Cannabis Law Prof Blog

Nursing Mothers Beware?

A study in California finds THC and cannabidiol in nursing mothers' breast milk a week after marijuana use.  Fox News reports that researchers at the University of California, San Diego analyzed the breast milk of 50 nursing mothers who were also using marijuana.

Lab testing of the breast milk found trace amounts of THC in 34 of the 54 samples even 6 days after they were provided. Additionally, researchers also found non-psychoactive cannabidiol in five samples. The researchers conclude that "it is reasonable to speculate" that exposing children to THC or cannabidiol "could influence normal brain development," especially when infants are in the early stages of their brain development. The complete study can be found here. 

With the continued legalization and decriminalization of marijuana across the United States, "its use is increasing along with the 'false impression' that it is safe", the Academy of Pediatrics reports. Although pediatricians generally encourage breastfeeding due to its health benefits for infants, most pediatricians are stuck between a rock and a hard place when confronted with nursing mothers who also use marijuana. Dr. Seth Ammerman, a Stanford University pediatrics professor, echoed that dilemma, stating "we still support women breastfeeding even if using marijuana but would encourage them to cut down and quit."

With such a small sample size and no specific studies conclusively showing the health effects of THC or cannabidiol on infants, the Academy of Pediatricians admits that more research is needed before a final conclusion is reached. However, both the researchers and the Academy of Pediatricians are unanimous in their belief that the best course of action for nursing mothers who use marijuana is education and caution. Pediatricians should "educate patients about the potential risks and benefits," Ammerman said, to ensure "a healthy outcome for themselves and their baby."

--Colin Heinrich 

 

Wells Fargo, politicians, and cannabis banking

Banking giant Wells Fargo caught flak last week for its decision to terminate the account of one Nikki Fried, a hitherto unknown Florida politician who told the bank that she took campaign contributions from medical marijuana businesses.  Critics have claimed that the bank was somehow violating her “constitutional right to freedom of speech, that this was an “abhorrent” “attempt to restrain speech,” and even that it’s some kind of conspiracy between Big Pharma, the Republican Party, and the Florida state legislature to defeat Fried,  who sis running for state agriculture commissioner.

All this is nonsense.  Yes, Wells Fargo has probably gone a little overboard--most banks are probably not as paranoid as WF (which has been hit by billions of dollars in fines in the last few years) about violating regulatory restrictions.  And yes,m the fact that cannabis businesses cannot get reasonable access to banking services is a major problem that I’ve noted frequently. 

But what happened to Fried has nothing to do with her political speech.  It has to do with the fact that under federal law Nikki Fried is guilty of the federal crime of laundering drug money.  And any bank that takes that money, knowing that it comes from an illegal source and mingling it with other money, is also guilty.   

This is not not criticism of Fried, hyperbole, or sensationalism.  It's a plain fact.  As people in the industry know, anybody who accepts money derived from marijuana sales and puts it into a bank is by definition guilty and is facing big fines and a substantial prison sentence that can reach 20 years.  Under federal law (and the laws of a whole lot of other nations), taking money from Uncle Bob's Holistic Healthful Medical Cannabis Company is no different than getting it from the Medellin Drug Cartel.  

Fried is different and noteworthy only in that she is the first politician who is facing the consequences everybody else in the business has faced for years.

You may, of course, think it outrageous that simply providing banking services for a state-legal business should result in criminal liability.  I agree entirely.  But that bridge has already been crossed  During the Obama Administration the Justice Department weaponized bank enforcement.  Its notorious Operation Chokepoint tried, with some success, to coerce banks to drop accounts for perfectly legal businesses like firearms dealers, tobacco sellers, payday lenders, dating services, that sold lawful goods and services such as firearms, ammunition, tobacco, payday lenders, dating services, debt-collection services, pawn shops, gold and silver dealers, and others.  And more recently states like New York have tried to put lawful enterprises out of business by pressuring their banks.

