President Biden just made a big cannabis announcement... what does it mean?

On Thursday, President Biden announced that he will be pardoning all past offenses of simple possession of marijuana by citizens and legal residents in violation of the Controlled Substances Act. He stated that these offenses have affected “thousands” of people (the Sentencing Commission’s latest data is from 2008-2013 and it is in the low thousands).

Most cannabis possession cases are prosecuted under state law, so in his announcement, President Biden also encouraged state governors to follow his lead with regard to state offenses (which leaves less than half of the states that have not already decriminalized cannabis in one form or another).

He also called on the Attorney General and the Secretary of Health and Human Services to begin the process “to review expeditiously” how marijuana is scheduled under federal law (as it is currently schedule I, with heroin, LSD, ecstasy and peyote, as drugs that have no currently accepted medical use and a high potential for abuse, and higher than schedule II drugs like fentanyl, cocaine and methamphetamine, that have a high potential for abuse and severe psychological or physical dependence that may, however, be prescribed by a doctor for certain medical conditions). Lastly, he states his intention to keep some of the federal enforcement priorities limiting trafficking, marketing and under-age sales (see 2013 DOJ priorities, later officially withdrawn by the 2018 DOJ Memo, but mostly still followed).

While any movement in federal cannabis policy should be celebrated, is this more than a midterm election talking point? What are the possible outcomes?

As I’ve written about before, the federal illegality of cannabis is a difficult bell to unring. And while cannabis legalization is a bipartisan issue and is broadly supported by the public, it is not an easy thing to undo a century of prohibition. We had only thirteen years of alcohol Prohibition, and it was a bipartisan effort, with a constitutional amendment, federal legal action, and fifty-state and local community legislation over the better part of twenty years to pass today's alcohol regulatory scheme, which has continued to evolve throughout the modern era.

Cannabis legalization in the states is not even a decade old (Colorado and Washington’s recreational marijuana stores opened for business in 2014), and it has only been done through laboratories of democracies at the state and local level, with shifting federal agendas, complexities and ideas for the federal regulatory scheme, some of which could undo or severely frustrate state programs.  Many, many different federal cannabis bills have been proposed by congressional members from both sides of the aisle over the years, but none have been able to pass both houses.

And while the current Congress may not be able to find common ground for legalization, the DEA could do its own rescheduling, as the President is perhaps signaling, but would have to undertake a lengthy review process of scientific and medical evidence to do so, much of which may not be available given the limited research still available. Even if the DEA “reviews expeditiously” and reschedules cannabis to schedule II or III, this would disrupt the state adult use systems significantly because prescriptions would be required. A Congressional solution may be more appropriate, to create the regulatory framework and taxation system required to support things like labeling and formula approvals and licensing, like we have in the regulation of alcohol, and possibly support the more ambitious social equity goals that the Democrats are advocating.

What this means is that while Biden’s announcement is a step in the right direction, we’re still unlikely to see legalization anytime soon, unless this becomes a much bigger priority for Congress and the President. That seems unlikely in a midterm election year with the Democrats controlling the Senate by a single seat, with inflation on the rise, wars and unrest globally, and never-ending climate disasters. Until the political winds shift, we can be thankful for the states brave enough to take on cannabis legalization (especially those starting to work through interstate commerce issues like Oregon and California, in the absence of federal legalization), the businesses willing to dive into the fray, the advocates pushing for equity in the industry, and of course, the attorneys helping navigate the regulation soup, and hope they all keep working to create models for the federal government to build on when the opportunity eventually arises.

This blog is dedicated to occasional (and hopefully interesting) reports of state and national alcoholic beverage regulatory developments that we encounter in our practice. Booze Rules (and any comments below) are intended for informational use only and are not to be construed as legal advice. If you need legal advice please consult with your counsel.

