Cannabis Law Prof Blog

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

Okay, This Isn't Sending the Right Message to Concerned Florida Parents

HEADLINES WE'D RATHER NOT SEE:  High School Principal Caught in Pot Smoke-Filled Car, Shirt Undone — And With Student!

    Krista E. Morton, the principal of Mavericks High of Palm Springs, was arrested and charged with marijuana possession after she was caught in a car reeking of marijuana — with her shirt unbuttoned — and with one of her students!

    According to the police report, Morton, 45, of Wellington, initially told officers, who were responding to a call Wednesday about possible sexual activity in North Palm Beach’s Lakeside Park parking lot, that she and the 19-year-old student were “just friends.”

    Then she said that the kid was a stranger she’d just picked up because she was lonely.

    The 19-year-old eventually admitted to police that he was a student at Morton’s school.

 

Why Most CBD Laws Fail

2014 was the year conservative state legislators discovered cannabidiol, or CBD, and rushed to pass nearly a dozen laws intended to allow access. 2015 will likely see the passage of at least a few more. Unfortunately, with the exception of one state, these laws are proving to be utterly dysfunctional and end up betraying the hopes of the seriously ill patients whom they are intended to help. 

CBD is one of many active ingredients in marijuana that shows tremendous promise for its medical applications. Most notably, for some people it seems to contribute to a huge reduction in the number and severity of seizures when traditional medicines fall short. As a result, CBD has become very popular in some circles — particularly among parents — as something of a miracle cure. 

It also became a miracle cure for conservative legislators, who are under increasing pressure to pass medical marijuana laws. While there is more and more evidence that marijuana really does have practical medical applications, conservative states really can’t get over the fact that marijuana is used recreationally too. This rankles. Add to that the association with damned dirty hippies, and conservative legislators in Tennessee, Alabama, Kentucky, Mississippi, the Carolinas, Utah, Iowa, and other red or dark purple states find the whole medical marijuana thing too icky to seriously contemplate. 

Enter CBD, which doesn’t lead to euphoric effects. Helping sick kids without opening a back door to the subculture getting access to legal pot is a win-win as far as these states are concerned. It seems to provide a simple solution to a complicated problem. One state passed a CBD law in 2013, with 10 more additions in 2014. Our first 2015 addition to the club is Virginia.   

These laws go by different names, including “high CBD,” “low THC,” “hemp oil,” “cannabis oil,” and others. The only real naming convention is that they rarely use the word “marijuana.” But like a lot of simple solutions to complicated problems, there’s a catch: almost none of them work. 

There are several reasons for this, and it is important for those who advocate for these laws to know and take measures against their nearly perfect record of dysfunction. Here is my top ten list, which I pared down to five because ten is actually a lot. 

1. CBD cannot be prescribed by a doctor. Like the plant from which it comes, CBD is a schedule 1 substance and a prescription from a doctor for it is illegal. Language which requires it to be prescribed (de facto or otherwise) renders the law moot because of federal law. And of course doctors can’t distribute it either. (Alabama, Florida, Kentucky, Wisconsin)
2. Colleges won’t grow marijuana. Some of these laws require post secondary schools to cultivate marijuana plants used to produce CBD. But since colleges and universities are heavily dependent on federal government dollars for research and student aid, they won’t go there. While technically the DEA could authorize it, they have only ever allowed one university to do it: the University of Mississippi. (Tennessee, Utah)
3. Patients cannot legally transport CBD across state lines. Some of these laws do not allow in-state cultivation or distribution, and either imply or advise patients to go somewhere else and bring it back home. The federal government has a catchy phrase for this, called “interstate trafficking of a controlled substance.” It is frowned upon.  (Iowa, North Carolina, maybe South Carolina, Wisconsin)
4. States cannot violate federal law. CBD laws that require the state to be in the business of cultivation or distribution are moot because it requires a state to break federal law. It’s one thing to regulate (probably not a direct conflict), it’s another to grow marijuana and distribute it. (Nearly Missouri until amended at the last second, Utah)
5. Affirmative defense bills suck. Sometimes we see bills that say that if a person gets in trouble, they can get out of it if they meet certain criteria. But first there is an arrest, one or more criminal charges, possible jail, press coverage, lawyers, lost jobs, and no infrastructure to actually get CBD other than breaking a series of laws. They are no solution at all. (Alabama, Mississippi, Virginia)

The one state that got it right was Missouri. How did they do it? Well, they listened to the organizations that have been passing workable medical marijuana laws for a long time now. Then they calibrated the regulatory structure to allow only a minimal amount of THC. Smart. Kansas is now considering a similar approach. Texas? Not so much. They want doctors to prescribe it and the bill sponsor is now refusing to consider any amendment. <Sigh.>    

While there is some entertainment value in tittering behind our collective hands at legislators who think they know better and don’t, there are significant problems. First, they distract from comprehensive bills that actually do work – not only for the seizure patients, but for the other 98% of the patients in the state who could benefit from larger amounts of THC. Second, they are likely to gum up the legislative process for at least a second session while legislators try and figure out what to do to fix these broken laws before they consider anything broader. And finally, they leave those who urgently need CBD out in the cold while legislators proclaim victory and return to finding ways to make it harder for Democrats to vote. 