And unlike marijuana production and distribution, those businesses are, in fact, perfectly legal.  Despite a lot of wishful thinking, marijuana is still a Schedule I controlled substance and is still completely, totally, unmistakably illegal everywhere in the United  States.

In my opinion, the chance that Wells Fargo and its employees could be penalized for taking money from Nikki Fried are very small.  That's why other banks seem to have stepped up to take her accounts.  But the risk isn't zero, and were I the bank's lawyer I would be compelled to point that out to them and let them decide whether the possible gain is worth the risk.

As I noted before, the bright side of this is that once politicians start having trouble putting political donations into a bank, they are likely to start taking action to resolve the problem.  There is, in fact, no good reason not to allow marijuana deposits in banks.  Allowing businesses to take credit cards, pay vendors by check, and deposit cash should make it much easier to track illegal payments than does the current system involving wheelbarrows full of currency,

--Frank Snyder

Cannabis-based Pet Products Popular in Canada Despite Limited Research and Testing

Veterinarians in Canada are wary of "anecdotal evidence" indicating that cannabis-based pet products are effective in treating anxiety, seizures, and arthritis pain in dogs and cats. The Calgary Herald reports that interest in cannabidiol products for pets is growing among Canadian pet owners even though no formal ads for the products are allowed on sites like Google or Facebook. Still, word of mouth among pet owners has proved powerful--pet supply stores like PAWSitively Natural Pet Food & Supplies have recently seen demand for cannabidiol pet products spike after customers reported that their pets have been able to go off hardcore painkillers. 

Dr. Alastair Cribb, the founding dean of the University of Calgary's faculty of veterinary medicine, is not so sure: 

Cribb is skeptical about these sorts of testimonials, saying there are just too many questions surrounding the use of cannabidiol in pets. He says the recommended dose is vague (PETtanicals recommends 0.01 millilitres per pound the animal weighs), there is little known about how cannabidiol interacts with other drugs and the conditions is it said to be effective in combatting—particularly anxiety and osteoarthritis — “tend to wax and wane, so how do you know when the CBD is effective?”

However, there may soon be answers to some of these questions surrounding cannabidiol pet products--University of Calgary's third-year veterinary students will take on a year-long research project on the subject during the 2019-2020 academic year. For now though, pet owners may want to err on the side of caution in giving their pets cannabis-based products that have not yet been properly tested. 

--Taylor Allan

Getting high may cost you a job selling weed

Marijuana industry employers are rejecting job applicants who regularly smoke. Particularly in states where only medical use is permitted, employers tend to disqualify roughly 9 out of every 10 applicants. A main reason why is the criminal history of many users, and the reluctance of employers to hire felons, even if the felony was directly related to marijuana. 

In Florida, where the state’s medical marijuana market is just now starting to build some momentum, cannabis operations are in a frenzy to hire budtenders, cultivation experts and various other team members to assist in serving the hundreds of thousands of patients expected to participate in the program. The state already has around 147,000 patients in the pool, so finding quality, reliable talent to run the show is top of mind for most human resources managers.

However, the process is not going as smoothly as expected. Many of these businesses are simply refusing to hire marijuana users and people with drug-related blemishes on their record -- regardless of their qualifications. Such high standards have disqualified the majority of job applicants. Roughly only about “10 percent” of those who apply for positions in Florida's cannabis market are employable, according to the Orlando Sentinel.

Employers tend to be more lenient in states that have legalized adult use of marijuana, but marijuana related job recruitment firms recommend not bragging to your interviewer about any intense passion for weed or prior criminal activity. 

-- Alex Bennett

Marijuana Legalization Could Be on the Horizon in the Garden State

A vote to legalize marijuana in New Jersey could be approaching in the upcoming month. New Jersey Senate President, Stephen Sweeney recently expressed confidence that there will be enough votes to pass a recreational bill as early as this Fall. However, the vote may face delay as there have been changes in budget proposals, and currently, a pair of new bills regarding recreational legalization and medical expansion are awaiting finalization. 