  1. Strategic Exit Planning: Positioning Your Alcohol Beverage Business for Successful Acquisition or Investment
  2. New California Alcohol Laws for 2024 – a Mixed Bag of Privileges, Punishments, Clarifications, and Politics
  3. TTB Speaks up on Social Media
  4. Alcohol Trade Practices Update
  5. President Biden just made a big cannabis announcement... what does it mean?
  6. The Uniform Law Commission – Encouraging Consistent State by State Definitions, Protocols and Procedures
  7. San Francisco to the Governor - Review the RBS Program and Delay Implementation. Problems must be Corrected.
  8. TTB and Consignment Sales – Is There a Disconnect Between Policy Development and Business Reality?
  9. RBS ADDENDUM – THE LATEST FROM THE ABC AS THE AGENCY PROVIDES MORE INFORMATION ON THE CALIFORNIA ABC’S MANDATORY RESPONSIBLE BEVERAGE SERVER PROGRAM
  10. THE STATE OF TO-GO BOOZE IN CALIFORNIA
  11. BOOZE RULES SPECIAL EDITION – THE RESPONSIBLE BEVERAGE SERVICE PROGRAM FACTS AND REQUIREMENTS
  12. Competition in the Beverage Alcohol Industry Continues Under the Microscope – Part 3
  13. Competition in the Beverage Alcohol Industry Under the Microscope – Part 2
  14. Competition in the Beverage Alcohol Industry Now Under the Microscope
  15. Alcohol Marketplaces 2.0 Part 5: Looking Ahead
  16. It’s Time for a Regulatory Check-Up: Privacy Policies for email marketing and websites
  17. Alcohol Marketplaces 2.0 Part 4: Who’s responsible for ensuring legal drinking age?
  18. Alcohol Marketplaces 2.0 Part 3: Follow the Money
  19. BOOZE RULES 2021 – NEW CONTAINER SIZES APPROVED FOR ALCOHOLIC BEVERAGES: KEEPING TRACK OF THE TTB’S ATTEMPTS TO REGULATE CONTANER SIZES
  20. Alcohol Marketplaces 2.0 Part 2: Collect sales tax from marketplaces or comply with alcohol guidance?
  21. Alcohol Marketplaces 2.0 Part 1: Solicitation of sales by unlicensed third-party providers
  22. Federal Cannabis Legalization Fortune-Telling
  23. BOOZE RULES – THE DIRECT SHIPPING WARS
  24. California ABC provides additional Covid guidance on virtual events and charitable promotions
  25. Hot Topics for Alcohol Delivery 2020
  26. California Reopening Roadmap is Now a Blueprint for a Safer Economy
  27. The Hospitality Reopening Roadmap to Success
  28. Salads Not A Meal in California, Says ABC
  29. Delivery Personnel Beware – The ABC is Coming for You and for the Licensees Hiring You to Deliver Alcoholic Beverages - This Time Its Justified
  30. Licensees Beware – the Harsh New ABC Enforcement Rules Are Effective Right Now
  31. Part 2: LEGAL FAQS ON REOPENING CA RESTAURANTS, BREWPUBS, BARS AND TASTING ROOMS
  32. John Hinman’s May 22, 2020 interview with Wine Industry Advisor on the ABC COVID-19 Regulatory Relief initiatives and the ABC “emergency rule” proposals
  33. Booze Rules May 21 - The Latest on the ABC Emergency Rules
  34. Part 1: Legal FAQs on Reopening CA Restaurants, Brewpubs, Bars and Tasting Rooms
  35. The ABC’s Fourth Round of Regulatory Relief - Expanded License Footprints Through Temporary COVID-19 Catering Authorizations, and Expanded Privileges for Club Licensees
  36. BOOZE RULES – May 17, 2020 Special Edition
  37. ABC ENFORCEMENT - ALIVE, ACTIVE AND OUT IN THE COMMUNITY
  38. Frequently Asked Questions about ABC’s Guidance on Virtual Wine Tastings
  39. ABC Keeps California Hospitality Industry Essential
  40. ABC REGULATORY RELIEF – ROUND TWO – WHAT IT MEANS
  41. Essential Businesses Corona Virus Signage Requirement Every Essential Business in San Francisco Must Post Sign by Friday, April 3rd
  42. Promotions Compliance: Balancing Risk and Reward
  43. The March 25, 2020 ABC Guidance: Enforcement Continues; Charitable Giving Remains Subject to ABC Rules; and More – What Does it all Mean?
  44. Restaurant and Bar Best Practices – Surviving Covid 19, Stay at Home and Shelter in Place Under the New ABC Waivers
  45. Economically Surviving the Covid Crisis and the Shelter in Place Orders: A Primer on Regulatory interpretations and Options
  46. Booze Rules – Hinman & Carmichael LLP and the Corona Virus
  47. Booze Rules: 2020 and the Decade to Come – Great Expectations (with apologies to Charles Dickens)
  48. The RBS Chronicles: If Your Business serves Alcoholic Beverages YOU NEED TO READ THIS AND TAKE ACTION!
  49. RESPONSIBLE BEVERAGE SERVICE ACT HEARING – OCTOBER 11TH IN SACRAMENTO – BE THERE!
  50. WHEN THE INVESTIGATOR COMES CALLING – BEST PRACTICES.
  51. RESPONSIBLE BEVERAGE SERVICE ACT PROPOSED ABC RULES 160 TO 173 – WHY THE RUSH?
