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California's Rules and Regulations for the Legal Marijuana Market: Highlights

When California initiates legal marijuana commerce on January 1, it will be the world's largest legal pot economy. Now, just weeks away, we're finally seeing the rules that are going to govern the transition from black and gray market to a legal, taxed, and regulated market.

(Never mind for now that huge swathes of the state's marijuana industry are going to remain in the black market because their crops are destined for states where pot remains illegal -- this is about the legal market in California.)

"I feel a big sigh of relief. It's a big milestone for us to release these regulations," said Lori Ajax, chief of the state’s Bureau of Cannabis Control. "But there's still a lot of work to be done. No rest for the weary."

State officials unveiled the regulations -- 276 pages of them -- on Thursday. They will govern licensing for state-legal marijuana businesses, as well as a huge range of regulatory issues, from edibles to deliveries to store hours and locations to the size of marijuana farms and more.

Here are the links to the regs themselves:

And here are some of the highlights:

  • Sales will begin on January 1, but -- and this is a big but -- only in localities where local officials have created local permitting processes. The state will license businesses only when they have local permits, so cities and counties that have dilly-dallied, like San Francisco (!), are not going to be ready to start sales on day 1. And some localities have decided not to allow marijuana businesses at all, so access to pot shops is going to be patchy.
  • Marijuana retailers will be allowed operating hours between 6:00am and 10pm, but will have to be at least 600 feet away from schools and day-care centers. And they will need to have 24-hour video surveillance.
  • Free samples only for medical marijuana patients or their caregivers.
  • No marijuana sales at strip clubs. Sorry.
  • Licensing fees are spelled out, and they range from $800 a year for a marijuana delivery service up to $120,000 a year for businesses doing multiple activities that make more than $4.5 million a year. For growers, license fees will range from as low as $1,200 to as much as $80,000, depending on the size of the grow.
  • There are no limitations on the size of marijuana farms. The Agriculture Department had proposed a one-acre cap, but dropped it before issuing its regulations. Also dropped was a cap on how many small farms and nurseries individuals can own. This likely means the emergence of large-scale pot farming operations and increased pressure on the Ma-and-Pa producers who created the state's pot industry in the first place.
  • Marijuana delivery services will be allowed, but will be limited to motorized vehicles driven by humans. No bicycles, boats, or drones will be allowed, and neither will self-driving vehicles.
  • Edibles will be limited to serving sizes that contain no more than 10 milligrams of THC and no edible can contain more than 10 servings, or a maximum of 100 milligrams of THC. The term "candy" cannot be used in any branding, and product labels that portray cartoons or otherwise target kids will not be allowed. And edibles can't be made in the shape of a human being, animal, insect, or fruit.
  • While edibles are allowed, marijuana-infused alcohol, nicotine, caffeine, or seafood (!) is not. No pot lobster for you.
  • Advertising is going to be very restricted. The regulations limit advertising to outlets where at least 71.6% (?) of the audience is "reasonably expected to be 21 years of age or older." Good luck with that.
  • Marijuana-themed events at public facilities, such as fairgrounds, are allowed, but only with a special license.
  • All products must be tested, but the regulations will allow the sale of untested products through July 1 -- if the product is labeled as such or if  it is put in child-resistant packaging.
  • Prices are going to go up. A bag of good quality bud that currently goes for $35 is likely to cost $50 or $60 when recreational sales and other taxes kick in.

Chronicle AM: Trump Opioid Commission Calls for More Drug Courts, More... (11/1/17)

President Trump's opioid commission issues its recommendations, El Paso becomes the latest Texas locale to ease marijuana possession penalties, would-be Arkansas medical marijuana providers file suit over an application process that excluded them, and more.

The Trump opioid commission has called for drug courts nationwide to help ease the crisis.(virginia.gov)
Marijuana Policy

Delaware Marijuana Task Force Report to Be Delayed. The legislative task force studying whether to legalize marijuana has delayed issuing its final report from the end of January to the end of February. The delay was requested by the Keep Delaware Safe and Healthy Coalition, a coalition of influential groups opposed to legalization.

