The cannabis industry’s arch nemesis reemerged this week

Cannabis investors have been waiting for movement on the SAFE Banking Act, which would free up large banking institutions to provide industry players with much-needed loans and other banking services, for years. 

Next week was supposed to be a big milestone in the political process as September 27 was seen as a strong tentative date for a Senate vote on the bill. 

The SAFE Banking Act could save the fledgling U.S. cannabis industry from being crushed by the hard ceiling of lack of banking access as it grows larger. 

In the past, Senate Majority Leader Chuck Schumer has pushed to include the SAFE Banking Act into a larger funding packages in order to get it passed, to no avail. 

And while the bill has garnered bipartisan support — especially in the House of Representatives — Senate Republicans seem hellbent on slowing up the industry’s progress. 

Senators Cynthia Lummis (R-Wyo.) and Steve Daines (R-Mont.) have filed new legislation that would prevent federal agencies from rescheduling cannabis without congressional approval. 

The Deferring Executive Authority Act was introduced on Thursday by Lummis and Daines, who opposed marijuana being legalized in her own state. 

“Congress makes the laws in this country, not D.C. bureaucrats,” said Lummis. “The American people through their elected representatives in the Senate and House should have the final say on such a momentous change as the legalization of marijuana.

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House Democrats File Marijuana Legalization And Expungements Bill

A top House Democrat has reintroduced a bill to federally legalize, tax and regulate marijuana, with provisions to expunge prior cannabis convictions.

Rep. Jerrold Nadler (D-NY), ranking member of the House Judiciary Committee, refiled the Marijuana Opportunity, Reinvestment and Expungement (MORE) Act on Wednesday. There are 33 initial cosponsors—all Democrats.

The comprehensive legalization legislation has passed the House twice in recent sessions—but this marks the first time it’s being introduced with Republicans in control of the chamber, raising serious questions about whether it will move. The Judiciary Committee, which is the primary panel of jurisdiction, is chaired by anti-cannabis Rep. Jim Jordan (R-OH).

Even the prospects of a modest marijuana banking bill that’s set for committee action in the Senate next week are uncertain in the House under the GOP majority. That said, a GOP-led House panel did advance legislation on Wednesday to prevent the denial of federal employment or security clearances based on a candidate’s past cannabis use.

In any case, advocates have long touted the MORE Act as an example of the type of wide-ranging cannabis reform legislation that would not only end prohibition but take steps to right the wrongs of prohibition and promote social equity.

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Canadian Study Links Cannabis Legalization to an Increase in Car Accidents

The results of a recent study published in JAMA Network Open claim to have found an association between cannabis legalization and an increase in traffic accidents.

The study was conducted by researchers at the University of Ottawa and looked at emergency room visits in Ontario, Canada over a 13-year period (Jan 2010-Dec 2021 which is actually 12 years but they say 13 in the study so what do I know), at the end of which they denoted a 475.3% increase in traffic accidents that resulted in an emergency room visit in which the driver had cannabis in their system at the time of the accident.

“This cross-sectional study found large increases in cannabis involvement in ED visits for traffic injury over time, which may have accelerated following nonmedical cannabis commercialization,” the conclusion of the study said. “Although the frequency of visits was rare, they may reflect broader changes in cannabis-impaired driving. Greater prevention efforts, including targeted education and policy measures, in regions with legal cannabis are indicated.”

At first glance, 475.3% sounds like a big number and suffice it to say many of the anti-cannabis media outlets who repackaged that number for a scary-sounding headline are counting on their readership to look no further and take their word for it that cannabis legalization and car crashes must be associated. I’m a journalist, not a scientist, but I am able to point out some facts about the study that might make that big number seem a bit less scary.

For one thing the study was only conducted in Ontario, Canada. In terms of sample size, that is one city in a country with very specific cannabis laws so to lay the blanket term “legalization” over one very specific set of laws isn’t totally accurate. The study even says so in the introduction:

“Another study also found no increase in total traffic injury hospitalizations in Canada over 2.5 years following legalization. Critically, the slow rollout of the cannabis retail market in Canada and the overlap of the legalization period with the COVID-19 pandemic greatly reduces the ability of these studies to evaluate the impacts of legalization,” the study said.

