Tuesday, February 12, 2019
House Subcommittee to hold hearing on Feb. 13 on "Challenges and Solutions: Access to Banking Services for Cannabis-Related Businesses"
Tomorrow afternoon, as detailed on this official webpage, the Subcommittee on Consumer Protection and Financial Institutions of the US House Committee on Financial Services will have hearing on the topic of banking access for cannabis businesses. One focal point for the hearing is consideration of draft legislation, the "Secure And Fair Enforcement Banking Act of 2019" or the "SAFE Banking Act of 2019," which is designed to allow marijuana-related businesses in states with existing regulatory structures to access the banking system.
In addition to being the first-ever congressional hearing on banking for marijuana businesses, I sense this is the first of a series of possible effects by the Democratic-controlled House to move forward on various possible federal legislative reforms. A few days ago, Click the Committee produced this Memorandum providing background, and here is the scheduled "Witness List":
- The Honorable Fiona Ma, California State Treasurer
- Maj. Neill Franklin (Ret.), Baltimore City & Maryland State Police Departments, and Executive Director, Law Enforcement Action Partnership (LEAP)
- Ms. Rachel Pross, Chief Risk Officer, Maps Credit Union, on behalf of Credit Union National Association (CUNA)
- Mr. Gregory S. Deckard, President, CEO and Chairman, State Bank Northwest, on behalf of Independent Community Bankers of America (ICBA)
- Mr. Corey Barnette, Owner, District Growers Cultivation Center & Metropolitan Wellness Center
UPDATE: Here now are links to all of the written testimony of witnesses at this hearing:
- The Honorable Fiona Ma, California State Treasurer
- Maj. Neill Franklin (Ret.), Baltimore City & Maryland State Police Departments, and Executive Director, Law Enforcement Action Partnership (LEAP)
- Ms. Rachel Pross, Chief Risk Officer, Maps Credit Union, on behalf of Credit Union National Association (CUNA)
- Mr. Gregory S. Deckard, President, CEO and Chairman, State Bank Northwest, on behalf of Independent Community Bankers of America (ICBA)
- Mr. Corey Barnette, Owner, District Growers Cultivation Center & Metropolitan Wellness Center
- Mr. Jonathan H. Talcott, Chairman, Smart Approaches to Marijuana (SAM)
Saturday, January 26, 2019
NBC News has this new article, headlined "CBD goes mainstream as bars and coffee shops add weed-related drinks to menus," that is worth a read, and I especially liked its closing paragraph. Here are excerpts:
Coffee. Cocktails. Lotion. Dog treats. You name it, CBD is probably in it.
CBD, short for cannabidiol, is a compound found in the cannabis plant. It promises to deliver the calming benefits of marijuana without the high that comes from THC. Companies are adding CBD to just about everything — a trend set to accelerate as regulations ease and consumer interest grows.
Most CBD is now federally legal thanks to the farm bill President Donald Trump signed in December. Companies still aren't supposed to add CBD to food, drinks and dietary supplements, but many are doing it anyway. The Food and Drug Administration has said it plans to continue enforcing this ban but will also look into creating a pathway for such products to legally enter the market.
Some users swear by it, saying it relieves their anxiety, helps them sleep and eases their pain. And forget stoner stereotypes when thinking about CBD. Moms and even pets are experimenting with it. One research firm, Brightfield Group, expects the CBD market to reach $22 billion by 2022.
However, most of our current understanding of CBD is anecdotal — not proven through scientific studies. And because CBD products aren't yet regulated, the quality can vary widely. "There's a lot of interest and excitement, for good reason, but I think people are pushing it too hard, too fast and are overgeneralizing things," said Ryan Vandrey, a professor at Johns Hopkins who studies the behavioral pharmacology of cannabis.
We don't know what exactly CBD interacts with in the brain or the body, but researchers do know that CBD tends to turn down abnormal signaling in the brain, said Ken Mackie, a psychological and brain sciences professor at Indiana University. That's why CBD may help with epilepsy, anxiety and sleep. CBD and other cannabis compounds tweak systems in the body, a process he compares to lowering the volume. Other compounds, like opioids, ketamine and nicotine, simply turn them on and off.
There isn't much clinical research on the safety and efficacy of CBD. Studying cannabis has been challenging because it's technically illegal under federal law, meaning researchers must overcome a number of hurdles in order to study it. We don't know anything about indications like sleep, anxiety or pain, Vandrey said.
We do know it's safe and effective in treating seizures in children with Lennox-Gastaut syndrome or Dravet syndrome. GW Pharma studied its CBD-derived drug, Epidiolex, in numerous clinical trials. After reviewing the company's science, the Food and Drug Administration approved Epidiolex in June.
The lack of clinical evidence hasn't stopped consumers from trying it — and raving about it. "It's always nice to have strong proof in placebo controlled trials, but if someone's taking a drug and feeling any benefit, more power to them," Mackie said....
The farm bill signed in December legalized hemp. Most CBD hitting shelves is derived from the hemp plant, which contains less than 0.3 percent THC, the psychoactive chemical in weed. Hemp's close cousin, marijuana, can contain upwards of 10 percent THC. So you can't get high from CBD products if the proper dosage is followed, but the industry isn't regulated on a federal level so the amount of THC can vary.
Doses can vary, too. Some shops recommend six milligrams of CBD when taken as a tincture or added to food. Others recommend at least 30. Again, since there isn't much clinical research on CBD, most of the recommendations are based on trial and error.
As more people dabble with CBD, more people are following the money, worrying some that bad products will enter the market and taint CBD's allure. Or worse, harm consumers. "There does need to be some sort of regulatory framework for overall product safety and to protect the customer from purchasing products that contain false advertisements or make unsubstantiated claims," said Pamela Hadfield, co-founder of HelloMD, a medical cannabis company, while cautioning against strict regulations that would be "too difficult for most manufacturers to comply."
Joe Masse, beverage director at The Woodstock bar, added a CBD cocktail to the menu in September. Called The White Rabbit, the drink is made with Bombay Dry Gin, sage simple syrup, honey, fresh lemon juice and 1 milligram of CBD oil.... "It's trendy right now, so I don't know how it will be in six months when we redo the menu," Masse said. "A year ago, activated charcoal was popular and now you can't find it anywhere."
Because I am not hip enough to know that "sctivated charcoal" was once, and now is no longer, a big deal, I am not the right person to be predicting the trend lines on the CBD trend. But I do know how important and likely unpredictable it will be to see the FDA and/or state regulatory players take on CBD products and marketing in the wake of the new Farm Bill. Just another important front to watch in the coming months and years and marijuana products and industry players continue to emerge from prohibition's shadow.
January 26, 2019 in Business laws and regulatory issues, Federal Marijuana Laws, Policies and Practices, Food and Drink, History of Marijuana Laws in the United States, Medical Marijuana Commentary and Debate, Medical Marijuana Data and Research, Medical Marijuana State Laws and Reforms | Permalink | Comments (0)
Sunday, January 6, 2019
The questions in the title of this post are prompted by this new lengthy Rolling Stone piece fully headlined "Why 2019 Will Be the Year of Weed: From more states legalizing to a boom of new kinds of products, here’s what to expect from the cannabis industry this year." Here are excerpts from an article that merits a full read:
In 2018, pot reached a tipping point. A clear majority of Americans now wants to see the drug made fully legal. California and Canada began selling marijuana to anyone over 21. Corporate behemoths like Altria (parent company of Marlboro cigarettes) and Constellation Brands (parent of Corona beer and Svedka vodka) made multi-billion dollar weed investments. And Senate Majority Leader Mitch McConnell (R-KY) managed to include hemp legalization in the 2018 Farm Bill — de facto legalizing every part of the cannabis plant except THC.