Governor Phil Murphy has built a reputation as being a champion for legalization in the name of social justice. While Murphy's promise of legalizing recreational marijuana within his first 100 days in office did not come to fruition, he has been able to make strides in expanding the state's medical marijuana program by including more qualifying conditions. 

Although Murphy wants the legalization efforts to materialize, budgetary obstacles are proving challenging to get around. Reports stated that Murphy intended to include $60 million in revenue of a state budget proposal for the upcoming fiscal year, with many legalization supporters hoping the revenue would go toward an expungement program. More detail can be found in an article in Rolling Stone:

Advocates want this expungement to be automatic, where the state takes on the process of expunging records rather than the person charged. However Kate Bell, legislative council for the Marijuana Policy Project, says that the phrase “automatic” is very misleading.

“People have this idea that the government can still press a button and magically expunge all these past convictions, but that’s not necessarily correct,” Bell says.

Record expungement is affecting marijuana policies across the nation, as a California expunction bill has just passed the Senate and is awaiting the Governor's signature. On the opposite coast, Senate Bill S-2702 was introduced in early June by NJ Senator Nicholas Scutari and would legalize marijuana for adults 21 and over, and included a provision about expungement; however, expungements would still require an application.

Although there is no concrete time frame for New Jersey to pass legislation, an increase in cannabis-related arrests and racial disparities in said arrests has yielded a newfound urgency for legislative action. 

-- Gianna Redeemer

Marijuana Does Not Work for Everyone

Have a friend who swears that cannabis does not get them high?  Or that it makes them feel bad? According to Josh Kaplan, a senior fellow at the University of Washington who researches medicinal cannabis, there are likely a few reasons why your friend feels that way. Read Kaplan's full article here. 

Briefly, Kaplan suggests that it is likely not one single mechanism that determines whether one likes or dislikes cannabis or feels it effects, but the net effect of several factors. "The way our DNA is expressed changes as we age and is influenced by life events or cannabis use patterns" he says.  "These factors can alter our brain’s chemical systems," and can change the way we perceive cannabis.

There are three main factors that influence whether we find cannabis (THC-rich cannabis that is) pleasant or unpleasant: our (1) age; (2) opioid receptors; and (3) CB1 receptor location.

Age -- Studies demonstrate that adolescents are less sensitive to the unpleasant side effects of cannabis compared to adults. In a study that compared the effects of cannabis on adolescent and adult rats, cannabis caused higher levels of anxiety, stress, and suppressed movement in adult rats compared to adolescents.  On the other hand, cannabis tends to have a more profound and long-lasting impact on adolescent brains. For example, in the same study, cannabis altered nearly 3 times more genes in the hippocampus of adolescent rats compared to adults.

Opioid System -- Our opioid systems have different receptors that cause different effects when activated. The activation of μ-opioid receptors make you feel good while the activation of K-opioid receptors have the opposite effect. Cannabis increases the brain’s level of endogenous opioid chemicals. Thus, someone with more μ-opioid receptors should enjoy cannabis more than someone with more K-opioid receptors. 

CB1 Receptors -- These are the receptors that interact with cannabis to cause a high, but scientists have revealed that such receptors on certain brain cells are responsible for cannabis's negative effects. Thus, Kaplan posits that someone who does not enjoy cannabis may have more CB1 receptors on such brain cells.

--Emily Bowlin

Help Without the High? Tulsa CBD Shops Debate Whether to Introduce THC in to Products

In the wake of the passage of State Question 788 in Oklahoma, CBD shops have to decide whether to incorporate THC in to their products, or rather proceed in their CBD sales without incorporation of the intoxicating chemical. A recent article in Tulsa World discusses CBD business-owners' differing opinions of how SQ 788 may impact product sales moving forward.

Those involved have differing views on how they will proceed--for example, Donnie Lewis, store manager of the American Shaman franchise company, does not plan to adjust products in accordance with the new law.

“We will never mingle the two because as soon as you bring that flower into a store like ours, there’s going to be a chunk of your   demographic that will never set foot in your store again,” Lewis said. “They won’t.”

