Tag: legalized marijuana

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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DeSantis Doubles Down On Opposition To Marijuana Legalization, Claiming Colorado’s Illicit Market Is ‘Bigger And More Lucrative’ After Reform

Florida Gov. Ron DeSantis (R), a 2024 Republican presidential candidate, has reaffirmed that he would not legalize marijuana if elected to the White House—arguing contrary to evidence that the reform has actually increased the size of the illicit market in Colorado.

During a campaign event in Iowa on Saturday, an attendee told DeSantis that she knows people whose children developed “cannabis-induced psychosis” and asked about whether he would move to legalize or reschedule cannabis under federal law if he became president. In response, the GOP contender made clear that he “would not legalize,” echoing anti-marijuana arguments he previously made in June.

“I think what’s happened is this stuff is very potent now. I think when young people get it, I think it’s a real, real problem, and I think it’s a lot different than stuff that people were using 30, 40 years ago,” DeSantis said. “I think when kids get on that, I think it causes a lot of problems and then, of course, you know, they can throw fentanyl in any of this stuff now.”

The candidate then pivoted to a broader discussion about the harms of substance misuse, stating that there’s an “open air market” for illicit drugs in San Francisco, and that society has “totally decayed” under policies that “really help these folks use drugs.”

DeSantis did acknowledge that Floridians have access to medical cannabis under a constitutional amendment that voters approved, saying that “we abide by that” but noting that “states have handled cannabis differently” and he would not “take action now to make it even more available.”

Florida voters may have the choice to expand access regardless of the governor’s position, as the state Supreme Court is currently considering whether a marijuana legalization initiative will appear on the state’s 2024 ballot.

“I would not do that,” DeSantis said on Saturday. “And the places that legalized it like Colorado and California, you know, the argument was—and honestly it wasn’t a crazy argument—’Look, we know people are going to use marijuana. It is a drug. If you legalize it, then you can tax it, regulate it, and it’s going to end up being safer for people.’”

“But what’s happened in Colorado, the black market for marijuana is bigger and more lucrative than it was before they did the legalization,” the governor said. “So the legalization I don’t think has worked.”

DeSantis didn’t provide data or cite any sourcing to support that argument. But private and government analyses have suggested that Colorado has in fact significantly reduced the influence of the illicit market in the decade since enacting legalization.

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Missouri Foster Parents May Now Legally Possess And Grow Marijuana In Their Homes Under New Emergency Rule

Foster parents in Missouri can now legally possess and grow marijuana in their homes under an emergency rule filed last week by the state Department of Social Services. Consuming cannabis in a manner that emits smoke or vapor, however, is still not allowed inside the house.

Missouri voters in November 2022 passed a ballot initiative, Amendment 3, to legalize and regulate marijuana for adults 21 and older, allowing the purchase and possession of up to three ounces of cannabis and, after registering, the growth of up to six mature plants for personal use. But until Monday, the foster parents of roughly 14,000 children in the state were prohibited from exercising those rights.

The changes to the state rule addressing “physical and environmental standards” for foster care in Missouri were adopted on an emergency basis because the existing policy was in conflict with the voter-approved constitutional amendment, according to a statement attached to the rule’s text.

“Rule 13 CSR 35-60.040 presently provides that foster parents shall not use or possess marijuana or marijuana-infused products,” it says. “A regulation that conflicts with the Missouri Constitution is invalid.”

As an emergency rule, the change is set to expire February 23 of next year.

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Minnesota Indian Tribe Plans To Launch Marijuana ‘Food Truck’ To Expand Business Across The State

A tribe in Minnesota that’s currently operating one the state’s only adult-use marijuana shops says it’s planning to open a mobile dispensary—effectively a cannabis “food truck” that can travel and do business on tribal land throughout the state.

The Red Lake Band of Chippewa Indians, which opened its doors to adult consumers on the day that a legalization law took effect this month, said it’s currently serving about 300 customers per day at its flagship location in Red Lake, with some people driving hours to visit the northern Minnesota town.

Now the Red Lake Nation’s NativeCare retailer wants to expand its operation and bring cannabis to more markets by moving around with the ability to set up shop anywhere on tribal territory.

Tribal Secretary Samuel Strong told Minnesota Public Radio that he’s “very excited to see how the community will respond.”

“Obviously, there’s some more security concerns that would be involved with a food truck, but very similar to that concept,” he said. “You know, setting up shop and being able to serve customers and have the same level of customer service while being mobile and being more available to our consumers.”

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Alabama Judge Halts Medical Marijuana Licensing Again, This Time Over Alleged Open Meetings Violations

A Montgomery County Circuit Judge Thursday put a hold on Alabama’s medical cannabis program amid a lawsuit alleging the Alabama Medical Cannabis Commission (AMCC) violated the state’s Open Meetings Act at its most recent meeting.

The stay, issued by Judge James Anderson, followed a heated hearing where an attorney for the AMCC suggested the commission would air applicants’ “dirty laundry.”

Applicants denied a license won’t be able to request an investigative hearing until after the stay is lifted, and the commission will have to put site visits and evaluations on hold. AMCC Director John McMillan said that it will be “impossible” to issue licenses at an August 31 meeting.

“We’ll most likely have to schedule another meeting,” McMillan said after the hearing, and added that they would have to complete site visits.

Alabama Always, which sued the commission last month over the appointment of former chair Steven Stokes, filed a lawsuit against the AMCC, alleging the commission violated the state’s open meetings law at its August 10 meeting. The company, which applied for but did not receive a license, alleged that commission members privately nominated companies for public votes on license awards during an executive session.

The lawsuit alleges that commission members were instructed to seal their nominations in an envelope during the executive session, and the companies with the most nominations received a public vote in the August 10 meeting.

The AMCC re-awarded licenses for the production and distribution of medical cannabis at the August 10 meeting, two months after stopping earlier awards amid questions about the evaluation of applications.

The judge allowed other parties to join the suit by the end of the week. Alabama Always and other companies suing AMCC will have to prove that the commission violated state law.

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German Govt Okays Plan To Legalise Recreational Cannabis

The German government approved a draft law Wednesday legalising the purchase and possession of small amounts of cannabis for recreational use, despite criticism from opposition politicians and judges.

The bill, which still needs to go through parliament, would allow adults to possess up to 25 grams (0.9 ounces) of cannabis and grow up to three plants for personal use.

People will also be allowed to join non-profit “cannabis clubs” of up to 500 members where the drug can be legally cultivated and purchased.

Health Minister Karl Lauterbach called the draft law “a turning point” in Germany’s attitude towards cannabis.

The more relaxed approach would crack down on the black market and drug-related crime, ease the burden on law enforcement and allow for safer consumption of marijuana, he said in a statement.

Minors will still be prohibited from using the drug, and the government will launch a campaign warning of the health risks for young people especially, he added.

“Nobody should misunderstand the law. Cannabis use will be legalised. But it’s still dangerous,” Lauterbach said.

The proposed legislation is a flagship project of Chancellor Olaf Scholz’s three-party coalition and would leave Germany with one of the most liberal cannabis policies in Europe.

But the draft law is less ambitious than what was originally envisioned.

Plans to allow the widespread sale of cannabis in licensed stores were dropped in April after the European Commission raised concerns.

With its current plan, Germany’s coalition government has taken “a significant step towards a progressive, realistic drug policy”, said Agriculture Minister Cem Ozdemir.

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