But at the same time, pot prohibition is not over. Well over half a million folks are still arrested for possession every year. Smoking weed or working for a pot company can still threaten your housing, employment, immigration status, finances and freedom. Cannabis business models, regulatory environments and market valuations shift on a daily basis....
As for the 2018 Farm Bill, it’s not yet clear what the regulatory landscape will look like for CBD in 2019. [Some expect] researchers will soon be able to access CBD without jumping through the hoops necessary to acquire a Schedule I drug license from the DEA, which could finally allow scientists to provide more evidence of the compound’s uses and dosage. Still, many people in the cannabis industry are concerned about what the exact guidelines will look like on the commercial production side, and how the rollout will go.
For business owners who have been involved in the weed game for a while, another aspect of the 2018 Farm Bill has proven a troubling sign of the times: anyone with a drug felony conviction in the past 10 years will not be allowed to participate in the legal hemp and CBD market. “What the fuck is that?” asks longtime cannabis cultivator Bill Levers, who runs an influential Instagram account through his California-based company, Beard Bros Pharms. “No one got rich on hemp. There were no hemp cartels. So why would there be a restriction?”
The drug-felony provision in the Farm Bill cuts to the heart of one of the biggest unresolved problems facing the marijuana movement in 2019: the persistence of the illicit market, and the struggle to accommodate folks who have been illegally selling or growing marijuana for years. It is now widely acknowledged that barring people with drug felony convictions from the cannabis industry is racist, as white people with experience on the illicit marijuana market are far less likely to be arrested or convicted. But even without a criminal record, making the transition from outlaw to mogul has proven incredibly difficult, and many of the people who have tried have already given up....
Taxes, in particular, are a thorny issue. Local and state governments generally consider pot taxes to be a primary incentive for legalization, but if tax rates are too high, fewer growers and dispensaries will try to go legal. Already, lax oversight and an oversupply of legal cannabis in states like Oregon and Washington have led to diversion rates of at least 30 percent — meaning at a minimum about a third of legal pot is being sold on the illicit market. Meanwhile, in places like California, Canada and Michigan, hundreds of illegal storefront marijuana dispensaries compete with legal vendors, consistently undercutting them on price. Illicit operators tell me again and again that they cannot afford to survive in the highly taxed and regulated legal market, so they intend to continue breaking the law — sometimes while simultaneously operating a legal business.
Because wealthy (and typically white) applicants have an easier time covering high taxes and licensing fees, some states and municipalities have created so-called “equity” programs to ensure a more diverse industry. In 2017 and 2018, places like Oakland and Sacramento garnered fawning headlines for setting the lofty goal of legislating solutions to the catastrophic and racially disproportionate impact of the War on Drugs. But moving into 2019, California cannabis operators of all colors and political stripes now often describe equity a well-intentioned idea that is failing in practice. The words “tokenism” and “paternalistic” come up a lot.
“Equity is a marketing tool. All of the licenses are going to be given to the people with the most money,” predicts Ophelia Chong, the founder of StockPot Images and executive creative director of Aura Ventures. “Social equity will work for a few, but even then it will be 2 percent [from disadvantaged backgrounds], and those 2 percent will have to really climb a mountain to do it, with no help.” Outside of California, however, including equity and restorative justice in cannabis legalization remains an alluring prospect.
“What I like about California is they give a chance for minorities to get in. They doing the opposite in Michigan,” says Jason, whose cannabis social club, the OMS Dab House, has been a crucial gathering place for Detroit’s marijuana movement for the past decade. Michigan legalized adult-use cannabis in 2018, but as in California, quasi-legal medical dispensaries began proliferating years ago, serving stoners and sick people alike. (The ongoing legal confusion around sales and social spaces is why Jason preferred to not give his last name). Though the city of Detroit is more than 80-percent black, black activists there have previously asserted that only three to five percent of local marijuana dispensaries were owned by black people. Jason predicts that, as Michigan’s legal cannabis industry becomes increasingly corporate and consolidated, those numbers will only go down.
January 6, 2019 in Business laws and regulatory issues, Federal Marijuana Laws, Policies and Practices, Medical Marijuana Commentary and Debate, Political perspective on reforms, Race, Gender and Class Issues, Recreational Marijuana Commentary and Debate | Permalink | Comments (0)
Friday, December 21, 2018
"How Legalizing Marijuana Is Securing the Border: The Border Wall, Drug Smuggling, and Lessons for Immigration Policy"
The title of this post is the title of this interesting and timely new Cato Institute policy analysis authored by David J. Bier. Here is its executive summary:
President Trump has repeatedly cited drug smuggling to justify a border wall. Because it is difficult to conceal, marijuana is the main drug transported between ports of entry where a border wall would matter. However, Border Patrol seizure figures demonstrate that marijuana flows have fallen continuously since 2014, when states began to legalize marijuana. After decades of no progress in reducing marijuana smuggling, the average Border Patrol agent between ports of entry confiscated 78 percent less marijuana in fiscal year (FY) 2018 than in FY 2013.
As a result, the value of all drugs seized by the average agent has fallen by 70 percent since FY 2013. Without marijuana coming in between ports of entry, drug smuggling activity now primarily occurs at ports of entry, where a border wall would have no effect. In FY 2018, the average inspector at ports of entry made drug seizures that were three times more valuable overall than those made by Border Patrol agents between ports of entry — a radical change from 2013 when Border Patrol agents averaged more valuable seizures. This is because smugglers bring mainly hard drugs through ports. By weight, the average port inspector seized 8 times more cocaine, 17 times more fentanyl, 23 times more methamphetamine, and 36 times more heroin than the average Border Patrol agent seized at the physical border in early 2018.
Given these trends, a border wall or more Border Patrol agents to stop drugs between ports of entry makes little sense. State marijuana legalization starting in 2014 did more to reduce marijuana smuggling than the doubling of Border Patrol agents or the construction of hundreds of miles of border fencing did from 2003 to 2009. As more states — particularly on the East Coast — legalize marijuana in 2019, these trends will only accelerate. The administration should avoid endangering this success and not prosecute state-legal sellers of marijuana. This success also provides a model for addressing illegal immigration. Just as legalization has reduced the incentives to smuggle marijuana illegally, greater legal migration opportunities undercut the incentive to enter illegally. Congress should recognize marijuana legalization’s success and replicate it for immigration.
Thursday, December 20, 2018
Prez Trump signs Farm Bill, officially legalizing hemp, which means a notable statement from the FDA Commissioner
a whole lot, but there are lots of complications as to what this means for the development of products using parts of the cannabis plant. Right after the Farm Bill was signed into law, FDA Commissioner Scott Gottlieb released this lengthy statement highlighting some of these complications. Here are excerpts:
Today, the Agriculture Improvement Act of 2018 was signed into law. Among other things, this new law changes certain federal authorities relating to the production and marketing of hemp, defined as cannabis (Cannabis sativa L.), and derivatives of cannabis with extremely low (less than 0.3 percent on a dry weight basis) concentrations of the psychoactive compound delta-9-tetrahydrocannabinol (THC). These changes include removing hemp from the Controlled Substances Act, which means that it will no longer be an illegal substance under federal law.
