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Law The Cannabis Chronicles - Misc Cannabis News

Federal Marijuana Protections And Other Drug Policy Provisions Approved In New Spending Bills


A powerful House committee on Thursday approved spending bills and related reports that touch on a wide range of marijuana and drug policy issues—including calls to remove roadblocks to research into cannabis, noting the lifesaving potential of safe consumption sites for illegal substances, recognizing the painkilling promise of the kratom plant and urging the development of technology to detect impairment from THC.

Importantly, the legislation that cleared the House Appropriations Committee would also maintain an existing provision that shields state medical marijuana laws from intervention by the Justice Department.

Rep. Barbara Lee (D-CA), co-chair of the Congressional Cannabis Caucus, thanked committee leadership on Thursday for “including important language that would prohibit the Department of Justice from interfering in access to medical marijuana in states, the District of Columbia and territories where it is legal.”

“This language is critical to ensuring that the federal government doesn’t preempt what states are doing,” she said.

Advocates are holding out hope that a broader provision is added later in the process to keep federal law enforcement agencies from using funds to interfere in the implementation of any state-level legalization law—including those that allow recreational use.

Meanwhile, the advancing legislation also includes language to prevent the penalization of universities that conduct cannabis research.

Reports attached to the two pieces of Fiscal Year 2022 legislation approved by the panel—the Commerce, Justice, Science, and Related Agencies Appropriations (CJS) bill and the Labor, Health and Human Services, Education, and Related Agencies (LaborH) bill—contain a number of cannabis-related provisions.

Research, medical benefits and driving​

The CJS report notes that the Drug Enforcement Administration (DEA) has moved to approve additional marijuana manufacturers for research purposes and says the committee supports ongoing research efforts on cannabis, particularly in the wake of an outbreak of lung injuries associated with unregulated vaping products:

“Marijuana Research and E-cigarette or Vaping use-Associated Lung Injury (EVALI).—The Committee is aware that DEA recently published a rule (effective January 19, 2021) in 2020 DEA that amended regulations to facilitate the cultivation of marijuana for research purposes and other licit purposes to enhance compliance with the Controlled Substances Act, including registering cultivators consistent with treaty obligations. The Committee also understand that since the issuance of this new rule, DEA has registered additional growers, and supports DEA continuing efforts in support of such scientific research, and allowing Federal researchers to test marijuana products to characterize toxicological risks and health effects associated with EVALI products and the administration of those products in research subjects.”

The LaborH report, meanwhile, includes a number of passages about cannabis research. The committee urged the National Institute On Drug Abuse (NIDA) to support expanded marijuana studies, for example:

“Cannabis Research.—The Committee encourages NIDA to support coordinated, multidisciplinary cannabis research, including basic, clinical, and translational cannabis research and research on the health effects of cannabis use, potential therapeutic effects of cannabis use, and effects of cannabis legalization. NIDA is encouraged to support peer-reviewed scientific research, graduate and postdoctoral fellowships, and any required infrastructure, with priority given to research programs in States where State co-funding is available.”

It goes on to mandate that the National Institutes of Health (NIH), work with the Food and Drug Administration (FDA), DEA, White House Office of National Drug Control Policy (ONDCP) and other relevant agencies to broaden access for researchers to obtain marijuana and other Schedule I drugs, which can be difficult to access due to their restricted status under federal law:

“Schedule I Drug Research.—The Committee recognizes that, despite marijuana being legalized in some form in 35 States and nearly 45,000,000 American adults reporting having used marijuana in the past year, research on marijuana and other Schedule I substances is extremely limited. The Committee directs NIH, in collaboration with FDA, DEA, ONDCP, and any other relevant agencies, to develop an approach to facilitate access to Schedule I drugs for research.”

Another passage concerns individual marijuana components, including CBD, minor cannabinoids and terpenes, noting that the panel “strongly believes” they “may provide beneficial medicinal effects” but that more studies are needed:

“Cannabidiol Research.—The Committee strongly believes that cannabidiol (CBD), cannabigerol (CBG), cannabichromene (CBC), minor cannabinoids, and terpenes—compounds found in cannabis— may provide beneficial medicinal effects. However, there is insufficient scientific information about the short- and long-term effects of these compounds. The Committee is also concerned that marijuana policies on the Federal level and in the States are being changed without the benefit of scientific research to help guide those decisions. Additional, coordinated research on a national scale is necessary to determine the toxicology and medicinal effects of these compounds. The Committee believes that NIH should consider significantly expanding funds to study the medicinal effects and toxicology of CBD, CBG, CBC, minor cannabinoids, and terpenes. This expanded effort should include funding of clinical trials with academic health centers to study the long-term medicinal benefits and toxicology of CBD, CBG, CBC, minor cannabinoids, and terpenes. The Committee encourages NIH to continue supporting a full range of research on the health effects of marijuana and its components, including research to understand how marijuana policies affect public health.”

Lee, the Cannabis Caucus co-chair, told colleagues at the committee markup that “gaining scientific data on cannabis will be valuable in further understanding its potential benefits.”

Also in the report, the committee conveyed its support for language in the bill itself that prevents universities from being penalized for conducting research into the risks and benefits of marijuana:

“Protecting Scientific Research on Marihuana.—Through scientific research, institutions of higher education advance our understanding and knowledge of various aspects of our world. Moreover, when in the public interest, such institutions should be able to conduct such research without fear of reprisal or loss of Federal funding. This includes research on cannabis, a Schedule I controlled substance under the Controlled Substances Act. As more States and localities move to legalize cannabis, many institutions of higher education are expanding the knowledge-base on this controlled substance. As a result, the Committee notes that such research is in the public interest, and the recommendation includes new bill language prohibiting the Department from penalizing institutions of higher education that conduct scientific research on marihuana.”

That said, the report is something of a mixed bag of marijuana policy positions.

A lengthy section expresses concerns about cannabis use by young people and the impact of marijuana consumption by pregnant and breastfeeding women. It notes that the spending legislation appropriates $2 million to NIDA to commission a study on the issue, a mandate that’s consistent with a warning issued by U.S. surgeon general under the Trump administration, who publicly cautioned against cannabis use by pregnant women and adolescents:

“Underage and Perinatal Marijuana Use.—The Committee includes $2,000,000 for NIDA to enter into a contract with NASEM to commission a study to determine the scope of the problem of underage and perinatal marijuana use and effective ways of reducing it. Topics explored should include but not be limited to the demographics of underage and perinatal marijuana use; its economic and social costs; adolescent and perinatal decision making and risk and protective factors; and the effectiveness of various prevention programs and approaches, including media campaigns, school-based education, pricing, and access. The NAS will develop a strategy for reducing and preventing underage and perinatal consumption of today’s marijuana and THC products, specifically focused on the impacts of THC on the developing brain.

“To help develop an effective strategy, the NAS shall review existing Federal, State, and non-governmental programs, including media-based programs, that have been shown to be effective with other substances that can be harmful to youth, including any done on marijuana, that are designed to change the attitudes and health behaviors of youth (those under the age of 21).

“In addition, the NAS shall review existing Federal, State, and non-governmental programs including media-based programs, that have been shown to be effective with other substances that can be harmful to babies of pregnant and breast-feeding women, including any completed on marijuana, that are designed to change the attitudes and health behaviors of pregnant and breast-feeding women.

“Based on its reviews, the NAS shall produce a strategy designed to prevent and reduce underage consumption of today’s marijuana and THC products in addition to a strategy designed to prevent and reduce consumption of today’s marijuana and THC products by pregnant and breast-feeding women. This shall include but not be limited to: an outline and implementation strategy, message points that will be effective in changing the attitudes and health behaviors of youth concerning underage marijuana consumption and an outline and implementation strategy, message points that will be effective in changing the attitudes and health behaviors of pregnant and breast-feeding women, target audience identification, goals and objectives of both campaigns, and the estimated costs of development and implementation.”

The report also simultaneously expresses concern in one section that there’s not a uniform method of detecting impairment from cannabis while recognizing that DEA restrictions have minimized the capacity of researchers to investigate marijuana:

“Drug Impairment Standards for Marijuana.—The Committee is concerned that development of a drug impairment standard for marijuana remains unlikely in the near term and encourages NIH to continue supporting a full range of research on the health effects of marijuana and its components, including research to understand how marijuana policies affect behaviors that impact public health, such as drug-impaired driving. The Committee is aware that due to Drug Enforcement Administration restrictions on registered growers, the majority of Federal research using marijuana has been limited to marijuana produced by a single grower and encourages NIH, when possible, to undertake research that encompasses the diversity, quality, and potency of commonly available cannabis products.”

Meanwhile, the Appropriations Committee is set to take it another funding bill—for the Departments of Transportation, and Housing and Urban Development—on Friday, and its attached report also has a passage on drug-impaired driving from substances such as marijuana. It urges the National Highway Traffic Safety Administration (NHTSA) to take steps to address the issue:

“Drug-impaired driving.—The Committee remains concerned with the growing problem of people driving under the influence of one or multiple substances, including marijuana and opioids. The Committee encourages NHTSA to continue funding training efforts to ensure stakeholders can identify drug-impaired driving and enforce the law. Funding under this heading is provided to continue research with the goal of developing a standardized field sobriety test (SFST) to detect marijuana impairment.

“The Committee directs NHTSA to work with the Department of Justice, the Department of Health and Human Service, and the Department of Commerce to ensure that state highway safety offices and state law enforcement have the most up-to-date information from the Federal government on detecting impaired driving. In order to increase the safety of the transportation network by reducing drug-impaired driving, the Committee directs NHTSA to work with states to determine their toxicology testing and funding needs and to make states aware that assistance for state toxicology labs are eligible expenses under section 402 and 405 formula grant funds.”

Broader drug policy provisions​

Meanwhile, the CJS and LaborH reports approved on Thursday also include language on broader drug policy reforms.

Members acknowledged that safe consumption sites where people can use illegal drugs under medical supervision have the potential to save lives, and they’re directing the Centers for Disease Control and Prevention (CDC) to work with NIH on a report about the issue:

“Overdose Prevention Centers.—The Committee recognizes that overdose prevention centers, or supervised consumption sites, are part of a larger effort of harm reduction interventions intended to reduce the risk of drug overdose death and reduce the spread of infectious disease. The Committee directs NIH, in consultation with CDC, to provide a report to the Committee no later than 180 days after the enactment of this Act that provides an updated literature review and evaluation on the potential public health impact of overdose prevention centers in the U.S.”

That’s a significant recognition at the congressional level. At the state level, meanwhile, the governor of Rhode Island recently signed a bill to establish a safe consumption site pilot program where people could test and use currently illicit drugs in a medically supervised environment. It’s the first state in the country to legalize the harm reduction centers.

In other harm reduction wins, a press release from the committee notes that a previous longstanding rider has been removed from this year’s LaborH legislation that in the past has blocked funds from being used to purchase syringes for exchange programs:

“Helping Reduce Injection-Related Infections to Save Lives

“Syringe Exchange—The bill removes a longstanding general provision that prohibited federal funds from being used to purchase syringes as part of a public health campaign to provide services to individuals involved in injection drug use.”

Further, the LaborH report specifically includes funding for syringe access programs, the first time that such efforts have ever been explicitly funded in an annual federal appropriations bill:

“Infectious Diseases and the Opioid Epidemic.—The Committee includes an increase of $56,500,000 to expand activities to target the infectious disease consequences of the public health crisis involving injection drug use, including expanding the implementation of and access to high quality syringe services programs nationwide.”

