New Mexico Governor, Pueblos Sign Intergovernmental Agreements on Cannabis
The state’s two agreements with the Pueblo of Pojoaque and the Pueblo of Picuris will support the tribes’ participation in the adult-use cannabis industry.
New Mexico’s governor has signed two intergovernmental agreements with the Pueblo of Pojoaque and the Pueblo of Picuris to support the tribes’ participation in the state’s legal cannabis industry.
The agreements, signed March 25 by New Mexico Gov. Michelle Lujan Grisham, Pueblo of Picuris Gov. Craig Quanchello and Pueblo of Pojoaque Gov. Jenelle Roybal, will “support the Pueblos taking part in the recreational cannabis industry, driving economic development and setting guidelines for the safe production and sale of cannabis while preventing federal enforcement on their tribal lands,” according to a press release from Lujan Grisham’s office.
The Cannabis Regulation Act, which Lujan Grisham signed into law in April 2021 to legalize adult-use cannabis in New Mexico, authorized intergovernmental agreements to enable the state’s tribal communities to participate in the market.
“The economic opportunities provided by the recreational and medical cannabis industries are truly game-changing, and sovereign tribal nations should benefit alongside the state,” Lujan Grisham said in a public statement. “With these agreements, the Pueblo of Pojoaque and the Pueblo of Picuris will benefit from this exciting new industry, which is projected to bring $300 million in sales annually and create 11,000 jobs in New Mexico.”
The intergovernmental agreements aim to support public health and safety while maximizing cross-jurisdiction market opportunities, according to the press release.
“I am pleased that the intergovernmental agreement respects the Pueblo’s sovereignty,” Quanchello said in a public statement. “This creates a meaningful opportunity for the Pueblo to engage in well-regulated and coordinated legal cannabis markets for the benefit and protection of our community, including a framework for ongoing collaboration with the state to protect our shared interests.”
Since cannabis remains illegal under federal law, the intergovernmental agreements are necessary to prevent federal law enforcement action on tribal lands where communities want to participate in New Mexico’s state-legal adult-use cannabis industry, according to the press release.
“We’re very satisfied with this intergovernmental agreement and our ability to work together with the Department on this collaborative effort to maintain a robust regulatory environment for cannabis,” Roybal said in a public statement. “Cannabis is an exciting new opportunity to diversify our economic development, and revenues from a Pueblo cannabis enterprise will support tribal governmental programs and the surrounding community.”
Other states, including Nevada and Washington, have intergovernmental agreements with tribal communities, but New Mexico’s agreements are unique, according to the press release, because they not only formalize pro-tribal policies, but they also provide for ongoing meetings and consultations between the state and the tribes.
“New Mexico, the Pueblo of Picuris and the Pueblo of Pojoaque are establishing a new, positive way forward together,” Lujan Grisham said. “Rather than just establishing lines and limits, then each community going its own way, these agreements create real partnerships that provide the framework to meet and discuss in detail the challenges and opportunities we face together in New Mexico.”
The state’s first commercial adult-use cannabis sales are expected to launch April 1.
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New Mexico Issues Recall of Medical Cannabis Products from Sacred Garden
Regulators have discovered that the cannabis operator was distributing products contaminated with mold.
New Mexico regulators have issued a medical cannabis product recall after investigating a patient complaint.
The New Mexico Cannabis Control Division (CCD) issued the recall March 24 upon discovering that Sacred Garden, a licensed medical cannabis operator in the state, has been distributing products containing levels of mold above regulatory levels, according to a press release.
The contaminated products tested at 35,000 Colony Forming Units (CFUs) per gram, according to the press release, and 1,000 CFU is the maximum allowable level under state law.
Regulators have ordered Sacred Garden to cease and desist operations at its production and manufacturing site. The company also operates medical cannabis dispensaries in Albuquerque, Las Cruces, Ruidoso and Santa Fe.
The recalled products, including cannabis flower, pre-rolls and food products, are from cannabis cultivars named “Snow Cone” and “Protégé ’78” and were sold to patients at Sacred Garden’s dispensary locations over the past several weeks.
The lot numbers of the recalled products can be found here.
