Mastercard moves to ban cannabis purchases on its debit cards

Mastercard (MA.N) has told financial institutions to stop allowing marijuana transactions on its debit cards, dealing a blow to an industry already on the fringes of the financial system in the United States.

Most banks in the country do not service cannabis companies as marijuana remains illegal at the federal level despite several states legalizing its medicinal and recreational use.

“As we were made aware of this matter, we quickly investigated it. In accordance with our policies, we instructed the financial institutions that offer payment services to cannabis merchants and connects them to Mastercard to terminate the activity,” a spokesperson for the company said on Wednesday.

“The federal government considers cannabis sales illegal, so these purchases are not allowed on our systems,” the spokesperson added.

Sunburn Cannabis CEO Brady Cobb said in a statement that “this move is another blow to the state-legal cannabis industry and patients/consumers who want to access this budding category.”

Pot firm Verano’s (VRNO.CD) President, Darren Weiss, said “We will continue to advocate for cannabis reform in Washington through further dialogue with elected officials and stakeholders to advance conversations supporting the growth of safe, legal cannabis across the U.S.”

Keep reading

NASA employee used COVID relief funds to grow weed, pay off debt

An employee of NASA’s Jet Propulsion Laboratory (JPL) pled guilty to federal charges Monday alleging that he used COVID relief funds earmarked for the organization to finance an illegal marijuana cultivation operation and pay off personal real estate loans, the US Justice Department announced this week.

Armen Hovanesian, a 32-year-old resident of Glendale, Arizona, made false and fraudulent statements on three loan applications made out to business entities under his control between June and October of 2020. 

Hovanesian received a total of $151,900 for loans provided by the Economic Injury Disaster Loan Program (EIDL) – a program administered by the Small Business Administration (SBA) that provided financing to small businesses, renters, and homeowners in regions impacted by the COVID-19 pandemic. Hovanesian assured the EIDL he would use the loan proceeds “solely as working capital to alleviate economic injury caused by disaster,” as per the terms and limitations of the EIDL program.

Keep reading

Innocent Woman Facing Life in Prison for Legally Purchasing Kratom & Driving 200 Feet Into Alabama

In a disgusting display of what’s fundamentally wrong with America’s drug war, Shaina Brown, an entirely innocent woman, who harmed no one, finds herself locked up behind bars, slapped with an egregious $1,000,000 bail, later lowered to a still absurdly high $250,000, all for the mere possession of a plant she bought legally, just 200 feet away from where she was arrested. The plant in question? Kratom, a botanical supplement that has been vilified by a select few states and the federal government, despite it being perfectly legal in the majority of the US, including where Brown had initially bought it. It is also extremely safe when consumed properly.

To show just how insidious the state’s war on kratom actually is, we compared some of the recent bail amounts in Escambia County to Shaina’s case. Folks with crimes like strangulation, assault, battery, murder, and sexual abuse all have lower bonds than Shaina.

According to local law enforcement, the arrest happened in the dead of night on April 1, 2023, after Brown crossed over the unmarked state line from Florida, where Kratom is legal, into Alabama, where it is not. For those who may be unaware, kratom is ground-up tea leaves that are consumed by millions worldwide for its therapeutic benefits. Shaina’s mistake? Unknowingly bringing it into a state that has criminalized it.

Now, Brown faces the grim reality of the drug war in America. A plant purchased legally turns into a Schedule 1 substance the moment she crosses that imaginary line drawn on a map, transforming her, in the eyes of Alabama law, from a law-abiding citizen to a felon, with potential charges carrying a sentence of 10 years to life in prison.

The charges are shocking, especially considering Shaina’s history of minor offenses: a solitary speeding ticket and a cold check written in 2014 for under $500. A woman who isn’t a hardened criminal is now facing the prospect of losing years of her life, all for unknowingly “trafficking” tea powder in Alabama.

What’s most chilling about these proceedings is the manner in which they’re carried out. Juries are informed that the defendants are charged with possession or trafficking of a Schedule 1 substance, but they’re not told that this substance is Kratom. This omission paints an unfair picture, aligning defendants like Shaina with the likes of hardened criminals involved in the trade of far more dangerous and illicit substances like fentanyl.

Keep reading

Republican Senators Admit Marijuana Legalization Disrupts Cartels As They Urge FDA To Reconsider Menthol Cigarette Ban

A group of four Republican senators who do not support marijuana legalization has admitted that the policy change disrupts illegal sales by cartels. The acknowledgement comes in a letter urging the Food and Drug Administration (FDA) to reconsider plans to ban menthol cigarettes and set nicotine content limits, arguing that the prohibition and strict regulations could benefit illicit trafficking operations.

