Thursday, September 25, 2014
Pray for Lawyers . . . It Probably Can't Hurt
JUDGES, LAWYERS, law professors, court personnel, and students gathered at St. Patrick Cathedral in Fort Worth Thursday night for the annual Red Mass. The celebration -- held in many dioceses around the country -- offers up prayers that those who work in the justice system work for, well, justice. The guest speaker was Bishop Daniel Flores of Brownsville, who offered a well-known parable as particularly apt for those in our business:
And now a lawyer stood up and, to test him, asked, "Master, what must I do to inherit eternal life?" [Jesus] said to him, "What is written in the Law? What is your reading of it?"
[The lawyer] replied, "You must love the Lord your God with all your heart, with all your soul, with all your strength, and with all your mind, and your neighbor as yourself."
Jesus said to him, "You have answered right, do this and life is yours."
But the man was anxious to justify himself and said to Jesus, "And who is my neighbor?"
In answer Jesus said, "A man was once on his way down from Jerusalem to Jericho and fell into the hands of bandits; they stripped him, beat him and then made off, leaving him half dead. Now a priest happened to be traveling down the same road, but when he saw the man, he passed by on the other side. In the same way a Levite who came to the place saw him, and passed by on the other side. But a Samaritan traveler who came on him was moved with compassion when he saw him. He went up to him and bandaged his wounds, pouring oil and wine on them. He then lifted him onto his own mount and took him to an inn and looked after him. Next day, he took out two denarii and handed them to the innkeeper and said, ‘Look after him, and on my way back I will make good any extra expense you have.’ Which of these three, do you think, proved himself a neighbor to the man who fell into the bandits' hands?"
He replied, "The one who showed pity towards him."
Jesus said to him, "Go, and do the same yourself."
September 25, 2014 | Permalink | Comments (0)
No Bankruptcy Relief for Colorado Marijuana Business
When business turns bad, bankruptcy relief is often the last line of defense for the owner. But that's not the case if the business involves marijuana. Doug Berman at Marijuana Law & Policy Blog notes that a federal bankruptcy court tossed the petition of an insolvent grower because the business, while legal under state law, violated federal law:
This new Denver Post article, headlined "Judge denies bankruptcy protection to Denver marijuana business," highlights another notable business problem created by the conflict between state and federal marijuana laws. Here are the basics:
A U.S. bankruptcy judge has dismissed the case of a Denver marijuana business owner, saying that although his activities are legal under Colorado law, he is violating the federal Controlled Substances Act. In dismissing the case, filed in U.S. Bankruptcy Court in Denver by Frank Anthony Arenas, Judge Howard Tallman said he realizes the "result is devastating for the debtor."
The Arenas case is at least the second such one involving a marijuana business tossed out of bankruptcy court in Colorado. At least two others have been dismissed in California.
As Doug says, this is a very, very serious problem. Many small business owners can be personally liable for debts they personally guarantee or torts committed by their businesses, even if they operate through corporate form. If bankruptcy protection isn't available when the business fails, they can at least preserve something through filing for bankruptcy. But if they can't, virtually all of the cannabis owner's assets may be seized to satisfy debts, and they may wind up still owing substantial amounts for the rest of their lives.
September 25, 2014 | Permalink | Comments (0)
No, Marijuana Does Not Necessarily Make You Smarter . . . .
YOU KNOW, I KNEW I FORGOT SOMETHING . . . . Anyone who's traveled much has probably left something in a rental car sometime or other. But David Ung of Albuquerque, N.M., almost certainly set a new standard by leaving "several black trash bags" stuffed with "139 pounds of 'high grade' marijuana" in the trunk of a vehicle he returned to Hertz Rent-A-Car. Hertz employees found the bags and called police.
Things got worse when Ung returned later for the stuff, explaining that "he left a bag inside the vehicle." And there went the "I have no idea who put that in my trunk" defense . . . .
September 25, 2014 | Permalink | Comments (0)
Daily News Roundup
Marijuana Blamed in Race Driver Death: "Toxicology reports revealed [pro sprint car driver] Kevin Ward Jr., was under the influence of marijuana on the night he was struck and killed by a sprint car driven by Tony Stewart, Ontario County (N.Y.) District Attorney Michael Tantillo said Wednesday. At a news conference to announce that a grand jury had declined to indict Stewart in Ward’s death, Tantillo said the level of marijuana in Ward’s system was high enough to impair judgment."