It’s also important to understand that the total number of injury-causing traffic accidents involving cannabis in the 13-year period came to a grand total of 426 out of 947,604. That number as a percentage is .04%, which is even smaller when compared to the total number of traffic accidents without taking emergency room visits into account. It’s hardly insignificant, but it is, arguably, a much less daunting number at first glance than 475.3%.

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Indian Tribe Within North Carolina Votes To Legalize Marijuana, Snubbing Anti-Cannabis GOP Congressman

The Eastern Band of Cherokee Indians (EBCI) passed a referendum Thursday in favor of legalizing marijuana, becoming the first jurisdiction within the borders of North Carolina—or any of its surrounding states—to commit to the policy change. But it will be a while before would-be customers can make a purchase.

According to unofficial results posted by the EBCI’s Board of Elections, members approved the measure by a margin of 70 percent to 30 percent. Although the referendum does not legalize cannabis automatically, tribal leaders have said they’ll follow voters’ lead when they ultimately take up the issue.

The referendum asked the tribe’s enrolled members, “Do you support legalizing the possession and use of cannabis for persons who are at least twenty-one (21) years old, and require the EBCI Tribal Council to develop legislation to regulate the market?”

Sales would be open to all adults over 21, regardless of tribal membership.

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Illinois Concert This Weekend Will Be State’s First To Allow On-Site Marijuana Consumption

Music fans heading to Mundelein, Illinois, this weekend will make history as part of the state’s first-ever concert to allow open marijuana consumption. Headliners, fittingly, include the cannabis-friendly artists Cypress Hill, Stephen Marley and Action Bronson.

Kicking off Saturday afternoon, the two-day Miracle in Mundelein festival will feature complimentary rolling papers, lighters and grinders, as well as dab bars and rolling stations for use by attendees. Marijuana products themselves will be available for sale through a retailer located next door.

Consuming cannabis will be allowed anywhere inside the 21+ event, while using marijuana outside the perimeter fence is strictly forbidden. Organizers say it’s an opportunity for the cannabis crowd to lead by example.

“Let’s show everyone what a responsible and respectful community we are by adhering to these rules and regulations,” the website for the event says.

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Prohibitionist Group Narcs On Wells Fargo And Maryland Officials Over Accounting Of Marijuana Tax Revenue

An anti-marijuana advocacy group is taking aim at a banking arrangement between Wells Fargo and the state of Maryland that allows officials to receive and process tax revenue generated by state-legal cannabis businesses, calling the scheme “an active effort to protect the banks who are breaking federal law” and making an attempt to alert federal officials about it.

The state, for its part, has said it “complies with applicable laws and regulations.”

Smart Approaches to Marijuana (SAM), which opposes marijuana legalization, made the allegations in a press release late last month following media reports of the banking arrangement, including in Marijuana Moment.

The also group sent an open letter to Maryland officials and Wells Fargo, while CCing several federal officials, requesting that “Wells Fargo cease working with Maryland state officials to circumvent federal laws and regulations.”

“The workaround by the Maryland government reported on in the media is a clear attempt to protect banks from thoughtfully crafted federal regulations,” the prohibitionist group’s letter says.

Among those copied on the letter are Erek L. Barron, the U.S. attorney for Maryland, whose office would oversee any potential federal prosecutions in the state, as well as Attorney General Merrick Garland and Treasury Secretary Janet Yellen.

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HOW CALIFORNIA COPS EXPLOIT LEGAL GRAY AREAS TO CONTINUE THEIR WAR ON CANNABIS

Zeke Flatten was driving southbound on Highway 101 in Northern California in December 2017 when he was pulled over by an unmarked SUV with flashing emergency lights.

Two officers clad in green, military-style garb and bulletproof vests approached Flatten’s vehicle but didn’t identify themselves. After asking Flatten if he knew how fast he was going, one of the men told him they suspected he was transporting cannabis, according to court documents. Flatten was immediately suspicious.

“He never mentioned anything else about the reason, probable cause, why he stopped me,” Flatten said in an interview with The Appeal.

The officers were correct, however: Flatten, a film producer and former undercover cop who’d temporarily relocated to Northern California, had three pounds of marijuana, including a few rolled joints, in the car—worth over $3,000 at the time. Flatten says he was working on a number of cannabis-related projects and was driving to a lab to test the weed, which he’d hoped to sell legally.