State records show that the affected products passed their mandatory pre-sale inspection and that the contamination occurred after the products hit store shelves, possibly due to improper storage, according to the press release.
The CCD immediately launched an investigation into the products upon receiving a report from a medical cannabis patient about possibly contaminated flower. A CCD investigator performed a site visit at one of Sacred Garden’s retail outlets and gathered samples from the same batch that was sold to the patient. The samples were tested at an Albuquerque lab, and all product from Sacred Garden’s manufacturing and production facility that has not been tested will not be cleared for sale until the CCD deems it to be safe.
The CCD advises patients who purchased the affected cultivars at Sacred Garden in the past month to check their products’ labels for the listed lot numbers, and if the numbers match, they should dispose of the product or return it to the store where it was purchased.
Patients who experience adverse health effects from using the affected products are advised to contact a medical provider immediately.
Under New Mexico law, cannabis operators must have product samples tested by a state-certified laboratory prior to the batch being sold to the state’s patient base, according to the press release. Samples undergo a visual inspection, and flower is tested for homogeneity, microbials, residual pesticides and potency.
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Is Delta-9 THC Contamination of Delta-8 Products a Trojan Horse for the Hemp Industry?
Recent studies show delta-8 THC products contain illegal amounts of delta-9 THC, raising troubling questions for hemp businesses selling the cannabinoid.
The market for hemp-derived delta-8 THC products has exploded over the past year. And while the legality of this cannabinoid (or lack thereof) continues to be a point of significant controversy, another issue creating waves recently is the reporting of several studies showing numerous delta-8 products on the market contain surprising and illegal levels of delta-9 THC.
A little background concerning the legal landscape of delta-8 is helpful. Passage of the Agriculture Improvement Act of 2018 (the 2018 Farm Bill), which legalized hemp at the federal level, opened the door for a variety of new consumer products to hit the market.
The 2018 Farm Bill defines “hemp” as “the plant species Cannabis sativa L. and any part of that plant, including the seeds thereof and all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or not, with a delta-9 tetrahydrocannabinol concentration of not more than 0.3 percent on a dry weight basis.”
The definition of hemp in the 2018 Farm Bill was clearly intended to prohibit the development of hemp products that were intoxicating. In the final rule issued by USDA to implement the farm bill, USDA notes that delta-9 levels in hemp were regulated because delta-9 “is the primary intoxicating component of cannabis.”
Despite the farm bill’s attempt to precisely define what constitutes a “legal” hemp product, the plain language of the statute created ambiguities that appear to have undermined the purpose of the bill in the hands of the hemp marketplace.
For instance, commentators have noted that the farm bill’s use of a dry-weight basis limit of 0.3% delta-9 THC in hemp and hemp-derived products leads to puzzling results. For example, applying the 0.3% dry-weight standard on an edible gummy product could lead to a gummy that contains 10 mg of delta-9, but yet still remains under the 0.3% dry-weight threshold.
There is significant debate about delta-8’s legality under the 2018 Farm Bill. Those advancing this chemical as legal under the measure argue that the farm bill’s description of a legal delta-9 concentration by weight intentionally excludes delta-8. Others in the hemp industry, as well as federal and many state authorities, have argued that the farm bill unequivocally meant to exclude all THC isomers from legalization.
Regardless of the ultimate outcome of the delta-8 legality debate, analysis of allegedly hemp-derived delta-8 products has raised concerns about either intentional or accidental misbranding of numerous products.
For instance, in April 2021, U.S. Cannabis Council, a cannabis trade organization, analyzed 16 delta-8 vaping products for levels of contaminants, including delta-9. The analysis was shocking—not only did 25% of the products test positive for heavy metal contaminants, but also 15 of the 16 products contained illegal levels of delta-9.
Additional studies of delta-8 products have produced consistently similar results to the U.S. Cannabis Council study.
The sampling covered a wide variety of delta-8 products, including vapes, tinctures, and gummies. Of the products sampled, 68% contained a significantly different concentration of delta-8 than reported on the label.
Even more concerning, however, was that 53% of the products analyzed had more than 0.3% delta-9 THC, making them federally illegal. One of the products, a delta-8 vape, contained a whopping 15.2% of delta-9.