 Further, he believes the benefits of THC are much more limited than those of CBD, which he says can help regulate blood pressure  and lower blood-sugar levels.

Lewis insists that his business will see no harm from not selling medical marijuana because the demand for CBD is too high.

On the other hand, there are some business-owners who fully intend on making product adjustments. Issac Caviness, who is presently the manager of Hemp Rx and formally the president of activist group Green the Vote, commented that his store plans to acquire a medical marijuana business license to sell products with THC.

 --Gabrielle Rennie

 

California Bill Would Require the State DOJ to Review 40 Years of Marijuana-related Convictions

Californians who have marijuana convictions on their records may soon be getting some relief.  NPR reports that a California bill, AB-1793, has passed the Senate and is expected to be signed into law by Governor Jerry Brown in the coming week.

California legalized recreational use of marijuana in 2016 when voters passed Proposition 64.  That proposition applied retroactively to convictions for many marijuana-related offenses that occurred before 2016. But it did not contain provisions to enable those eligible to have such convictions removed from their record or reduced to from felonies to misdemeanors. 

AB-1793 would mandate that eligible persons be given the chance to clean up their records. In fact, the Bill requires California State Department of Justice officials to determine which cases are eligible for review and send them to the District Attorneys' office by July 1, 2019.

While the bill has received pushback from those who believe people with marijuana-related convictions should not be given a free pass, the City of San Francisco has already begun the process of expunging or reducing convictions for possession and recreational use going back to 1975. aSince people were unfamiliar with the process, a mere 23 people in the city had started the process themselves. This is not surprising, as the expunction process can be expensive and those who were affected by these convictions likely do not have the resources to pay an attorney.

Brown has a history of pardoning people who were convicted on charges concerning controlled substances and drugs. It is likely difficult for many people with a criminal record to hire an attorney to discuss the mere possibility of expunction for charges filed up to forty years ago.  By putting most of the burden on the state, AB-1793 will relieve the stress of those whose past actions would be legal today in California. . "[The] role of government should be to ease burdens and expedite the operation of law," said San Francisco District Attorney George Gascon, "not create unneeded obstacles, barriers and delay."

--Kindal Wetuski

Marijuana Use for Morning Sickness: A Potentially Dangerous Trend on the Rise?

A study out of California reveals that pregnant women suffering from mild-to-severe nausea and morning sickness were two-to-four times more likely to use marijuana during pregnancy than other women.

The Huffington Post reports that Kaiser Permanente researchers compiled studied surveys and medical records of over 200,000 pregnant women in Northern California and found that despite national guidelines recommending that "women stop marijuana use during pregnancy due to concerns that the drug may impair fetal neurodevelopment and contribute to low birth weight," there is growing evidence that "some pregnant women may use marijuana to self-medicate morning sickness." The complete Kaiser Permanente study results are available here. 

Given the potential negative effects that marijuana can have on a developing fetus, medical professionals should be aware of the potential for self-medication and diligently counsel pregnant women on these potential effects and alternative treatment plans. It will be interesting to see if research on this topic grows as legalization for recreational use of marijuana becomes more popular in individual states. 

 --Ashley Goldman

Cannabis Science in Portland

The Cannabis Science Conference kicks off tomorrow, August 28, in the City of Roses.  The event takes place at the Oregon Convention center and runs through Wednesday, August 29:

Cannabis Science Conference is the world's largest and most technical cannabis science expo. Our conference pulls together cannabis industry experts, instrument manufacturers, testing labs, research scientists, medical practitioners, policy makers and interested novices. Our annual event is aimed at improving cannabis science. Join us in Portland, Oregon, for an exciting conference with keynotes, presentations, round table discussions and exhibits. At our inaugural event we hosted over 750 attendees from all over the world! Our second event hosted over 2,000 attendees from over 24 countries!!!

Info and registration details are here.