New Jersey Court Rules State Must Consider Reclassifying Marijuana. An Appellate Division court ruled 2-1 Tuesday that the state must at least consider removing marijuana from its list of controlled substances. The ruling came in a case brought by two plaintiffs, a man serving a life sentence for marijuana trafficking and a young girl with epilepsy who uses marijuana for medical reasons. The court did not order the state to reclassify the herb, but said the head of the Division of Consumer Affairs should have considered reclassification instead of just flatly denying a petition to do so.

El Paso Becomes Latest Texas Locale to Not Automatically Arrest for Marijuana Offenses. El Paso county commissioners voted on Monday to approve a program under which first-time offenders caught with less than two ounces of weed can avoid arrest and criminal charges. The state passed a law allowing for the down-grading of pot possession offenses in 2014, but it has only been implemented in Austin, Dallas, and Houston.

Medical Marijuana

Arkansas Business Applicants Sue Over Rejected Bids. A group of applicants seeking to open some of the first medical marijuana businesses in the state filed lawsuits last week charging that the state Medical Marijuana Commission erred in its initial assessment of applications, where it rejected several applicants for failing to meet minimum requirements. The lawsuits seek a temporary restraining order to force the commission to include the plaintiffs' applications during a final scoring review.

Heroin and Prescription Opioids

White House Opioid Commission Issues Recommendations. President Trump's commission on the opioid crisis called Wednesday for the nationwide expansion of drug courts and more access to alternatives to opioids for people suffering pain as part of a series of recommendations for shaping drug policy to more effectively address the crisis. The 56 recommendations also include requiring doctors to show they have training in the safe provision of such drugs before their DEA licenses are renewed, requiring health care providers to use prescription drug monitoring databases, and easing Medicaid and insurance payments for opioid drug treatment. The recommendations contain no provision for increased funding.

Chronicle AM: Second Australia SIJ Coming, DEA Adds Heroin Enforcement Teams, More... (10/30/17)

The Victoria state government has approved a safe injection site in Melbourne, a new report warns that high taxes on legal marijuana could push people to the black market, New Jersey adds some new qualifying conditions for medical marijuana use, and more.

Australia's second safe injection site will open in Melbourne next year. (vch.ca)
Marijuana Policy

Report: High Legal Pot Taxes Could Push Consumers to Black Market. California retail marijuana taxes, which could reach as high as 45% in some cases, could potentially push consumers out of legal pot shops and into the black market, according to a new report from the credit rating agency Fitch Ratings. "The existing black market for cannabis may prove a formidable competitor to legal markets if new taxes lead to higher prices than available from illicit sources," the report says.

Medical Marijuana

New Jersey Adds Five New Qualifying Conditions. The state's Medical Marijuana Review Panel has officially approved five new qualifying conditions for medical marijuana use. They are anxiety, chronic pain related to musculoskeletal disorders, migraines, chronic pain of visceral origin, and Tourette's Syndrome. The panel rejected adding chronic fatigue syndrome and asthma as qualifying conditions.

Heroin and Prescription Opioids

DEA Creates Six New Heroin Enforcement Teams. The DEA has announced the establishment of six new enforcement teams focused on heroin and fentanyl. The teams will operate in New Bedford, Massachusetts; Charleston, West Virginia; Cincinnati, Ohio; Cleveland, Ohio; Raleigh, North Carolina; and Long Island, New York. The DEA got funding in its Fiscal Year 2017 appropriations to pay for the teams.

Public Health Experts Issue Report With Comprehensive Recommendations for Opioid Crisis.
Experts from the Johns Hopkins Bloomberg School of Public Health in collaboration with the Clinton Foundation have issued a report with comprehensive recommendations for stemming the opioid crisis. Among its 10 priority recommendations are: expanded electronic opioid prescription monitoring, policies in line with CDC Opioid Prescribing Guidelines, clear guidance on opioid disposal and "take back" programs, increased federal funding for drug treatment in the most hard hit communities, and cheaper naloxone.