Just as important for the FDA and our commitment to protect and promote the public health is what the law didn’t change: Congress explicitly preserved the agency’s current authority to regulate products containing cannabis or cannabis-derived compounds under the Federal Food, Drug, and Cosmetic Act (FD&C Act) and section 351 of the Public Health Service Act. In doing so, Congress recognized the agency’s important public health role with respect to all the products it regulates. This allows the FDA to continue enforcing the law to protect patients and the public while also providing potential regulatory pathways for products containing cannabis and cannabis-derived compounds.
We’re aware of the growing public interest in cannabis and cannabis-derived products, including cannabidiol (CBD). This increasing public interest in these products makes it even more important with the passage of this law for the FDA to clarify its regulatory authority over these products. In short, we treat products containing cannabis or cannabis-derived compounds as we do any other FDA-regulated products — meaning they’re subject to the same authorities and requirements as FDA-regulated products containing any other substance. This is true regardless of the source of the substance, including whether the substance is derived from a plant that is classified as hemp under the Agriculture Improvement Act. To help members of the public understand how the FDA’s requirements apply to these products, the FDA has maintained a webpage with answers to frequently asked questions, which we intend to update moving forward to address questions regarding the Agriculture Improvement Act and regulation of these products generally.
In view of the proliferation of products containing cannabis or cannabis-derived substances, the FDA will advance new steps to better define our public health obligations in this area. We’ll also continue to closely scrutinize products that could pose risks to consumers. Where we believe consumers are being put at risk, the FDA will warn consumers and take enforcement actions.
In particular, we continue to be concerned at the number of drug claims being made about products not approved by the FDA that claim to contain CBD or other cannabis-derived compounds. Among other things, the FDA requires a cannabis product (hemp-derived or otherwise) that is marketed with a claim of therapeutic benefit, or with any other disease claim, to be approved by the FDA for its intended use before it may be introduced into interstate commerce. This is the same standard to which we hold any product marketed as a drug for human or animal use. Cannabis and cannabis-derived products claiming in their marketing and promotional materials that they’re intended for use in the diagnosis, cure, mitigation, treatment, or prevention of diseases (such as cancer, Alzheimer’s disease, psychiatric disorders and diabetes) are considered new drugs or new animal drugs and must go through the FDA drug approval process for human or animal use before they are marketed in the U.S. Selling unapproved products with unsubstantiated therapeutic claims is not only a violation of the law, but also can put patients at risk, as these products have not been proven to be safe or effective. This deceptive marketing of unproven treatments raises significant public health concerns, as it may keep some patients from accessing appropriate, recognized therapies to treat serious and even fatal diseases.
Additionally, it’s unlawful under the FD&C Act to introduce food containing added CBD or THC into interstate commerce, or to market CBD or THC products as, or in, dietary supplements, regardless of whether the substances are hemp-derived. This is because both CBD and THC are active ingredients in FDA-approved drugs and were the subject of substantial clinical investigations before they were marketed as foods or dietary supplements. Under the FD&C Act, it’s illegal to introduce drug ingredients like these into the food supply, or to market them as dietary supplements. This is a requirement that we apply across the board to food products that contain substances that are active ingredients in any drug.
We’ll take enforcement action needed to protect public health against companies illegally selling cannabis and cannabis-derived products that can put consumers at risk and are being marketed in violation of the FDA’s authorities. The FDA has sent warning letters in the past to companies illegally selling CBD products that claimed to prevent, diagnose, treat, or cure serious diseases, such as cancer. Some of these products were in further violation of the FD&C Act because they were marketed as dietary supplements or because they involved the addition of CBD to food.
While products containing cannabis and cannabis-derived compounds remain subject to the FDA’s authorities and requirements, there are pathways available for those who seek to lawfully introduce these products into interstate commerce. The FDA will continue to take steps to make the pathways for the lawful marketing of these products more efficient....
It should also be noted that some foods are derived from parts of the hemp plant that may not contain CBD or THC, meaning that their addition to foods might not raise the same issues as the addition of drug ingredients like CBD and THC. We are able to advance the lawful marketing of three such ingredients today. We are announcing that the agency has completed our evaluation of three Generally Recognized as Safe (GRAS) notices related to hulled hemp seeds, hemp seed protein and hemp seed oil and that the agency had no questions regarding the company’s conclusion that the use of such products as described in the notices is safe. Therefore, these products can be legally marketed in human foods for these uses without food additive approval, provided they comply with all other requirements and do not make disease treatment claims.
Given the substantial public interest in this topic and the clear interest of Congress in fostering the development of appropriate hemp products, we intend to hold a public meeting in the near future for stakeholders to share their experiences and challenges with these products, including information and views related to the safety of such products.
Democrat wing of congressional Joint Economic Committee releases report on "The National Cannabis Economy"
This week the Democrats of the US Congress' Joint Economic Committee released this interesting short report titled simply "The National Cannabis Economy." Here is how it gets started and its final passages:
The National Cannabis Economy
Cannabis, or marijuana, is the most commonly used illicit drug in the United States. Though illegal at the federal level, states are taking action to legalize cannabis — from recreational use in states like Colorado and Maine to medical use in New Mexico and Florida. A record 66 percent of Americans now support legalizing cannabis, a dramatic increase from just 12 percent in 1969.
The legalization of cannabis has significant implications for state economies, as well as the national economy. The industry totaled more than $8 billion in sales in 2017, with sales estimated to reach $11 billion this year and $23 billion by 2022. There were more than 9,000 active licenses for cannabis businesses in the U.S. in 2017, with the industry employing more than 120,000 people.
As more states move to legalize cannabis, these numbers will only continue to rise, potentially providing a new stream of revenue and jobs to local economies. But to realize these benefits, policymakers must address conflicts between state and federal regulations that impede the growth of the cannabis economy....
There are a variety of proposals to fix the conflicts between state and federal cannabis laws. Of these proposals, the bipartisan STATES Act has drawn support from President Trump and the cannabis industry. The STATES Act would amend the Controlled Substances Act so that its provisions no longer apply to individuals acting in accordance with state laws. Importantly, the bill would also clarify that financial transactions with state-legal cannabis businesses are not drug-trafficking, creating a solution for financial institutions and the cannabis industry. Several states could be next to legalize cannabis. A bill to legalize cannabis is progressing through the New Jersey legislature, while New York lawmakers are preparing to consider similar legislation this year. Similarly, newly elected governors in New Mexico, Minnesota, Illinois, and Connecticut have all voiced support for legal cannabis, positioning their states to consider the issue.
The growth of the cannabis economy presents opportunities for greater job creation, more tax revenue, and better patient care. But current conflicts between state and federal law threaten to impede social and economic growth. Going forward, lawmakers and regulators should prioritize solutions that promote greater research into the health effects of cannabis and reduce regulations that restrict the industry’s ability to conduct business.
December 20, 2018 in Business laws and regulatory issues, Campaigns, elections and public officials concerning reforms, Employment and labor law issues, Federal Marijuana Laws, Policies and Practices, Recreational Marijuana Commentary and Debate | Permalink | Comments (1)
Monday, December 17, 2018
Paul J. Larkin, Jr., who is a senior legal research fellow at the Heritage Foundation’s Meese Center for Legal and Judicial Studies, has this notable new commentary titled "The Medical Marijuana Delusion." I recommend the piece in full, and here are excerpts:
Contemporary society also does not trust the unregulated backyard, in-home, or agricultural production and distribution of medications. To protect the public against snake-oil salespeople and other charlatans, Congress enacted the Federal Food, Drug, and Cosmetic Act of 1938 (FDCA), the Drug Amendments of 1962, and scores of complementary laws. Those statutes are critically important features of today’s public health regulatory programs. They prohibit, using criminal penalties, the distribution of a new drug in interstate commerce, unless the FDA Commissioner has previously found that it is “safe” and “effective” for its intended use. These laws empower FDA to carefully and strictly regulate and oversee the production of medicines intended for human consumption — and drugs cannot be disguised in food to avoid regulation, because FDA regulates food too. Those laws reflect an 80-year consensus that the nation should leave to the professional, scientific judgment of experts — physicians, biochemists, and the like — the question of which drugs can be created and used for therapeutic purposes by educated, trained, and licensed physicians — not “budtenders.”...