PA Senate Passes Medical Marijuana Bill: "After an emotionally charged debate, Pennsylvania state senators overwhelmingly passed legislation Wednesday to legalize several forms of medical marijuana, although the legislative session is growing short, House Republican leaders are skeptical of the bill, and Gov. Tom Corbett opposes it."
Marijuana Hallucinations Blaimed For Teen's Butchery of Mom: "A 16-year-old boy who killed his mother with a hammer and a pair of scissors was suffering from a mental illness triggered by smoking cannabis, the Old Bailey was told yesterday. The boy, who started smoking the illegal drug when he was 13, had developed dark hallucinations and believed he could hear magical spirits telling him to attack his mother and cut her heart out with a pair of scissors "to make sure that she was dead."
Chicago Mayor Nixes Legalization: "Mayor Rahm Emanuel on Wednesday knocked down potential challenger Karen Lewis' idea to legalize and tax marijuana, saying he doesn't "think you should balance the budget by promoting recreational smoking of pot." The mayor's comments came a day after he proposed a statewide easing of penalties for possessing small amounts of illegal narcotics including heroin and cocaine, and asked state lawmakers to adopt Chicago's ordinance allowing police to issue tickets rather than arresting people caught with fewer than 15 grams of marijuana."
Teens Smoking Marijuana Caused Forest Fire, Say Officers: "Corvallis, Oregon, police say two juveniles who had been smoking marijuana in a park have been charged for what prosecutors say were their roles in starting a Sept. 5 fire that burned 86 acres of public and private land. The Corvallis Gazette-Times says the 15-year-old and 16-year-old have been charged with misdemeanor counts in juvenile court."
Training Non-Canine Citizens to Sniff Out Marijuana: "Cannabis smelling 'scratch and sniff' cards are being distributed by police officers in Northern Ireland to help shut down the increasing number of factories making the drug across the region. The PSNI said the cards would help the public detect cannabis production plants. The scratchcard contains an element that replicates the smell of cannabis in its growing state, which is a different smell to when it is being smoked. Beside the circle on the card where the public can "scratch and sniff" the cannabis odour is an assurance from the PSNI that "it’s completely safe; there are no drugs in the card, it’s just the smell of the plant."
Serbia May Legalize "Soon": "Marijuana could soon be legalized in Serbia. Minister of Health Zlatibor Loncar will open a discussion about the change of legislation when it comes to marijuana and its use in medicine, reported Blic."
British Teens Hospitalized After Using Synthetic Cannabis in e-Cigarette: "Two teenagers collapsed after smoking what is believed to be synthetic cannabis from an e-cigarette. The pair, aged 14 and 15, were taken to Carlisle's Cumberland Infirmary for treatment."
September 25, 2014 | Permalink | Comments (0)
Oaksterdam Launches New Cannibis Industry Blog
The folks at Oaksterdam University, "America's First Cannibis College," have launched a new blog, Cannibis Industry Today. Oaksterdam, which provides training for both amateur and professional marijuana growers, leads off with a post entitled "Why Quality Training Matters in a Growing Marijuana Industry":
With an estimated $2 billion in annual sales nationwide expected from medical marijuana in 2014, the rapid growth of the U.S. marijuana industry is generating hundreds of new jobs now, according to High Times.Currently the most popular marijuana jobs are with dispensaries; jobs such as budtenders, cultivation experts, management, security, inventory and packaging, and administrative.
In addition to opportunities, and until states figure out how to regulate the industry, misinformation and ambiguous laws are prevalent. Launching a medicinal marijuana business or finding a job in the industry are likely to come with frustration without quality cannabis training.
Well, to be fair, in the present regulatory environment launching a cannibis business is going to cause would-be entrepreneurs a lot of headaches regardless, but training certaintly won't hurt.
September 25, 2014 | Permalink | Comments (0)
Florida Debate on Medical Marijuana
Florida voters will be going to the polls in November to vote on Amendment 2, legalizing medical marijuana. Here's an interesting TV debate on the pros and cons of the measure, which opponents say has too many "loopholes" that would allow use by those who don't actually have medical needs.
