The Evolving Federal Response to State Marijuana
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The Green Regulatory Arbitrage
Table of Contents I. EXECUTIVE SUMMARY ...................................................................................................... 1 II. PROHIBITION - HOW CANNABIS BECAME ILLEGAL ..................................................... 4 III. THE LEGAL LANDSCAPE .................................................................................................... 7 A. Federal Law And Its Impact On The Cannabis Industry ..................................................... 7 1. Cannabis Is A Schedule 1 Substance ............................................................................ 7 2. Access To Capital Markets Restricted ......................................................................... 9 3. Banking Services Limited .......................................................................................... 10 4. Tax Burdens .............................................................................................................. 11 5. Interstate And International Commerce Restrictions ................................................. 11 6. Insurance Options Limited ........................................................................................ 12 7. Medical Research And Clinical Trials Stymied .......................................................... 12 8. Professional Services Harder To Find ........................................................................ 13 9. Real Estate Challenges .............................................................................................. 13 B. The States -
Bank on It Finance News You Can Count On
Bank On It Finance News You Can Count On December 2019 UPCOMING FIRM Banking Cannabis EVENTS: By James I. Kaplan 12/12/19 Business Law Training: Banks face challenges in providing services to What’s Around The Corner? the fast-growing cannabis industry due to The Top Ten Things We Are inconsistency between state and federal law. Watching in Employment Cannabis is now legal for retail and/or medical Law for 2020 sales for about 70% of the country’s population 12:00 p.m. CST under state law, but federal law continues to Register at www.quarles.com/events contain roadblocks for banks wishing to do business with the cannabis industry. Federal legislation is in the works that would Location: Quarles & Brady offices and via Webinar remove barriers and allow banks to confidently serve the cannabis industry. As is often true in this area, the path is hardly smooth and the resolution is not yet clear. We explain below. The current state of law regarding the sale to and use by individuals of cannabis and cannabis products for recreational and medical purposes is, to put it mildly, inconsistent. More than 70 percent of the population of the United States live in the 34 states where retail and/or medical distribution, possession and use of cannabis is or shortly will be legal. At the same time, cannabis is a Schedule 1 drug for purposes of the Federal Controlled Substances Act, which means that retail and medical use of cannabis remains illegal for Federal law purposes. A complicating factor is that Why Quarles & Brady this Federal-State legal conflict has made most banks reluctant to provide cannabis With experience handling a diverse businesses, and sometimes even their service providers or real estate and equipment array of financings, a deep bench of lessors, with financial services like deposit account services and lending. -
Banking Mrbs and Lessons from NCUA Enforcement Action
Banking MRBs and Lessons from NCUA Enforcement Action Thursday, July 15, 2021 Aliza Pescovitz Malouf Richard Garabedian Associate Counsel Hunton Andrews Kurth LLP Hunton Andrews Kurth LLP 1445 Ross Avenue, Suite 3700 2200 Pennsylvania Avenue, NW Dallas, Texas 75202 Washington, D.C. 20037 Tel: 214‐979‐8229 Tel: 202‐419‐2117 Email: [email protected] Email: [email protected] This Program Covers . I. Difference Between Marijuana and Hemp II. Background on Legalization of Cannabis III. Current State of Cannabis Legalization IV. Financial Benefits of Banking Marijuana Related Businesses V. Regulatory Landscape VI. Live Life Enforcement Action VII. Best Practices 2 Cannabis: Marijuana vs. Hemp Marijuana Hemp Marijuana is abundant in THC with concentrations Hemp contains a very low concentration of THC (0.3% or between 15% to 40%. less). Marijuana is grown for recreational and medicinal Hemp is grown primarily for industrial purposes. purposes. Marijuana can be smoked, inhaled, ingested or injected Hemp's rapid growth and strong fibers make it ideal for directly into the body. THC is also commonly extracted crafting durable rope, clothing, sails, and paper. With the from the plant and used in a variety of methods fast‐growing popularity of CBD, hemp is also used to including vaporizers, capsules, edibles and more. produce a wide variety of THC‐free CBD products. Still a Schedule I drug under the federal Controlled No longer a Schedule I drug under the federal Controlled Substances Act. Substances Act as of December 20, 2018. 3 Background on Legalization of Cannabis History of Cannabis in the United States • 1619. Virginia Assembly passed legislation requiring every farmer to grow hemp. -