Meanwhile, a provision in the CJS report reminds the Department of Justice that Byrne Memorial Justice Assistance Grants it doles out to local law enforcement agencies can be used to fund efforts to expunge criminal records:

“The Committee would like to reiterate the following allowable uses of Byrne JAG formula grant funding:…supporting expungement and record clearing initiatives.”

On kratom, a plant that’s been touted by advocates as a potentially safer alternative to opioids, the committee noted that is aware of its “potential promising results”:

“Kratom.—The Committee recognizes that NIDA-funded research has contributed to the continued understanding of the health impacts of kratom, including its constituent compounds, mitragynine and 7-hydroxymitragynine. The Committee is aware of the potential promising results of kratom for acute and chronic pain patients who seek safer alternatives to sometimes dangerously addictive and potentially deadly prescription opioids and of research investigating the use of kratom’s constituent compounds for opioid use disorder. The Committee directs NIDA to continue to invest in this important research, especially considering the increase in overdose deaths during the COVID–19 pandemic.”

It also directed the Health and Human Services secretary to continue to refrain from recommending that kratom be controlled in Schedule I:

“Kratom.—The Committee directs the Secretary to maintain current Agency policy to not recommend that the substances mitragynine and 7-hydroxymitragynine, known as kratom, be permanently controlled in Schedule I of the Controlled Substances Act, either temporarily or permanently, until scientific research can sufficiently support such an action. The Committee encourages AHRQ to continue to fund research on natural products that are used by many to treat pain in place of opioids, including kratom. Given the wide availability and increased use of these substances, it is imperative to know more about potential risks or benefits, and whether they can have a role in finding new and effective non-opioid methods to treat pain. The Committee recommends an additional $3,000,000 for this research and directs AHRQ to make center-based grants to address research which will lead to clinical trials in geographic regions which are among the hardest hit by the opioid crisis.”

The CJS and LaborH measures and their reports were approved by the Appropriations Committee on Thursday and the legislation now heads to the floor along with several other individual spending bills that previously cleared the panel.

As far as advocates are concerned, the most consequential portion of the latest appropriations legislation is the protections for medical states:

“SEC. 531. None of the funds made available under this Act to the Department of Justice may be used, with respect to any of the States of Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming, or with respect to the District of Columbia, the Commonwealth of the Northern Mariana Islands, the United States Virgin Islands, Guam, or Puerto Rico, to prevent any of them from implementing their own laws that authorize the use, distribution, possession, or cultivation of medical marijuana.”

It remains to be seen whether lawmakers will push for an additional amendment in the full committee or on the floor to protect adult-use marijuana programs as well, as the House approved in 2019 and 2020. The provision was not attached to final bills sent to then-President Donald Trump’s desk, however, after they were not included in Senate versions that advanced when the chamber under Republican control.

Another longstanding provision again included in the latest CJS spending legislation would bar DOJ or DEA from interfering in state-legal hemp programs.

“SEC. 530. None of the funds made available by this Act may be used in contravention of section 7606 (“Legitimacy of Industrial Hemp Research”) of the Agricultural Act of 2014 (Public Law 113–79) by the Department of Justice or the Drug Enforcement Administration.”

A new provision was also attached to the bill that would make states and localities ineligible for certain federal law enforcement grants if they maintain a policy allowing for no-knock warrants for drug-related cases. That policy garnered national attention following the police killing of Breonna Taylor, who was fatally shot by law enforcement during a botched drug raid.

“SEC. 219. None of the funds made available by this Act under paragraph (1) under the heading “State and Local Justice Assistance”, or under the heading “Community Oriented Policing Services”, may be awarded to a State or unit of local government unless the Attorney General of the United States certifies that the State or unit of local government—

(6) has in effect a law that prohibits the issuance of a “no-knock warrant” in a drug case, consistent with the requirements as described in section 362 of H.R. 1280 of the 117th Congress as passed by the House of Representatives on March 3, 2021.”

In LaborH, members included language that prohibits the Department of Education from denying funds to colleges that carry out—or plan to carry out—research into cannabis.

“SEC. 316. None of the funds appropriated by this title for the Department of Education shall be withheld from an institution of higher education solely because that institution is conducting or preparing to conduct research on marihuana as defined in 21 U.S.C. 802(16).”

But advocates are disappointed to see that another rider dating back to the 1990s was included again that broadly prevents agencies from promoting the legalization of Schedule I substances like marijuana. Rep. Alexandria Ocasio-Cortez (D-NY) attempted to get that language deleted in 2019 by arguing that it impedes research on psychedelics, but Democrats joined Republicans in rejecting her floor amendment.

“SEC. 507. (a) None of the funds made available in this Act may be used for any activity that promotes the legalization of any drug or other substance included in schedule I of the schedules of controlled substances established under section 202 of the Controlled Substances Act except for normal and recognized executive-congressional communications.

(b) The limitation in subsection (a) shall not apply when there is significant medical evidence of a therapeutic advantage to the use of such drug or other substance or that federally sponsored clinical trials are being conducted to determine therapeutic advantage.”

A failed amendment on cracking down​

At Thursday’s markup, Rep. Mike Garcia (R-CA) sought to pass an amendment that would have added new CJS report language directing the Justice Department to aid local police in cracking down on illegal marijuana operations:

“Illegal Marijuana Grow Operations – The Committee is concerned with the rampant growth of illegal marijuana grow operations in states with legal marijuana production and sale frameworks, because these illegal enterprises contribute to increases in thefts, extortion, assaults, human trafficking, and homicides in communities where they proliferate. The Committee is aware of the assistance provided through the DEA Domestic Cannabis Eradication Suppression Program, but illegal grow operations are still increasing in number and complexity. To address this problem the Committee directs the Department to increase its support to local police forces combating legal grow operations and encourages the Department to pursue prosecution of these criminals to the full extent allowable under federal law.”

“Let me be clear: this is not a problem with the legal cannabis market or distributors,” Garcia told colleagues. “This is a problem with large-scale and transnational criminal organizations that are being primarily staffed and operated by illegal immigrants.”

But Lee and fellow Cannabis Caucus co-chair Rep. Dave Joyce (R-OH) spoke in opposition to the measure, even though they said they understood concerns about illegal cultivation.

“The report language appears to favor prosecution under federal laws as opposed to the state’s right to prosecute illegal growers according to their own laws in states where cannabis is legal,” Lee said. “We should be cautious about subjecting individuals to heavier penalties given the clear example of mass incarceration due to the war on drugs.”

She added that she’s “concerned with the language of this amendment, which correlates the illegal growth of marijuana with increase in ‘theft, extortion, assaults, human trafficking, and homicides,’ which are horrible crimes.”

“This is simply fear-mongering rhetoric which aims to amplify negative stigma around cannabis,” Lee said. “It’s inappropriate for the federal government to spend more taxpayer money to combat illicit operations when it continues to place the heavy burden of federal prohibition on states that have made the wise choice to legalize.”

At Joyce’s request, Garcia withdrew the amendment and asked colleague to work together with him to handle the illegal growing issue “holistically” in the future.



Other spending bills have cannabis provisions​

Meanwhile, the Appropriations Committee approved separate spending legislation recently that would protect banks from being punished for working with marijuana businesses and allow Washington, D.C. to legalize cannabis sales.

The move by congressional Democrats to let the District of Columbia set its own marijuana policies is in contrast with a budget released by President Joe Biden, which proposed continuing the longstanding Republican-led rider that has prevented the city from spending its own money to regulate adult-use cannabis commerce.

The banking-related provision is less far-reaching than more robust standalone bills the House has passed on four occasions, but would still provide some protections to banks that work with state-legal marijuana operators.

Both measures are attached to the Financial Services and General Government bill for Fiscal Year 2022. The corresponding committee report also urges federal agencies to reconsider policies that result in the firing of employees who use marijuana legally in accordance with state law.

In a separate spending bill that allocates annual funding for the Department of Homeland Security (DHS), there’s also a provision that would protect immigrants from have their status penalized simply because they’ve admitted to using cannabis or were convicted of a low-level marijuana offense. That cleared the full committee earlier this week.

Standalone legislation has been introduced this session to resolve cannabis problems for immigrants, but it has yet to be acted on.

The Appropriations Committee also approved a bill that includes a report acknowledging that the U.S. Department of Veterans Affairs (VA) has clarified that military veterans are eligible for home loan benefits even if they work in a state-legal marijuana industry. However, it expresses disappointment that VA hasn’t taken further action to communicate this policy to lenders and borrowers.

That report directs VA to improve that communication and report back to Congress on its progress within 180 days of the enactment of the legislation. A separate provision urges VA to expand research on the medical benefits of cannabis for veterans.

Separately, there are a host of provisions on hemp and its derivatives like CBD in another spending bill and attached report that covers funding for the U.S. Department of Agriculture (USDA) and Food and Drug Administration (FDA).

In the report, lawmakers took issue with the 2018 Farm Bill’s 0.3 percent THC cap for lawful hemp products and directed USDA to work with the U.S. Department of Health and Human Services (HHS) and DEA on a study of whether that threshold is scientifically backed.

The Appropriations Committee also approved a report last month voicing support for federal law enforcement efforts to deploy drones in California to find illicit marijuana grow sites on public lands. However, it said that support is contingent on resolving issues related to cybersecurity and domestic production.

The Biden administration, for its part, is being closely watched by advocates when it comes to any marijuana policy development—especially since the president has maintained an opposition to adult-use legalization even as multiple bills to end federal prohibition are being drafted and introduced.

Perhaps unsurprisingly, Biden’s budget did not propose gutting the Office of National Drug Control Policy (ONDCP) as Trump did. The former president called for a roughly 90 percent cut in the agency’s budget in his proposals, but Congress did not follow suit. Biden helped to establish the drug czar’s office during his time in the Senate.

Biden’s budget also includes $17 million in funding to support industrial hemp production.

The Senate is also set to soon take up its parallel consideration of the annual appropriations measures, and it remains to be seen which cannabis and drug policy provisions will advance in that chamber.
 
That's some awesome majority governance right there.
The author of the war on drugs is the leader of the Democratic party and is the final say so on any of this........lolz.

I thought there were no politics

Seriously disingenuous posting cherry picking facts
I looked it up and Richard Nixon is considered the author of the War on Drugs
 
  • Haha
Reactions: arb
Discussion regarding cannabis legalization and law is allowed here. Otherwise we are an apolitical forum and general political content is not allowed. Warning point issued.
I thought there were no politics

Seriously disingenuous posting cherry picking facts
I looked it up and Richard Nixon is considered the author of the War on Drugs
The crime bill he takes credit for done in 94 is why we are where we are.
Your protest of wording is valid I was sorely mistaken.
Do you know which political party owned slaves,started a civil war,enacted Jim crow,fought the civil rights act in 65,enacted the 94 crime bill that is responsible for all of Americas race woes?
I can and will provide citations for every single thing in that there post homie.
You are responsible for the whats happening now if you voted Democrat at any point in the past.
Why are they so racist against Cubanos?
A refugee is telling his own people they cannot do exactly what he and his parents did.

 
Not having it.

I allow articles and discussion about cannabis legalization. And even then, some of those articles and comments can get dicey. But everyone here knows that taking it beyond cannabis legalization is against the rules. So when it's done.... a warning point should be expected. And this case is no different.
 