International

Taliban Now Making Heroin -- and Increased Profits. For years, Afghanistan's Taliban have profited from opium poppy production, using the proceeds to finance their war, but now, Afghan and Western officials say that more than half of Afghan opium is being processed in-country, and that is leading for increased profits for the Taliban, for whom the drug trade consists of about 60% of its income.

Australia to Get Second Safe Injection Site, in Melbourne. The Victoria state government cabinet has approved a safe injection site for the North Richmond area of Melbourne. It is set to open next year. At the same time, the state government is also moving to crack down on heroin traffickers by reducing the amounts of heroin needed to impose harsh sentences.

Chronicle AM: New Gallup Poll Has Record Support for Marijuana Legalization, More... (10/25/17)

Nearly two-thirds of Americans now support marijuana legalization, and even more in Connecticut, the House passes a bill increasing funding for drug interdiction, the GAO reports on five years of US drug war spending in Latin America, Afghanistan has a whopping record opium crop, and more.

In Afghan fields, the poppies grow... and grow and grow. (UNODC)
Marijuana Policy

Gallup Poll Has Legalization Support at Record High, Approaching Two-Thirds. A Gallup poll released Wednesday has support for marijuana legalization at a record high 64%, up four points from last year and twice as high as just 17 years ago. The poll also includes another first: For the first time, a majority of Republicans support legalization.

Connecticut Poll Has Legalization Support Above 70%. A new Sacred Heart University Institute for Public Policy poll has support for legalization at a whopping 70.6%. That includes both "strongly support" and "somewhat support." Among people under 35, 83.2% wanted to legalize it, and even 73.6% of residents with children in the household were supportive. Legalization should be on the legislative agenda next year.

Washington State Marijuana Sales Top $1 Billion Mark This Year. By the end of September, retail marijuana sales topped $1.1 billion, according to data released by the State Liquor and Cannabis Board. That's just short of Colorado's figure of $1.118 billion so far this year.

Heroin and Prescription Opioids

Bill Would Create Federal Task Force to Fight Fentanyl and Heroin. US Reps. Katherine Clark (D-MA) and Evan Jenkins (R-VA) filed HR 4090, the Fentanyl and Heroin Task Force Act, on Monday. The bill would create a multi-agency task force including members of Customs and Border Protection, the Drug Enforcement Agency, the FBI, Immigration and Customs Enforcement's Homeland Security Investigations, the IRS, the International Trade Administration, the Office of National Drug Control Policy and the US Postal Inspection Service. The task force would coordinate federal efforts to go after fentanyl trafficking groups and identify the sources of heroin and fentanyl production and distribution. The bill has been referred to the House Judiciary Committee.

House Passes Bill to Beef Up Customs, Border Patrol to Wage Drug War. The House voted 412-3 to approve HR 2142, the INTERDICT Act. The bill appropriates funds to pay for new screening devices, laboratory equipment, facilities, and personnel needed to enforce prohibition against fentanyl and other synthetic opioids. A companion measure in the Senate hasn't moved yet.

Foreign Policy

GAO Report: US Spent $39 Billion Fighting Drugs in Western Hemisphere in Five Years. Between 2010 and 2015, US agencies implementing the National Drug Control Strategy spent $39 billion trying to block the flow of drugs from Latin America into the United States. That includes the Defense Department, Homeland Security's ICE, Homeland Security's CBP, the Coast Guard, the Justice Department's DEA and Organized Crime Drug Enforcement Task Forces, the State Department, and the Agency for International Development. Given the huge drug flows from south of the border, it doesn't seem to be working that well.

State Department Wants Stronger Anti-Drug Efforts from Mexico. A day after the DEA identified Mexican drug trafficking groups as the key criminal threat in drug enforcement, Deputy Secretary of State John Sullivan told a business meeting in Mexico that Mexico needed to do more to help. "More rigorous, collaborative efforts to confront the threat posed by the production and distribution of heroin and fentanyl are a priority for the United States," Sullivan said in remarks reported by ABC News.