Just over a year before the stop, California had voted to legalize the personal cultivation and possession of up to an ounce of marijuana with the passage of Proposition 64. Under the measure, possession of larger amounts of cannabis was reduced from a felony offense to a misdemeanor, punishable by up to six months of incarceration and a maximum $500 fine.

But marijuana remains illegal at the federal level, classified as a Schedule 1 substance alongside drugs like heroin, LSD, and MDMA, known as Ecstasy. When the officers identified themselves as members of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), a federal agency, Flatten said he started to realize something was off.

“There’s no patches, there’s no badges, there’s no name tags,” Flatten said.

Flatten says he offered to show the officers his medical marijuana card, which should have allowed him to have the cannabis. But they didn’t want to look at the card. He figured if the agents believed the marijuana was illegal, they’d take it and provide him a receipt for the seizure, which would give him a chance to argue his case in court, Flatten said.

Instead, they proceeded to confiscate the cannabis from the back of Flatten’s car without running his name for warrants, or issuing a traffic ticket, court summons, or even documentation of the seizure, Flatten said. The officers did tell him that he might be getting a letter from the federal government. But he never did.

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Missouri Judge Denies Effort To Stop Recall of 62,000 Marijuana Products

A Missouri judge denied on Wednesday a marijuana company’s effort to stop the recall of 62,000 products containing the company’s THC concentrate that the state deemed a “potential threat to health and safety.”

The company, Delta Extraction, is a Robertsville-based licensed marijuana manufacturer that specializes in making THC distillate, a highly potent and pure form of THC used for things like vape pens, infused pre-rolled joints and edibles.

On August 2, the state regulating agency suspended Delta Extraction’s license after accusing the company of sourcing untested “marijuana or converted hemp from outside of a Missouri licensed cultivation facility.”

The state issued an administrative hold on the products days after and then a full product recall on August 14.

Delta Extraction argued in its August 16 motion for a temporary restraining order that the state’s actions were an “unlawful campaign to destroy Delta’s business through arbitrary, unjustified, and unexplained administrative actions targeting Delta’s products.”

Cole County Circuit Judge Cotton Walker ruled Wednesday that the company did not have grounds to challenge the recall because it has not exhausted the administrative appeal process.

The day after the state suspended their license, Delta filed an appeal with the Administrative Hearing Commission. That decision is still pending.

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Top Federal Health Official Confirms At Exactly 4:20 That His Department Is Recommending Marijuana Rescheduling

The head of the top U.S. health agency is confirming news that his department is recommending marijuana rescheduling—posting about the development at exactly 4:20pm ET in an apparent wink to cannabis culture.

Amid a flurry of reactions to reports that the U.S. Department of Health and Human Services (HHS) is advising the Drug Enforcement Administration (DEA) to move cannabis from Schedule I to Schedule III, Secretary Xavier Becerra shared a post about it at the symbolic time on X (the social media site formerly known as Twitter).

If anyone thinks the timing is a coincidence, they probably haven’t been closely following Becerra’s account, as the Biden cabinet official has made a habit of talking about marijuana policy on social media at 4:20 on the dot.

On the day that President Joe Biden announced the scheduling review, for example, the secretary posted about his commitment to following through on the directive—at 4:20.

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California Attorney General Calls For ‘Lowering Taxes’ On Marijuana To Combat The Illicit Market

California’s attorney general says the cost of doing business in the state’s legal marijuana marketplace is too steep, pointing to high taxes and compliance hurdles that can create incentives for entrepreneurs to remain in the illicit market.

“The barriers to entry are too high,” state Attorney General Rob Bonta (D) said at an event in Fresno on Tuesday. “The costs to stay in operation are too high. And we should be lowering taxes at least temporarily.”

For operators trying to comply with state law, he continued, “We should make the regulatory burden less than what it is while we target the illicit market that is undercutting them.”

Bonta’s comments came as he announced a new program to aid cities and counties in addressing illegal marijuana activity through administrative enforcement and nuisance abatement. For too long, he said, fly-by-night operators in the state have gotten away with it.

“Some folks believe they can avoid the tax burden or regulatory burden and just operate and make a profit without being legal,” Bonta said at the event. “And they’ve been doing it. They haven’t been shut down. They haven’t had an administrative action taken against them. And that’s what is necessary, and that’s why this will be an important tool.”

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