Another analytical study of 51 delta-8 products—conducted in October 2021 by CBD Oracle—showed similarly troubling results. This study also included a sampling of a variety of product lines, including flower, edibles, prerolls, tinctures, and vaping products, from various states.
In this study, an even more sizeable majority (76%) of the products contained illegal delta-9 levels, including a disposable vape pen, which contained 23.17% of delta-9. Overall, the average for all products sampled was 6.6% delta-9.
Interestingly, this study also observed that illegal delta-9 products were more likely to be sold through brick-and-mortar stores, like gas stations and smoke shops, than online outlets. Moreover, the length of time that a retailer had been operating was correlated with the likelihood of selling a misbranded product, with companies operating for more than two years tending to be more compliant than more recently opened outlets.
Other trends in the studies are worthy of further analysis.
Data in the Leafreport study, for instance, suggests there may be a product manufacturing issue that affects certain classes of delta-8 products. In that study, edible products such as gummies that exceeded the delta-9 threshold tended to still contain less than 5% delta-9. In contrast, vaping products consistently contained the highest concentrations of delta-9 (10-15%).
Similarly, in the CBD Oracle study, vaping products consistently contained higher delta-9 levels compared to flower, tinctures, and edibles. On the other hand, all 16 products in the U.S. Cannabis Council study were vaping products with illegal but lower concentrations of delta-9, from approximately 1.5-5%.
Taken as a whole, these various studies suggest that delta-9 contamination in products marketed as delta-8 is a widespread problem. However, the question remains: Why does this contamination exist?
A Deeper Dive
Commentators have posited several potential explanations regarding why so many apparently misbranded delta-8 products exist.
Delta-8 extraction problems form the first potential source of contamination. Delta-8 production from hemp requires solvent extraction, conversion of CBD to delta-8 with a reagent, and then distillation and purification. A significant amount of delta-9 is made during this process as well, and failing to adequately distill the final product can potentially lead to unintentionally high delta-9 levels.
Another explanation shifts the focus away from faulty production processes and focuses on faulty laboratory analysis instead.
Because delta-9 and delta-8 are so similar, they can be very difficult to separate analytically in labs, either internally at a processor or externally when obtaining a certificate of analysis (COA) before marketing the product.
This is partially due to a lack of a standard for solvent selection and technique during analysis, which can spike the detected amount of delta-9 in a sample, thus skewing results upward, according to the CBD Oracle report.
On the opposite side, it is also possible for a less-specialized analytical chemist to mistakenly report delta-9 detected in a sample as delta-8 due to the similarity of their respective signals in a chemical separation test. This results in underreported amounts of delta-9.
Yet another potential explanation is due to delta-8 chemical degradation after the products have been packaged for sale. Delta-8 is not a stable isomer of delta-9 and can in fact degrade into delta-9 over time under certain conditions, according to CBD Oracle.
Finally, most concerning is documented evidence of what appears to be intentional misbranding by some delta-8 processors. The CBD Oracle study found through interviews and other investigation that a significant minority (10%) of COAs for the products were falsified or altered.
Similar apparently intentional falsification of COAs was documented by Molly Longman in a Refinery29 article, where multiple labs confirmed that COAs for products purportedly analyzed by those labs were actually altered, older COAs.
Together, these multiple studies of contaminated “delta-8” products should be cause for concern for the hemp industry.
Regardless of delta-8’s legal status, it is undisputed that some products being sold as delta-8 are actually contaminated with illegal levels of delta-9. These products are clearly misbranded, and as such, present significant potential legal exposure to hemp processors and retailers under state and federal consumer protection laws.
Moreover, in the case of intentional misbranding, these studies suggest that potential criminal exposure may also exist. For any processor looking to enter or remain in the delta-8 market, these studies show that it is best to tread very carefully when creating and marketing these products.
Nathan A. Lennon is a Cincinnati-area trial attorney and partner at Reminger Co., LPA. His practice is focused in the areas of complex products liability, environmental/toxic torts, and government/public entity liability.
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MORE Act Committee Hearing Postponed to March 30
The broad federal cannabis reform bill has already received five proposed amendments for the House Rules Committee to consider.