U.S. Pot Legalization Bill Gets a Frosty Reception


The U.S. cannabis industry had eagerly awaited a federal legalization bill that executives, investors and interest groups had hoped would be a panacea for the partisan divide over a hotly contested issue.
What they saw last week from Senate Majority Leader Chuck Schumer left many underwhelmed.
Cannabis stocks flagged after the bill was unveiled, and critics piled on from all directions. It’s not a surprise that the legislation wouldn’t please everyone, given the controversies around cannabis. Even the bill’s own authors acknowledge shortcomings, saying in a summary of the proposal that there’s still no standard to measure drugged driving, or research on how marijuana affects fetal health, and that limits their ability to be as comprehensive as they’d like. The plan is to fund more research on those and other topics, but that could take years.



Other omissions include basic measures to protect public health, according to Smart Action on Marijuana, a group that prefers decriminalization of marijuana possession rather than full legalization.
In a letter last week to Schumer and the bill’s other backers, the group’s scientific advisory board -- mostly academics or doctors specializing in health and addiction -- recommended that the bill put a cap on marijuana potency, a ban or severe limitations on advertising, and a ban on flavored products or goods that would be attractive to children. It should also propose ways to stop the tobacco and alcohol industry from monopolizing the market, Smart Action on Marijuana said.
“States that commercialized the drug are seeing rising rates of youth use, hospitalizations, poison center calls and other negative outcomes related to the drug,” the group said in the letter.
The United Food and Commercial Workers, the union that represents the most workers in the cannabis industry at about 10,000, also took issue with the legislation. It said more should be done to support good-paying cannabis jobs, and to stop the industry from moving high-wage union jobs from one state to low wage agricultural jobs in another. The union also seeks to increase research funding to support worker safety and apprenticeships.
Not everyone was pessimistic about the bill. It has many of the items sought by Democrats, which could make it harder to pass, but Cantor Fitzgerald analyst Pablo Zuanic said he sees areas where compromises could happen in the coming months to improve the bill’s prospects.
For instance, lawmakers could offer incentives to states for expungement or re-sentencing of past marijuana crimes. Or they could set limits on funds that flow to so-called “opportunity programs” to help disadvantaged communities, thereby freeing up dollars for other federal and state programs.
Zuanic said just having a U.S. Senate majority leader proposing broad marijuana reform is a victory for the industry overall. Compared to high-priority political projects like infrastructure, voting rights and climate change, marijuana may “prove less divisive in the end,” he wrote in a July 15 research note.
The analyst urged investors to take advantage of the weakness in stock prices, saying his top U.S. stock picks are still the big multistate operators like Curaleaf Holdings Inc., Green Thumb Industries Inc., Trulieve Cannabis Corp. and Cresco Labs Inc.. Canadian companies could also benefit as long as they have strong balance sheets, Zuanic said.
 

U.S. Pot Legalization Bill Gets a Frosty Reception


The U.S. cannabis industry had eagerly awaited a federal legalization bill that executives, investors and interest groups had hoped would be a panacea for the partisan divide over a hotly contested issue.
What they saw last week from Senate Majority Leader Chuck Schumer left many underwhelmed.
Cannabis stocks flagged after the bill was unveiled, and critics piled on from all directions. It’s not a surprise that the legislation wouldn’t please everyone, given the controversies around cannabis. Even the bill’s own authors acknowledge shortcomings, saying in a summary of the proposal that there’s still no standard to measure drugged driving, or research on how marijuana affects fetal health, and that limits their ability to be as comprehensive as they’d like. The plan is to fund more research on those and other topics, but that could take years.



Other omissions include basic measures to protect public health, according to Smart Action on Marijuana, a group that prefers decriminalization of marijuana possession rather than full legalization.
In a letter last week to Schumer and the bill’s other backers, the group’s scientific advisory board -- mostly academics or doctors specializing in health and addiction -- recommended that the bill put a cap on marijuana potency, a ban or severe limitations on advertising, and a ban on flavored products or goods that would be attractive to children. It should also propose ways to stop the tobacco and alcohol industry from monopolizing the market, Smart Action on Marijuana said.
“States that commercialized the drug are seeing rising rates of youth use, hospitalizations, poison center calls and other negative outcomes related to the drug,” the group said in the letter.
The United Food and Commercial Workers, the union that represents the most workers in the cannabis industry at about 10,000, also took issue with the legislation. It said more should be done to support good-paying cannabis jobs, and to stop the industry from moving high-wage union jobs from one state to low wage agricultural jobs in another. The union also seeks to increase research funding to support worker safety and apprenticeships.
Not everyone was pessimistic about the bill. It has many of the items sought by Democrats, which could make it harder to pass, but Cantor Fitzgerald analyst Pablo Zuanic said he sees areas where compromises could happen in the coming months to improve the bill’s prospects.
For instance, lawmakers could offer incentives to states for expungement or re-sentencing of past marijuana crimes. Or they could set limits on funds that flow to so-called “opportunity programs” to help disadvantaged communities, thereby freeing up dollars for other federal and state programs.
Zuanic said just having a U.S. Senate majority leader proposing broad marijuana reform is a victory for the industry overall. Compared to high-priority political projects like infrastructure, voting rights and climate change, marijuana may “prove less divisive in the end,” he wrote in a July 15 research note.
The analyst urged investors to take advantage of the weakness in stock prices, saying his top U.S. stock picks are still the big multistate operators like Curaleaf Holdings Inc., Green Thumb Industries Inc., Trulieve Cannabis Corp. and Cresco Labs Inc.. Canadian companies could also benefit as long as they have strong balance sheets, Zuanic said.
Awesome job from the MAJORITY leader.......lolz.
 
After reading it and giving some thought, I don’t want the Pot Legalization Bill to pass the way it is. I don’t want the feds screwing with the THC percentages among some other things. I don’t have any allusions that our current president will sign anything pertaining to making cannabis legal. Leave it to the states for now.
No conundrum for me. Just need to keep an eye on the whole package. We have a pretty good system going on in my state. I don’t want things to change for the worse.
 
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I don’t want the feds screwing with the THC percentages among some other things.
I'm with you on this ^^. Fed Gov is the undisputed king of ham handed action and unintended consequences.

And no, I too don't think Biden will sign a legalization bill.
 

Congress To Vote On Marijuana, Psychedelics And CBD Amendments This Week Following Committee Action


A key House committee on Monday cleared a series of cannabis and psychedelics-related amendments for floor votes as part of large-scale spending legislation. That floor action could happen as soon as Tuesday.

However, the panel also blocked two measures on housing protections for cannabis consumers that legalization supporters hoped to see advance.

One of the most notable amendments the House Rules Committee allowed to move forward for possible attachment to appropriations legislation would remove a rider that advocates say has restricted federal funds for research into Schedule I drugs, including psychedelics such as psilocybin, MDMA and ibogaine.

The reform measure is being sponsored by Rep. Alexandria Ocasio-Cortez (D-NY), and it targets 1990s-era provision that’s long been part of spending legislation for the Department of Health and Human Services (HHS). The congresswoman attempted to eliminate the language via an amendment in 2019 only to have it defeated by Republicans as well as a majority of her party. But it’s far from the only measure being proposed this appropriations season when it comes to drug policy matters.

Some are being backed by reform advocates, while others have received sharp criticism.

One pro-reform amendment that’s advancing would encourage the Food and Drug Administration (FDA) to approve rules allowing CBD as a dietary supplement and food ingredient.

On the other side, there is a proposal from Rep. Debbie Lesko (R-AZ) to the HHS appropriations bill to eliminate a rider that’s currently in the bill that “allows federal funding to go to institutions of higher education that are conducting research on marijuana.”

The reason this measure has generated particular pushback is because research into cannabis is an overwhelmingly bipartisan issue, and top federal drug officials have repeatedly urged Congress to support policies that make it easier to study the risks and benefits of the plant. What’s more, Lesko represents a state with adult-use legalization on the books.

Activists are disappointed that two marijuana reform measures from Rep. Eleanor Holmes Norton (D-DC) are being blocked from floor consideration. Her proposals—which were aimed at appropriations legislation for the Department of Housing and Urban Development (HUD)—would have made it so marijuana possession or consumption could not be used as the sole basis for denying people access to public housing. One Norton amendment was narrowly focused on medical cannabis while a second measure would have covered all marijuana use that’s legal under state laws.

“It’s disappointing that those who rely on public support for housing will continue to be discriminated against for their state-legal choices,” NORML Political Director Justin Strekal told Marijuana Moment.

Advocates were surprised that the Rules Committee, chaired by marijuana reform supporter Rep. James McGovern (D-MA), sought to prevent a floor vote on the Norton cannabis amendments.

A committee spokesperson told Marijuana Moment that the proposals “had points of order against them and we never make amendments in order with points of order against them.”

Here are the descriptions of measures that the Rules Committee made in order for floor votes:

Rep. Alexandria Ocasio-Cortez (D-NY):
Allows United States researchers to study and examine the potential impacts of several schedule I drugs, such as MDMA, psilocybin, and or ibogaine, that have been shown to be effective in treating critical diseases.

Rep. Kurt Schrader (D-OR): Increases and decreases by $5 million, funding for the Center for Food Safety and Applied Nutrition at the FDA, to highlight the need for the Agency to proceed with rulemaking on cannabidiol (or CBD) by no later than 180 days after enactment, out of concern that the FDA has not initiated rulemaking to establish a regulatory pathway for CBD as a dietary supplement and food ingredient.

Rep. Debbie Lesko (R-AZ): Strikes language that allows federal funding to go to institutions of higher education that are conducting research on marijuana.

Rep. Doug LaMalfa (R-CA): Transfers $25 million from the Environmental Programs and Management enforcement activities account to the National Forest System account for enforcement and remediation of illegal marijuana trespass grow sites on federal lands and for the clean-up of toxic waste and chemicals at these sites.

Here are the amendments that were not ruled in order and are thus dead:

Rep. Eleanor Holmes Norton (D-DC):
Prohibits HUD from enforcing the prohibition on the use or possession of marijuana in federally assisted housing in states where marijuana is legal.

Rep. Eleanor Holmes Norton (D-DC): Prohibits HUD from enforcing the prohibition on the use or possession of medical marijuana in federally assisted housing in states where medical marijuana is legal.

Rep. Doug LaMalfa (R-CA): Prohibits funds from this section from being used to fund needle distribution programs for illegal drugs.

Rep. Ted Butt (R-NC): Prohibits federal funds from being used to purchase clean syringes for illegal drug use.

Rep. Ted Butt (R-NC): Prohibits federal funds from being used to purchase clean syringes for illegal drug use in DC.

Rep. French Hill (R-AR): Increases funding by $50 million for the Office of National Drug Control Policy’s High Intensity Drug Trafficking Areas Program. Offsets the increase with a decrease in funding of $50 million for the Electric Vehicles Fund.
 
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Proposed tax rates in Schumer’s marijuana reform bill elicit ‘sticker shock’​

Published 21 hours ago | By Jeff Smith


Image of dice bearing percentage signs


The draft bill outlining Senate Majority Leader Chuck Schumer’s federal marijuana reform legislation sets a nationwide MJ excise tax that would rise from 10% to 25% over five years, a top rate that industry officials argue would be overly burdensome to operators as well as too high to combat illicit operators.
The Cannabis Administration and Opportunity Act – unveiled earlier this month as a 163-page “discussion draft” – would legalize marijuana by removing it from the federal Controlled Substances Act.
That means it would eliminate Section 280E, the provision in the Internal Revenue Service tax code that prevents marijuana businesses from deducting the same ordinary business expenses that mainstream industries can.