September 24, 2014 | Permalink | Comments (0)
Daily News Roundup
PHOENIX BUSINESS JOURNAL: "Six years after approving medical marijuana, Arizonans may have a chance to decide whether to legalize cannabis for recreational use. KTAR.com reports a group seeking to legalize marijuana in Arizona filed paperwork this past week with the state that allows it to seek contributions and draft the proposed initiative."
CHICAGOIST: "How great is the demand for medical marijuana dispensary licenses in Illinois? So much they may rival the iPhone 6 in popularity right now. Monday was the last day to apply for dispensary licenses under the state’s Medical Cannabis Pilot Program and state officials were seemingly unprepared for the rush of last-minute applicants, all of them with a backbreaking load of paperwork and a non-refundable $5,000 application fee in tow."
SFGATE: "The group that regulated cannabis like alcohol for adults 21 and over in Colorado in 2012 has filed paperwork do begin doing the same in California. The Washington D.C.-based Marijuana Policy Project announced this morning they’ve filed paperwork with the state to form the Marijuana Policy Project of California. MPP California will begin immediately raising funds for the 2016 election, as well as work with its partners in and out of the state."
WESA 90.5: "A proposal to legalize certain kinds of medical marijuana will go to the full [Pennsylvania] Senate for consideration Wednesday. Republican Senate Majority Leader Dominic Pileggi said he expects the measure to pass after it received overwhelming and bipartisan approval from the Senate Appropriations Committee Tuesday afternoon."
NEW YORK DAILY NEWS: "Charlo Greene's medical marijuana got a 4-year-old girl sick, according to an outraged Alaska father who has reportedly filed a restraining order against the recently revealed pot advocate. The former KTVA reporter, who revealed herself to be the head of a medical marijuana supplier before quitting on live TV Sunday, is accused of smoking so much pot that it practically fumigated her neighbors."
VOX: "Does using marijuana as a teen make you dumber? . . . Correlation doesn't equal causation, but there's some reason to believe in causation."
SYDNEY CITY NEWS: "Greens [New South Wales] MP John Kaye has announced he will be introducing his own legislation to parliament to challenge the government to take steps to broaden the availability of medicinal cannabis. Mr Kaye has expressed his belief that medicinal cannabis should be available to those with debilitating conditions as well as chronic and terminal illnesses."
September 24, 2014 | Permalink | Comments (0)
Banks Caught in the Middle of the Marijuana Debate
One of the biggest practical difficulties facing the state-legal-but-federally-illegal marijuana business is how to handle the money. It's been widely noted that banks are concerned that knowingly accepting funds from such businesses can leave them open to a variety of problems, from seizures of property to liability for money laundering.
In a forthcoming paper in the Case Western Law Review -- which I highly recommend -- Alabama Law's Julie Anderson Hill (left) takes a good look at the problems besetting banks and their customers. Here's the abstract of "Banks, Marijuana, and Federalism":
Although marijuana is illegal under federal law, twenty-three states have legalized some marijuana use. The state-legal marijuana industry is flourishing, but marijuana-related businesses report difficulty accessing banking services. Because financial institutions won’t allow marijuana-related businesses to open accounts, the marijuana industry largely operates on a cash only basis — a situation that attracts thieves and tax cheats.
This article explores the root of the marijuana banking problem as well as possible solutions. It explains that although the United States has a dual banking system comprised of both federal- and state-chartered institutions, when it comes to marijuana banking, federal regulation is pervasive and controlling. Marijuana banking access cannot be solved by the states acting alone for two reasons. First, marijuana is illegal under federal law. Second, federal law enforcement and federal financial regulators have significant power to punish institutions that do not comply with federal law. Unless Congress acts to remove one or both of these barriers, most financial institutions will not provide services to the marijuana industry. But marijuana banking requires more than just Congressional action. It requires that federal financial regulators set clear and achievable due diligence requirements for institutions with marijuana business customers. As long as financial institutions risk federal punishment for any marijuana business customer’s misstep, institutions will not provide marijuana banking.