Writing to FDA Commissioner Robert Califf on Monday, Sens. Bill Cassidy (R-LA), Marco Rubio (R-FL), Ted Budd (R-NC) and Bill Hagerty (R-TN) unwittingly made the case for the legalization and regulation of controlled substances.

The main point of the letter is to express concern FDA’s proposed menthol cigarette ban, which the senators said could “empower” transnational criminal organizations (TCOs) to “exploit black market opportunities that such policies could create.”

The senators aren’t in favor of cannabis legalization, but they did also—apparently inadvertently—make the case for that reform.

“While the primary threat from Mexican TCOs come from trafficking in illicit drugs, these organizations have diversified their activities in response to changing conditions,” they said. “As it has become easier to sell marijuana products in the U.S., Mexican TCOs have prioritized trafficking fentanyl and other synthetic drugs that are cheaper to manufacture, easier to transport, and generate more profit.”

In other words, the GOP senators are acknowledging that as Americans in more states have the opportunity to buy legal cannabis from licensed retailers, the market share for unregulated marijuana trafficked by cartels is shrinking—and as a result they are having to scramble to sell other substances to make up their losses.

That’s also the conclusion of a federal law enforcement agencies, as well as the Congressional Research Service (CRS), which released a report on the trafficking trend last year.

The head of the labor union that represents U.S. Border Patrol agents also acknowledged in 2020 that states that legalize marijuana are disrupting cartel activity.

In light of what’s been observed with marijuana, the senators are cautioning against opening up a new illicit market for menthol cigarettes by enacting a federal ban, tacitly acknowledging the failures and consequences of prohibition.

Keep reading

American Medical Association Promotes Psychedelics Research, Opposes Kratom Criminalization And Affirms Support For Marijuana Drug Testing

The American Medical Association (AMA) has adopted a series of new drug policy positions, including advocating for psychedelics research, opposing the criminalization of kratom, calling for an end to the sentencing disparity between crack and powder cocaine and supporting the continued inclusion of marijuana metabolites in employment-based drug tests.

The organization’s House of Delegates, which met last month to consider numerous resolutions, also declined to approve an additional measure to revise its stance on marijuana in a way that would have maintained its opposition to legalization while implicitly recognizing the benefits of regulating cannabis products—instead opting to continuing its advocacy for prohibition without the newly proposed regulatory language.

This comes about a year after AMA delegates voted to amend its policy position to support the expungement of past marijuana convictions in states that have legalized the plant.

At the most recent meeting, the body tackled several different areas of drug policy.

The American Kratom Association (AKA) cheered the adoption of a new resolution that says people “who are using kratom only for personal use should not face criminal consequences”—though the measure also says that the substance should be “evaluated by the relevant regulatory entities for its appropriateness for sale and potential oversight via the Controlled Substances Act, before it can be marketed, purchased, or prescribed.”

Keep reading

Florida Supreme Court Gives Attorney General More Time To Argue Why Marijuana Legalization Should Be Blocked From 2024 Ballot

The Florida Supreme Court on Monday granted the state attorney general’s request for more time to file a brief arguing why voters should not get a chance to decide on a marijuana legalization initiative on the 2024 ballot.

On the same day that Attorney General Ashely Moody (R)—whose office is seeking to invalidate the cannabis measure—filed a motion seeking the one-week extension, the court agreed to the delay.

The attorney general—as well as the Florida Chamber of Commerce and the Drug Free America Foundation—told the court that they had “numerous other responsibilities during the relevant period.” The official also previously requested a two-week deadline extension for initial briefs that the court granted.

Moody’s latest request noted that her office is tied up with fundamental administrative tasks, as well as filing briefs in two other unrelated court cases. Also, it pointed out that the court allowed ACLU of Florida to file its own brief two days after the last response deadline for supporters of the legalization measure.

“As a result, the current deadline gives the opponents just three business days to respond to the arguments in that brief,” the motion said.

Overall, Moody is arguing that the way the initiative’s ballot summary is written is affirmatively misleading to voters on several grounds, which she says is grounds to invalidate the proposal

The attorney general’s office said that they discussed the deadline extension request with the Smart & Safe Florida campaign, which opposed a one-week extension but would accept a shorter two-day delay. Instead, the court granted the full request, making the deadline for a reply brief August 2.

“Multiple extensions of time for the same filing are discouraged,” the court said on Monday. “Absent extenuating circumstances, subsequent requests may be denied.”

State officials have already affirmed that the campaign collected enough valid signatures to secure ballot placement.

Keep reading

Colombian Lawmakers Introduce New Marijuana Legalization Bill One Month After Prior Version Stalled

Colombian lawmakers have reintroduced a bill to legalize marijuana nationwide for the upcoming legislative session.