But a 25% federal excise tax on marijuana on top of any state and local taxes – would hit growers especially hard, quite likely exceeding their savings from the elimination of 280E, experts said.
“I think something in the range of 10% to 15% (for a federal excise tax) would be fair,” said Nick Richards, a tax attorney and partner of Denver-based law firm Greenspoon Marder.
“Man, 25% is a high rate. That doesn’t seem to be cheaper for the industry. And I think that rate leaves plenty of room for the black market, perhaps more headroom for the black market than even now under 280E.
“That piece doesn’t seem to be super well-thought-out.”
Beginning in Year Five, the tax would be imposed based on a per-ounce rate in the case of cannabis flower or a per-milligram of THC rate for extracts, according to a bill summary by the Washington DC-based Marijuana Policy Project.
The rate would be determined by the U.S. Secretary of the Treasury to be equivalent to 25% of the price of cannabis sold in the U.S. in the previous year. The draft legislation doesn’t provide details on how that would work.
David Mangone, director of policy for the DC-based Liaison Group, a cannabis lobbying company, called the proposed 25% rate “sticker shock,” particularly for California marijuana operators.
California industry officials have long complained about high local and state tax rates that undercut their ability to compete with the illicit market.
By comparison, Mangone noted, the social justice-focused legalization bill known as the MORE Act in the U.S. House of Representatives calls for a 5% federal tax rate, increasing to 8% over time.
Liaison Group’s clients include the California Cannabis Industry Association as well as large multistate operators.
Mangone said California operators are apprehensive about such a high additional tax assessment when they already face a high state tax burden and a “fairly robust illicit market.”
Small businesses get tax break
There is a break in Schumer’s bill for small businesses, however.
Small cannabis producers with less than $20 million in annual sales would be eligible for a 50% excise tax reduction, through a credit, according to the MPP bill summary.
Producers with more than $20 million in sales would be eligible for a tax credit on their first $20 million of cannabis sold annually. Sales above that amount would be subject to the full excise tax.
Pablo Zuanic, an equity analyst for New York-based investment banking firm Cantor Fitzgerald, also indicated in a research note that he believes the 25% top rate is too high.
“The proposed federal excise tax may be best capped at 15% for the first five years,” he wrote.
Zuanic projected that a 15% tax rate alone would generate $10 billion annually in federal tax revenues.
Timetable calls for bill to move slowly
Schumer had been expected to introduce the comprehensive marijuana reform bill by now.
The sponsors are taking comments on the draft measure until Sept. 1 , with the bill’s introduction unlikely until a couple of months after that, Mangone said.
He said Schumer’s goal is to have a Senate floor vote by April 2022.
“I think it’s going to be a longer process than a lot of the industry would like and a lot of folks are expecting,” Mangone said.
The bill is considered a heavy lift because passage in the Senate likely would need 60 votes – or at least 10 Republicans.
Mangone said that currently “even a few Democrats haven’t fully embraced” such comprehensive reform.
In terms of the tax provisions, Mangone said he expects the sponsors will get a “lot of feedback” on the proposal.
He noted that Senate co-sponsor Ron Wyden, an Oregon Democrat, is a leader in tax policy issues and “I think he’s going to be open” to some proposed changes.
That’s as long as enough tax revenues are generated to adequately fund the social equity and restorative justice provisions in the bill, Mangone said.
‘Devil in the details’
Mangone said that similar to alcohol and tobacco, the federal excise tax likely would be applied at the “point of first removal,” typically on the cultivation or processor level.
But the effects would ripple down the supply chain to retail stores and consumers.
Ultimately, Richards said, “the devil will be in the details,” referring to the potency-based tax beginning in Year Five.
Mangone noted that more states base tax rates on weight versus potency. He said federal regulators would have some time to look at those examples and figure out the best approach.
The draft bill implies that the rates would be set based on average cannabis prices in the previous year.
But Mangone noted that “taking an average may not be the best way to figure out that price” because prices vary across the country depending in part on supply and demand factors.
“I hope when they look at that that they take a holistic view rather than a straight average,” he said.
He also expressed concerns that pricing by potency could motivate some producers to lower THC levels through non-cannabis additives that harm consumers, an issue that led to the vaping crisis.
Currently, Richards stressed, marijuana companies are affected by 280E in different proportions.
Retail stores and dispensaries especially are hard hit, with 280E often accounting for 25%-30% of a company’s costs, he said.
For growers, it’s more like 5%-15%, depending on how much of a marketing arm they have.
A straight 25% federal tax would hit growers hard, exceeding more than the money they would save by no longer facing 280E, Richards said.
Jeff Smith can be reached at jeff.smith@mjbizdaily.com.
 

Proposed tax rates in Schumer’s marijuana reform bill elicit ‘sticker shock’​

Published 21 hours ago | By Jeff Smith


Image of dice bearing percentage signs


The draft bill outlining Senate Majority Leader Chuck Schumer’s federal marijuana reform legislation sets a nationwide MJ excise tax that would rise from 10% to 25% over five years, a top rate that industry officials argue would be overly burdensome to operators as well as too high to combat illicit operators.
The Cannabis Administration and Opportunity Act – unveiled earlier this month as a 163-page “discussion draft” – would legalize marijuana by removing it from the federal Controlled Substances Act.
That means it would eliminate Section 280E, the provision in the Internal Revenue Service tax code that prevents marijuana businesses from deducting the same ordinary business expenses that mainstream industries can.

But a 25% federal excise tax on marijuana on top of any state and local taxes – would hit growers especially hard, quite likely exceeding their savings from the elimination of 280E, experts said.
“I think something in the range of 10% to 15% (for a federal excise tax) would be fair,” said Nick Richards, a tax attorney and partner of Denver-based law firm Greenspoon Marder.
“Man, 25% is a high rate. That doesn’t seem to be cheaper for the industry. And I think that rate leaves plenty of room for the black market, perhaps more headroom for the black market than even now under 280E.
“That piece doesn’t seem to be super well-thought-out.”
Beginning in Year Five, the tax would be imposed based on a per-ounce rate in the case of cannabis flower or a per-milligram of THC rate for extracts, according to a bill summary by the Washington DC-based Marijuana Policy Project.
The rate would be determined by the U.S. Secretary of the Treasury to be equivalent to 25% of the price of cannabis sold in the U.S. in the previous year. The draft legislation doesn’t provide details on how that would work.
David Mangone, director of policy for the DC-based Liaison Group, a cannabis lobbying company, called the proposed 25% rate “sticker shock,” particularly for California marijuana operators.
California industry officials have long complained about high local and state tax rates that undercut their ability to compete with the illicit market.
By comparison, Mangone noted, the social justice-focused legalization bill known as the MORE Act in the U.S. House of Representatives calls for a 5% federal tax rate, increasing to 8% over time.
Liaison Group’s clients include the California Cannabis Industry Association as well as large multistate operators.
Mangone said California operators are apprehensive about such a high additional tax assessment when they already face a high state tax burden and a “fairly robust illicit market.”
Small businesses get tax break
There is a break in Schumer’s bill for small businesses, however.
Small cannabis producers with less than $20 million in annual sales would be eligible for a 50% excise tax reduction, through a credit, according to the MPP bill summary.
Producers with more than $20 million in sales would be eligible for a tax credit on their first $20 million of cannabis sold annually. Sales above that amount would be subject to the full excise tax.
Pablo Zuanic, an equity analyst for New York-based investment banking firm Cantor Fitzgerald, also indicated in a research note that he believes the 25% top rate is too high.
“The proposed federal excise tax may be best capped at 15% for the first five years,” he wrote.
Zuanic projected that a 15% tax rate alone would generate $10 billion annually in federal tax revenues.
Timetable calls for bill to move slowly
Schumer had been expected to introduce the comprehensive marijuana reform bill by now.
The sponsors are taking comments on the draft measure until Sept. 1 , with the bill’s introduction unlikely until a couple of months after that, Mangone said.
He said Schumer’s goal is to have a Senate floor vote by April 2022.
“I think it’s going to be a longer process than a lot of the industry would like and a lot of folks are expecting,” Mangone said.
The bill is considered a heavy lift because passage in the Senate likely would need 60 votes – or at least 10 Republicans.
Mangone said that currently “even a few Democrats haven’t fully embraced” such comprehensive reform.
In terms of the tax provisions, Mangone said he expects the sponsors will get a “lot of feedback” on the proposal.
He noted that Senate co-sponsor Ron Wyden, an Oregon Democrat, is a leader in tax policy issues and “I think he’s going to be open” to some proposed changes.
That’s as long as enough tax revenues are generated to adequately fund the social equity and restorative justice provisions in the bill, Mangone said.
‘Devil in the details’
Mangone said that similar to alcohol and tobacco, the federal excise tax likely would be applied at the “point of first removal,” typically on the cultivation or processor level.
But the effects would ripple down the supply chain to retail stores and consumers.
Ultimately, Richards said, “the devil will be in the details,” referring to the potency-based tax beginning in Year Five.
Mangone noted that more states base tax rates on weight versus potency. He said federal regulators would have some time to look at those examples and figure out the best approach.
The draft bill implies that the rates would be set based on average cannabis prices in the previous year.
But Mangone noted that “taking an average may not be the best way to figure out that price” because prices vary across the country depending in part on supply and demand factors.
“I hope when they look at that that they take a holistic view rather than a straight average,” he said.
He also expressed concerns that pricing by potency could motivate some producers to lower THC levels through non-cannabis additives that harm consumers, an issue that led to the vaping crisis.
Currently, Richards stressed, marijuana companies are affected by 280E in different proportions.
Retail stores and dispensaries especially are hard hit, with 280E often accounting for 25%-30% of a company’s costs, he said.
For growers, it’s more like 5%-15%, depending on how much of a marketing arm they have.
A straight 25% federal tax would hit growers hard, exceeding more than the money they would save by no longer facing 280E, Richards said.
Jeff Smith can be reached at jeff.smith@mjbizdaily.com.
That is...........hilarious.
 
amendments for floor votes as part of large-scale spending legislation.
Just my never humble opinion, but they aren't going to legalize MJ at the Fed level via a rider to a larger appropriations bill. Its far too controversial and at the first sign of push back they will dump the rider in favor of moving the overall legislation forward. Just my prediction.

tax rates in Schumer’s marijuana reform bill elicit ‘sticker shock’
Ah....is somebody actually surprised by this???
 

House Approves Marijuana Banking, Employment And D.C. Sales Provisions In Large-Scale Spending Bill


The U.S. House of Representatives on Thursday approved a package of spending legislation that contains measures to provide protections for banks that work with state-legal cannabis businesses and allow the legalization of marijuana sales in Washington, D.C., among many other drug policy provisions.

The appropriations legislation and attached reports also direct federal government agencies to reconsider policies that fire employees for using cannabis in compliance with state law, criticize restrictive hemp regulations, encourage CBD to be allowed in foods and urge expanded research on marijuana and other substances.

While not every included provision is pro-reform—and some measures that activists wanted to see added were blocked— advocates are generally pleased with the wide range of issues addressed in the “minibus” legislation that covers annual funding for the Departments of Labor, Health and Human Services, Education, Agriculture, Rural Development, Energy and Water Development, Financial Services and General Government, Interior, Environment, Military Construction, Veterans Affairs, Transportation, and Housing and Urban Development.

