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Drug War Chronicle #1022 - May 31, 2018

1. Why Are California's Legal Marijuana Sales So Low?

There are some bumps on the way to legal marijuana.

2. Medical Marijuana Update

A June Oklahoma medical marijuana initiative is polling well, and so is a November Utah one; Florida's courts must decide whether patients can smoke their medicine, Arizona's high court strikes down a law barring medical marijuana on campus, and more.

3. Chronicle AM: NY Dems Endorse Marijuana Legalization, Surgeon General Talks Harm Reduction, More... (5/24/18)

The US Surgeon General has some surprisingly frank words about harm reduction and evidence-based drug policy, Cory Booker's Marijuana Justice Act picks up another sponsor, Arizona's Supreme Court throws out a state law criminalizing the use and possession of medical marijuana on campus and more.

4. Chronicle AM: Bangladeshi Drug War Gets Ugly, OK MedMJ Init Polling Well, More... (5/25/18)

The bloody Filipino drug war model spreads to Bangladesh, Congress continues to undercut District of Columbia marijuana and drug policy, a new poll has the Oklahoma medical marijuana initiative cruising toward victory next month, and more.

5. Chronicle AM: More Bangladeshi Drug War Killings, Canada Legalization Bill Advances, More... (5/29/18)

California lawmakers forego an opportunity to cut legal pot taxes, Pennsylvania's third largest city decriminalizes marijuana possession, the head of a UN agency calls on Latin America to consider drug legalization, Bangladeshi drug war killings mount, and more.

6. Chronicle AM: RI Senate OKs Life Sentence for ODs Bill, Guatemala's First Coca Crop, More... (5/30/18)

A bill that would mandate life sentences for selling drugs involved in fatal overdoses is moving in Rhode Island, a California US attorney says he's too busy with the black market to go after legal marijuana, another Utah poll has a medical marijuana initiative winning, Guatemala gets its first coca crop and more.

Why Are California's Legal Marijuana Sales So Low?

California is on track to generate $1.9 billion in legal marijuana sales this year, according to new data from a financial analysis firm tracking the market. That's a lot of weed, but it's only half the amount the same firm previously estimated the state would rake in.

The estimates are from New Frontier Data, which crunches cannabis industry numbers, and are based on tax revenues from pot sales, which so far have fallen dramatically short of projections. According to New Frontier, the state collected $33.6 million in pot taxes between January 1 and March 31, which makes it extremely unlikely that tax revenues will meet original expectations of hitting $175 million in the first half of the year.

New Frontier had earlier estimated that the state would see $3.8 billion in marijuana sales this year, and this latest estimate slashes that number by a whopping 50%. The company also slashed its projections for the size of the legal industry by 2025. Instead of the $6.7 billion in sales it earlier estimated, it now says it thinks sales will only hit $4.7 billion, a hefty one-third reduction.

That's bad news not only for state tax revenues but also for an industry that is supposed to be coming in out of the cold. What happened? New Frontier has an idea.

"It is quite clear that the new adult use regulations have made it more difficult than anticipated for the legal market to get established and for consumers to transition to from the illicit market. Given the number of local government bans on cannabis businesses, we are not seeing the same kind of conversion rates that we have seen in other legal markets," said Giadha Aguirre De Carcer, New Frontier Data founder, and CEO.

State and local licensing fees for marijuana businesses can range from $5,000 to $120,000 per year, depending on the type and scope of the business. And complying with regulatory mandates, such as those around zoning, water usage, and lab testing, costs even more.

It's not just onerous -- and expensive -- regulation for those who want state licenses to grow, distribute, and sell marijuana that's the problem. There's also a serious lack of buy-in by a good portion of the state's cities and counties, and that means that a big hunk of the state has no access to local legal marijuana.

"If there's (no governmental support) locally, then there's no option for a state license, and that's why most people are being shut out at this point in time," California Cannabis Industry Association executive director Lindsay Robinson told the Marijuana Business Daily. "The process gave local authorities an option to kind of sit on their hands, and that's the biggest barrier that we're seeing."

According to CCIA spokeswoman Amy Jenkins, only about a third of the state's 540 local governmental entities have approved commercial marijuana activity. Lack of legal access is "forcing consumers to turn to the illicit market," she told the Los Angeles Times this week.