  52. The TTB Crusade Against Small Producers and the “Consignment Sale” Business Model
  53. TTB Protocols, Procedures, and Investigations
  54. Wine in a 250 ML can – the Mystery of the TTB packaging Regulations and Solving the Problem by Amending the Regulations
  55. The Passing of John Manfreda of the TTB: a Tragedy for his family and a Tragedy for the Industry he so Faithfully Served for so Long.
  56. Pride in a Job Well-done, or Blood Money? The Cost of Learning the Truth from the TTB about the Benefits to Investigators from Making Cases Against Industry Members
  57. How ADA Website Compliance Works – The Steps You Can Take to Protect Yourself, Your Website and Your Social Media from Liability
  58. Supplier and Distributor Promotional “Banks,” Third Party Promotion Companies and Inconsistent TTB Enforcement, Oh My!
  59. “A Wrong Without a Remedy – Not in My America” – The TTB Death Penalty for Not Reporting Deaths
  60. Is a 1935 Alcohol Beverage Federal Trade Practice Law Stifling Innovation?
  61. Decoding the BCC’s Guidance on Commercial Cannabis Activity.
  62. Prop 65 - Escaping a "Notice of Violation"
  63. TTB Consignment Sales Investigations - What is Behind the Curtain of the TTB Press Releases?
  64. Heads Up! The ABC Is Stepping Up Enforcement Against Licensees Located Near Universities
  65. Coming Soon: New Mandatory Training Requirements for over One Million “Alcohol Servers” In California – September 1, 2021 will be here quickly
  66. 2019 Legislative Changes for California Alcohol Producers – a Blessing or a Curse?
  67. A Picture (On Instagram) Is Worth A Thousand Words
  68. Playing by the Rules: California Cannabis Final Regulations Takeaways
  69. Hinman & Carmichael LLP Names Erin Kelleher Partner and Welcomes Gillian Garrett and Tsion “Sunshine” Lencho to the Firm
  70. Congress Makes History and Changes the CBD Game for Good
  71. Pernicious Practices (stuff we see that will get folks in trouble!) Today’s Rant – Bill & Hold
  72. CBD: An Exciting New Fall Schedule… or Not?
  73. MISSISSIPPI RISING - A VICTORY FOR LEGAL RETAILER TO CONSUMER SALES, AND PASSAGE OF TITLE UNDER THE UNIFORM COMMERCIAL CODE
  74. California ABC's Cannabis Advisory - Not Just for Stoners
  75. NEW CALIFORNIA WARNINGS FOR ALCOHOLIC BEVERAGES AND CANNABIS PRODUCTS TAKE EFFECT AUGUST 30, 2018, NOW INCLUDING ADDENDUM REGARDING 2014 CONSENT AGREEMENT PARTIES AND PARTICIPANTS
  76. National Conference of State Liquor Administrators – The Alcohol Industry gathers in Hawaii to figure out how to enforce the US “Highly Archaic Regulatory Scheme.”
  77. Founder John Hinman Honored with the Raphael House Community Impact Award
  78. ROUTE TO MARKET AND MARKETING RESTRICTIONS - NAVIGATING REGULATORY SYSTEM CONSTRAINTS
  79. Alcohol and Cannabis Ventures: Top 5 Legal Considerations
  80. ATF and TTB: Is Another Divorce on the Horizon? What’s Going on with the Agency?
  81. STRIKE 3 - YOU REALLY ARE OUT! THE ABC'S STRICT APPLICATION OF PENALTIES FOR SALES TO MINORS
  82. TTB Temporarily Fixes Problem with Fulfillment Warehouse Tax Credits - an “Alternate Procedure” for Paying Taxes & Reporting
  83. CUSTOMERS WHO HAVE HAD ONE TOO MANY - THE FREE TRANSPORTATION DILEMMA
  84. The Renaissance of Federal Unfair Trade Practices - Current Issues and Strategies
  85. ‘Twas the week before New Year’s and the ABC is out in Force – Alerts for the Last Week of 2017, including the Limits on Free Rides
  86. Big Bottles, Caviar and a CA Wine Strong Silent Auction for the Holidays!
  87. The FDA and the Wine and Spirits Industry – Surprise inspections anyone?
  88. NORTHERN CALIFORNIA WILDFIRES: UPDATED REGULATORY AGENCY DISASTER RELIEF RESOURCES AT A GLANCE
  89. NORTHERN CALIFORNIA WILDFIRES: REGULATORY AGENCY DISASTER RELIEF RESOURCES AT A GLANCE
  90. Soon to come to your Local Supermarket– Instant Redeemable Coupons of the digital age!
  91. The License Piggyback Dilemma – If it Sounds Too Good to be True, it Probably is
  92. A timely message from our Florida colleagues on the tied house laws, the three-tier system and the need for reform
  93. ABC Declaratory Rulings – A Modest Proposal Whose Time has Come
  94. More on FDA Inspections - Breweries, Distilleries and Questions
  95. WHY THE FDA IS INSPECTING WINERIES
  96. Senate Bill 378—The Proposed Demise of Due Process for Alcohol Licensees
  97. ABC Enforcement - Trends and Predictions
  98. The Corruption Chronicles – Volume One: A New Hope
  99. New Alcohol Delivery Oversight on the Horizon
  100. Michigan: Canary in the DtC Coal Mine?