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DEA judge sends marijuana rescheduling dispute to administrator

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A Drug Enforcement Administration judge has forwarded a legal challenge over the ongoing marijuana rescheduling process to the agency’s administrator. The move comes amid a federal leadership transition that could affect who ultimately decides how the reclassification will play out.

Chief Administrative Law Judge John J. Mulrooney II transmitted a legal appeal to DEA Administrator Anne Milgram last week, though Milgram has since stepped down from the role. She was replaced by interim administrator George Papadopoulos, according to Marijuana Moment. Marijuana rescheduling proceedings were halted just days before hearings were set to begin.

“The denied relief included a petition to have you and your agency removed as the proponent of the [notice of proposed rulemaking],” Mulrooney wrote to Milgram.

The DEA and Smart Approaches to Marijuana, a leading anti-legalization group cited in bias allegations, have both previously rejected claims of improper behind-the-scenes communication.

Mulrooney also recommended in his transmittal letter that “in addition to the Government and the Interlocutory Appellants, all Designated Participants be included in any briefing schedule” issued by the administrator. The judge noted that no hearing had been conducted on the bias allegations and “no evidence or testimony was received on the underlying factual allegations.”

There’s confusion over who actually supported the challenge, as well. The judge wrote that a “clerical and communication error” had misrepresented the position of key participants. Ellen Brown of the Massachusetts Cannabis Advisory Board and a company called My Florida Green were incorrectly listed as supporting an appeal motion filed by their consolidated group, which is led by the Connecticut Office of the Cannabis Ombudsman and sought to remove the DEA from its role overseeing the rescheduling process.

Since Brown was previously deemed ineligible to participate in the hearings independently and could only proceed as part of the consolidated group, being separated from that group left her “in quite a pickle,” Mulrooney wrote. She now has “no viable role in the hearing proceedings” unless she can find another way to participate.

The leadership uncertainty comes as President Donald Trump seeks a permanent DEA head. His previous nominee, Florida Sheriff Chad Chronister of Hillsborough County, withdrew from consideration last month amid scrutiny from conservative lawmakers over his COVID-19 enforcement record.

The rescheduling process is also unfolding in the shadow of wider policy visions materializing within the new Trump administration. Robert F. Kennedy Jr., who is Trump’s nominee to lead the Department of Health and Human Services, is poised to inherit an agency recommendation that helped kick off the rescheduling process last year.

Both sides must update the tribunal on the appeal’s status every 90 days while the proceedings remain paused. The process now moves to agency leadership’s control, including decisions on briefing schedules and possible oral arguments.

2286000-2286030-marijuanaresched_letter with enclosures to administrator anne milgram from dea alj re transmittal of
2286000-2286030-marijuana rescheduling_order regarding interlocutory appellant brown_s notice



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Nebraska medical cannabis regulations stall in legislative committee

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A Nebraska legislative committee voted 5-3 against advancing a bill designed to implement and regulate the state’s medical cannabis program, leaving legislators and advocates searching for alternative paths forward, according to the Nebraska Examiner.

The General Affairs Committee rejected Legislative Bill 677, sponsored by State Sen. Ben Hansen of Blair, during a Thursday vote where committee members declined to offer amendments to the legislation, the publication reported.

“I don’t want to shut all the doors right now, but some doors are closing, and they’re closing fast, and so we have to act,” Hansen told reporters after the vote, according to the Examiner.

Nebraska voters approved medical cannabis in November 2024, with residents legally permitted to possess up to 5 ounces with a healthcare practitioner’s recommendation since mid-December. However, the regulatory commission created by the ballot initiative lacks effective power and funding to regulate the industry.

Hansen described his legislation as “a must” for 2025 to prevent a “Wild West” scenario in the state’s cannabis market. The bill would have expanded regulatory structure through the Nebraska Medical Cannabis Commission and extended deadlines for regulations and licensing to allow more time for implementation, the Examiner noted.

Committee disagreements centered on proposed restrictions. A committee amendment would have prohibited smoking cannabis and the sale of flower or bud products while limiting qualified healthcare practitioners to physicians, osteopathic physicians, physician assistants or nurse practitioners who had treated patients for at least six months.

The amendment also would have limited qualifying conditions to 15 specific ailments including cancer, epilepsy, HIV/AIDS, and chronic pain lasting longer than six months.