Or return to it. Or stay in it, if they never left. Humboldt State University economics professor Erick Eschker pegged the size of the state's pot market -- legal and illegal -- at about $7.8 billion. Of that, about $2.3 billion came from the medical marijuana market, leaving about $5.5 billion for legal, grey market, and black market pot sales. If the legal market is only accounting for $1.9 billion in sales, that suggests that grey and black market sales are still about twice the size of legal sales. These consumers don't get hit with stiff sales and excise taxes, and if they can still get it from the guy down the street, why pay those high, state-legal prices?

If California wants to eliminate the black market in marijuana, it's got a whole lot of work to do. And no matter what steps the state takes to deal with its internal black market, there's still the export black market to the non-legal states in the rest of the US. Ultimately, the only way to end the black market is to legalize it nationwide, but we're not quite there yet. In the meantime, California's transition to a legal marijuana regime is facing some unhappy realities.

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Medical Marijuana Update

A June Oklahoma medical marijuana initiative is polling well, and so is a November Utah one; Florida's courts must decide whether patients can smoke their medicine, Arizona's high court strikes down a law barring medical marijuana on campus, and more.

Arizona

Arizona Supreme Court Okays Medical Marijuana on College Campuses. The court ruled last Wednesday that the state can't criminally charge card-carrying medical marijuana patients for possessing and using their medicine on campus. In Arizona v. Maestas, the court held that a 2012 law banning medical marijuana on campus violated the state's protections for voter-approved laws. The Supreme Court ruling upholds an appellate court ruling that also found in Maestas' favor.

Florida

Florida Judge Rules Patients Can Smoke Medical Marijuana. An Orlando circuit court judge ruled last Friday that the state legislature's ban on smoking medical marijuana is unconstitutional. State voters had approved medical marijuana in 2016 -- without any ban on smoking.

Florida Governor Immediately Appeals Ruling That Patients Can Smoke Their Medicine. The ruling that patients can smoke their medicine is on hold after Gov. Rick Scott (R) immediately appealed the Orlando judge's ruling.

Illinois

Illinois House Panel Approves Using Medical Marijuana to Fight Opioid Addiction. The House Executive Committee voted 8-3 last Thursday for a bill that would allow people who qualify for opioid prescriptions to apply for the state's medical marijuana program. The measure, Senate Bill 336, has already passed the Senate, but still needs some cleanup provision enacted in the Executive Committee before it goes to the House floor.

Ohio

Ohio Dispensary License Announcement Delayed. The state Board of Pharmacy announced Tuesday that its planned announcement of dispensary license awards Wednesday has been postponed and that provisional licenses will instead be issued in June. Legal medical marijuana sales are supposed to begin on September 8. Stay tuned.

Oklahoma

Oklahoma Poll Has Medical Marijuana Initiative in Good Shape. A new Sooner Poll has the medical marijuana initiative, State Question 788, cruising toward victory in next month's election. The opposition has managed to drag approval down from 61.8% in January to 57.5% now, but that's still enough support to win a month from now.

Pennsylvania

Pennsylvania Judge Halts Medical Marijuana Research Program. A Commonwealth Court judge has granted a temporary injunction sought by numerous dispensaries and growers and processors to halt the state's medical marijuana research program. The plaintiffs worry that the regulations for the clinical research programs would give an unfair advantage to clinical research partners and growers. The Health Department is now pondering next steps.

Utah

Yet Another Utah Poll Has Medical Marijuana Initiative Winning. A new poll from Dan Jones & Associates finds that nearly three out of four Utah residents support the Utah Patients Coalition medical marijuana initiative. The poll had 72% either "strongly" or "somewhat" in support, with 25% opposed, and only 2% undecided. While the LDS Church has come out against the measure, even 59% of self-described very active Mormons say they are for it.

[For extensive information about the medical marijuana debate, presented in a neutral format, visit MedicalMarijuana.ProCon.org.]

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Chronicle AM: NY Dems Endorse Marijuana Legalization, Surgeon General Talks Harm Reduction, More... (5/24/18)

The US Surgeon General has some surprisingly frank words about harm reduction and evidence-based drug policy, Cory Booker's Marijuana Justice Act picks up another sponsor, Arizona's Supreme Court throws out a state law criminalizing the use and possession of medical marijuana on campus and more.