Legislative Calendar
S. PRT. 112–60 COMMITTEE ON ENVIRONMENT AND PUBLIC WORKS UNITED STATES SENATE LEGISLATIVE CALENDAR ONE HUNDRED TWELFTH CONGRESS CONVENED JANUARY 5, 2011 FIRST SESSION ! ADJOURNED DECEMBER 3, 2012 CONVENED JANUARY 3, 2012 SECOND SESSION ! ADJOURNED JANUARY 3, 2013 BARBARA BOXER, Chairman FINAL CALENDAR January 3, 2013 36–868 PDF U.S. GOVERNMENT PUBLISHING OFFICE: 2019 VerDate Aug 31 2005 13:35 Aug 01, 2019 Jkt 000000 PO 00000 Frm 00001 Fmt 7800 Sfmt 7800 S:\_EPW\DOCS\36868.TXT VERNE congress.#06 CONTENTS Page Committee members .............................................................................................................................................. 3 Subcommittees ....................................................................................................................................................... 4 Jurisdiction of the committee ................................................................................................................................ 6 Rules of procedure ................................................................................................................................................. 7 History and work of the committee ...................................................................................................................... 10 Measures Within the Jurisdiction of the Committee on Environment and Public Works—112th Congress .... 11 Chronology and status of Senate bills ................................................................................................................. -
Unconstitutional Qualification of the Right to Bear Arms by the Federal Government Against Law-Abiding Medical Marijuana Patients
A STICKY SITUATION: THE UNCONSTITUTIONAL QUALIFICATION OF THE RIGHT TO BEAR ARMS BY THE FEDERAL GOVERNMENT AGAINST LAW-ABIDING MEDICAL MARIJUANA PATIENTS LUKE C. WATERS* INTRODUCTION ......................................................................................... 116 I. MEDICAL MARIJUANA LAWS ................................................................ 120 A. Comprehensive Medical Marijuana Programs ....................... 121 B. Federal Laws & Policies ........................................................ 129 1. The Ogden Memo ............................................................. 134 2. The Cole Memo ................................................................ 135 3. The Cole Recreational Memo ........................................... 137 4. The Sessions Enforcement Memo .................................... 137 5. The Rohrabacher-Farr Amendment .................................. 138 II. SECOND AMENDMENT RIGHTS ............................................................ 142 A. An Awkward Landmark Decision ......................................... 143 B. The Post-Heller Two-Step Qualification Analysis ................ 144 1. Individuals Adjudicated as Mentally-Ill ........................... 149 2. Users of Illegal Drugs ....................................................... 151 IV. UNCONSTITUTIONAL APPLICATION ................................................... 152 A. Modest Collateral Burdens: Wilson v. Lynch ......................... 153 B. Applying the Two-Step Test to Qualified Patients Appropriately -
POTUS and Pot: Why the President Could Not Legalize Marijuana Through Executive Action
University of Cincinnati Law Review Volume 89 Issue 3 The John Murphy Memorial Issue Article 3 April 2021 POTUS and Pot: Why the President Could Not Legalize Marijuana Through Executive Action Robert Mikos Vanderbilt University, [email protected] Follow this and additional works at: https://scholarship.law.uc.edu/uclr Part of the Administrative Law Commons, Agriculture Law Commons, Criminal Law Commons, and the Legislation Commons Recommended Citation Robert Mikos, POTUS and Pot: Why the President Could Not Legalize Marijuana Through Executive Action, 89 U. Cin. L. Rev. 668 (2021) Available at: https://scholarship.law.uc.edu/uclr/vol89/iss3/3 This Article is brought to you for free and open access by University of Cincinnati College of Law Scholarship and Publications. It has been accepted for inclusion in University of Cincinnati Law Review by an authorized editor of University of Cincinnati College of Law Scholarship and Publications. For more information, please contact [email protected]. Mikos: POTUS and Pot POTUS AND POT: WHY THE PRESIDENT COULD NOT LEGALIZE MARIJUANA THROUGH EXECUTIVE ACTION Robert A. Mikos* Could the President legalize marijuana, without waiting for Congress to act? The 2020 Presidential Election showed that this question is far from hypothetical. Seeking to capitalize on frustration with the slow pace of federal legislative reform, several presidential candidates promised they would bypass the logjam in Congress and legalize marijuana through executive action instead. This Essay warns that such promises are both misguided and dangerous because they ignore statutory and constitutional constraints on the President’s authority to effect legal change. -