International

Afghanistan Has Record Opium Harvest This Year. The opium poppy crop this year is a record and more than double last year's crop, according to Afghan Counter-Narcotics Minister Salamt Azimi. He blamed high levels of insurgency for preventing eradication programs from operating. Last year's crop was estimated at 4,700 tons, but this year's will likely exceed 10,000 tons.

Chronicle AM: Iran Restricts Death Penalty in Drug Cases, Belize MJ Decrim Move, More... (10/23/17)

Iran has approved dramatic changes in the use of the death penalty in drug cases, an Indiana county ends needle exchange and cites the Bible to do so, Jamaica issues its first marijuana business licenses, and more.

In an historic move, Iran has dramatically restricted use of the death penalty in drug cases. (handsoffcain.info)
Marijuana Policy

Colorado Credit Union Sues Federal Reserve Over Cannabis Banking. The Fourth Corner Credit Union has filed a lawsuit against the Federal Reserve Bank in Kansas City over its refusal to grant the business a master account because Fourth Corner wants to provide financial services to groups in the marijuana business. Fourth Corner received a state banking charter in 2014 and even altered its business plan to only serve marijuana advocacy groups -- not pot businesses -- but the Fed still refuses to issue a master account.

Medical Marijuana

Montana Scores $300,000 in Medical Marijuana Taxes. The state collected medical marijuana taxes at the rate of $100,000 a month for the three months ending in September, the Department of Revenue reported. The proceeds are coming from a 4% tax on provider's gross revenue. The tax went into effect on July 1.

Utah Poll Shows Continuing Strong Support for Medical Marijuana Initiative. A new Salt Lake Tribune/University of Utah Hinckley School of Politics poll has support for a 2018 medical marijuana initiative at 75%. That result mirrors a July poll that had 77% support.

Harm Reduction

Indiana County Ends Needle Exchange Program, Cites Biblical Morality. County commissioners in Lawrence County voted last week to end a needle exchange program, with commissioners citing the Bible and morality as reasons for doing so. "It was a moral issue with me. I had severe reservations that were going to keep me from approving that motion," County Commissioner Rodney Fish, who voted against the program, told NBC News. "I did not approach this decision lightly. I gave it a great deal of thought and prayer. My conclusion was that I could not support this program and be true to my principles and my beliefs." Before voting, Fish quoted a Bible verse about people turning from their "wicked ways."

International

Belize House Passes Marijuana Decriminalization. The House last Friday approved a marijuana decriminalization bill that would allow the possession of up to 10 grams of pot. It would also legalize industrial hemp. The bill now goes to the Senate.

Colombia Prosecutor General Calls for Reconsideration of Aerial Fumigation of Coca Crops. In an interview with the newspaper El Tiempo, Prosecutor General Nestor Humberto Martinez called on the government to consider resuming aerial spraying of coca groups with herbicides. The call comes amid rising concerns over the government's ability to rein in coca production in the wake of its peace treaty with the leftist rebels of the FARC.

Indonesia Drug Czar Threatens Philippines-Style Killings of Drug Dealers. National Narcotics Agency (BNN) head Commander General Budi Waseso said last Thursday that police should be prepared to shoot drug dealers on the spot. "People said that the BNN cannot shoot on the spot. Why not?" Waseso said, in remarks reported by the Jakarta Post. "Stern actions" are justified because "there are too few drug dealers who are dead, while they have killed thousands of people."

Iran Limits Death Penalty in Drug Cases. The Islamic Republic's Guardian Council last Wednesday approved amendments to the country's Law Against Drug Trafficking that will greatly reduce the imposition of the death penalty for drug offenses. In past years, Iran has executed hundreds of people each year for drug trafficking offenses, but the amendment limits imposition of the death penalty to drug lords, armed traffickers, people with significant prior convictions, and people who use children to sell drugs.

Jamaica Issues First Marijuana Licenses. The Cannabis Licensing Authority of Jamaica issued the first two licenses for marijuana businesses last Wednesday. One went to Everyting Oily Labs for processing, and the other went to Epican for cultivation. "Although it has taken some time to get to this historic occasion, we have remained committed to getting it right and to ensure that Jamaica's stake in the global medicinal cannabis industry is never compromised and remains sustainable," said Authority Chairwoman Hyacinth Lightbourne in a press release. "During the process, we have endeavored to remain in dialogue with our applicants every step of the way, and we are confident that they have satisfied the rigors of the regulations," she said.

