endorse broader reform like federal decriminalization. 

Cheech & Chong sue Newsom over hemp ban 💰
Cheech & Chong’s company joined a lawsuit filed by a group of hemp companies opposing California Gov. Gavin Newsom’s emergency ban on intoxicating hemp products. They argue that the rules are based on a faulty declaration of an emergency. 

Illinois equity challenges 👀
An independent study into Illinois’ cannabis industry found that while the state has awarded more licenses to women and people of color than any other regulated market in the United States, white men are still the demographic most likely to have a cannabis license in Illinois, reports The Illinois Times. The report outlined barriers to funding, thanks to federal illegality as a key roadblock to diversifying the state’s industry. 

Kentucky kicks off medical market 🥃
Kentucky officials approved the state’s first-ever cannabis license — for a testing lab, reports Marijuana Moment. The state also scheduled a lottery to grant the first batch of cultivation and processing licenses next month, the state’s Gov. Andy Beshear said.

4Front Ventures enlisted the investment bank Canaccord Genuity to streamline its capital structure, modify its credit facility, and issue restricted stock units. 

Cannabis tech firm Springbig is partnering with a dispensary owned by iAnthus.

Vaporizer firm Ispire reported its fiscal 2024 results on Thursday. The company reported a $15 million net loss on $152 million revenue for the year ending June 30.

Only 14% of Minnesotans used cannabis in the last month — but 61% support federal legalization, according to a new poll from MPR News.

Check out this new documentary from filmmaker Rob Rosen, about how the 2018 Farm Bill legalized “dangerous synthetic marijuana.” Quite topical, if you’ve been reading our last few newsletters.

Premium marijuana brands report steady sales despite shaky economy | MJBizDaily

Lobbyists fight to restrain, maintain $28 billion hemp industry | Bloomberg

Donna Shalala: Why marijuana Amendment 3 is bad policy for Florida| The Miami Herald

LAPD raid goes from bad to farce after gun allegedly sucked onto MRI machine | SF Gate

Mass. Cops Bust Big Illegal Marijuana Grow in Hampden | Maine Wire