Congressional Record United States Th of America PROCEEDINGS and DEBATES of the 104 CONGRESS, FIRST SESSION
E PL UR UM IB N U U S Congressional Record United States th of America PROCEEDINGS AND DEBATES OF THE 104 CONGRESS, FIRST SESSION Vol. 141 WASHINGTON, THURSDAY, DECEMBER 14, 1995 No. 199 House of Representatives The House met at 10 a.m. and was come forward and lead the House in the inaugural Las Vegas Bowl in 1992; To- called to order by the Speaker pro tem- Pledge of Allegiance. ledo has never played in a Las Vegas pore [Mr. ENSIGN]. Mr. DICKEY led the Pledge of Alle- Bowl. f giance as follows: I will match the gentlewoman from I pledge allegiance to the Flag of the Ohio, Ms. KAPTUR's, glass bowl bet DESIGNATION OF THE SPEAKER United States of America, and to the Repub- with a University of Nevada-Reno PRO TEMPORE lic for which it stands, one nation under God, sweatshirt. The bottom line is: To- The SPEAKER pro tempore laid be- indivisible, with liberty and justice for all. night, the UNR Wolf Pack will pounce fore the House the following commu- f on the Toledo Rockets. Go Wolf Pack. nication from the Speaker: ANNOUNCEMENT BY THE SPEAKER f WASHINGTON, DC, PRO TEMPORE December 14, 1995. The SPEAKER pro tempore. The ROCKETS' TRAJECTORY TAKES I hereby designate the Honorable JOHN E. Chair will entertain fifteen 1-minutes THEM TO THE LAS VEGAS BOWL ENSIGN to act as Speaker pro tempore on per side. this day. f (Ms. KAPTUR asked and was given NEWT GINGRICH, permission to address the House for 1 Speaker of the House of Representatives. -
Rethinking Federal Marijuana Policy by Ed Chung, Maritza Perez, and Lea Hunter May 1, 2018
Rethinking Federal Marijuana Policy By Ed Chung, Maritza Perez, and Lea Hunter May 1, 2018 For decades, the failed war on drugs has devastated communities across the United States, contributing to unprecedented rates of incarceration. The United States has nearly 25 percent of the world’s incarcerated population despite comprising less than 5 percent of the world’s total population.1 This phenomenon gained momentum in the 1970s when President Richard Nixon first declared a war on drugs and policy- makers at all levels of government added harsh criminal penalties for drug offenses, leading to explosive incarceration rates. Since then, the nation’s incarcerated popula- tion has increased sevenfold—from 300,000 people to 2.2 million people today—and 1 out of 5 people incarcerated are serving time for a drug offense.2 People of color have disproportionately felt the damaging and unnecessary consequences of these outdated tough-on-crime policies. Members of these communities have been sentenced to long terms of imprisonment as well as lifetimes of poverty and economic insecurity.3 According to the Drug Policy Alliance, drug enforcement in the United States is rooted in racial discrimination, as the first anti-drug laws were established around the turn of the 20th century and targeted Chinese immigrants, black Americans, and Mexican migrants.4 Today, between 40 percent and 50 percent of all drug arrests are for mari- juana.5 Discriminatory enforcement of marijuana laws is one reason that black and Latino Americans make up two-thirds of the U.S. prison population despite only comprising 12 percent and 17 percent of the U.S. -
Adapting a Regulatory Framework for the Emerging Cannabis Industry
OCTOBER 2019 Learn more about NCIA’s Policy Council TheCannabisIndustry.org/PolicyCouncil National Cannabis Industry Association TheCannabisIndustry.org ADAPTING A REGULATORY FRAMEWORK FOR THE EMERGING CANNABIS INDUSTRY National Cannabis Industry Association (NCIA) Adapting a Proven Regulatory Framework for the Emerging Cannabis Industry Table of Contents 1 EXECUTIVE SUMMARY 8 INTRODUCTION 11 LEGAL STATE OF CANNABIS IN THE UNITED STATES 13 CURRENT LEGISLATIVE EFFORTS 14 CANNABIS PRODUCTS 15 REMOVING THE OUTDATED REGULATORY STRUCTURE 16 ESTABLISHING A NEW REGULATORY FRAMEWORK 19 SOCIAL EQUITY 20 LANE #1: Pharmaceutical Drugs 23 LANE #2: Ingested, Inhaled, or Topically Applied THC Products 31 LANE #3: Ingested and Inhaled Cannabinoid Products with Low/No THC 40 LANE #4: Topically Applied Low THC Products 43 CONCLUSION National Cannabis Industry Association (NCIA) Adapting a Proven Regulatory Framework for the Emerging Cannabis Industry Executive Summary For almost a century, the United States government has criminalized the production, distribution, and sale of cannabis. However, this era of prohibition has been crumbling in the face of voter and, increasingly, legislative revolt. Even as these federal laws remain unchanged, most states have legalized some form of medical cannabis, and eleven states and the District of Columbia have changed their laws to regulate adult-use cannabis in a manner similar to alcohol. Moreover, Congress recently removed hemp (and any cannabinoids derived therefrom) from the Controlled Substances Act (CSA), legalizing -
Has the Marijuana Classification Under the Controlled Substances Act Outlived Its Definition?