And they are looking forward to votes on even more far-reaching marijuana amendments that are up for consideration on separate spending bills—such as those covering the Department of Justice—that are expected to be considered soon.

Here’s a breakdown of the cannabis and drug policy provisions that are attached to the bill approved on Thursday:

The legislation restricts the use of certain funds to punish banks for working with marijuana businesses:

“None of the funds made available in this Act may be used to penalize a financial institution solely because the institution provides financial services to an entity that is a manufacturer, a producer, or a person that participates in any business or organized activity that involves handling hemp, hemp-derived cannabidiol products, other hemp-derived cannabinoid products, marijuana, marijuana products, or marijuana proceeds, and engages in such activity pursuant to a law established by a State, political subdivision of a State, or Indian Tribe. In this section, the term ‘State’ means each of the several States, the District of Columbia, and any territory or possession of the United States.”

The provision, which only covers restrictions on the Treasury Department, is less far-reaching than more robust bills the House has passed on four occasions, but it would still provide some protections to financial institutions that work with state-legal marijuana operators.

When it comes to D.C. marijuana policy, local voters legalized personal possession and cultivation in 2014. But a congressional rider has prevented the local government from using its tax dollars to regulate retail sales. That would change if the House-passed bill—which does not contain the provision—is enacted, despite the fact that a budget proposal from President Joe Biden seeks to maintain the provision on denying D.C. autonomy to legalize marijuana commerce.

After the Biden budget was released, Rep. Eleanor Holmes Norton (D-DC) told Marijuana Moment that she was “very disappointed” over the decision, especially considering that fact that he’s voiced support for statehood for the District.

The current blockade on D.C. cannabis sales is the result of an amendment that was first added by Rep. Andy Harris (R-MD) when Republicans controlled the House and has since been continued in annual appropriations legislation. The House on several occasions has since passed spending bills that do not include the cannabis ban, but it has been included in final enacted legislation because the Senate under GOP control insisted on reinserting it. That could change this year when the chamber takes up its version of spending legislation.

The part of the bill funding the Department of Education has a new provision that says universities can’t be punished for studying marijuana:

“None of the funds appropriated by this title for the Department of Education shall be withheld from an institution of higher education solely because that institution is conducting or preparing to conduct research on marihuana as defined in 21 U.S.C. 802(16).”

The report attached to the bill reenforces the point:

“Protecting Scientific Research on Marihuana.—Through scientific research, institutions of higher education advance our understanding and knowledge of various aspects of our world. Moreover, when in the public interest, such institutions should be able to conduct such research without fear of reprisal or loss of Federal funding. This includes research on cannabis, a Schedule I controlled substance under the Controlled Substances Act. As more States and localities move to legalize cannabis, many institutions of higher education are expanding the knowledge-base on this controlled substance. As a result, the Committee notes that such research is in the public interest, and the recommendation includes new bill language prohibiting the Department from penalizing institutions of higher education that conduct scientific research on marihuana.”

Rep. Debbie Lesko (R-AZ) attempted delete the bill language on university protections with a floor amendment, arguing that that not passing her amendment would “permit universities to offer a class called ‘Pot Smoking 101’ [that’s] dedicated to smoking pot under the false pretense of research.” But colleagues overwhelmingly defeated her attempt in a bipartisan vote.

Additional report language attached to the wide-ranging spending legislation by the House Appropriations Committee includes a number of passages about marijuana and drug policy.

One provision encourages a review of employment policies for federal agencies with respect to personal use of cannabis.

“Federal Employment Guidelines.—The Committee supports the updated guidance on agencies’ consideration of how an individual’s marijuana use may or may not adversely affect the integrity or efficiency of the government and impact an individual’s suitability or fitness for a position. The Committee encourages OPM and the Suitability Executive Agent to continue to review these policies and guidelines regarding hiring and firing of individuals who use marijuana in states where that individual’s private use of marijuana is not prohibited under the law of the State. These policies should reflect updated changes to the law on marijuana usage and clearly state the impact of marijuana usage on Federal employment.”

Report provisions also touch on the need to expand cannabis and psychedelics research. The panel urged the National Institute On Drug Abuse (NIDA) to support expanded marijuana studies, for example:

“Cannabis Research.—The Committee encourages NIDA to support coordinated, multidisciplinary cannabis research, including basic, clinical, and translational cannabis research and research on the health effects of cannabis use, potential therapeutic effects of cannabis use, and effects of cannabis legalization. NIDA is encouraged to support peer-reviewed scientific research, graduate and postdoctoral fellowships, and any required infrastructure, with priority given to research programs in States where State co-funding is available.”

Report language also says that federal health agencies should pursue research into the therapeutic potential of psychedelics for military veterans suffering from a host of mental health conditions.

“Psychedelic Treatments.—Despite the recent Department of Veterans Affairs’ 2020 National Veteran Suicide Prevention Annual Report that showed there were no significant increases in the veteran suicide rate from 2017 and 2018, the Committee is concerned that over 17 veterans on average continue to commit suicide each day, which is a number that has remained persistent over the past decade. There have been many recent studies and clinical trials demonstrating the positive impact of alternative therapies, including psychedelics, for treatment resistant post-traumatic stress disorder (PTSD) and major depressive disorder, particularly for veteran participants. In light of growing interest in this area, the Committee encourages NIH and other relevant Federal agencies to undertake, and where appropriate expand, research to evaluate the effectiveness of psychedelic therapies in treating PTSD, major depressive disorder, and other serious mental health conditions.”

It goes on to mandate that the National Institutes of Health (NIH) work with the Food and Drug Administration (FDA), Drug Enforcement Administration (DEA), White House Office of National Drug Control Policy (ONDCP) and other relevant agencies to broaden access for researchers to obtain marijuana and other Schedule I drugs, which can be difficult to access due to their restricted status under federal law:

“Schedule I Drug Research.—The Committee recognizes that, despite marijuana being legalized in some form in 35 States and nearly 45,000,000 American adults reporting having used marijuana in the past year, research on marijuana and other Schedule I substances is extremely limited. The Committee directs NIH, in collaboration with FDA, DEA, ONDCP, and any other relevant agencies, to develop an approach to facilitate access to Schedule I drugs for research.”

Another passage concerns individual marijuana components, including CBD, minor cannabinoids and terpenes, noting that the panel “strongly believes” they “may provide beneficial medicinal effects” but that more studies are needed:

“Cannabidiol Research.—The Committee strongly believes that cannabidiol (CBD), cannabigerol (CBG), cannabichromene (CBC), minor cannabinoids, and terpenes—compounds found in cannabis— may provide beneficial medicinal effects. However, there is insufficient scientific information about the short- and long-term effects of these compounds. The Committee is also concerned that marijuana policies on the Federal level and in the States are being changed without the benefit of scientific research to help guide those decisions. Additional, coordinated research on a national scale is necessary to determine the toxicology and medicinal effects of these compounds. The Committee believes that NIH should consider significantly expanding funds to study the medicinal effects and toxicology of CBD, CBG, CBC, minor cannabinoids, and terpenes. This expanded effort should include funding of clinical trials with academic health centers to study the long-term medicinal benefits and toxicology of CBD, CBG, CBC, minor cannabinoids, and terpenes. The Committee encourages NIH to continue supporting a full range of research on the health effects of marijuana and its components, including research to understand how marijuana policies affect public health.”

Rep. Kurt Schrader (D-OR) got a floor amendment approved to encourage rulemaking for CBD to be authorized as a dietary supplement and food item.

“Increases and decreases by $5 million, funding for the Center for Food Safety and Applied Nutrition at the FDA, to highlight the need for the Agency to proceed with rulemaking on cannabidiol (or CBD) by no later than 180 days after enactment, out of concern that the FDA has not initiated rulemaking to establish a regulatory pathway for CBD as a dietary supplement and food ingredient.”

Attached report language also acknowledges that the U.S. Department of Veterans Affairs (VA) has clarified that veterans are eligible for home loan benefits even if they work in a state-legal marijuana industry. However, it expresses disappointment that VA hasn’t taken further action to communicate this policy to lenders and borrowers and directs VA to improve its communication and report back to Congress on its progress within 180 days of the enactment of the legislation:

“Home Loan Income Verification.—The Committee understands that as directed by House Report 116–63, VA has clarified that nothing in VA statutes or regulations specifically prohibits a Veteran whose income is derived from state-legalized cannabis activities from obtaining a certificate of eligibility for VA home loan benefits. The Committee is disappointed with VA’s inaction on the directive included in House Report 116–445 and again directs the VA to improve communication with eligible lending institutions to reduce confusion among lenders and borrowers on this matter and to report to the Committee on progress made no later than 180 days after the enactment of this Act.”

Rep. Katherine Clark (D-MA) and other lawmakers have pressed VA on difficulties some veterans have faced in securing the benefit, with at least one constituent telling Clark that they were denied a home loan because of their work in the state-legal cannabis market. That prompted the congresswoman to circulate a sign-on letter and introduce an amendment to resolve the problem.

Clark’s amendment to address the problem was approved by the House as part of a previous defense spending bill—though leaders in the chamber agreed to scrap it after the Senate didn’t include it in its version of the legislation.

The new report also notes “progress” that VA has made when it comes to marijuana research:

“Cannabis Research.—The Committee notes that VA has made progress on cannabis research and continues to request updates on the status of this research, as described in House Report 116–63.”

However, advocates have been critical of the agency in this respect. For example, VA offered written testimony recently opposing a bill expand clinical trials into the therapeutic potential of cannabis for military veterans with PTSD and chronic pain.

There are also a host of report provisions on hemp and its derivatives like CBD in sections covering funding for the U.S. Department of Agriculture (USDA) and FDA.

In the report, lawmakers took issue with the 2018 Farm Bill’s 0.3 percent THC cap for lawful hemp products and directed USDA to work with the U.S. Department of Health and Human Services (HHS) and DEA on a study of whether that threshold is scientifically backed:

“Hemp.—The Committee is concerned that the level of allowable THC content in hemp may be arbitrary and pose a burden on hemp producers that is not supported by science. The Committee directs USDA to work with the U.S. Department of Health and Human Services (HHS) and the Drug Enforcement Administration (DEA) to study and report to Congress on whether there is scientific basis for the current limit of .3% THC in hemp and suggest alternative levels if necessary.”

Additionally, the report identified an issue in the legislation that advocates have pushed back against that prohibits people with felony drug convictions from participating in the hemp market for 10 years post-release. It emphasizes that this policy has a disproportionate impact on people of color who have been most impacted by the war on drugs.

To that end, USDA is directed to analyze those barriers to entry for disparately impacted communities and report back with recommendations on how to ensure that the industry is equitable:

“The 2018 Farm Bill included a provision that restricted participation in legalized hemp production of any individual convicted of a drug-related felony for 10 years after their date of conviction, unless they are part of a hemp pilot program authorized by the 2014 farm bill. This drug felony ban will disproportionately impact communities of color and create another barrier to entry in the hemp industry to populations targeted by past drug policies. The Committee directs USDA to identify barriers to entry for communities of color and provide recommendations on how to ensure communities of color have equal access and opportunity to participate in the hemp industry.”