State Sen. Bob Andersen of Sarpy County opposed allowing vaping due to concerns about youth drug use, while committee chair Rick Holdcroft suggested selling cannabis flower would be “a gateway toward recreational marijuana,” a claim Hansen “heavily disputed,” according to the Examiner.

Hansen now faces a difficult path forward, requiring at least 25 votes to pull the bill from committee and then needing 33 senators to advance it across three rounds of debate, regardless of filibuster attempts.

Crista Eggers, executive director of Nebraskans for Medical Marijuana, remained optimistic despite the setback.

“This will not be the end,” Eggers said, according to the outlet. “Giving up has never been an option. Being silenced has never been an option. It’s not over. It’s not done.”

The legislative impasse is further complicated by ongoing litigation. Former state senator John Kuehn has filed two lawsuits challenging the voter-approved provisions, with one appeal pending before the Nebraska Supreme Court. The state’s Attorney General is also trying to do something about the hemp question, akin to other states across the country.



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One of Las Vegas’ cannabis lounges closes its doors

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Nevada’s cannabis lounge experiment faces some expected growing pains, with one of just two state-licensed venues closing its doors after barely a year in business, according to the Las Vegas Weekly.

“The regulatory framework, compliance costs and product limitations just don’t support a sustainable business model,” said Thrive Cannabis managing partner Mitch Britten, who plans to convert the space into an event venue until regulations loosen up.

The closure leaves Planet 13’s Dazed Consumption Lounge as the only operational state-regulated cannabis lounge in Nevada. Dazed manager Blake Anderson estimates the venue attracts around 250 customers daily, primarily tourists. One other establishment, Sky High Lounge, has operated since 2019 on sovereign Las Vegas Paiute Tribe land exempt from state regulations.

Even with Nevada regulators conditionally approving 21 more lounge licenses, potential owners are struggling to meet the $200,000 liquid assets requirement – particularly social equity applicants from communities hit hardest by prohibition.

Recreational marijuana has been legal statewide since 2017, but public consumption remains prohibited. That’s created an obvious disconnect for the millions of tourists who visit Las Vegas annually but have nowhere legal to use the products they purchase. The state recorded roughly $829 million in taxable sales during the 2024 fiscal year.

“It always comes down to money, and it’s difficult to get a space if you can’t afford to buy a building. On top of that, getting insurance and finding a landowner who’s willing to lease to a cannabis business is a challenge in and of itself,” said Christopher LaPorte, whose consulting firm Reset Las Vegas helped launch Smoke and Mirrors, told Las Vegas Weekly.

Many think the key to future success lies in legislative changes that would allow lounges to integrate with food service and entertainment – playing to Las Vegas’s strengths as a hospitality innovator. In the meantime, the industry will continue to adapt and push forward.

“Things take time,” LaPorte said. “There’s a culture that we have to continue to embrace and a lot of education that we still have to do. But at the end of the day, tourists need a place to smoke, and that’s what these places are.”



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Psyence Group consolidates its shares

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Psyence Group Inc. (CSE: PSYG) told investors that it will be consolidating all of its issued and outstanding share capital on the basis of every 15 existing common shares into one new common share effective April 23, 2025 with a record date of April 23, 2025. As a result of the consolidation, the issued and outstanding shares will be reduced to approximately 9,387,695 on the effective date.

This is the second time a Psyence company has consolidated shares recently. In November, its Nasdaq-listed associate, Psyence Biomedical Ltd. (Nasdaq: PBM), implemented a 1-for-75 share consolidation as the psychedelics company worked to maintain its Nasdaq listing.

Psyence Group reported earnings in February when the company delivered a net loss of C$3 million and was reporting as a going concern. At the end of 2024, the company said it had not yet achieved profitable operations, has accumulated losses of C$48,982,320 since its inception.

Total assets at the end of 2024 were C$11,944,478 and comprised predominantly of: cash and cash equivalents of C$10,611,113, other receivables of C$159,808, investment in PsyLabs of C$1,071,981 and prepaids of C$68,243.

Still, the company is pushing ahead. Psyence told investors that it has historically secured financing through share issuances and convertible debentures, and it continues to explore funding opportunities to support its operations and strategic initiatives. “Based on these actions and
management’s expectations regarding future funding and operational developments, the company believes it will have sufficient resources to meet its obligations as they become due for at least the next twelve months,” it said in its last financial filing.

The company said it believes that the consolidation will position it with greater flexibility for the development of its business and the growth of the company.

 



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