To be sure, the belief that marijuana could have legitimate therapeutic benefits has a basis in science. FDA has found that a few cannabinoids — that is, biologically active constituents of cannabis — can have positive medical benefits, and FDA has approved the manufacture and distribution of synthetic forms of those substances to treat disease, most recently the spasticity caused by rare, severe forms of childhood epilepsy. There might be other therapeutically useful cannabinoids as well. Regulators and scientists should conduct the necessary research to learn if that is true.
But the states that have authorized marijuana to be smoked for medical purposes have simply taken the law into their own hands. Since 1996, more than 30 states have permitted marijuana to be smoked for medical purposes, despite the fact that FDA has never approved marijuana for medical use and there is no FDA-approved medicine that is smoked. The reason is that there are serious, adverse, and undeniable health risks associated with smoking any agricultural product. Since 1964, U.S. Surgeons General have consistently found that smoking tobacco is dangerous. Congress finally agreed in 2009 by passing the Family Smoking Prevention and Tobacco Control Act, which empowers FDA to regulate cigarettes. Smoking marijuana carries many of the same risks as smoking tobacco, so no FDA Commissioner could legitimately treat marijuana in a unique manner.
Much of the debate over marijuana legalization has been misguided — intentionally so. Legalization’s advocates have urged states to adopt medical marijuana laws to ease the suffering of the afflicted and dying. In so doing, the medical marijuana movement has played on the compassion that Americans feel toward people about to traverse the River Styx or who are in such pain or distress that they would gladly make that crossing now. State approval of marijuana for medical purposes, however, is proof that hypocrisy is the tribute that vice pays to virtue.
The real question is whether lawmakers should revise federal law to allow marijuana to be used for recreational purposes, just as alcohol and tobacco can be so used today. If Americans are to honestly debate marijuana use, the debate must be over its utility as a recreational drug, not as medicine, and who should regulate its potential uses — the FDA Commissioner or the U.S. Attorney General. The United States has followed the wrong approach to marijuana regulation for 80 years. It is time to get it right.
Saturday, December 15, 2018
The question in the title of this post is prompted by President Donald Trump's announcement that Mick Mulvaney will be his next Chief of Staff and this effective review of Mulvaney's marijuana reform record by Tom Angell at Marijuana Moment. Here are the details, with links from the original:
Mulvaney, who currently serves as director of the Office of Management and Budget and acting director of the Consumer Financial Protection Bureau, was previously a member of the U.S. House, where he consistently voted to support marijuana reform amendments and cosponsored cannabis bills.
In 2015, for example, he voted for a floor amendment that would have barred the Justice Department from spending money to interfere with state marijuana laws. The proposal, which came just nine flipped votes short of passage, would have expanded on existing protections for state medical cannabis programs by covering recreational laws as well. Mulvaney also voted for the medical marijuana rider three years in a row.
In 2014, 2015 and 2016, he supported amendments to allow Department of Veterans Affairs doctors to recommend medical marijuana to military veterans. Mulvaney backed a 2014 amendment to prevent the Treasury Department from punishing banks that work with marijuana businesses. The South Carolina congressman he also voted for an amendment to protect limited cannabidiol (CBD) medical cannabis laws as well as a number of proposals concerning industrial hemp.
He also signed his name on as a cosponsor of several pieces of standalone marijuana legislation, including a comprehensive bill to reschedule cannabis and protect state medical-use laws, a measure to allow banking access for marijuana businesses, a hemp legalization bill and two separate CBD proposals.
“Mulvaney’s history of opposing wasteful government spending and support for states’ rights, specifically when it comes to marijuana, makes him our strongest ally in the White House,” Don Murphy, director of federal policies for the Marijuana Policy Project, told Marijuana Moment.
Pointing to how the Office of Management and Budget under Mulvaney on several occasions has floated severe funding cuts for the Office of National Drug Control Policy, commonly known as the drug czar’s office, Murphy said that the new acting chief of staff “delivers our ‘more liberty/less spending’ position directly into the Oval Office on a daily basis, where it could bring the federal war on marijuana to an end by 2020.”
It is unclear how long Mulvaney will serve as acting chief of staff, or how frequently marijuana issues will come across his desk, but the fact that he — and not an ardent legalization opponent like Chris Christie, who was also under consideration for the job — will sit a door away from the Oval Office is likely to be seen as a positive development for cannabis reform supporters.
In his new capacity, Mulvaney will be party to conversations about which congressional legislation the president should back as well as discussions about potential marijuana enforcement policy changes at the Department of Justice under a new attorney general.
Friday, December 14, 2018
This Denver Post article, headlined "Cory Gardner will try to pass marijuana banking, other reforms in the Senate next week," reports on a legislative gambit that the Republican Senator claims to be considering. Here are the details:
Gardner plans to introduce an amendment Monday that, if passed, would let cannabis businesses open bank accounts in states where they’re legal. It would exempt retailers from federal prosecution while still keeping cannabis a Schedule 1 drug, meaning it would remain illegal in the states that haven’t legalized marijuana for medical or recreational use....
The Strengthening the Tenth Amendment Through Entrusting States (STATES) Act is a bill Gardner and Sen. Elizabeth Warren, D-Massachusetts, introduced together this summer. Its purpose was to have federal laws basically mirror state laws when it comes to cannabis. The bill hasn’t moved much since it was introduced, so Gardner wants to attach it to a criminal justice reform bill working its way through Congress during the lame-duck session.
“This is by far and away the best shot we’ve had so far,” Gardner told the Denver Post on Friday morning. The reason Gardner thinks this might work is because of how the Senate works. When a bill comes up for a vote, it’s a lot easier to attach a germane amendment than one that has nothing to do with the bill. Any one senator can object to an unrelated amendment, but relevant amendments often become pending — meaning they get a vote from the full Senate. “I can’t think of a more appropriate piece of legislation than this bill to try as an amendment to,” Gardner said.
The criminal justice bill is a priority for both President Donald Trump and Senate Majority Leader Mitch McConnell, R-Kentucky. Gardner said he hadn’t spoken to the president about his plan to attach his measure to the bill, but said “the president supports this legislation, and in its purest form it is sentencing reform.” He’s also confident that he has Senate support to add it as an amendment if he can get a vote.
Given that the leadership of the Senate Judiciary Committee and of the Senate generally has shown, to date, absolutely no interest in holding hearings or moving forward with the STATES Act, I will not dispute Senator Garnder's statement that this is "the best shot [supporters have] had so far." But given that the leadership of the Senate Judiciary Committee and of the Senate generally has shown, to date, absolutely no interest in the STATES Act, I would be shocked if it gets the procedural or substantive support needed to get through the Senate in the coming weeks. And even if it somehow did, there is limited basis to think it would also make it through the House. Ergo, I think this proposed gambit by Senator Gardner has improve the chances of the STATES Act passing in 2018 from 0.1% to maybe 0.5%.