--Frank Snyder

 

Oklahoma Begins Accepting Medical Marijuana Patient Licenses

Medical marijuana is coming to Oklahoma, and the state began accepting and approving patient applications on the 25th. In June, Oklahoma voters approved the legalization of medical marijuana via a statewide ballot measure, and it is clear that decision will have major economic ramifications on the state. ABCnews.com has the story:

More than 1,600 people and businesses applied for Oklahoma medical marijuana licenses on the first day that applications were made available.

 

 The online application system went live at 10 a.m. Saturday at www.OMMA.ok.gov for all potential medical marijuana patients, growers, dispensaries, processors and caregivers. Oklahoma State Department of Health spokesman Tony Sellars said that by Saturday evening, the agency had received 1,054 patient, 634 business and three caregiver applications.

 

 Officials awarded 23 licenses to patients Saturday to test the approval process and will resume approving applications Monday, Sellars said.

 

 Sellars added that the state collected $1.5 million in application fees on Saturday.

For those who have followed the saga of legalization in Colorado this is not a huge surprise. In 2017, total marijuana sales in the state reached $1.5 billion, with roughly $416 million of that total coming from medical-use sales. The state collected $247 million in taxes on marijuana that year. Based on these early numbers from Oklahoma, it seems as though the state can look forward to a similar boom in revenues resulting from the introduction of medical marijuana into their economy.

A pro-marijuana group in Oklahoma called Green The Vote has begun collecting signatures to qualify recreational marijuana legalization for a similar statewide ballot initiative, but as of this writing they did not have enough signatures to do so. Perhaps as the effects of medical marijuana legalization ripple throughout the state, Oklahoma voters will embrace the concept of full legalization. 

 -John Robinson

Will Legal Use of Marijuana Make Applicant for Immigration Benefits Inadmissible?

Prospective U.S. immigrants who have used marijuana in their home countries may find themselves with legal problems trying to get a visa or a green card.  New York immigration lawyer Richard Link has a nice rundown on the topic over at Nolo Law.

There are places in the world where use of marijuana is not necessarily a crime. If your only use of marijuana was done legally under the laws of a foreign country, you do not have to worry about criminal grounds of inadmissibility.

You still might need to worry if your only use of marijuana was in a U.S. state in which use of marijuana was legal at the time under state law. This is because possession of marijuana for any purpose, including personal use, is a crime under U.S. federal law. Even if the federal government did not convict you of a marijuana offense, immigration law makes you inadmissible if you admit having committed, or admit committing acts that constitute, the federal offense of possessing marijuana.

(This ground of inadmissibility is found in Immigration and Nationality Act Section 212(a)(2)(A)(i)(II).)

There are some exceptions, says Link.  But it's best to always consult with an attorney if you've had any contact with marijuana. 

If you admit to possessing less than 30 grams of marijuana, and admit to doing it only once, you can apply for a waiver of inadmissibility under Section 212(h) of the Immigration and Nationality Act in one of two circumstances.

The first is where the incident occurred 15 years before you applied for admission, you are found to be “rehabilitated,” and your admission would not be contrary to the national welfare, safety, or security of the United States. The second is where you have a U.S. citizen or lawful permanent resident spouse, fiance, child, or parent who will experience extreme hardship if you are denied admission. Whether you will be granted this waiver is totally up to the U.S. government. Definitely get an attorney's help with this.

--Fernando Lira Gomez 

Prenatal Pot: Marijuana Use for Pregnant Women Raises Concerns

Increasing use of marijuana during pregnancy has set doctors and researchers on alert according to a recent article in Annals of Internal Medicine.  The study is behind a paywall, but here's a piece of the abstract:

 The adverse effects of prenatal marijuana use remain unclear, yet more pregnant women are using marijuana in the United States than ever before. Self-reported marijuana use during pregnancy increased from 2.4% in 2002 to 3.9% in 2014, and 18% of pregnant women who used marijuana in the past year met criteria for a marijuana use disorder. Data from a large, diverse sample of pregnant women and adolescents in California found an increase in the adjusted prevalence of marijuana use, from 4% in 2009 to 7% in 2016, on the basis of self-report and urine toxicology tests. Overall, 22% of adolescents and 19% of young adults had screening results positive for prenatal marijuana use in 2016. Approximately twice as many users were identified by toxicology tests than self-report, suggesting that prenatal use has been underestimated in self-reported surveys.