Chronicle AM: Fed Sentencing Reform Bill Filed, Colombia Coca Clashes, More... (10/6/17)

Leading senators roll out a federal sentencing reform bill, Jeff Sessions ramps up the Safe Neighborhoods program, the VA doubles down against medical marijuana, more clashes erupt in Colombia's coca producing areas, and more.

A newly filed Senate bill seeks to address prison overcrowding. (supremecourt.gov)
Marijuana Policy

Alaska Just Keeps On Selling More and More Legal Weed. The state broke its marijuana sales record for the sixth consecutive month in August, a trend that officials expect to continue when September figures come in. Farmers sold 734 pounds of buds and 444 pounds of other marijuana plant parts to retailers in August, generating nearly $700,000 in taxes for the state.

Kentucky State Senator Calls for Legalization to Ease Budget Crunch. With the state facing a $200 million budget deficit this year, state Sen. Dan Seum (R-Fairdale) has suggested that legalizing marijuana could help. "My argument is before any new taxes, let's explore the potential of new monies," he told WKYT Thursday.

Maine Legalization Bill Now Requires Town to Opt In, Not Opt Out. Under the latest iteration of the legislature's bill to implement voter-approved marijuana legalization, localities would have to act affirmatively to allow medical marijuana businesses. That's the opposite of what the legalization initiative intended, which was to make localities opt out of participation if they didn't want pot businesses. The latest version of the bill is now headed for a floor vote on October 23.

San Diego Sets Legal Marijuana Business Rules. California's second largest city has made itself ready for legal marijuana. The city has finalized rules for pot growing and manufacturing ahead of the scheduled January 1 start date for legal marijuana sales. It will allow both indoor cultivation and manufacturing, as well as testing labs.

Medical Marijuana

Veterans Department Reiterates Opposition to Medical Marijuana Use. VA policy has been to disallow government doctors from recommending medical marijuana, but now, the agency has updated its website to state that opposition more firmly -- and inaccurately. As Tom Angell at Marijuana Majority noted, the website's claim that "as long as the Food and Drug Administration classifies marijuana as Schedule I drug, VA health care providers may not recommend it or assist veterans to obtain it" is not technically true. There is no law barring the VA from allowing its doctors to recommend medical marijuana.

WADA No Longer Considers CBD a Prohibited Drug. The World Anti-Doping Authority (WADA) has removed CBD from its 2018 list of prohibited substances. "Cannabidiol is no longer prohibited," WADA said. But it emphasized that THC, the euphoric psychoactive chemical in marijuana, remains banned and that CBD products could contain actionable amounts of THC. "Cannabidiol extracted from cannabis plants may contain varying concentrations of THC," WADA noted.

Heroin and Prescription Opioids

Federal Bill to Increase Opioid Prescribing Requirements Filed. Rep. David Roe (R-TN) Thursday filed House Resolution 3964, "to amend the Controlled Substance Act to establish additional registration requirements for prescribers of opioids." The bill text is not yet available on the congressional web site.

Law Enforcement

Justice Department Ramps Up Safe Neighborhoods Program. Attorney General Jeff Sessions announced Thursday plans to ramp up efforts against drug trafficking and violent gangs through the Project Safe Neighborhoods initiative. In a memo, the country's top cop ordered federal prosecutors to emphasize violent crime reduction and develop plans to work with local police and prosecutors in the effort.

Sentencing

Senate Heavyweights File Sentencing Reform Bill. A bipartisan group of senators today reintroduced the Sentencing Reform and Corrections Act of 2017 to recalibrate prison sentences for nonviolent drug offenders, target violent and career criminals and save taxpayer dollars. The legislation permits more judicial discretion at sentencing for offenders with minimal criminal histories and helps inmates successfully reenter society, while tightening penalties for violent criminals and preserving key prosecutorial tools for law enforcement. It is led by Senate Judiciary Committee Chairman Chuck Grassley (R-IA), Senate Democratic Whip Dick Durbin (D-IL) and senators Mike Lee (R-UT), Sheldon Whitehouse (D-RI), Lindsey Graham (R-SC), Patrick Leahy (D-VT), Jeff Flake (R-AZ), Cory Booker (D-NJ), Tim Scott (R-SC), Dianne Feinstein (D-CA) and Roy Blunt (R-MO). The bill is S. 1917. Check back for a Chronicle feature on the bill.