The report additionally flagged another problem that hemp industry stakeholders have raised concerning the hemp extraction process. While hemp is defined under federal statute as containing no more than 0.3 percent THC, those levels can temporarily increase when extracts are being processed, and businesses have expressed concern that they may be liable to enforcement action in that interim period because of a lapse in regulatory guidance. The report says that USDA must work with DEA to provide such direction:

“Hemp Extract Regulation.—The Committee is concerned about the inconsistencies in the regulation of the production of hemp by USDA and DEA. Congress vested primary regulatory authority in USDA and expects other regulatory actions to align with it. Congress intentionally expanded the definition of hemp to include derivatives, extracts and cannabinoids in an effort to avoid the criminalization of hemp processing. Committee understands that in-process hemp extract may temporarily exceed the delta-9 THC concentration of 0.3% before being packaged and sold as a finished product for consumption. Therefore the Committee directs USDA to coordinate directly with the DEA to present the industry with guidance and information on in-process extracted material.”

When it comes to hemp-derived CBD, there is still an absence of regulations for its inclusion in food items and as dietary supplements. FDA has regulatory authority, and the report says that lawmakers expect continued work to provide clarity and guidance on the issue:

“Cannabidiol Enforcement.—The Committee expects further progress on regulatory pathways for cannabis-derived products that contain cannabidiol.”

Some of the language in the bill itself has been included in past appropriations legislation such as a section that prohibits the use of funds to interfere in the implementation of hemp pilot programs under the 2014 Farm Bill:

“SEC. 741. None of the funds made available by this Act or any other Act may be used—
(1) in contravention of section 7606 of the Agricultural Act of 2014 (7 U.S.C. 5940), subtitle G of the Agricultural Marketing Act of 1946, or section 10114 of the Agriculture Improvement Act of 2018; or
(2) to prohibit the transportation, processing, sale, or use of hemp, or seeds of such plant, that is grown or cultivated in accordance with section 7606 of the Agricultural Act of 2014 (7 U.S.C. 5940) or Subtitle G of the Agricultural Marketing Act of 1946, within or outside the State in which the industrial hemp is grown or cultivated.”

It also calls for an extension of the 2014 pilot program, under which states follow different rules than exist under the 2018 Farm Bill’s broader legalization of the crop. It would end on January 1, 2023, rather than 2022. State agriculture departments and hemp industry advocates have fought for past extensions of the program to give operators more time to come into compliance with the current law:

“SEC. 766. Section 7605(b) of the Agriculture Improvement Act of 2018 (7 U.S.C. 5940 note; Public Law 115–334) is amended by striking ‘‘January 1, 2022’’ and inserting ‘‘January 1, 2023’’.”

In the report, lawmakers are also proposing $500,000 to support “genomics and bioinformatics research” into hemp, and it also says that the committee generally supports establishing a hemp germplasm repository to meet market demand for different varieties of the crop:

“Hemp Whole-Genome Bioinformatics.—The Committee provides $500,000 to conduct genomics and bioinformatics research in collaboration with capable institutions to elucidate the genetic control of key production and product quality traits of the hemp plant. In addition, the Committee also encourages ARS to partner with institutions already engaged in such research to conduct hemp genetic improvement research and breeding with new breeding and editing techniques.”



“Industrial Hemp Germplasm.—The Committee recognizes the increasing demand for industrial hemp for a variety of uses and its growing importance as a crop for U.S. farmers. The Committee supports efforts to maintain the hemp germplasm repository.”

Hemp presents an especially important economic opportunity for rural communities, the report says, and so USDA should clarify that businesses that deal in the crop should be eligible for all rural agricultural grants:

“Industrial Hemp.—The intent of Congress in Public Law 115–334 was for industrial hemp to be eligible for all USDA programs, including Rural Development. Industrial hemp can significantly benefit struggling rural economies. The Committee encourages Rural Development to ensure that industrial hemp is eligible for all competitive grant programs.”

Overall, lawmakers allocated an increase in agricultural funding that includes about $17 million to support the federal hemp production program:

“Marketing Programs – The bill provides $223 million, $35 million above the FY 2021 enacted level and $10 million above the request, to facilitate the movement of agriculture products and open market opportunities. This includes…$16.7 million for the new hemp production program.”

On kratom, a plant that’s been touted by advocates as a potentially safer alternative to opioids, the committee noted that is aware of its “potential promising results”:

“Kratom.—The Committee recognizes that NIDA-funded research has contributed to the continued understanding of the health impacts of kratom, including its constituent compounds, mitragynine and 7-hydroxymitragynine. The Committee is aware of the potential promising results of kratom for acute and chronic pain patients who seek safer alternatives to sometimes dangerously addictive and potentially deadly prescription opioids and of research investigating the use of kratom’s constituent compounds for opioid use disorder. The Committee directs NIDA to continue to invest in this important research, especially considering the increase in overdose deaths during the COVID–19 pandemic.”

It also directed the Health and Human Services secretary to continue to refrain from recommending that kratom be controlled in Schedule I:

“Kratom.—The Committee directs the Secretary to maintain current Agency policy to not recommend that the substances mitragynine and 7-hydroxymitragynine, known as kratom, be permanently controlled in Schedule I of the Controlled Substances Act, either temporarily or permanently, until scientific research can sufficiently support such an action. The Committee encourages AHRQ to continue to fund research on natural products that are used by many to treat pain in place of opioids, including kratom. Given the wide availability and increased use of these substances, it is imperative to know more about potential risks or benefits, and whether they can have a role in finding new and effective non-opioid methods to treat pain. The Committee recommends an additional $3,000,000 for this research and directs AHRQ to make center-based grants to address research which will lead to clinical trials in geographic regions which are among the hardest hit by the opioid crisis.”

Not all of the relevant provisions attached to the legislation will be celebrated by advocates, however.

For example, it contains a 1990s-era provision banning the use of federal funds to advocate for the legalization of Schedule I drugs:

“(a) None of the funds made available in this Act may be used for any activity that promotes the legalization of any drug or other substance included in schedule I of the schedules of controlled substances established under section 202 of the Controlled Substances Act except for normal and recognized executive-congressional communications.

“(b) The limitation in subsection (a) shall not apply when there is significant medical evidence of a therapeutic advantage to the use of such drug or other substance or that federally sponsored clinical trials are being conducted to determine therapeutic advantage.”

Rep. Alexandria Ocasio-Cortez (D-NY) filed a floor amendment to delete this provision, arguing that it discourages research into Schedule I drugs, including psychedelics like psilocybin and MDMA. But lawmakers defeated her proposal.

The House Rules Committee also declined to allow floor votes this week on amendments from Norton that would have made it so marijuana possession or consumption could not be used as the sole basis for denying people access to public housing.

A lengthy report section approved by the Appropriations Committee expresses concerns about cannabis use by young people and the impact of marijuana consumption by pregnant and breastfeeding women. It notes that the spending legislation appropriates $2 million to NIDA to commission a study on the issue, a mandate that’s consistent with a warning issued by U.S. surgeon general under the Trump administration, who publicly cautioned against cannabis use by pregnant women and adolescents:

“Underage and Perinatal Marijuana Use.—The Committee includes $2,000,000 for NIDA to enter into a contract with NASEM to commission a study to determine the scope of the problem of underage and perinatal marijuana use and effective ways of reducing it. Topics explored should include but not be limited to the demographics of underage and perinatal marijuana use; its economic and social costs; adolescent and perinatal decision making and risk and protective factors; and the effectiveness of various prevention programs and approaches, including media campaigns, school-based education, pricing, and access. The NAS will develop a strategy for reducing and preventing underage and perinatal consumption of today’s marijuana and THC products, specifically focused on the impacts of THC on the developing brain.

“To help develop an effective strategy, the NAS shall review existing Federal, State, and non-governmental programs, including media-based programs, that have been shown to be effective with other substances that can be harmful to youth, including any done on marijuana, that are designed to change the attitudes and health behaviors of youth (those under the age of 21).

“In addition, the NAS shall review existing Federal, State, and non-governmental programs including media-based programs, that have been shown to be effective with other substances that can be harmful to babies of pregnant and breast-feeding women, including any completed on marijuana, that are designed to change the attitudes and health behaviors of pregnant and breast-feeding women.

“Based on its reviews, the NAS shall produce a strategy designed to prevent and reduce underage consumption of today’s marijuana and THC products in addition to a strategy designed to prevent and reduce consumption of today’s marijuana and THC products by pregnant and breast-feeding women. This shall include but not be limited to: an outline and implementation strategy, message points that will be effective in changing the attitudes and health behaviors of youth concerning underage marijuana consumption and an outline and implementation strategy, message points that will be effective in changing the attitudes and health behaviors of pregnant and breast-feeding women, target audience identification, goals and objectives of both campaigns, and the estimated costs of development and implementation.”

The report also simultaneously expresses concern in one section that there’s not a uniform method of detecting impairment from cannabis while recognizing that DEA restrictions have minimized the capacity of researchers to investigate marijuana:

“Drug Impairment Standards for Marijuana.—The Committee is concerned that development of a drug impairment standard for marijuana remains unlikely in the near term and encourages NIH to continue supporting a full range of research on the health effects of marijuana and its components, including research to understand how marijuana policies affect behaviors that impact public health, such as drug-impaired driving. The Committee is aware that due to Drug Enforcement Administration restrictions on registered growers, the majority of Federal research using marijuana has been limited to marijuana produced by a single grower and encourages NIH, when possible, to undertake research that encompasses the diversity, quality, and potency of commonly available cannabis products.”

For the Departments of Transportation, and Housing and Urban Development, there’s report language on drug-impaired driving from substances such as marijuana. It urges the National Highway Traffic Safety Administration (NHTSA) to take steps to address the issue:

“Drug-impaired driving.—The Committee remains concerned with the growing problem of people driving under the influence of one or multiple substances, including marijuana and opioids. The Committee encourages NHTSA to continue funding training efforts to ensure stakeholders can identify drug-impaired driving and enforce the law. Funding under this heading is provided to continue research with the goal of developing a standardized field sobriety test (SFST) to detect marijuana impairment.

“The Committee directs NHTSA to work with the Department of Justice, the Department of Health and Human Service, and the Department of Commerce to ensure that state highway safety offices and state law enforcement have the most up-to-date information from the Federal government on detecting impaired driving. In order to increase the safety of the transportation network by reducing drug-impaired driving, the Committee directs NHTSA to work with states to determine their toxicology testing and funding needs and to make states aware that assistance for state toxicology labs are eligible expenses under section 402 and 405 formula grant funds.”

Broader drug policy provisions touch on a number of areas that are important to harm reduction advocates.

Members acknowledged that safe consumption sites where people can use illegal drugs under medical supervision have the potential to save lives, and they’re directing the Centers for Disease Control and Prevention (CDC) to work with NIH on a report about the issue:

“Overdose Prevention Centers.—The Committee recognizes that overdose prevention centers, or supervised consumption sites, are part of a larger effort of harm reduction interventions intended to reduce the risk of drug overdose death and reduce the spread of infectious disease. The Committee directs NIH, in consultation with CDC, to provide a report to the Committee no later than 180 days after the enactment of this Act that provides an updated literature review and evaluation on the potential public health impact of overdose prevention centers in the U.S.”

In other harm reduction wins, a press release from the Appropriations Committee noted that a previous longstanding rider has been removed from this year’s legislation that in the past has blocked funds from being used to purchase syringes for exchange programs:

“Helping Reduce Injection-Related Infections to Save Lives

“Syringe Exchange—The bill removes a longstanding general provision that prohibited federal funds from being used to purchase syringes as part of a public health campaign to provide services to individuals involved in injection drug use.”