--Frank Snyder

Canadian Universities Accepting the Legalization of Marijuana

While many United States citizens are still waiting for their state to legalize adult-use marijuana, some New Brunswick universities are already educating their students on the rules, regulations, and effects of marijuana in preparation of its legalization. The Canadian Broadcasting Corporation (CBC) reports:

The legalization of cannabis is around the corner and, as school gets underway in the coming weeks, New Brunswick universities say they're prepared to roll with it. 

Scott Duguay, associate vice-president of enrolment management at St. Thomas University, said he's unsure what type of reaction to expect from students when recreational cannabis becomes legal on Oct. 17, but he doesn't expect things to go up in a blaze of smoke.

Students will be allowed to possess marijuana on campus and in their residence. However, the university hopes to limit marijuana use by prohibiting the smoking of marijuana on campus and in student residences. Additionally, if students are high in class, they will be reported to student services. With Canada's relaxed laws on marijuana use, we will soon see the benefits and disadvantages of legalized marijuana in the college environment.

--Wyatt Hinson

Cannabis legalization and healthcare costs: Public policy options

With the Great White North bracing for greatly increased cannabis availability,  Canada's Policy Options magazine has a thoughtful new article on how to minimize the potential health risks, Pulling levers to mitigate health costs of cannabis.  The authors are Rebecca Jesseman and Matthew Young from the Canadian Centre on Substance Use and Addiction.  From the article:

Legalization of cannabis in Canada has potential benefits — lower criminal justice costs, new government and private revenue sources — but we must also recognize the public health costs of cannabis use. It’s vital to ensure that governments at all levels use the available policy levers to reduce these costs.

A very helpful graph notes the various "levers" that policy-makers can use to help change consumer behaviors.  The authors continue:

Canada has the chance to provide international leadership for a public health approach to cannabis. Realizing that opportunity means applying the available policy levers based on the evidence we currently have and calibrating them according to the evidence we gather after legalization. It means prioritizing public health over revenue generation something we have not done well with alcohol. It means providing Canadians the information they need to make responsible, educated decisions about cannabis use by scaling up prevention and education initiatives and promoting guidelines for lower-risk cannabis use. It means equipping our health system to support those who encounter problems with use by addressing existing gaps in tools and information for primary care providers. It means improving and increasing specialized services for youth, Indigenous people and those who live in rural or remote communities. Protecting public health also involves protecting public safety, which includes improving education and enforcement capacity to reduce cannabis-impaired driving.

Cannabis has been the most commonly used illegal drug in Canada and internationally for many years. Legalization provides an opportunity to reduce the many costs of a criminal justice approach. It also comes with the risk of increasing public health costs if we fail to make good use of the policy levers available at all levels of government by investing in effective prevention, education and treatment programs. Many countries are looking to Canada to inform their own decisions about cannabis regulation. We have an opportunity to demonstrate that legalization does not have to lead to commercialization. What’s more, it can be an opportunity to reduce public health costs by opening the door to a better understanding of the risks and benefits of use, and to honest dialogue with youth and other consumers about reducing those risks.

--Frank Snyder

Potential Supply-Chain for Cannabis Forming in California

Although recreational cannabis use was just legalized in California this year, the state's budding cannabis operation may provide a potential nation-wide supply chain as more states legalize cannabis use. The Wall Street Journal reports that the growing marijuana industry may soon have a unified supply chain in place to easily connect producers with retail outlets: 

Around the state, a nascent network of specialized distribution companies is springing up to connect these centers of licensed marijuana growers and processors to hundreds of retail outlets, providing something entirely new in the marijuana industry: A legitimate supply chain.