International

Four Killed in Colombia Clashes Between Coca Growers, Eradicators. Four people are dead and 14 wounded after somebody attacking protesting coca farmers in the municipality of Tumaco, along the Pacific Coast. The government blamed members of a dissident FARC faction that has refused to lay down its arms, but local activists blamed government security forces for opening fire. Clashes between coca growers and security forces have become more frequent as production of cocaine in Colombia surged to record levels in recent years.

Chronicle AM: MA Advocates Push for No Pot Tax $$$ for Towns That Ban Pot Ops, More... (10/5/17)

It's all marijuana today, with Washington state considering personal grows, Delaware pondering legalization, Massachusetts activists trying to put the screws to towns that ban stores, and more.

Marijuana Policy

Delaware Marijuana Task Force Meets, Hears Concerns. The state's Adult Cannabis Use Task Force met for the second time Wednesday and heard from the Department of Safety and Homeland Security. The department unsurprisingly wants strict regulations on marijuana if legislators decide to legalize it. Homeland Security Director John Yeomans said the department was against allowing personal cultivation because it could lead to a "grey market" and edibles should not be allowed because they could appeal to kids. The Chamber of Commerce also weighed in, expressing concerns about workplace injuries, unemployment claims, and how impairment would be defined. The task force will continue to meet on a monthly basis for the rest of the year and then make policy recommendations.

Massachusetts Advocates Say Towns With Pot Bans Shouldn't Enjoy Pot Tax Revenues. Pro-legalization advocates are working on a bill that would prevent towns that ban commercial marijuana operations from collecting a share of marijuana tax revenues. The Massachusetts Recreational Consumer Council is talking to legislators about the proposal, which comes as more than a hundred municipalities in the state have enacted bans, moratoria, or other tough restrictions on pot businesses. "Any sensible person would agree, why should you get tax money if you don't have it in your town, it just doesn't make any sense," council vice-president Kamani Jefferson said in remarks reported by the Daily Free Press. "I think it will catch on even to the people who may not be in love with marijuana. If you don't put any work in, you shouldn't get any benefits is what we're really proposing to the Commonwealth."

Washington Regulators Get Earful at Hearing on Allowing Personal Cultivation. A three-member panel of the state Liquor and Cannabis Board held a hearing Wednesday on allowing home grows in the only legalization state that doesn't allow them. Most of the three dozen people who testified support home cultivation, but not the options being studied because they have too many restrictions and allow localities to ban personal grows even if legalized in the state. The panel must issue a report with recommendations to the legislature by December 1.

International

Canada Legalization Bill Sheds Language Restricting Plant Height. The Commons Health Committee on Tuesday scrapped a clause in the bill that would have made growing a plant taller than one meter a criminal offense. The provision had been criticized as arbitrary and difficult to enforce, with even the Ontario police and corrections ministry noting that "people could be criminalized for small amounts of overproduction." Others pointed out that someone could have a legal plant, go on vacation for a couple of weeks, and come back to an illegal plant. The limit of four plants per household remains intact, though.

Chronicle AM: Alaska Towns Reject Marijuana Bans, DEA Names Acting Head, More...(10/4/17)

The DEA names an in-house acting administrator, the Massachusetts high court takes up the question of whether judges can order addicts to remain drug-free, Canada advances on looming marijuana legalization, and more.

Voters in Fairbanks and other Alaska towns rejected bans on commercial marijuana operations Tuesday. (Flickr)
Marijuana Policy

Alaska Towns Reject Marijuana Bans. Voters in Fairbanks and several towns on the Kenai Peninsula south of Anchorage rejected bans on commercial marijuana growing operations in local votes on Tuesday. The state legalized marijuana in 2014.