The House Rules Committee has postponed a hearing on the Marijuana Opportunity Reinvestment and Expungement (MORE) Act until March 30, which could delay the possibility of a floor vote in the full chamber.
In addition, the legislation, House Bill 3617, has received five proposed amendments, ranging from topics of testing impaired drivers to penalizing individuals who sell cannabis to minors and funding studies related to the impacts of legalization. Three of those amendments were offered by Rep. Conor Lamb, D-Pa., who voted against a previous version of the bill in 2020.
The Rules Committee had originally scheduled a March 28 hearing for the legislation, which aims to remove cannabis from the U.S. Controlled Substance Act, before moving it back two days.
Sponsored by U.S. House Judiciary Committee Chairman Jerry Nadler, D-N.Y., the bill was first introduced in July 2019 and was passed by the full lower chamber via a 228-164 vote in December 2020. That marked the first time a full body of Congress voted on a broad cannabis decriminalization measure.
When House lawmakers announced their intentions last week to move forward with further consideration of the current form of the bill, NORML Political Director Morgan Fox thanked political leaders who’ve advocated for and worked toward cannabis reform.
“Advancing this legislation to deschedule marijuana and to help those individuals and communities that have borne the brunt of America’s failed prohibition is pivotal,” Fox said in a statement. “More than two-thirds of Americans support repealing the federal prohibition of marijuana and they deserve to know where our elected officials stand on this issue.”
The five amendments introduced for committee consideration include:
Rep. Dan Bishop, R-N.C., submitted a proposal that aims to require the Secretary of Transportation, in consultation with the Attorney General, to develop best practices for the recognition and testing of drivers impaired by cannabis.
Rep. Josh Gottheimer, D-N.J., submitted a proposal that aims to authorize $10 million for the National Highway Traffic Safety Administration to conduct research on technologies and methods that law enforcement may use to determine whether a driver is impaired by cannabis.
Rep. Conor Lamb, D-Pa., submitted a proposal that aims to direct the National Institute for Occupational Safety and Health (NIOSH) to conduct a study on the impact of legalization to the workplace, using states that have legalized adult-use cannabis as a guide. The amendment would also require NIOSH to develop best practices for employers as companies transition their policies related to cannabis, prioritizing employers engaged in federal infrastructure projects, transportation, public safety and national security.
Lamb submitted another proposal that aims to direct the Department of Education to conduct a study on the impact of legalization to schools and school-aged children, using states that have legalized adult-use cannabis as a guide. The amendment would also require the Department of Education to develop best practices for educators and administrators to protect children from negative impacts.
And Lamb submitted a third proposal that aims to maintain the penalties in the Controlled Substance Act for selling or providing minors with cannabis and for distributing cannabis near schools.
Like Lamb, Bishop also voted against the House’s 2020 passed version of the MORE Act, while Gottheimer voted in favor of it.
The previous version of the bill died in the Senate with then-Majority Leader Mitch McConnell, R-Ky., in the driver’s seat.
Despite the Rules Committee postponement, the MORE Act was still listed on the House calendar, as of midday March 28, as an item that may be considered this week.
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Colorado House Committee Kills Legislation to Prohibit Employers From Firing Employees for Cannabis Use
The House Business Affairs and Labor Committee rewrote House Bill 1152 before ultimately voting to indefinitely postpone the legislation.
The Colorado House Business Affairs and Labor Committee rewrote—and then ultimately killed—legislation that would have prohibited employers from firing or refusing to hire an employee based on cannabis use.
As originally introduced by Reps. Edie Hooton and Brianna Titone, House Bill 1152 would have also required employers to let their workers consume medical cannabis on the job, except in dangerous fields or jobs that require the use of heavy machinery.
The House Business Affairs and Labor Committee unanimously decided to rewrite the legislation March 24, replacing it with a proposal to create a task force that would study the use of medical cannabis in employment, according to a 9 News report.
The committee then voted, 12-1, to indefinitely postpone the bill, the news outlet reported.
"The original bill has been introduced five times in the legislature and each time it has failed,” Hooton told 9 News. “[This would have] opened up the conversation between employers and workers, which is in the best interest of both parties."
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