The section on the Surgeon General's comments has an update, including a statement from the Department of Health and Human Services on the safe injection sites mention.

US Surgeon General Jerome Adams talks harm reduction and evidence-based opioid treatment. (Creative Commons)
Marijuana Policy

Jeff Merkley Signs on to Federal Marijuana Justice Act. And then there were five. Sen. Jeff Merkley (D-OR) has become the fifth cosponsor of Sen. Cory Booker's Marijuana Justice Act (S. 1689). The other cosponsors are Sens. Kirsten Gillibrand (D-NY), Kamala Harris (D-CA), Bernie Sanders (I-VT), and Ron Wyden (D-OR). Representatives Barbara Lee (D-CA) and Ro Khanna (D-CA) introduced a companion measure, H.R. 4815, in the House of Representatives earlier this year that has 35 cosponsors.

New York Democratic Party Officially Endorses Marijuana Legalization. Delegates to the state Democratic convention Wednesday adopted a resolution supporting marijuana legalization: "The New York State Democratic Committee supports the legalization of marijuana which should be regulated and taxed in a manner similar to alcohol," reads a resolution. The resolution adds that legalization is "an important social justice issue."

Medical Marijuana

Arizona Supreme Court Okays Medical Marijuana on College Campuses. The court ruled Wednesday that the state can't criminally charge card-carrying medical marijuana patients for possessing and using their medicine on campus. In Arizona v. Maestas, the court held that a 2012 law banning medical marijuana on campus violated the state's protections for voter-approved laws. The Supreme Court ruling upholds an appellate court ruling that also found in Maestas' favor.

Ohio Dispensary License Announcement Delayed. The state Board of Pharmacy announced Tuesday that its planned announcement of dispensary license awards Wednesday has been postponed and that provisional licenses will instead be issued in June. Legal medical marijuana sales are supposed to begin on September 8. Stay tuned.

Pennsylvania Judge Halts Medical Marijuana Research Program. A Commonwealth Court judge has granted a temporary injunction sought by numerous dispensaries and growers and processors to halt the state's medical marijuana research program. The plaintiffs worry that the regulations for the clinical research programs would give an unfair advantage to clinical research partners and growers. The Health Department is now pondering next steps.

Hemp

Illinois Governor Gets Bill Legalizing Industrial Hemp. With a 106-3 House vote Wednesday, the legislature has approved a bill legalizing industrial hemp, Senate Bill 2298. Now it's up to Gov. Bruce Rauner (R) to sign it.

Heroin and Prescription Opioids

US Surgeon General Urges ER Docs to Advocate for Evidence-Based Opioid Treatment. US Surgeon General Dr. Jerome Adams called Wednesday on emergency room physicians to advocate more vigorously for evidence-based opioid treatment, including harm reduction measures. Adams supported such harm reduction interventions as needle exchanges and safe injection sites. [The Department of Health and Human Services has issued a statement claiming that Dr. Adams does not support safe injection sites, and contesting the evidence on them. See update below.] He urged doctors to reach out to and educate stakeholders in their communities. "We have to understand that these policy interventions look different in different parts of the country," Adams said. "We have to understand that public policy means public and that we have to be able to go there and show them that we care before we can share what we know."

Update: A Department of Health and Human Services officer contacted us on Saturday, March 26th, claiming that the report news outlets relied on, including the one we linked to, was inaccurate in stating that Dr. Adams supports safe injection sites. We do not have other reports on his speech at this time to go on. The article linked above has been updated to include a copy of the HHS statement:

"The Administration and the Surgeon General do not support so-called 'safe' injection sites as a means to combat the opioid epidemic and its consequences. In addition, there is no evidence to demonstrate that these illegal sites reduce drug use or significantly improve health outcomes for those with opioid use disorder. So-called 'safe' injection sites lack the necessary scientific support to be considered a standardized evidence-based practice in the U.S."

Another article states that Adams mentioned safe injection sites as being "part of the conversation" in some communities.