September 23, 2014 | Permalink | Comments (0)
Regulating (or Retarding) Investment in the Cannabis Industry
Via the Social Science Research Network, Adrian Ohmer's recent paper in the Michigan Journal of Private Equity & Venture Capital Law, "Investing in Cannabis: Inconsistent Government Regulation and Constraints on Capital." Here's the abstract:
An analysis of recreational cannabis legislation, the regulatory bodies governing capital flows, and potential effects on the nascent industry.
Cannabis “is America’s most valuable (cash crop), worth an estimated $35 billion, more than hay, soybeans, and corn” and has enormous potential value not only for businesses, but also for state and federal governments via tax revenue. However, since 1970, the government has spent $1 trillion on the War on Drugs. Even though President Obama’s administration declared the War on Drugs over in 2009, his drug interdiction budget request for FY 2011 was still $15.55 billion, a 3.5 percent increase from FY 20107 and a (nominal) 17.1 percent increase from FY 2008. Indeed, $10 billion was earmarked for law enforcement. Furthermore, it is estimated that the United States spends “$13.7 billion per year enforcing marijuana laws alone, the total price of both state and federal expenditures on interdiction efforts and the cost of incarceration.”
September 23, 2014 | Permalink | Comments (0)
Daily News Roundup
WASHINGTON POST: "A newly launched campaign to allow for the recreational use of marijuana in Arizona in 2016 is just the latest in what will likely be a slew of state-level legalization efforts for the next election cycle."
HARTFORT COURANT: "Nearly two years after it was legalized, the first sales of medical marijuana were rung up in Connecticut Monday, ending more than 80 years of a wide-ranging ban on the substance"
ASSOCIATED PRESS: "Albania's Interior Ministry says the country's authorities have destroyed marijuana of an estimated market value of 6.4 billion euro ($8.2 billion) this year — more than 60 percent of the country's annual GDP."
BBC NEWS: "Patricia Hewitson from Exmouth, Devon, unwittingly grew a 5ft (1,5m) tall
cannabis plant from a pack of bird seeds."
BOSTON GLOBE: "Patients seeking access to marijuana said Monday that they are so frustrated dispensaries have yet to open, nearly two years after Massachusetts voters legalized medical use of the drug, that they are considering suing the administration of Governor Deval Patrick."
ABCNEWS: "Seattle's elected prosecutor said Monday he's dropping all tickets issued for the public use of marijuana through the first seven months of this year, because most of them were issued by a single police officer who disagrees with the legal pot law."
September 23, 2014 | Permalink | Comments (0)
Homeless Texans Moving to Colorado . . . to Buy Weed
Texas, with its relatively warm winters, has traditionally been a draw for homeless people faced with brutal northern cold. But legalized recreational marijuana has apparently reversed the flow, with hundreds of the Texas homeless making their way to the Centennial State. Occupancy in Colorado homeless shelters is up sharply, and the biggest part of the influx seems to be from Texas, according to a report from Channel 2 News Houston.
"We were averaging 190 people a night. Now we are averaging 345 people a night," said Murray Flagg, the Salvation Army Intermountain Divisional secretary for social services.
The shelter recently started using an old storage room to house the extra people.
"We find about one in four people have come for some marijuana related issue," Flagg said.
September 23, 2014 | Permalink | Comments (0)
The Nose Knows . . . or Maybe Not
Over at LeafOnline, law student Kayla Brown (a/k/a CannabisLawGirl) runs down some recent case law on whether the "smell of marijuana" is enough to establish probable cause for a police officer to stop and search:
Police officers are known for their incredible sense of smell, or rather, their use of “the smell of marijuana” as probable cause to search cars and houses. Recent case law alters this practice by declaring “the smell of marijuana alone” insufficient probable cause for searching a home in Texas, according to 2013 appellate court case Turrubiate v. State. In this case, the police officers arrested the defendant based on a warrantless search of the defendant’s home stemming from a strong odor of marijuana and the presence of children. However the presence of the children was not deemed to be the ‘motivating factor’ for the police entry into the home. The holding from this case establishes, in Texas, that the smell of marijuana alone without an exigent circumstance is insufficient probable cause for a warrantless search.