That said, especially with Democrats in control of the House of Representatives come 2019, there is a brighten chance for some meaningful federal marijuana reform in the next Congress. And it is great that Senator Gardner remains highly motivated to try to get his version of reform before his colleague and ultimately into law.
Prior related posts:
- Members of Congress introduce STATES Act described as "Bicameral, Bipartisan Legislation to Protect State Marijuana Policies"
- President Donald Trump suggests he supports new STATES Act effort to reform federal marijuana prohibition
- "Marijuana Federalism's Time Has Come"
The title of this post is the title of this notable new commentary at Reason authored by Ron Paul, a former congressman for Texas, and father of Senator Rand Paul. Here is an excerpt:
Today, 33 states have legalized medical marijuana while ten have legalized recreational marijuana. The majority of Americans now live in states where some type of marijuana is legal. Further proof of changing attitudes is that in 2016, Donald Trump's stated support for respecting state's authority over marijuana policy not only did not damage his campaign, it did not even cost him support from the religious right.
In this year's elections, medical marijuana was legalized in the conservative states of Utah and Oklahoma while recreational marijuana was legalized in Michigan. Texas Representative Pete Sessions' use of his powerful position as chair of the House Rules Committee to block legislation prohibiting federal government from jailing sick people for the "crime" of using medical marijuana in accordance with their state laws may have played a role in his defeat. Voters, especially young voters, are increasingly turned off by conservatives who favor individual liberty and federalism when it comes to guns and Obamacare but favor a federal police state when it comes to marijuana.
Ironically, the other drug warrior to lose his government job this month is also named Sessions. Former Attorney General Jeff Sessions was very devoted to the war on marijuana. He revoked Obama-era policy prohibiting federal prosecution of individuals using marijuana in compliance with laws in their states.
Sessions resignation gave President Trump the ability to appoint an attorney general who agrees with his support for marijuana federalism. Unfortunately, Trump's pick to replace Sessions, William Barr, was a staunch supporter of the war on drugs when he previously served as attorney general from 1991-1993. Congress should make sure Mr. Barr will respect states' authority to set their own marijuana policies before confirming him.
Congress should protect states right to nullify federal anti-marijuana laws by passing the STATES Act. Introduced by Sen. Elizabeth Warren (D-Mass.), the bill is supported by conservative Colorado Sen. Cory Gardner (R) and libertarians like my son, Kentucky Senator Rand Paul (R). The STATES Act enjoys true bipartisan support and advances the cause of limited, constitutional government.
The federal war on marijuana failed to reduce marijuana use. It did succeed in expanding the federal police state and shredding large parts of the Bill of Rights. Fortunately, the majority of Americans ejected the inane policy of locking people up for using a non-government approved drug. President Trump and Congress can side with this pro-Constitution majority by making sure the next Attorney General is a consistent supporter of the 10th Amendment and by passing the STATES Act.
Tuesday, December 11, 2018
Federal farm bill officially includes provisions to legalize "hemp" defined as the cannabis sativa plant with THC levels under 0.3%
One of many reasons I typically use the work "marijuana" on this blog and in other discussions of marijuana reform is because I think it is the word most directly and commonly associated with the version of the cannabis plant (or the parts of the plant) containing the chemical ingredient (delta-9 tetrahydrocannabinol or THC) that gets humans high from consumption. But for various sound reasons, other researchers and many advocates like to talk only about "cannabis" because this is the scientific name for the plant often called marijuana and because there are so many possible uses for and derivatives from that plant that have nothing to do with getting high. Of course, regular readers surely know all this, and yet it is worth reviewing given this notable news as reported by this Marijuana Moment piece: "The Final 2018 Farm Bill ... Will Legalize Hemp." Here are the basics:
The final text of the 2018 Farm Bill was released on Monday, and industrial hemp legalization made the cut. Votes to send the legislation to President Trump’s desk are expected this week.
The bipartisan provision, championed by Senate Majority Leader Mitch McConnell (R-KY), will enable U.S. farmers to cultivate, process and sell hemp, the market for which is now a multi-billion dollar industry.
Following the announcement last month that lawmakers in the Senate and House Agriculture Committees had reconciled their respective versions of the agriculture legislation — with hemp legalization in the mix — questions remained about a controversial provision in the Senate version that would ban people with felony drug convictions from participating in the hemp industry. But a compromise was reached and the final version will allow such individuals to work for hemp businesses after 10 years....
“While this Farm Bill is a missed opportunity, there are some good provisions,” Rep. Earl Blumenauer (D-OR) said in a press release. “One of those provisions is to roll back our senseless hemp prohibition.”
“Our forefathers would be rolling in their graves if they saw us putting restraints on a versatile product that they grew themselves. We have farmers growing thousands of acres of hemp in dozens of states across the U.S. already. You can have hemp products shipped to your doorstep. This is a mainstream, billion-dollar industry that we have made difficult for farmers. It’s past time Congress gets out of their way.”
Under the legislation, hemp would no longer be in the jurisdiction of the Justice Department. Rather, the U.S. Department of Agriculture will lightly regulate the crop. If the bill passes and President Trump signs it, hemp legalization will go into effect on January 1, according to VoteHemp.
Here is the definition of "HEMP" as set forth in this draft legislation: "The term ‘hemp’ means the plant Cannabis sativa L. and any part of that plant, including the seeds thereof and all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or not, with a delta-9 tetrahydrocannabinol concentration of not more than 0.3 percent on a dry weight basis." In other words, if and when this bill becomes law, it will be possible to produce and sell, without violating federal law, "certain version of the "plant Cannabis sativa L. and any part of that plant, including the seeds thereof and all derivatives, extracts, cannabinoids" etc. This seems to me a very big deal, though one that also seems certain to create even more confusion about what is and is not allowed under federal law with respect to so-called "medical marijuana."
This recent lengthy CNBC artice, headlined "Hemp legalization included in new farm bill could 'open the floodgates' on nascent industry," provide a review of what enactment of this legislation could mean and how we got here. Here is a snippet:
Hemp is a cannabis cousin of marijuana but it contains low levels of THC, the chemical that produces a "high" for pot users. Industrial hemp is used to make everything from apparel, foods and pharmaceuticals to personal care products, car dashboards and building materials.
"The vast majority of the market right now is going for CBD products," said Brightfield Group's [Bethany] Gomez. "You can find some hemp seed-based beauty products or hemp in some cereals and things like that, and there's such usage on the fibers for like clothes and other industrial purposes, but that's really minimal right now."
Brightfield Group estimates the domestic hemp market could reach $22 billion in the next four years. The estimate factors in the hemp amendment in the farm bill becoming law....
"There are three words why we have hemp now, and those words are tobacco state Republicans," said Kristin Nichols, editor at Denver-based Hemp Industry Daily, a publication owned by MJBizDaily. "There's been strong support from lawmakers and politicians up and down in former tobacco states looking for a replacement crop."
The hemp provisions in the 2018 Farm Bill were in the Senate version of the legislation sponsored by Senate Majority Leader McConnell. The Kentucky Republican put himself on the joint Senate-House conference committee formed to hammer out the details of the final farm bill. "I know there are farming communities all over the country who are interested in this," McConnell said in June when discussing the hemp legalization legislation before the Senate Agriculture Committee. "Mine are particularly interested in it, and the reason for that is — as all of you know — our No. 1 cash crop used to be something that's really not good for you: tobacco. And that has declined significantly, as it should, given the public health concerns."