California Governor Signs Bill Making Smoking Pot While Motoring a $70 Ticket. Gov. Jerry Brown (D) on Monday signed into law a bill barring the use of marijuana or marijuana products while driving or riding in a motor vehicle. The maximum penalty is a $70 fine. But drivers who operate while impaired could still be nailed for that.

Hemp

Farm Bureau Endorses Federal Hemp Bill. The American Farm Bureau Federation has formally endorsed the Industrial Hemp Farming Act, House Resolution 3530, which would exclude industrial hemp from the Controlled Substances Act definition of marijuana.

Law Enforcement

DEA Veteran Named Acting Administrator. The Justice Department has named veteran DEA official Robert Patterson as acting administrator of the agency. He has been DEA's principal deputy administrator since last November, where he oversaw all of the agency's enforcement, intelligence, administrative, and regulatory activities worldwide. He is the highest ranking career special agent at DEA.

Massachusetts Court Ponders Whether Courts Can Require Addicts to Remain Drug-Free. The state's Supreme Judicial Court heard arguments Monday on whether judges can require people under their supervision who suffer from substance use disorder to remain drug-free. The case involves a woman who was sent to jail for failing a drug test while on probation for a larceny charge, but has large implications for how judges in the state deal with drug-using defendants. A decision in the case is expected around year's end.

International

Canadian Prime Minister Proposes 10% Marijuana Excise Tax. Prime Minister Justin Trudeau has proposes an excise tax on retail marijuana sales of $1 for sales of up to $10, and 10% on sales over that amount. Provinces and territories would receive half the revenues under the proposal he made Tuesday, but some provinces argue that isn't enough. Trudeau responded that the details are still open to negotiation.

Alberta Proposes Minimum Age of 18 for Pot Use. The Alberta provincial government's draft plan for marijuana legalization sets the minimum age at 18. The province says it hasn't yet decided on whether to have government-run or private sales. The draft proposal also includes provisions for use in public areas where smoking is allowed and sets a public possession limit of 30 grams.

Colorado County's Marijuana Tax Program Will Provide $420,000 in College Scholarships This Fall

This article was produced in collaboration with AlterNet and first appeared here.

More than 200 graduating high school students in Colorado's Pueblo County will head off to college in a few weeks thanks to legal marijuana. The 210 students will receive scholarships worth $2,000 each for a total of $420,000 -- a very appropriate aggregate figure, given that the scholarships are being funded by excise taxes on state-legal marijuana grown in the county.

CSU Pueblo will see the nation's first pot tax college scholarships. (CSU Pueblo)
>Happy local officials described the pot-fueled Pueblo County Scholarship Fund as "the country's first cannabis-funded college scholarship." It was created after voters in the sun-filled county, which is building a reputation as a center of the outdoor and greenhouse-grown pot trade,approved an excise tax on commercial cannabis cultivation in 2015.

Colorado pot taxes have already provided funding for the state's public school system and homeless population, and the Pueblo County scholarships are demonstrating once again the economic and fiscal benefits accruing to states that have legalized marijuana.

And for Pueblo County high school students, there's more to come. The pot cultivation excise tax was 2% last year, but will increase by 1% annually until it tops out at 5%. With rising commercial cultivation and a rising tax rate, the scholarship fund appears set to expand, allowing even more students in the county, where nearly 20% live below the poverty line and where more than 40% of residents are Hispanic, to take advantage of educational opportunities.

But they'll have to stay near home. The scholarships only pay for tuition and fees at Pueblo Community College or Colorado State University-Pueblo. That latter school is also benefiting from marijuana in other ways: Thanks to $900,000 from the state's marijuana tax fund and $270,000 in county pot excise taxes to be used for "community enhancement," CSU-Pueblo last year opened the Institute of Cannabis Research to study topics such as the impact of legalization on local economies, industrial hemp cultivation, and the efficacy of cannabidiol.