Further, report language specifically includes funding for syringe access programs, the first time that such efforts have ever been explicitly funded in an annual federal appropriations bill:

“Infectious Diseases and the Opioid Epidemic.—The Committee includes an increase of $56,500,000 to expand activities to target the infectious disease consequences of the public health crisis involving injection drug use, including expanding the implementation of and access to high quality syringe services programs nationwide.”

There were three GOP-led amendments from Reps. Doug LaMalfa (R-CA) and Ted Butt (R-NC) on prohibiting the use of federal funds for syringe access that were blocked by the Rules Committee from receiving floor votes.

LaMalfa had another proposal, which was rejected in an en bloc package with other measures, that would have transferred “$25 million from the Environmental Programs and Management enforcement activities account to the National Forest System account for enforcement and remediation of illegal marijuana trespass grow sites on federal lands and for the clean-up of toxic waste and chemicals at these sites,” according to a description.

Meanwhile, the Senate has not yet started acting on its versions of appropriations bills for the coming fiscal year, so it remains to be seen which cannabis and drug policy provisions that chamber will include—or what will ultimately be enacted into law following the bicameral conference committee process.

A separate spending bill that is up for House consideration would protect all state and tribal marijuana programs from Justice Department interference. A bipartisan group of congressional lawmakers recently circulated a letter to build support for the proposal, but it’s unclear when the chamber will take up the appropriations bill for the Commerce, Justice, Science, and Related Agencies.
 

Feds free trucker who drove 2,270 pounds of pot across the border – and says he didn't know it


DETROIT — After 16 days of professing his innocence in an American jail cell, a Canadian trucker accused of smuggling more than 2,270 pounds of "highly potent" pot into Detroit has been freed.

And the charges have been dropped.

At issue was whether or not the trucker really knew he was hauling $3.2 million worth of marijuana across international lines.

The driver said he had no idea weed was in the truck and that he believed he was transporting coil rings, as was written on the delivery's paperwork. His lawyer, Detroit-based criminal defense attorney Ellen Michaels, investigated the case and says marijuana dealers hacked into a trucking company's computers, created a fake order for coil springs, and then filled the truck with marijuana instead.

"I had not done anything wrong," Tasbir Singh, 32, told the Detroit Free Press, part of the USA TODAY Network. "They did not believe me when I told them that I am innocent."

Tasbir Singh, 32, of Windsor, Ontario, poses in this February 2021 photo with his son.


"It's my luck that I got the justice so fast," Singh said, stressing that his faith, family and a good lawyer pulled him through. He has a wife and daughter, who are currently with family in India.

"I kept praying," Singh recalled. "Everybody was saying to me, 'If you haven't done anything, justice will come.'"

On July 22, the U.S. Attorney's Office filed a request with the court to have the criminal complaint dismissed without prejudice, which means prosecutors have a right to refile the case at a later date.


"The complaint was dismissed and the defendant released in order to allow the government to investigate further and decide whether criminal prosecution of Singh is appropriate," said Gina Balaya, a spokesperson for the U.S. Attorney's Office, in a statement Friday.

Federal prosecutors also stated in court documents the "government needs additional time" to "identify all other individuals who should be held criminally responsible" for the pot smuggling.

Singh was arrested July 7 and freed July 23.

According to the court documents and Singh's lawyer, Singh pulled into a cargo facility in Detroit in his commercial truck with an attached trailer at 9:10 a.m. on July 7. An X-ray inspection in Detroit led to the discovery of seven pallets of suspected marijuana in the trailer. A K-9 sniffed the goods and detected pot.


Singh told authorities he didn't know marijuana was in the trailer and that he picked up what he believed to be compression springs from a location in North York, Ontario. He said his truck was loaded and sealed by the shipper.

According to court records and his lawyer, Singh was required to remain in his truck due to COVID-19 restrictions while the items were placed in his trailer by the shipper. He then drove to a truck yard in Windsor, parked the truck overnight in an area that is under surveillance, and returned home for his required 10 hours of rest.

That next morning, before he reached the border, he was contacted by his dispatcher instructing him to deliver the load to a new address in Columbus, Ohio.

"The dispatch operator was very cooperative. She was horrified about what happened to Singh," Michaels said, noting the company did its own investigation. "They backtracked and were able to determine that the fraud was committed on the Best Care trucking company through a hacked Gmail account."

"Everything was in order," Michaels said, noting Singh also stopped to add an additional bolt because that's required to cross the border.

"He had no knowledge of what was in his truck ... He did his due diligence with regard to his load," Michaels said, who after investigating the case, presented the U.S. Attorneys office with her findings.

"I was able to show them that these truckers are just the drivers. They don’t necessarily have an awareness (of what they're transporting), and there’s a paper trail of showing how it’s all done," Michaels said. "He was terrified and horrified about everything that happened ... I showed step by step that this guy did everything he was supposed to do."

One day after providing her documents to the U.S. Attorney's Office, Michaels said, prosecutors agreed to drop the case and expedite the process to release Singh — who while in jail, missed out on his naturalization ceremony in Canada.

Singh, meanwhile, is home in Windsor, relieved that he found a lawyer who dug into the case and pushed for his quick release.

"I'm feeling very good now," said Singh.

"... The main thing was the truth. If you pray, then God is with you and truth is with you."

Singh was eager to clear his name.

"I haven’t done anything wrong in my life. I (have) never been in jail," Sing said.

"They gave me justice," Singh said.
 
"It could be argued that the cannabis industry’s failure to pay off the suits on Capitol Hill is mainly the reason why Congress has yet to legalize the leaf at the national level."​
I'm not so sure if its failure to spread the cash or just that MJ industry is VERY small potatoes compared to the cash rippled out by the pharma and alcohol industries which, no matter what asshole politicians say, is the reason for many really stupid policies being perpetuated in America (can you say "Government not allowed to negotiate Medicare drug prices, children? Yes, you can" sigh).

And Koch....wow, will pigs fly next? But, in fairness, he seems to be doing it from a libertarian/individual liberty POV which frankly I share.

Billionaire Charles Koch Will Fund Lobbying Efforts To Legalize Marijuana Nationwide

Regardless of his reasoning for getting behind weed, Koch’s willingness to use his finances and massive network of political and business leaders is inevitably a sign that the cannabis cause is about to make significant strides.

If there is one thing the marijuana legalization movement has been missing all along, it is money. Sure, the forefathers of the industry managed to beg, borrow, and scrape together loads of cash to make the business of growing and selling cannabis look the part of American commerce. But even while managing to become a multi-billion-dollar business sector over the past decade, it’s fallen short of having the kind of cash it takes to influence lawmakers — the green to get stuff done.

It could be argued that the cannabis industry’s failure to pay off the suits on Capitol Hill is mainly the reason why Congress has yet to legalize the leaf at the national level.


Congress May Be Forced To Consider Nationwide Marijuana Legalization Now That 68% Of Population Supports It



However, all of that seems to be changing. The cannabis industry is now being endowed by influence, power, and, perhaps most importantly, the money to get anti-pot politicians from both sides of the aisle to pay attention. Most recently, billionaire Charles Koch came out in support of federal marijuana legalization.

In an interview with Forbes, the 85-year-old CEO for Koch Industries said that not only was he getting behind efforts to legalize, but he is also contributing $25 million of his own money to get it done. The actual amount of these much-needed lobbying funds will come closer to $70 million over the next two years, according to the news source.

Koch, founder of Americans for Prosperity and the recently formed Cannabis Freedom Alliance, believes people should have the right to choose. “[Prohibition] is counterproductive. It ruins people’s lives, creates conflict in society, and is anti-progress. The whole thing never made sense to me.”

It’s not supernatural why Koch, now a libertarian, is suddenly interested in marijuana legalization. Last year, the tycoon alleged that after years of dumping millions into conservative politics, he was turning his attention to more important issues like poverty, gang violence, homelessness, addiction, and recidivism, according to an interview in the Wall Street Journal. Furthermore, in his book Believe in People: Bottom-Up Solutions for a Top-Down World, Koch confessed to being disappointed with himself for supporting the divisiveness of partisan politics.

“Boy, did we screw up!” he wrote. “What a mess!”

Legal marijuana could assist some of Koch’s newfound focus. It’ll create thousands of new jobs, contribute to the economy, pull the weed business out of the streets, and prevent otherwise law-abiding citizens from going to jail.


illinois pot offenders how to get your marijuana offense wiped clean



We’ve already witnessed this at some level in states that have changed their pot laws. The demise of prohibition also wouldn’t hurt his company, Koch Industries, either, which has a heavy hand in the agricultural sect. Regardless of his reasoning for getting behind weed, Koch’s willingness to use his finances and massive network of political and business leaders is inevitably a sign that the cannabis cause is about to make significant strides.

Noa Kahner, founder of Kahner Global, one of the premier investment conferences in North America, told The Fresh Toast that Koch’s involvement will create significant developments. “This is another example of mainstream culture and leaders casting aside old fake problems with the marijuana and embracing legalization. You are about to see another boom in the market,” she said.

Marijuana legalization is finally getting some much-needed attention on Capitol Hill. Last month, Senate Majority Leader Schumer introduced a proposal for ending nationwide pot prohibition, which is now up for public comment. Schumer needs 60 votes in the Senate to advance a pot bill, which he doesn’t presently have. Yet, it could be argued that Koch’s influence and lobbying cash might be persuasive to both Democrats and Republicans that are still on the fence about tendering their support.

“[The Koch’s] seem focused on the right for individuals to choose to consume something that is much less dangerous than other legal products such as alcohol and tobacco and appear to acknowledge the failure of the war on drugs in that respect,” said David N. Feldman, Partner Hiller PC and Skip Intro Advisors. “This is one of a number of recent developments creating more “cover” for Republicans to support legalization.”

Interestingly, with Koch backing off conservative politics and running full speed ahead with marijuana legalization, he inadvertently made Fox News less of an enemy. The money once used by the Koch Brothers to benefit conservatives; dollars used to hire hosts of popular Fox news programs to speak at Americans for Prosperity events, will now further federal marijuana legalization.

Speaking of Fox News, lately, it has shared a better-balanced dialogue regarding cannabis than in the past. We use the term “better” because to say Fox News now has a well-balanced narrative on marijuana would be so far from the truth it isn’t even funny. After all, in a recent episode of “Fox and Friends”, the hosts blamed the rise of shootings in Washington DC on cannabis-induced psychosis. On the flip side, however, Geraldo Rivera just used the platform to call for legalization “everywhere in every corner of this country, every kind of marijuana you want.”

Koch believes that his presence in the cannabis scene will lead to nationwide legalization before the end of 2021.
 
And another conservative voice on MJ legalization


Justice Thomas and Pot

CNBC reports that governmental behavior is being noticed in the judicial branch. The focus is upon comments of Justice Clarence Thomas of the United States Supreme Court. Over the years, he has been derided by the press, largely for not asking questions during oral arguments. But, appointed in 1991, Justice Thomas is the senior member of this court, and he brings an interesting perspective to things. His writing was most recently here in Near Unanimity, Untethered (June 2021), an advocacy for standards and principles to guide the law. His special concurrence described in Toto, We're Not in Kansas Anymore (March 2020) regarding federal preemption is also worthy of note.

The recent CNBC article focuses upon Thomas' comments regarding Gonzales v. Raich, 545 US 1 (2005). There, the Court concluded that federal law regarding marijuana could be enforced despite contrary state laws. One might expect the case to be heavy with Supremacy Clause discussion, but it is all about interstate commerce. The Court's decision in Wickard v. Fillburn plays predominantly in the analysis. Wickard is the foundation of the Court's conclusions regarding modern interpretation of the Interstate Commerce Clause, and has its share of critics. It is foundational to the Court's conclusion that your government can compel you to purchase products or services you do not desire. See NFIB v. Sebelius, 567 U.S. 519 (2012).