The widening state-by-state legalization of recreational marijuana across the U.S. is bringing growers, distributors and sellers of the drug out of the shadows to stitch together businesses under a unified supply chain as the industry scales up.

With more states legalizing cannabis, there will continue to be a growing demand to transporting the product from point A to point B. California's state-wide-network will serve as an example to show how cannabis can be legitimately supplied and regulated. Currently it is against Federal Law to cross state lines with cannabis, but if the Federal Government legalizes pot, California may be set up to meet the demand across state lines, and demonstrate to other states how it is done. 

--Manda Mosley Maier 

 

Cannabis Law Institute program set for September in DC

The National Cannabis Bar Association's "Cannabis Law Institute" is just two weeks off.  The two-day event features more than 70 speakers from the legal, business ,and political worlds, and looks to have some terrific programming.  Check out the conference web site for schedules, registration, and other information.

I'll be seeing you there!

--Frank Snyder

Massachusetts Lawmakers To Consider Licensing of Marijuana Testing Labs

The Massachusetts Cannabis Control Commission is scheduled to vote August 23rd on a measure that may ultimately result in recreational pot sales within the state.

Boston Business Journal reports:

Framingham’s MCR Labs and Salem-based CDXAnalytics will both have their applications reviewed by the full commission, according to an agenda released Tuesday. Though there are four labs in the state that have been testing medical cannabis in Massachusetts for some time, they must receive additional approval from the commission before they can test recreational marijuana.

Both MCR and CDXAnalytics have said they would be ready for the increased workload once the recreational marijuana market launched.

Should the labs pass regulatory muster, approved marijuana dispensaries can begin selling recreational marijuana that have been independently tested by the approved labs.

-- Jason Carr

Welcome, students!

For the next couple of months, I'll have some guests on the blog.  Students from my Marijuana Law, Policy, & Business class at Texas A&M Law School will be blogging over the course of the semester.  

The class, which I've been teaching since 2015, is designed for law students who are interested in the cannabis industry and in helping provide legal advice to cannabis-related businesses.  The course topic is, of course, incredibly broad, but we try to focus on the legal and practical issues that make cannabis business sui generis.  Many past students are now working full-time in the cannabis law field and have been active in various organizations, including the Texas Cannabis Industry Association.  The current group has a fairly wide range of interests, so we should see a broad spectrum of views here.

--Frank Snyder

Politician's bank account closed for accepting contributions from cannabis businesses

Either Wells Fargo is taking nervousness about marijuana to a new extreme, or the banking giant has figured out a great way to force Congress to deal with the cannabis banking problem.  In Wells Fargo Closes Florida Politician's Account Due To Marijuana Donation, Forbes reports that the nation's fourth biggest bank canceled the account of Nikki Fried, who's running for Florida Agriculture Commissioner.  Fried is a professional lobbyist who has lobbied for medical marijuana business in Tallahassee, but Well Fargo cut her loose because her campaign accepted donations from MMJ lobbyists.

"As part of the onboarding of the client it was uncovered some information regarding the customers [sic] political platform and that they are advocating for expanding patient access to medical marijuana," . . . a vice president and senior relationship manager at Wells Fargo, wrote in a July 11 email to the Fried campaign's compliance officer.

After the campaign confirmed in a reply that Fried has indeed received contributions from cannabis industry leaders—and had no intention of stopping—Wells Fargo confirmed the closure of the account in an August 3 letter.

"Periodically, we review our account relationships as part of our responsibility to oversee and manage banking risks," the letter said. "As a result of a recent review of your account relationship, we determined that we need to discontinue our business relationship and close the account above within 30 days from the date of this letter."

If the move represents a new company-wide policy—whether or not it spreads to other banking institutions—it could have implications for dozens members of Congress and other politicians who regularly accept campaign contributions from people involved in the marijuana industry.

Maybe the best way to push Congress to act is to suggest that their campaign contributions depend on it.

--Frank Snyder