Has the Marijuana Classification Under the Controlled Substances Act Outlived Its Definition? JUDGE MARY A. CELESTE & MELIA THOMPSON-DUDIAK† I. INTRODUCTION Under the Control Substances Act (“CSA”), marijuana is currently scheduled as an “I” drug.1 In a classification of “V” schedules, “I” is considered the most dangerous because it is deemed to have a “high potential for abuse” and “no medical value.”2 It ranks alongside other substances such as heroin and phencyclidine (“PCP”), thereby signifying that the federal government considers marijuana more dangerous than cocaine (Schedule II) and Xanax (Schedule IV).3 According to the CSA, any violation of a substance listed as a schedule “I” drug is subject to the harshest penalties.4 Accordingly, using, manufacturing, importing, or distributing marijuana could result in various penalties.5 Individuals involved in marijuana businesses can receive up to five years in prison and simple possession with no intent to distribute is a misdemeanor with fines ranging from $250,000 to $1 million,6 or punishable by up to one year in prison and a minimum fine † Judge Mary A. Celeste (ret.) sat on the Denver County Court bench 2000-2015. She was the Presiding Judge 2009-10 and the co-founder of the Denver County Court Sobriety Court. She is currently a law school professor teaching Marijuana and the Law at California Western School of Law. She is a national expert and speaker on the topic of marijuana and has also written on the topic. Please visit her website at judgemaryceleste.com for more information. Melia Thompson-Dudiak’s work aims to empower women and people of color by exploring issues of social justice, global public policy, and equity. -
Marijuana Legalization Has Gained Traction in Recent Years in the United
How One 11-Page Bill Could Yield Billions in Annual Benefits: The Marijuana Justice Act of 2017 Haley Dunn arijuana legalization has gained traction in recent years in the United States with a variety of bipartisan supporters. Primary benefits often cited include savings in enforcement and incarceration costs, additional tax revenue and jobs, release and expungement for those incarcerated, Mand lowered racial and economic disproportionality in the U.S. criminal justice system. Critics often bring up health costs, increases in impaired driving, harmful effects on adolescent brain development, and greater attendant crime as possible drawbacks. This article examines the potential costs and benefits of federal marijuana legalization under the Senate version of the Marijuana Justice Act of 2017 (S. 1689) introduced in the 115th Congress, assuming 30 additional states legalize recreational marijuana and set up a regulated commercial retail system. Using an analysis that operates under a net present value over 1,000 years and reflects 2017 dollar amounts, the results are overwhelming: these combined efforts could lead to nationwide lifetime net benefits of over $168 billion, with approximately $50 billion in the first year alone, and $17 billion in tax revenue that federal and state governments could receive annually. This article also runs best- and worst-case scenario sensitivity analyses in a post- enactment universe—best being one in which all 50 states legalize recreational marijuana and worst being one in which no additional states legalize. Even the worst- case scenario would lead to lifetime net benefits of over $77 billion ($4 billion/year) and, in the best case, over $1.4 trillion ($75 billion/year). -
Recommendations for Federal Regulation of Legal Cannabis
Recommendations for Federal Regulation of Legal Cannabis July 2021 Preface This white paper was prepared to help guide federal legislators and regulators as they consider the end of cannabis prohibition in the United States in ensuring a free, fair, open, and equitable cannabis marketplace. About the Cannabis Freedom Alliance The Cannabis Freedom Alliance (CFA) is a coalition of advocacy and business organizations seeking to end the prohibition and criminalization of cannabis in the United States in a manner consistent with helping all Americans achieve their full potential and limiting the number of barriers that inhibit innovation and entrepreneurship in a free and open market. For more information on the CFA, please contact [email protected] or visit our website at cannabisfreedomalliance.org. A Special Thanks to the Members of the CFA Steering Committee for Their Support on this Project! - 1 - Introduction For the first time since Congress agreed with the Nixon Administration in 1970 to outlaw the possession, sale and manufacture of marijuana and marijuana-related products, congressional leadership has recently signaled a willingness to relent on those policies. In December 2020, the House of Representatives took a historic step by passing the Marijuana Opportunity Reinvestment and Expungement (MORE) Act to remove marijuana from the limitations of the Controlled Substances Act and expunge the records of those with previous federal convictions for marijuana.1 Although it was clear at the time of passage that the Senate would not concur before the conclusion of the session, the move signaled a changing attitude toward marijuana on Capitol Hill, securing a 228-164 bipartisan majority.