Massachusetts evaluated the olfactory question as it relates to the smell of unburnt marijuana in a vehicle. Due to the medicinal statute in 2008, Massachusetts ruled early on that the smell of marijuana is ‘no longer indicative of criminal activity’ and therefore is no longer justifiable probable cause. Two distinct cases, Commonwealth v. Craan and Commonwealth v. Overmeyer established that the unburnt smell of marijuana is no longer probable cause sufficient enough for a warrantless search.
September 23, 2014 | Permalink | Comments (0)
Take This Job and Shove It
An Alaska TV reporter who also happens to be the owner of the "Alaska Cannabis Club" made something of sensation over the weekend with a "f*** it" on-air resignation. Marijuana Law & Policy has the details here.
The reporter, Charlo Greene of KTVA 2 Anchorage, later explained her actions:
September 23, 2014 | Permalink | Comments (0)
Sunday, September 21, 2014
Marijuana Ad of the Day
Maureen Dowd, the New York Times columnist who had a really, really bad experience with a chocolaty-caramel cannabis candy bar, has suddenly become the billboard spokesmodel for the "use responsibly" movement.
Dowd is a year older than me . . . . Senior citizens like us should go slow, given how much more potent the stuff is than when we were in college.
September 21, 2014 | Permalink | Comments (0)
Marijuana and Community Development in Minnesota
While municipalities in Illinois are lining up to get a piece of the action on medical marijuana, their more restrained northern neighbors in the Gopher State are also hoping to make a nice profit from a new industry that won't be outsourced to Texas to China. Minnesota Public Radio News is reporting that Cottage Grove, a suburb of St. Paul, has inked an agreement with a private company to bring a facility to the city's own business park.
Cottage Grove hopes the proposed 24-acre facility will ultimately be the site of a 105,000 sq. ft. facility that may employ up to 150 people. Interestingly, the proposed developer -- Leafline Labs LLC -- is headed up by members of the the highly regarded Twin Cities Bachman family, which owns and operates the Bachman’s Floral Gift & Garden stores in the Twin Cities.
The deal presumably would go forward if Leafline is one of the two producers that the state department of health plans to license to run these facilities.nnesota is taking applications from potential
September 21, 2014 | Permalink | Comments (0)
Saturday, September 20, 2014
Boots on the Ground for Local Communities
MARIJUANA LAW, POLICY & REFORM: Our colleague Rebecca Pressman has the details of a conference call among local Colorado officials who are dealing with implementing the marijuana laws:
The topic of the conference call was "the cultural and logistical issues facing local governments that legalize the use of marijuana." Darin Atteberry, city manager for Fort Collins, Colo.; Jane Brautigam, city manger for Boulder, Colo.; David Timmons city manager for Port Townsend, Wash.; and Bill Kirchhoff, a municipal advisor from Coronado, California commented on their experiences implementing recreational and medical marijuana laws.
September 20, 2014 | Permalink | Comments (0)
"Pay For Play" In Chicago for Marijuana Dispensaries
Where there’s money to be made, government entities who have the power to grant or withhold that profit will always want a cut. That's apparently the case in Illinois, where the practice of side deals with city elders has already taken root in the new world of medical marijuana.
A story in the Chicago Tribune (behind paywall) documents that cities and other localities in the Chicagoland area using their zoning power to get “donations” and “special contributions” from those who are seeking permits. Some communities even have what seem to be regular tariff schedules for getting their approval. In McHenry, for example, the town wants 1.75% of net earnings in the first year, 3.5% after that, and an additional $10,000 a year “donation” to its Riverwalk and museum. That may be a bargain compared to Elk Grove, where the tab is even heftier—$75,000 up front and up to 5% of gross sales. (Elk Grove--whose village trustees are pictured here--happens to straddle two counties and thus could host two dispensaries, making it especially attractive.)
The pay-to-play—which the Trib wryly notes is not unheard-of in Chicagoland—is the result of the state’s plan to license up to 21 cultivation centers and 60 dispensaries around the state. Applicants get a preference if they can show that they’ve already got a location approved.
The potential cannabis growers and dispensers say they’re “happy” to make these sorts of deals. An open competitive system would presumably lower costs (and thus prices) for the dispensary products, but deals like this help ensure that local officials have a financial stake in keeping profits up.
September 20, 2014 | Permalink | Comments (0)