Ed: We are in a position to address the administration's characterization of the evidence on safe injection sites, and it is false to the point of absurdity. There is significant evidence that safe injection sites improve health outcomes for persons with opioid use disorders. In fact, multiple journal articles to this effect are available on the website of the National Institutes of Health, a division of Health and Human Services. Here are a few of them:

  • A 2017 study in Canadian Family Physician found that "SISs are associated with lower overdose mortality (88 fewer overdose deaths per 100 000 person-years [PYs]), 67% fewer ambulance calls for treating overdoses, and a decrease in HIV infections."
  • A 2017 article in Harm Reduction Journal notes with citations that evaluation of Vancouver's Insite program showed it was "meeting its objectives of reducing public disorder, infectious disease transmission, and overdose and was successfully referring individuals to a range of external programs, including detoxification and addiction treatment programs.". The article further states that "over 40 peer-reviewed studies have been published which speak to the many benefits and lack of negative impacts of this site."
  • A 2008 article in the American Journal of Public Health reported that the supervised injection facilities in Sydney and Vancouver were "negatively associated with needle sharing... and positively associated with less-frequent reuse of syringes... less outdoor injecting... using clean water for injection... cooking or filtering drugs prior to injecting... and injecting in a clean location," that "[b]oth... were effective gateways for addiction treatment, counseling, and other services," and that there were no "reported overdose deaths in a SIF."
  • A 2014 article in Drug and Alcohol Dependence found that "[s]eventy-five relevant articles... converged to find that SISs were efficacious in attracting the most marginalized PWID, promoting safer injection conditions, enhancing access to primary health care, and reducing the overdose frequency" and that "SISs were found to be associated with reduced levels of public drug injections and dropped syringes."
  • A 2008 article in the Canadian Medical Association Journal found "Vancouver's supervised injection site is associated with improved health and cost savings."
  • A 2010 article in Addiction found that if Vancouver's supervised injection facility "were closed, the annual number of incident HIV infections among Vancouver IDU would be expected to increase from 179.3 to 262.8. These 83.5 preventable infections are associated with $17.6 million (Canadian) in lifetime HIV-related medical care costs, greatly exceeding Insite's operating costs, which are approximately $3 million per year."

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Chronicle AM: Bangladeshi Drug War Gets Ugly, OK MedMJ Init Polling Well, More... (5/25/18)

The bloody Filipino drug war model spreads to Bangladesh, Congress continues to undercut District of Columbia marijuana and drug policy, a new poll has the Oklahoma medical marijuana initiative cruising toward victory next month, and more.

Oklahomans appear poised to approve a medical marijuana initiative a month from now. (Creative Commons)
Marijuana Policy

Congressional Panel Approves Continued Meddling in DC Marijuana, Drug Laws. The House Appropriations Subcommittee on Financial Services and General Government Thursday approved a spending bill that would continue to bar the District of Columbia from expanding marijuana legalization to include taxed and regulated marijuana sales. The bill also adds a new bar on using funds to support opening safe injection sites.

Connecticut Democrats Endorse Marijuana Legalization. The state Democratic Party formally endorsed marijuana legalization at its convention last weekend. Legalization now becomes part of the state party's platform, which now includes this language: "The time for legalization of Marijuana has come. Doing so will raise revenue, which can be used to benefit those suffering from the disease of addiction to prescription pain medications and other opioids."

North Carolina Bill Would Legalize Up to Four Ounces. Rep. Kelly Alexander Jr. (D) has filed a bill that would legalize the possession of up to four ounces of marijuana. The bill would also raise the bar from felony possession of marijuana from 1.5 ounces to 16 ounces. The measure is House Bill 944.

Wisconsin's Milwaukee County Will Vote on Non-Binding Legalization Referendum. The county board of supervisors voted 15-1 Thursday to place an advisory referendum on marijuana legalization on the November ballot. Voters will be asked: "Do you favor allowing adults 21 years of age and older to engage in the personal use of marijuana, while also regulating commercial marijuana-related activities, and imposing a tax on the sale of marijuana?"

Medical Marijuana

Illinois House Panel Approves Using Medical Marijuana to Fight Opioid Addiction. The House Executive Committee voted 8-3 Thursday for a bill that would allow people who qualify for opioid prescriptions to apply for the state's medical marijuana program. The measure, Senate Bill 336, has already passed the Senate, but still needs some cleanup provision enacted in the Executive Committee before it goes to the House floor.

Oklahoma Poll Has Medical Marijuana Initiative in Good Shape. A new Sooner Poll has the medical marijuana initiative, State Question 788, cruising toward victory in next month's election. The opposition has managed to drag approval down from 61.8% in January to 57.5% now, but that's still enough support to win a month from now.