December 11, 2018 in Business laws and regulatory issues, Campaigns, elections and public officials concerning reforms, Federal Marijuana Laws, Policies and Practices, History of Marijuana Laws in the United States, Political perspective on reforms, Who decides | Permalink | Comments (0)
Sunday, November 18, 2018
Spotlighting the still-challenging politics that surround the intersection of marijuana reform, criminal justice reform and racial inequities
Today's must-read for both marijuana reform and criminal justice reform fans is this lengthy new Politico article fully headlined "Racial Justice and Legal Pot Are Colliding in Congress: The latest fight over criminal justice reform is over allowing felons access to newly legal aspects of the cannabis industry. Lawmakers are getting woke — slowly." I recommend this piece is full, and here are some extended excerpts:
Thanks to Senate Majority Leader Mitch McConnell, the [Farm] bill includes an amendment that would permanently remove hemp from the list of federally banned drugs like heroin and cocaine, freeing hemp from the crippling legal stigma that has made it economically unviable for the past four decades. But that amendment also includes a little-noticed ban on people convicted of drug felonies from participating in the soon-to-be-federally-legal hemp industry.
Added late in the process, apparently to placate a stakeholder close to McConnell, the exception has angered a broad and bipartisan coalition of lawmakers, hemp industry insiders and religious groups who see it as a continuing punishment of minorities who were targeted disproportionately during the War on Drugs and now are being denied the chance to profit economically from a product that promises to make millions of dollars for mostly white investors on Wall Street....
[L]awmakers like McConnell, who have discovered the economic benefits of relaxing prohibitions on products such as hemp, have nevertheless quietly found ways, like the Farm Bill felon ban, to satisfy the demands of their anti-legalization constituents, to the chagrin of pro-cannabis lawmakers and activists. After POLITICO Magazine reported on the drug-crime felon ban in August, three senators — Cory Booker (D-New Jersey), Rand Paul (R-Kentucky), and Jeff Merkley (D-Oregon) — wrote to Senate leadership demanding the removal of the ban, citing its “disparate impact on minorities,” among other concerns.
“I think there’s a growing recognition of the hypocrisy and unfairness of our nation’s drug laws, when hundreds of thousands of Americans are behind bars for something that is now legal in nine states and something that two of the last three Presidents have admitted to doing,” Booker told POLITICO Magazine. “If we truly want to be a just and fair nation, marijuana legalization must be accompanied by record expungement and a focus on restorative justice.”...
[The] once-radical notion that felons ought to gain priority for entry into a newly legal industry — instead of being shut out — has quietly gained bipartisan support on Capitol Hill, albeit not among Republican leadership. In the House, this mounting opposition to the continuing punishment of felons first cropped up in September when the Judiciary Committee passed its first pro-marijuana bill. It would expand access to scientific study of the cannabis plant, a notion agreed-upon by marijuana’s supporters and detractors alike. However, Democrats almost killed the bill because it included language that barred felons (and even people convicted of misdemeanors) from receiving licenses to produce the marijuana.
Felon bans are commonplace in legal marijuana programs. Every state has some version of it, but most of them have a five- or 10-year limit. But the felon bans in both the Senate’s Farm Bill and the House’s marijuana research bill are lifetime bans, and the House bill includes misdemeanors, too. “Any restriction on misdemeanors goes in the exact contrary direction of the Second Chance Act,” said Rep. Jerry Nadler (D-New York), who will become chairman of the Judiciary Committee in January. His criticism was echoed by Steve Cohen (D-Tennessee), who sought to have the misdemeanor language struck from the bill until its sponsor, Matt Gaetz (R-Florida), promised to address that language when it comes to the House floor.
In the Senate, the movement to protect the legal marijuana trade has taken the form of the proposed bipartisan Gardner-Warren STATES Act, which would maintain the status quo of federal non-interference of state-legal programs that was upended when then-Attorney General Jeff Sessions repealed the Cole Memo, an Obama-era document that outlined a hands-off approach to state-legal programs. Booker’s Marijuana Justice Act would adopt California-style principles and apply them federally, going far beyond the STATES Act, removing marijuana from Schedule I (defined as having no medical value and a high risk of abuse) and eliminating criminal penalties for marijuana. But unlike other pro-marijuana bills, it would also deny federal law-enforcement grants to states that don’t legalize marijuana; direct federal courts to expunge marijuana convictions; and establish a grant-making fund through the Department of Housing and Urban Development for communities most affected by the War on Drugs.
Booker’s bill has become popular among Senate Democrats. Ron Wyden, Kirsten Gillibrand, Bernie Sanders, Kamala Harris, Jeff Merkley and Elizabeth Warren have signed on as co-sponsors — a list that looks a lot like a lineup of presumed candidates for the 2020 Democratic presidential primary. “For too long, the federal government has propped up failed and outdated drug policies that destroy lives,” Wyden told POLITICO Magazine. “The War on Drugs is deeply rooted in racism. We desperately need to not only correct course, but to also ensure equal justice for those who have been disproportionately impacted. People across America understand and want change. Now, Congress must act.”
Recent polling shows that Americans agree with Wyden — to a point. There is a widespread acceptance of legalizing marijuana. Gallup has been tracking this number since 1969, when only 12 percent of Americans believed in legalizing it; in October, Gallup put the number at 64 percent, the highest ever number recorded. Pew says it is 62 percent, also its highest number ever.
But there is far less acceptance of the idea that the War on Drugs has had an adverse impact on poorer, minority communities, or that there should be some form of compensation in terms of prioritized access to the new industry. A poll conducted by Lake Research Partners, a progressive DC-based polling firm, earlier this year on the “Politics of Marijuana Legalization in 2018 Battleground Districts” found that 62 percent of the 800 likely voters surveyed agreed with the idea “we need legalization to repair the financial and moral damage of the failed War on Drugs.” However, when the pollsters added a racial component to this message — whether the respondents felt that the marijuana prohibition “unfairly target[s] and destroy[s] minority communities” — only 40 percent found that message to be “very convincing.”...
[M]any members of the Congressional Black Caucus have been slow to support marijuana legalization. But the CBC finally made its position on this issue clear in June when its 48-member caucus voted in an “overwhelming majority” to support policies beyond mere decriminalization: “Some of the same folks who told African Americans ‘three strikes and you’re out’ when it came to marijuana use and distribution, are now in support of decriminalizing the drug and making a profit off of it,” CBC Chairman Cedric L. Richmond, Democrat from Louisiana said at the time. “The Congressional Black Caucus supports decriminalizing marijuana and investing in communities that were destroyed by the War on Drugs…”
Arguments for legalizing marijuana haven’t been entirely persuasive to sway many in the conservative black community, but re-framing it in the context of civil rights has brought many around to this new way of thinking. “What is moving conservative black and brown folks is this idea that we’re on the horizon of marijuana legalization,” according to Queen Adesuyi of the Drug Policy Alliance. “So the idea is in order to do this in a way that is equitable and fair, you have to start on the front end of alleviating racially biased consequences of prohibition while we’re legalizing — and that means expungement, re-sentencing, community re-investment, and looking at where marijuana tax revenue can go, and getting rid of barriers to the industry.”
Now that Democrats have won control of the House, co-founder of the Cannabis Caucus, Rep. Earl Blumenauer (D-Oregon), is poised to implement his blueprint for how the House under Democratic leadership would legalize marijuana at the federal level. Racial justice is front-and-center in that plan. The memo he sent to Democratic leadership reads in part, “committees should start marking up bills in their jurisdiction that would responsibly narrow the marijuana policy gap — the gap between federal and state marijuana laws — before the end of the year. These policy issues… should include: Restorative justice measures that address the racial injustices that resulted from the unequal application of federal marijuana laws.”