Most of the national groups continue to push for comprehensive medical marijuana laws, but for those states in which they are not politically possible, I hope they can learn the lesson from their peers and then look to Missouri. Because where CBD laws are concerned, Missouri actually does turn out to be the Show Me State. 

Murder Charges for Reckless Pharmacists Linked to Fungal Meningitis Outbreakdards

Twelve employees of a Massachusetts business are facing 131 felony counts and 25 accusations of second-degree murder for their actions in selling contaminated pharmaceuticals. 

New England Compounding Center, a familiy owned business that made and sold (among other things) methylprednisolone acetate (MPA), allegedly shipped 17,000 contaminated vials of the stuff, which lead to a nationwide outbreak of fungal meningitis and resulted in 25 deaths in 7 states.  MPA is a steroid routinely used in injections to deal with lower back pain.

The indictment charges that NECC employees knowingly failed to follow required U.S. Pharmacopeia sterilization procedures, failed to test products adequately, sold pharmaceuticals after their expiration dates, and falsified patient data to avoid FDA regulation. The indictment (PDF Here) charges mail fraud, racketeering conspiracy, conspiracy to defraud the United States, introduction of adulterated and misbranded drugs into interstate commerce.  The state-law murder counts are listed as predicate acts for the racketeering prosecution.

As usual, prosecutors attempted to freeze all of the defendants' assets before trial to prevent them from being able to mount a good defense, and so some of the defendants are also charged with attempting to evade the freeze by transferring funds in violation of the court order.

It's a sad story all around, but there's a certain dark humor of the crooks-are-stupid variety in the indictment.  As part of its scheme, NECC had to put false patient names on shipments.  Thus the company's records lists patients like Robert Redford, Bud Weiser, Freddie Mercury, Filet O’Fish, L.L. Bean, Hugh Jass, Bill Clinton, Hindsight Man, David Letterman, Silver Surfer, Dale Earnhardt, Flash Gordon, Tony Tiger, Rug Doctor, Squeaky Wheel, Donald Trump, and Coco Puff.

Nothing there that would cause anybody to be suspicious, I think.

And then there's the quoted email with the heading "HUUUUUUUUUUUUUUGE IMPORTANCE!!!!!!!!!!!!!!!!!."  It wraps up with some advice:  "I KNOW I DON'T HAVE TO SAY THIS BUT ALSO NEVER PUT ANYTHING IN WRITING."

Well, no, you didn't have to say that in writing.

Loving Grandma Faces Five Years for Mailing Pot to Minor Granddaughter

From the Department of Under What Circumstances Could Someone Have Thought This a Good Idea . . . .   There's a grandma who lives in Riverside, California.  Her granddaughter (a minor), who lives in Bullhead City, Arizona, wants some pot to help her sleep.  Grandma works at a pot dispensary and is willing to help, but Bullhead City is four hours away by car.  How to make it happen?

Hey, I've got an idea!  Why not send it through the U.S. Mail?  What could go wrong?

    A doting grandmother is facing a narcotics distribution charge after federal agents intercepted a package containing pot and hash that she mailed to her 17-year-old granddaughter, according to court records.

    Last month, a postal manager in Bullhead City, Arizona contacted federal agents to report that a parcel sent from California was “emanating what was believed to be a strong odor of marijuana.” The parcel was addressed to a girl who is entified as “Jane Doe” in a criminal complaint.

    After the teen gave cops permission to open the package, a postal inspector found a wooden, heart-shaped box with the inscription “Somebody loves you…me.” The box contained a “green medical cannabis bottle that contained suspected marijuana” and a “vial of a brown substance that was labeled ‘Calif Hash.’” The bottle was sealed in a plastic baggie labeled “Happy Stuff.”

    The seized marijuana weighed .06 pounds.

    The girl told investigators that the package was sent by her grandmother, Marilyn Caezza (the parcel’s return address included the name “M. Caezza”). The teenager said that she had previously told Caezza, 53, that she needed some pot, which helps her to sleep. Caezza, the girl added, works at a “medical dispensary” in California.

    During a subsequent phone interview, Caezza told a postal inspector that she volunteered at a pot dispensary in Riverside, California, where “her duties include trimming the marijuana plants.” Caezza copped to mailing the marijuana to her granddaughter, whom she knew was only 17.

    Caezza . . . was named in a December 1 complaint filed in U.S. District Court in Flagstaff, Arizona. If convicted of the felony distribution count, she faces a maximum of five years in prison.

Just to remind everyone, the United States Postal Service is a federal operation (the "United States" is a telltale sign), and marijuana is still illegal under federal law.  Worse, using the U.S. mail to commit a federal offense (like transporting controlled substances in interstate commerce) creates a whole lot more hurt than just having the stuff in your car.