Just one month after the previous version stalled out in the Senate at the final stage of an eight-step legislative process, Rep. Juan Carlos Losada and Sen. María José Pizarro announced on Monday that they’re trying again to enact the reform.

The legislation was previously approved in the both chambers last year as part of the two-year process that constitutional amendments must undergo. It then passed the Chamber of Deputies again in May and advanced through a Senate committee last month. But while it received a majority of the votes on the floor, it came up short of the 54-vote threshold it needs for passage.

Losada recently told CNN that he faults President Gustavo Petro’s administration for not doing more to advocate for the bill, but “we will come back to it.”

“We have a crucial month ahead of us to understand who we can count on and who can help us achieve our goal,” he said.

In a Twitter post last week, he added that reform supporters “continue the fight to advance in the change of the failed prohibitionist policy against drugs, to advance in a policy guided by the guidelines of public health, the prevention of consumption and the guarantee of consumer care.”

Keep reading

VA And Defense Department Oppose Medical Marijuana For PTSD, But Take Neutral Position On Psychedelics As Research Continues

The U.S. Department of Veterans Affairs (VA) and Department of Defense (DOD) are strongly against the use of marijuana for the treatment of post-traumatic stress disorder (PTSD)—but they’re taking a neutral position on psychedelics like psilocybin and LSD, simply saying that more research should be done.

In an update to their joint clinical practice guidelines, the departments provided recommendations on a variety of therapeutics used to treat PTSD and acute stress disorder that commonly afflict military veterans. And while many veterans use marijuana, often to treat symptoms of the conditions, the VA/DOD Management of Posttraumatic Stress Disorder and Acute Stress Disorder Work Group said it is fully against the alternative treatment option.

“The Work Group recommends against the use of cannabis or cannabis derivatives in treating patients with PTSD because of the lack of well-designed [randomized control trials] evaluating the efficacy of cannabis derivatives in large samples of individuals with PTSD and the serious side effects associated with their use,” it says.

“Evidence from the 2017 VA/DoD PTSD [clinical practice guidelines] indicates significant harm associated with cannabis use,” it said, arguing that research suggests that marijuana is linked to issues with attention, memory, IQ and driving.

While medical marijuana came with a “strong against” recommendation from the departments, they said that the work group’s confidence in the existing evidence is “very low” due to a “lack of randomized, controlled, methodologically sound clinical trials; small sample sizes, and selection bias.”

“The benefits of cannabis were outweighed by the potential serious adverse effects,” the document, published last month, says. “Patient values and preferences varied largely because some patients seek new, novel treatments although others might be unwilling to use cannabis or cannabis derivatives. Thus, the Work Group made the following recommendation: We recommend against cannabis or cannabis derivatives for the treatment of PTSD.”

Keep reading

Federal Judge Orders Kansas Cops To Stop ‘War’ On Drivers Coming From Legal Marijuana States

The Kansas Highway Patrol has been ordered to stop its infamous “two-step” technique by a federal judge, in what the American Civil Liberties Union of Kansas calls a “huge win” for all motorists using state highways.

The U.S. district court ruled KHP’s policies and practices violate the Fourth Amendment, releasing a Friday opinion that the KHP “has waged war on motorists—especially out-of-state residents traveling between Colorado and Missouri on federal highway I-70 in Kansas.”

The trial challenged the constitutionality of the KHP’s policy of targeting out-of-staters and other “suspicious” people for vehicle searches by drug-sniffing dogs, along with the “Kansas two-step” maneuver. The “ two-step” is a technique taught to KHP personnel, in which they end a routine traffic stop and begin a separate effort to dig for information and gain entry to a vehicle to search for contraband.

Keep reading

States With Legal Weed See Drop in Mental Health Treatment

States that have legalized recreational marijuana use for adults have also seen a drop in mental health treatment admissions, according to newly published research.

The findings, which came in a study published last month in the journal Health Economics, were based on data from ten states that have legalized adult-use cannabis. 

“Recreational marijuana laws (RMLs) continue to grow in popularity, but the effects on mental health treatment are unclear,” wrote Alberto Ortega, a professor at O’Neill School of Public Health at Indiana University and the author of the study.

In the abstract, Ortega said that the study “uses an event-study within a difference-in-differences framework to study the short-run impact of state RMLs on admissions into mental health treatment facilities.” 

“The results indicate that shortly after a state adopts an RML, they experience a decrease in the average number of mental health treatment admissions,” Ortega wrote. “The findings are driven by white, Black, and Medicaid-funded admissions and are consistent for both male and female admissions. The results are robust to alternative specifications and sensitivity analysis.”

Keep reading