Cross-posted at Sentencing Law & Policy
November 18, 2018 in Business laws and regulatory issues, Campaigns, elections and public officials concerning reforms, Criminal justice developments and reforms, Federal Marijuana Laws, Policies and Practices, Polling data and results, Race, Gender and Class Issues, Who decides | Permalink | Comments (0)
Sunday, November 11, 2018
The title of this post is the title of this new article authored by John G. Sprankling now available via SSRN. Here is its abstract:
Legal marijuana is the fastest-growing industry in the United States. Tens of thousands of new businesses have arisen to meet the demand created by over 34 million Americans who use marijuana. And the millions of pounds of marijuana grown, processed, and sold this year will generate more than $11 billion in revenue. This industry is premised on the assumption that marijuana ownership will be protected by law. But can marijuana be owned? This Article is the first scholarship to explore the issue.
Federal law classifies marijuana as contraband per se in which property rights cannot exist. Yet the Article demonstrates that marijuana can now be owned under the law of most states, even though no state statute or decision expressly addresses the issue. This conflict presents a fundamental question of federalism: Can property rights exist under state law if they are forbidden by federal law? The Article explains why federal law does not preempt state law on marijuana ownership.
This creates a paradox: state courts and other state authorities will protect property rights in marijuana, but their federal counterparts will not. The Article analyzes the challenges that this hybrid approach to marijuana ownership poses for businesses and individuals. It also examines the fragmented status of marijuana ownership in the interstate context, where business transactions involve states with conflicting approaches to the issue.
Saturday, November 10, 2018
Billy Williams, US Attorney for Oregon, appointed to chair Attorney General’s Marijuana Working Group
Easily lost amidst big election news and the resignation of US Attorney General Jeff Sessions was this Justice Department press release, dated Wednesday, November 7, 2018, titled "Deputy Attorney General Names U.S. Attorney Williams Chair of National Marijuana Working Group." Here is part of the text:
Deputy Attorney General Rod J. Rosenstein today named Billy J. Williams, U.S. Attorney for the District of Oregon, chair of the Attorney General’s Marijuana Working Group. The working group is part of the Attorney General Advisory Committee’s (AGAC) Controlled Substances Subcommittee.
“I am honored to be named chair of the Marijuana Working Group and look forward to working with Attorney General Sessions, Deputy Attorney General Rosenstein and my fellow U.S. Attorneys on this important policy area,” said U.S. Attorney Williams. “From our statewide summit in February to the release of our district enforcement strategy this summer, we’ve learned a lot from stakeholders representing many diverse interests. There is one thing everyone agrees on: a broad need for stronger regulation. This working group provides a valuable forum for sharing ideas and learning from the experiences of others in an effort to develop innovative, multi-district enforcement strategies to address the many impacts of a nascent industry.”
The day of this press release was the day that Jeff Sessions resigned as Attorney General, so Chair Williams can no longer "look forward to working with Attorney General Sessions." But this appointment still seems notable and important because US Attorney Williams has been playing an active role in trying to enhance regulatory control of the marijuana industry in his home state of Oregon. I have blogged about his efforts, and a series of posts which reveal some of his views on these matters can be found linked below. Interesting times.
Prior related posts:
- US Attorney for Oregon, expressing "significant concerns about the state's current regulatory framework," plans summit in response to new AG enforcement policy
- US Attorney for Oregon, apparently serving now as chief state regulator, conducts marijuana summit
- US Attorney for Oregon issues detail memorandum to detail federal marijuana enforcement priorities in the state
Wednesday, November 7, 2018
Tom Angell has this new Forbes piece under the headline "Marijuana Won The Midterm Elections." His accounting of marijuana's victory goes beyond just the statewide ballot initiatives, and here are excerpts (with links from the original and my highlighting of state names):
Michigan voters approved a ballot measure making their state the first in the midwest to legalize cannabis. Missouri approved an initiative to allow medical marijuana, as did Utah.
Voters in several Ohio cities approved local marijuana decriminalization measures, and a number of Wisconsin counties and cities strongly approved nonbinding ballot questions calling for cannabis reform.
While North Dakota's long-shot marijuana legalization measure failed, cannabis also scored a number of big victories when it came to the results of candidate races. When new pro-legalization governors take their seats next year, marijuana bills in several states will have a good chance of being signed into law.
In Illinois, Democrat J.B. Pritzker won the governor's race after making marijuana legalization a centerpiece of his campaign. "We can begin by immediately removing one area of racial injustice in our criminal justice system," he said during his primary night victory speech earlier this year. "Let's legalize, tax and regulate marijuana."
Minnesota Gov.-elect Tim Walz (D) wants to "replace the current failed policy with one that creates tax revenue, grows jobs, builds opportunities for Minnesotans, protects Minnesota kids, and trusts adults to make personal decisions based on their personal freedoms."
Michigan voters who supported the state's marijuana legalization measure will have an ally in the incoming governor, Gretchen Whitmer (D), who supported the initiative and is expected to implement it in accordance with the will of the people. She has called cannabis an "exit drug" away from opioids
In New Mexico, Michelle Lujan Grisham (D), who won the governor's race, said legalizing marijuana will bring “hundreds of millions of dollars to New Mexico’s economy."
In New York, while easily reelected Gov Andrew Cuomo (D) had previously expressed opposition to legalization, he more recently empaneled a working group to draft legislation to end cannabis prohibition that the legislature can consider in 2019, a prospect whose chances just got a lot better in light of the fact that Democrats took control of the state's Senate.
In Wisconsin, Democrat Tony Evers supports decriminalizing marijuana and allowing medical cannabis, and says he wants to put a full marijuana legalization question before voters to decide. He ousted incumbent Gov. Scott Walker (R) on Tuesday.
States that already have legalization elected new governors who have been vocal supporters and will likely defend their local laws from potential federal interference. California's Gavin Newsom, Colorado's Jared Polis, Maine's Janet Mills and Nevada's Steve Sisolak, all Democrats, fit that bill. Oregon Gov. Kate Brown (D), also a legalization supporter, was reelected in her state, which ended prohibition in 2014.
Speaking of the federal government, when it comes to congressional races, one of the main impediments to cannabis reform on Capitol Hill won't be around in 2019. Rep. Pete Sessions (R-TX), who as chairman of the House Rules Committee, has systematically blocked every single proposed marijuana amendment from reaching a floor vote this Congress, is now out of a job after having lost his reelection bid to Democrat Colin Allred.
And the fact that the Democrats, who have been much more likely than Republicans to support cannabis reform legislation than GOP members, retook control of the chamber means that the chances of ending federal prohibition sooner rather than later just got a lot better. Last month, Rep. Earl Blumenauer (D-OR) published what he called a "Blueprint to Legalize Marijuana" in which he laid out a detailed, step-by-step plan for Democrats to enact the end of federal cannabis prohibition in 2019. It's not clear whether Democratic leaders will embrace the idea, but a look at polling on the issue should give them the sense that marijuana reform is a popular issue with bipartisan support....
That said, while Senate Majority Leader Mitch McConnell (R-KY) has championed legalizing hemp, he does not support broader marijuana law reform and seems unlikely to bring far-reaching cannabis bills to a vote without substantial pressure.
But President Trump earlier this year voiced support for pending legislation that would respect the right of states to implement their own marijuana laws. If Democrats pass that bill or similar proposals out of the House, the president's support could be enough to get it through the Senate, where a number of GOP members have already endorsed ending federal prohibition.
