At the end of September, I attended the 9th Annual Cannabis Law Conference, presented by the Cannabis Law Section of the State Bar of Michigan in cooperation with ICLE. Held in Kalamazoo at the recently renovated Radisson Hotel, the conference was filled with the excellent substantive presentations and fun networking opportunities I’ve come to expect from this group. Here are some of my takeaways:
- Rescheduling. Paul Armentano of NORML presented about the history of rescheduling petitions over the years and previewed what to expect with the potential federal reclassification of marijuana from schedule I to schedule III. While Paul thinks rescheduling is likely, the timeline is up in the air—it could be months or years. He noted that reclassification would neither legalize marijuana nor harmonize most state laws with federal law, and it also would not permit botanical cannabis or any other non-FDA approved cannabis products to be sold in pharmacies. It would, however, allow state-licensed cannabis businesses to take standard business deductions on federal taxes and take part in print advertising, and it would also show a willingness of the federal government to acknowledge medical benefits. Paul discussed a wide variety of “maybes,” including allowing gun rights for marijuana consumers, preventing denial of public housing, and allowing VA doctors to prescribe cannabis for patients. Paul ultimately thinks that descheduling (not rescheduling) is the only way to truly address the state-federal conflict.
- Intoxicating Hemp Cannabinoids. Ben Sobczak and Ben Joffe gave an informative presentation about intoxicating hemp cannabinoids, which Michigan residents can order online. If a product is derived from hemp and doesn’t contain more than .3% Delta-9 THC, it is legal pursuant to the 2018 Farm Bill. The 2018 Farm Bill is up for reauthorization. The presenters noted that it will likely be passed in the lame duck session, and the hemp and cannabis lobbies will battle it out.
- Entheogenics. Senator Jeff Irwin and Hazel Park City Council member Luke Londo provided fascinating information about entheogenics, which are naturally occurring psychoactive, hallucinogenic substances that have religious, shamanic, and spiritual uses. Despite the fact that most entheogenics are schedule I substances, the presenters explained that they are hugely beneficial to health and well-being relating to substance abuse, anxiety, grief, headaches, and many other conditions. In Michigan, Ann Arbor, Detroit, Hazel Park, Ferndale, and Ypsilanti have all decriminalized the use of these substances. Washtenaw County also declines to prosecute. In Hazel Park, the resolution provides that entheogenics are given the lowest enforcement priority, and city funds and resources can’t be used to investigate, detain, arrest, etc., relative to their use. The resolution does not authorize use in schools, sale to minors, use while driving, or commercial sales. Senator Irwin talked about SB499, which would decriminalize entheogenic plants and mushrooms in Michigan. He supports this bill because of entheogenics’ long history of human use, religious and cultural significance, and tremendous medical promise.
- Cannabis Regulatory Agency (CRA) Enforcement. John Fraser, Kristina Munsters, and Ben Sobczak discussed enforcement issues and emphasized the importance of determining a strategy with clients when there is a CRA investigation. Attorneys need to know whether they are fighting the violation itself or mitigating an admitted violation. Panelists advised that attorneys ensure their clients know what to do when the CRA shows up and what they are authorized to speak about by virtue of their position in the business. There was a long discussion of the benefits and drawbacks of self-reporting, with anecdotes indicating that self-reporting can be detrimental and lead to large fines. Audience members expressed frustration at how they feel the CRA has discouraged self-reporting by cracking down on businesses who are trying to follow the rules. The group also discussed issues with the CRA consent order process, under which the CRA director has ultimate authority to accept or unilaterally change the terms of the agreement.
I’ll be looking forward to next year’s conference. In the meantime, later this fall, I will be filming an on-demand seminar with John Fraser and Myles Baker, going more in-depth into some of these issues and others. Be on the lookout for that Cannabis Law Update early next year.