International

Bangladesh's Philippines-Style Drug War Deepens. At least 50 people have been shot and killed by police in what human rights activists say is a politically motivated crackdown on drug trafficking. While the killings are part of an announced anti-drug campaign announced by the government, at least one family is telling reporters their relative was an opposition political activist who had nothing to do with drugs. That family and at least one other has reported their relatives being taken into custody by police hours before being found dead in what the government describes as nighttime shootouts with drug gangs. The campaign has only been underway for about 10 days.

Mexican Tourism Secretary Again Calls for Marijuana Legalization. Tourism Secretary Enrique de la Madrid has once again called for marijuana legalization as a means to combat criminality and insecurity. In January, he called for legalization to stop violence in Baja California Sur and Quintana Roo, home of Cancun. "I think that in Mexico we should move toward a regulation at the state level," he said in an interview with Reuters. "Maintaining marijuana in illegality is giving money to drug traffickers, and with that money what these gentlemen do is that they bribe more police, buy more weapons and are more violent," he added.

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Chronicle AM: More Bangladeshi Drug War Killings, Canada Legalization Bill Advances, More... (5/29/18)

California lawmakers forego an opportunity to cut legal pot taxes, Pennsylvania's third largest city decriminalizes marijuana possession, the head of a UN agency calls on Latin America to consider drug legalization, Bangladeshi drug war killings mount, and more.

Canada's legalization bill heads for a final Senate vote by June 7. (Creative Commons)
Marijuana Policy

California Bill to Lower Pot Taxes Voted Down. Even though legal marijuana sales and tax revenues are much lower than anticipated, the legislature has passed on an opportunity to entice people away from the black market by cutting legal marijuana taxes, which can reach 50% of the purchase price when state and local taxes are included. A bill that would have lowered the state excise tax to 11% and suspended grower taxes for three years, Assembly Bill 3157, was defeated in the Assembly Appropriations Committee last Friday, but sponsor Tom Lackey (R-Palmdale) said he hoped it could still be revived this year.

Colorado Grew 500 Tons of Legal Marijuana Last Year. Legal marijuana growers produced nearly 500 tons of pot last year, the Colorado Marijuana Enforcement Division reported last Friday. That turned into 411,000 pounds of purchased buds and more than 11 million edibles sold. The trend of production increasing each year since legalization continues.

Allentown, Pennsylvania, Decriminalizes. Pennsylvania's third largest city has now decriminalized the possession of small amounts of marijuana. Allentown Mayor Ray O'Connell last Friday signed into law a measure passed 4-3 by the city council that makes possession of 30 grams or less a summary offense with a fine as low as $25.

Medical Marijuana

Florida Judge Rules Patients Can Smoke Medical Marijuana. An Orlando circuit court judge ruled last Friday that the state legislature's ban on smoking medical marijuana is unconstitutional. State voters had approved medical marijuana in 2016 -- without any ban on smoking.

Florida Governor Immediately Appeals Ruling That Patients Can Smoke Their Medicine. The ruling that patients can smoke their medicine is on hold after Gov. Rick Scott (R) immediately appealed the Orlando judge's ruling.

International

Head of UN Agency Says Latin America Must Consider Legalizing Drugs. Alicia Barcena, head of the Economic Commission for Latin America and the Caribbean (ECLAC), told a weekend forum in Paris that Latin America must seriously ponder drug legalization to reduce the human costs of drug prohibition. "I'm going to be very provocative. Who would drug legalization be good for? Latin America and the Caribbean, for God's sake. Because the illegality is what's killing people," she said. "It's time to seriously consider legalizing drugs."

Canadian Senate Committee Approves Marijuana Legalization Bill. The Senate Social Affairs Committee has approved the C-45 marijuana legalization bill with 40 amendments (most of them merely technical), including one that would give provincial governments the ability to ban homegrown marijuana. The committee's amended version of the bill will now go back to the Senate as a whole, which will decide whether to accept or reject the amendments or propose additional changes. The Senate has agreed to hold a final vote by June 7, which would allow the Trudeau government to meet its promise of having legal marijuana up and running by the end of summer.