November 7, 2018 in Campaigns, elections and public officials concerning reforms, Federal Marijuana Laws, Policies and Practices, Medical Marijuana State Laws and Reforms, Recreational Marijuana State Laws and Reforms, Who decides | Permalink | Comments (0)
Sunday, November 4, 2018
This afternoon former Speaker of the House John Boehner published this new Wall Street Journal commentary headlined "Washington Needs to Legalize Cannabis." Though Boehner's support for marijuana reform has been well-known now for at least six months, this piece on the eve of a big election in a conservative newspaper still seems quite noteworthy.
Friday, November 2, 2018
Former White House Communications Director Anthony Scaramucci says he thinks Prez Trump is "going to legalize marijuana ... after the midterms"
As covered here by Marijuana Moment, today brings a notable comment about marijuana reform from a notable former insider:
President Trump will push for marijuana legalization after the upcoming elections, according to former White House Communications Director Anthony Scaramucci.
“I do. I think he’s going to legalize marijuana,” Scaramucci told Succeed.com founder Charles Peralo in an interview this week. “I think he’s waiting for after the midterms. I think he’s on the side of legalization.”
Whether Scaramucci is basing his prediction on a hunch or insider knowledge is unclear. He might have only lasted 10 days at the White House, but he still claims to talk with the president on occasion. In any case, “The Mooch,” as he is known, did not respond to a Marijuana Moment request for clarification via Twitter DM....
Trump said earlier this year that he’s inclined to support a bipartisan congressional bill that would let states implement their own marijuana laws without federal interference.
The Mooch isn’t alone in his belief. Last month, marijuana-friendly Rep. Dana Rohrabacher (R-CA) said in an interview that cannabis reform would be on the White House agenda after the midterms and that legislation would be in the works “as early as spring of 2019.”
“I would expect after the election we will sit down and we’ll start hammering out something that is specific and real,” the congressman said.
Saturday, October 27, 2018
The title of this post is the title of this new article recently posted to SSRN authored by Sean O'Connor and Erika Lietzan. Here is its abstract:
As more states legalize cannabis, the push to “deschedule” it from the Controlled Substances Act is gaining momentum. At the same time, the FDA recently approved the first conventional drug containing a cannabinoid derived from cannabis — cannabidiol (“CBD”) for two rare seizure disorders. This would all seem to bode well for proponents of full federal legalization of medical cannabis.
But some traditional providers are wary of drug companies pulling medical cannabis into the regular small molecule drug development system. The FDA’s focus on precise analytical characterization and on individual active and inactive ingredients may be fundamentally inconsistent with the “entourage effects” theory of medical cannabis. Traditional providers may believe that descheduling cannabis would free them to promote and distribute their products free of federal intervention, both locally and nationally. Other producers appear to assume that descheduling would facilitate a robust market in cannabis-based edibles and dietary supplements. In fact, neither of these things is true. If cannabis were descheduled, the FDA’s complex and comprehensive regulatory framework governing foods, drugs, and dietary supplements would preclude much of this anticipated commerce.
For example, any medical claims about cannabis would require the seller to complete the rigorous new drug approval process, the cost of which will be prohibitive for most current traditional providers. Likely also unexpected to some, there is no pathway forward for conventional foods containing cannabis constituents, if those foods cross state lines. And it will certainly come as a shock to many that federal law already prohibits the sale of dietary supplements containing CBD — including those already on the market. In this article, we describe in detail this surprising reach of the FDA and then outline three modest — but legal — pathways forward for cannabis-based products in a world where cannabis has been descheduled.
October 27, 2018 in Federal Marijuana Laws, Policies and Practices, Food and Drink, Medical Marijuana Commentary and Debate, Recreational Marijuana Commentary and Debate, Who decides | Permalink | Comments (1)
Thursday, October 18, 2018
The question in the title of this post is the headline of this new Rolling Stone article that effectively summarizes the lengthy memo circulated yesterday by Representative Earl Blumenauer written to House Democratic Leadership outlining his plan to legalize cannabis in the next Congress. Here are excerpts from the article:
In honor of Canada’s first day with legal adult-use marijuana, an optimistic Rep. Earl Blumenauer (D-OR) sent a letter to House Democratic leadership Wednesday outlining a plan to advance federal legalization measures with the goal of federally legalizing cannabis by the end of 2019. “Congress is out of step with the American people and the states on cannabis,” he wrote. “There is no question: cannabis prohibition will end. Democrats should lead the way.”
Blumenauer’s plan would begin as early as next January, when he says the key to advancing some of the 37 cannabis bills sitting in Congress is to have the individual issues evaluated by the distinct congressional committees. For example, the House Judiciary Committee could hold a hearing on descheduling marijuana; the House Veterans Affairs Committee could hold a hearing on veterans’ access to medical pot; the House Financial Services Committee could discuss the current barring of cannabis businesses from federally backed banks; and the House Ways and Means Committee could have a hearing on the unequal taxation of pot businesses.
Additionally, Blumenauer writes that these committees should start “marking up bills in their jurisdiction[s] that would responsibly narrow the marijuana policy gap — the gap between federal and state marijuana laws,” using examples like the protection of employment, protection of private property from civil asset forfeiture and the removal of barriers to marijuana research. He also includes, most importantly, the need to “address the racial injustices that resulted from the unequal application of federal marijuana laws” — or, in other words, a social-justice element that could begin to correct the racist tide of the 40-year-old War on Drugs.
By August, Blumenauer believes, the House can pass a package of marijuana laws to address these concerns, and the bills can move to the Senate. The Oregon representative hopes that, given the increasing public support for marijuana — he cites a poll that 69 percent of registered voters support legalizing pot — the public will be able to pressure the senior body of Congress into passing the bill....
On a call with reporters, Blumenauer said that he believes key members of the prohibitionist movement — including Texas Rep. Pete Sessions and House Majority Leader Paul Ryan — won’t be returning next session, and with those opponents gone, the cannabis movement will be able to advance. He has been speaking with senior members of the committees, he said, and is confident that some will be able to get these specific areas of cannabis law on the agenda next year. “The outline is ambitious,” Blumenauer admitted. “It’s aspirational, but it’s entirely within our capacity.”
Friday, October 12, 2018
The question in the title of this post is prompted by this new Fox Business piece headlined "White House to unveil federal cannabis reform 'very soon,' says GOP lawmaker." Here are excerpts:
The White House is planning on tackling cannabis reform after the midterm elections, according to Rep. Dana Rohrabacher, R-Calif. Rohrabacher tells FOX Business that the Trump administration has made a “solid commitment” to fix marijuana regulation.
“I have been talking to people inside the White House who know and inside the president’s entourage... I have talked to them at length. I have been reassured that the president intends on keeping his campaign promise.”...
“I would expect after the election we will sit down and we’ll start hammering out something that is specific and real,” he said.
The California congressman, who is up for re-election this November, is battling to hold onto a seat that national Democrats have identified as part of their strategy to win the House majority this midterm election. Rohrabacher faces Democrat Harley Rouda. RealClearPolitics has listed the seat that Rohrabacher has held for five years as a toss-up – and the polling average has both candidates in a dead heat – with both at 48 percent of voter support.
Recreational marijuana was just recently legalized in California this year – but reforms on the federal level have been stalled for decades. Yet, according to Rohrabacher, that will soon change: “It could be as early as spring of 2019, but definitely in the next legislative session.”
I suspect Rep. Rohrabacher is making these claims as part of an effort to make the case to Californians that he needs to be reelected to help with federal marijuana reforms.