CNBC's analysis of the comments regarding Raich are presented in parallel with a recent decision by the Court not to hear a case regarding tax deductions claimed by marijuana businesses in Colorado. The discussion regards whether Justice Thomas' perspectives might signal coming change in the court's perspective on marijuana. Justice Thomas was seen as critical of the inconsistent state laws regarding the production, possession, and sale of pot. He suggested that

“A prohibition on interstate use or cultivation of marijuana may no longer be necessary or proper to support the federal government's piecemeal approach,”

Note that this suggests interstate commerce as did Wickard and Raich. Justice Thomas was critical of the federal law regarding marijuana. Included is the clear and definitive "marihuana is illegal" that comes from its listing in Schedule I by the Food and Drug Administration (FDA) and Drug Enforcement Agency (DEA). Inclusion on that list, by definition, means that a substance (pot) is a "drug() with no currently accepted medical use and a high potential for abuse. " Thus, the very term "Medical Marijuana" may be an oxymoron. (2015).

In the recent past, however, the U.S. Congress has essentially told the federal police agencies that they cannot use "federal money to interfere in the implementation of state medical marijuana laws." Thus, use and possession of the substance violates federal law, but enforcement is legislatively hampered. Meanwhile, states have engaged in a variety of decriminalization efforts both for oxymoronic and recreational possession and use of pot. These have attracted critics, fans, and entrepreneurs.
Notably, Justice Thomas highlighted two bulls issued by the U.S. Department of Justice in which the federal government committed to "not intrude on state marijuana legalization schemes or prosecute individuals for marijuana-activity if it complies with state law." Thus, the autonomy of the states has been recognized by the federal government in published deference. Some might argue that regulation of such activity is better as a local issue. However, some would see difficulty in distinguishing the growing and selling of pot from the wheat that landed farmer Filburn in such difficulties back in 1942. In all, there is potential for confusion in the short term and room for the Supreme Court to provide clarity for the long term. Perhaps a recognition that Wickard v. Fillburn was poorly reasoned?

Upon this dichotomy of federal regulation and restraint, Justice Thomas concluded: “Federal policies of the past 16 years have greatly undermined its reasoning,” Thomas added. “The federal government's current approach is a half-in, half-out regime that simultaneously tolerates and forbids local use of marijuana.” “Given all these developments, one can certainly understand why an ordinary person might think that the Federal Government has retreated from its once-absolute ban on marijuana.”

Why is the commentary relevant, beyond academic interest? The patchwork of state laws leads Justice Thomas to comment that variety leads to issues with the equal protection clause of the Fourteenth Amendment. At first glance, that might seem to be criticism of the fact that one might readily purchase pot from a store in Colorado, but not in neighboring Kansas. In that there is inequality, or at least disparate access. However, that exists in a myriad of examples including gambling, prostitution, and more. Back in the day, many an eighteen-year-old Hoosier drove to Ohio for entertainment, before it increased its drinking age to 21. So the state-to-state is perhaps more a distraction than a focus.

Justice Thomas is more focused, instead on the dichotomy(ies) within federal law and regulation. In an intriguing contrast with Congress' preclusion of federal law enforcement regarding pot, the Internal revenue code "prohibits businesses that deal in marijuana and other controlled substances from deducting their business expenses." That was the focus of the case recently declined by the Court. Thus, in a single building in Colorado, a business selling pot and a business selling cakes might each require a new cash register. There is merit in questioning why one can claim that expense as a tax deduction and the other cannot. Is there merit in a distinction?

In a simple context, the merit is apparent. Should the government treat the expenses of El Chapo the same as it would those of Jeff Bezos? They are each engaged in commerce. Can tax law treat the drug lord differently from the retail magnate? Though there is clearly different impact of the tax law, is that violative of equal protection? Justice Thomas' perspective seems to be that Congress' dichotomous policy suggests that those two retailers in Colorado are less distinct from each other. As they become less distinguishable, less El Chapo/Bezos distinguishable, perhaps their similarity enhances the equal protection compulsion gains primacy?
The present challenge was thus to the dichotomy between business expenses of pot businesses and other businesses. However, there are also provisions of federal law regarding pot that could implicate banks. Those laws were likely instituted with an intent of denying banking services to El Chapo and the like, but are now precluding those services to the pot businesses. In the evolving environment of state laws, that too could be seen as an equal protection issue. There are broad prohibitions on other services for such persons, which have been vociferously argued by carriers resisting payment for pot in workers' compensation cases. Those carriers fear penalty and detriment from engaging even peripherally in illicit (pot is still illegal) drug transactions.
Writ large, Justice Thomas sees both dichotomy and challenge, noting:

“If the Government is now content to allow States to act ‘as laboratories, then it might no longer have authority to intrude on ‘[t]he States' core police powers . . . to define criminal law and to protect the health, safety, and welfare of their citizens,'”

There is thus seen a "fairness" argument in various contexts of the pot business. A similar spectrum of federal laws has been identified and cited by insurance carriers that have been asked or even ordered to violate federal law and provide or compensate pot for injured workers. In the context of a "patchwork," perhaps greater distinctions regarding pot exists than those among state workers' compensation laws and pot access.

However, the Justice's comments could be a broader harbinger in shifting or evolving legal principal. The Court has long recognized that the Tenth Amendment leaves to the states a broad regulatory swath of what came to be known as "police powers." These are focused upon the "health, safety, and welfare" of the people. We have seen great disparity there in this pandemic. States have made decisions: to lockdown, to mandate masks, to alter existing contracts, and more. There is great disparity in these local decisions; there is great debate in the interactions of federal and state law therein.

Might the federal government, in that pandemic context, leverage greater control over health, safety, and welfare? The Tenth Amendment says no, but prior invasions on topics like a federal minimum wage, justified with such as the Interstate Commerce Clause, suggests it is possible. Is the federal government's authority or ability to regulate in such setting dependent upon the sincerity, clarity, or consistency of its message? May the federal government only exercise its Commerce Clause and other authority when it does so sincerely? Justice Thomas' recent marijuana, or more pertinently equal protection, comments suggest debates and questions.
There is potential for rewrite of a variety of federal interventions into state authority. The Tenth Amendment perhaps will be the subject of great scrutiny in coming debates of equal protection of federal law. Thus, for the injured worker, there is some possible potential for ongoing arguments of "equal protection," as regards access to pot. For carriers, some potential exists for different perspectives on paying for pot, just as banks might see greater leeway in providing services for those who are engaged in growing, transporting, and retailing it.

There is potential for the court to clarify pot or to render peripheral decisions on issues like taxation or banking that will implicate pot. That will potentially change the way we treat pain, or at least implicate the way people medicate themselves perhaps; for better or worse. The short term in Florida workers compensation is perhaps more predictable because of the simple language in section 381.986(15)(f)("marijuana . . . not reimbursable under chapter 440.")

Those who study the constitution, and its application to the incredible complexity that is a federalist system of separated powers will see many potential similarities and distinctions in such a coming debate. What Justice Thomas' comments portend substantively remains to be seen. What we know with certainty, however, is that questions are being asked and the probability is that litigation will continue regarding pot, regulation, and commerce. And, that will continue to attract the fans, critics, and entrepreneurs.

By Judge David Langham
 

Senators Vote To Expand Medical Marijuana Access For Military Veterans In Key Committee


A powerful Senate committee on Wednesday approved an amendment that’s meant to promote military veterans’ access to medical marijuana by allowing doctors at the U.S. Department of Veterans Affairs (VA) to issue cannabis recommendations in legal states.

The measure, sponsored by Sen. Jeff Merkley (D-OR), passed in the Senate Appropriations Committee on a voice vote. It would further prohibit VA from interfering with, or denying services to, veterans who participate in a state-legal medical cannabis program

“We have now 36 states that have medical cannabis, and our veterans want to know from their VA doctor what their thoughts are on the pros and cons or appropriate role or challenges of this particular strategy for treating a variety of issues, including PTSD,” Merkley said. “I think it’s really important that we not force our veterans to be unable to discuss this issue with their doctors.”

Here’s the text of the amendment, which is now part of a bill to fund the VA for Fiscal Year 2022:

SEC. ___ None of the funds appropriated or otherwise made available to the Department of Veterans Affairs in this Act may be used in a manner that would—

(1) interfere with the ability of a veteran to participate in a medicinal marijuana program approved by a State;

(2) deny any services from the Department to a veteran who is participating in such a program;

or (3) limit or interfere with the ability of a health care provider of the Department to make appropriate recommendations, fill out forms, or take steps to comply with such a program.

The senator introduced a similar proposal in 2018 that also cleared the Appropriations Committee.

Reps. Conor Lamb (D-PA) and Peter Meijer (R-MI) filed a bill—titled the Fully Informed Veteran Act—in May that would simply allow VA doctors to provide basic information and resources about state-legal cannabis programs to veterans.

A pair of Republican lawmakers introduced a congressional bill in April that’s meant to promote research into the medical potential of marijuana for veterans.

That was filed one day after a bipartisan Senate bill was introduced—and on the same day that House members filed companion legislation—to require VA to conduct clinical trials into marijuana for the treatment of post-traumatic stress disorder (PTSD) and chronic pain in the population.

Last year, the House Veterans’ Affairs Committee approved a prior version of that bill, as well as a separate proposal to allow VA doctors to issue medical cannabis recommendations to their patients in states where it’s legal.

Also in April, a bipartisan coalition of congressional lawmakers reintroduced legislation that would federally legalize medical marijuana for military veterans.

A large-scale spending bill that passed the House last week includes report language that says federal health agencies should pursue research into the therapeutic potential of psychedelics for military veterans suffering from a host of mental health conditions.

It also acknowledges that VA has clarified that veterans are eligible for home loan benefitseven if they work in a state-legal marijuana industry. However, it expresses disappointment that VA hasn’t taken further action to communicate this policy to lenders and borrowers and directs the department to improve its communication and report back to Congress on its progress within 180 days of the enactment of the legislation

Rep. Katherine Clark (D-MA) and other lawmakers have pressed VA on difficulties some veterans have faced in securing the benefit, with at least one constituent telling Clark that they were denied a home loan because of their work in the state-legal cannabis market. That prompted the congresswoman to circulate a sign-on letter and introduce an amendment to resolve the problem.

Clark’s amendment to address the problem was approved by the House as part of a previous defense spending bill—though leaders in the chamber agreed to scrap it after the Senate didn’t include it in its version of the legislation.

The report also notes “progress” that VA has made when it comes to marijuana research. However, advocates have been critical of the agency in this respect. For example, VA offered written testimony recently opposing the bill expand clinical trials into the therapeutic potential of cannabis for military veterans with PTSD and chronic pain.

Read the text of the Senate Appropriations Committee amendment on veterans and marijuana by following title link and scrolling to the bottom of the article.

The House on several occasions has approved legislation to allow VA doctors to issue medical marijuana recommendations to their patients, but it has never been enacted into law. Some lawmakers have expressed concern that, even if the VA funding provision were added, government physicians could still be penalized by the Justice Department if they filled out cannabis forms while the substance remains a federally prohibited.

Multiple pieces of veterans- and marijuana-specific legislation have been introduced this Congress.
 

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