Taliban Commander Orders Drug Labs Moved Out of Urban Areas to Avoid Civilian Casualties from American Air Strikes. The Taliban's shadow governor of opium-producing Helmand province has ordered drug labs moved out of populated areas because American air strikes are killing a rising number of civilians. Mullah Manan said that "due to one factory hundreds of the public are at risk from bombings and missiles" and called for facilities to shift to "mountains and valley sides" instead. Under looser rules of engagement under the Trump administration, bombing raids have nearly tripled in the first three months of this year compared with 2017.

Bangladesh's Murderous Anti-Drug Campaign Continues. Amid rising fears of a Philippines-style war on drugs, the latest reports are now that the toll has risen to 86 killed and more than 7,000 arrested since the government announced a new anti-drug offensive earlier this month. Human Rights Watch is speaking out, with Meenakshi Ganguly, the group's South Asia director warning that the government "should heed concerns and allegations by families and activists that several of these deaths could be extrajudicial killings."

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Chronicle AM: RI Senate OKs Life Sentence for ODs Bill, Guatemala's First Coca Crop, More... (5/30/18)

A bill that would mandate life sentences for selling drugs involved in fatal overdoses is moving in Rhode Island, a California US attorney says he's too busy with the black market to go after legal marijuana, another Utah poll has a medical marijuana initiative winning, Guatemala gets its first coca crop and more.

Cocaine traffickers are beginning to move coca production from South America to Central America. (Pixabay)
Marijuana Policy

California US Attorney Says Too Much Black Market Work to Focus on Legal Market. Sacramento-based McGregor Scott, US Attorney for the Northeastern District of California, said Tuesday there is so much marijuana being grown illegally on federal lands and trafficked to other states that he doesn't have the resources to go after state-legal marijuana operations. Scott said he would focus on interstate trafficking, organized crime, and damage to public lands.

New Jersey Legalization Advocate Wants to Tie Legalization, Medical Marijuana. State Sen. Nicholas Scutari (D-Union) is working on a plan to combine a marijuana legalization push with a bid to expand medical marijuana, but some lawmakers are warning the effort could blow up chances for either to pass this year. The medical marijuana expansion plan has broad support; the move to legalize marijuana is much more contentious.

Northern Marianas Legalization Bill Advances. The Commonwealth of the Northern Marianas Islands (CNMI) has taken another step toward legalizing marijuana. The House Committee on Judiciary and Government Operations has unanimously approved a bill that would allow adults to grow, possess, and consume marijuana and set up a system of taxed and regulated sales and production. The bill has already passed the Senate and now awaits a House floor vote.

Medical Marijuana

Yet Another Utah Poll Has Medical Marijuana Initiative Winning. A new poll from Dan Jones & Associates finds that nearly three out of four Utah residents support the Utah Patients Coalition medical marijuana initiative. The poll had 72% either "strongly" or "somewhat" in support, with 25% opposed, and only 2% undecided. While the LDS Church has come out against the measure, even 59% of self-described very active Mormons say they are for it.

Sentencing

Rhode Island Senate Approves Bill Allowing Life Sentences in Overdose Deaths. The state Senate on Tuesday approved Senate Bill 2279A, which allows prison sentences of up to life for those convicted of selling, delivering, or distributing an illegal drug that results in a fatal overdose. The bill passed 22-11 over the objections of treatment professionals, mental health advocates, and civil liberties organizations, which argued that tougher sentences will only make it harder to fight drug overdoses. "We know, based on decades of criminal justice based drug policy, that harsher penalties do not decrease drug using activity. So, this bill's disturbing message will not decrease drug use, nor drug trafficking -- the economics ensure this -- but it will further marginalize people who use drugs and increase their fears," a joint letter to the Senate said. "Use of a public health approach, not lengthy criminal sentences for users and small-time dealers, is essential for our state's ability to continue to make headway in this crisis." The bill now goes to the House.

International

Guatemalan Authorities Bust First Coca Farm. The National Civil Police announced over the weekend that they had found and destroyed a 2 ½ plot of coca plants sown between coffee plants, the first discovery of coca cultivation in the country. The crops were found in a remote area of Alta Verapaz department. Honduras recently saw its first and second discovery of coca plantings, too, suggesting that traffickers are attempting to cut risk and transport costs by planting the cocaine-producing crop nearer to US markets.

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