Pueblo County Commissioner Sal Pace gave the credit to weed. He told the Cannabist in June the county's abundant sunshine was its greatest natural resource, and taxes on sun-grown weed made both the institute and the scholarships possible.

"There are vast opportunities in cannabis -- from growing to research -- and we want to make sure all Coloradans benefit, not just a select few," he said. "For years, our community has discussed creating local scholarships that could provide opportunity and help break cycles of poverty. The Pueblo County Scholarship Fund will change lives, families and benefit generations to come."

Smoking weed may not help your academic career, but the taxes on growing it are helping some Colorado kids have an academic career. That's one economic impact of legalization you don't need an institute to figure out for you.

Pueblo, CO
United States

Chronicle AM: Orrin Hatch Punningly Files MedMJ Bill, DOJ #2 Speaks Out on Pot, More... (9/14/17)

What got into Orrin Hatch? Plus, Nevada could be the first state to allow pot lounges, the US Deputy AG says DOJ is still pondering marijuana policy, and more.

Marijuana Policy

Deputy Attorney General Says DOJ Still Reviewing Marijuana Policy. In an appearance at the conservative Heritage Foundation Thursday, Deputy Attorney General Rod Rosenstein said the department was still looking at its options on marijuana policy. "We are reviewing that policy. We haven't changed it, but we are reviewing it. We're looking at the states that have legalized or decriminalized marijuana, trying to evaluate what the impact is," he said in remarks reported by Tom Angell for Forbes. "And I think there is some pretty significant evidence that marijuana turns out to be more harmful than a lot of people anticipated, and it's more difficult to regulate than I think was contemplated ideally by some of those states," he said.

Maine Draft Legalization Bill Would Let Dispensaries, Caregivers Sell to Recreational Market. The bill legislators have drafted to rewrite the state's voter-approved pot legalization law includes a provision that would let the state's eight licensed medical marijuana dispensaries apply for a license to sell in the recreational market. But they would have to have separate entrances and sales counters for medical and recreational customers. State-certified caregivers could also apply for recreational sales licenses.

Nevada Regulators Clear Way for Pot Clubs and Lounges. The state Legislative Counsel Bureau said on Monday that state law does not prohibit counties or municipalities from allowing clubs or lounges where patrons can use marijuana. It's up to the localities, the bureau said. Doing so would allow tourists and visitors to have a place to indulge. While pot is legal in the state, it cannot be consumed in public, in casinos, or in hotel rooms, leaving visitors with no place to take advantage of the pot law.

Medical Marijuana

Orrin Hatch Files Medical Marijuana Research Bill, Makes Bad Weed Puns. Senator Orrin Hatch (R-UT) introduced the Marijuana Effective Drug Study Act of 2017, or MEDS Act, to improve the process for conducting scientific research on marijuana as a safe and effective medical treatment. In introducing this legislation, Senator Hatch was joined by Senator Schatz (D-HI) and cosponsors Senator Chris Coons (D-DE), Senator Cory Gardner (R-CO), and Senator Thom Tillis (R-NC). "It's high time to address research into medical marijuana," Hatch said. "Our country has experimented with a variety of state solutions without properly delving into the weeds on the effectiveness, safety, dosing, administration, and quality of medical marijuana. All the while, the federal government strains to enforce regulations that sometimes do more harm than good. To be blunt, we need to remove the administrative barriers preventing legitimate research into medical marijuana, which is why I've decided to roll out the MEDS Act. I urge my colleagues to join Senator Schatz and me in our joint effort to help thousands of Americans suffering from a wide-range of diseases and disorders. In a Washington at war with itself, I have high hopes that this bipartisan initiative can be a kumbaya moment for both parties." [Bolding done by Drug War Chronicle.]

Arizona Supreme Court Won't Let State Officials Use Federal Law to Get Around State Law. The high court on Tuesday declined to review a Court of Appeals ruling that federal law does not trump the state's voter-approved medical marijuana law. The lower court had ruled that even though marijuana remains illegal federally, federal law does not preempt the state from allowing patients to use it. The case had been filed by recalcitrant Maricopa County Bill Montgomery (R), who didn't want to heed the will of the voters.

Drug War Issues

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