Daily News Roundup: Friday, October 31, 2014

Maryland Cops Seize Marijuana-Infused Halloween Candy: "Authorities in Prince George's County say they've seized several boxes of Halloween candy infused with marijuana.  The candy -- including taffy, mint chocolate bars, blueberry chocolate bars and banana-walnut chocolate bars -- was . . .shipped from the west coast and Colorado, said Prince George's County Police."

Council Members:  New York Police Still Targeting Minorities in Marijuana Arrests:  "In a letter to Mayor de Blasio and Police Commissioner Bill Bratton, five Latino or black City Council members charged that the NYPD continues to unfairly target young minority men for low-level marijuana arrests."

Michigan Doc Pleads Guilty to Medical Marijuana Prescription Fraud:  "A Grand Rapids doctor indicted in a major marijuana conspiracy admitted he wrote medical marijuana prescriptions for patients he never met to help further a criminal enterprise that earned more than $1.3 million in less than two years."

Arizona Prosecutors:  Say No to Recreational Marijuana:  "Three of Arizona's top prosecutors are calling for support from political and civic leaders to oppose the legalization of marijuana for recreational use."

Las Vegas Approves 26 Pot Dispensary Applications:  "City Council members spent the better part of 16 hours mulling preliminary land use and licensing entitlements sought by 50 would-be medical marijuana business operators on Tuesday and Wednesday.  They approved 26 pot dispensaries, more than double the number set aside for the city by Nevada regulators."

New Marijuana Business Incubator Opens in Florida: An old cigar factory in Ybor City has undergone some big changes. . . .  The Common Bond Collaborative opened its doors Thursday in Ybor City with the goal of growing marijuana-related businesses by putting cannabis concepts on the fast track."

Social Media Users Watch This . . . Because Police Will

AS A TEACHER, IT MAKES ME WANT TO SCREAM . . . .WHAT WERE YOU THINKING???

 

Denver Police Warn Parents to Beware of Marijuana-Infused Halloween Candy

PROBABLY THE BEST WAY TO GET COLORADO TO REPEAL recreational marijiuana is to have some toddler make national news by going into convulsions after eating a marijuana gummy bear she got while trick-or-treating.  The Denver Police think it entirely possible that some stoner might be stupid enought to do that.  Anybody want to bet that they're wrong?  Here's the video:

 

Of course, if some teenagers get hold of this candy, it might not make it back to the house for Mom and Dad to throw out . . . .

 

Related articles

Denver Police Warn Parents to Beware of Marijuana-Infused Halloween Candy

Even Police Chief Apologizes for This Traffic Stop

HARD TO BELIEVE, BUT . . . .  Well, actually, no, it's not hard to believe:  "An Iowa police chief has apologized after a video surfaced showing one of the city’s police officers attempting to search a motorist’s vehicle because 'everybody that plays Frisbee golf smokes weed.'"  Here's the video of the stop:

 

Daily News Roundup: Friday, October 10, 2014

Prosecutors Seek to Revoke Adrian Peterson Bail for Marijuana Use:  "Presumably, someone close to Adrian Peterson told the embattled Minnesota Vikings running back to lay low while his felony child abuse case was ongoing and his NFL future was up in the air.  The opposite of laying low would be to smoke some marijuana before a court appearance, then tell a court employee during a urine test that you "smoked a little weed," as Peterson allegedly did on Wednesday according to Fox 26 in Houston."

DEA Taking Close Look at  Marijuana Industry Investors: "U.S. investors in Canada's medical marijuana industry are betting they will not fall under the scrutiny of U.S. law enforcement officers -- but it is a risky bet.  The U.S. Drug Enforcement Administration has already been tracking investments made in state-sanctioned marijuana business in the United States. When asked by Reuters about the DEA's view of U.S. investments in Canadian marijuana, DEA spokesman Rusty Payne said the agency is 'most interested in those types of activities.'  After the Reuters report, shares in Canadian medical marijuana companies fell sharply . . . ."

Marijuana Sales Up in Colorado: Marijuana sales in Colorado saw a 10 percent bump in August — and industry leaders don't expect that growth to slow anytime soon.  The sales of recreational and medical marijuana in Colorado each jumped more than 10 percent from July to August 2014, according to numbers released Thursday by the Colorado Department of Revenue."

Roof Explodes in Florida Grow House Fire:  "A suspected marijuana grow house caught fire in Orange County on Thursday morning . . . .  About $3.2 million worth of marijuana was removed from the home after the fire, according to deputies.  The residents of the home are nowhere to be found.  Neighbors said they've lived in the home for a month or two, and were secretive.  Investigators said the sloppy grow house rigging likely contributed to an electrical fire upstairs."

Analyst:  Marijuana Use Increases Beer Sales:  "Beer has no need to fear weed.  The legalization of medical marijuana has helped beer sales, contrary to previous research that pointed to a decline, according to a note from Sanford C. Bernstein analyst Trevor Stirling."