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Adam Schleifer is a candidate for Congress in New York’s 17th congressional district. He previously worked as an Assistant U.S. Attorney in Los Angeles where he prosecuted violent drug cartels. In this podcast, he talks about why he believes that federal legalization of marijuana would be an effective means of combating drug cartels. Please join us for a fascinating discussion. Global Cannabis Compliance Podcast · Episode 4 – Legalization as a strategy to combat drug cartels?

The Great Depression and the need for tax revenue to fund the New Deal ended prohibition in 1933.[1] The economic fallout from the COVID crisis, according to some experts, could result in a “New New Deal,” and Senator Ed Markey (D-MA) recently said that 2021 would, like 1933, have an “FDR moment.”[2] Just as the first “FDR moment” included the (re) legalization of alcohol, there are indications that the next may include the legalization of marijuana. The COVID crisis has again highlighted fundamental tensions in marijuana law and policy in the United States. Several states have declared marijuana businesses “essential”…

The majority of states in America have legalized marijuana either for medical or recreational use—yet it remains illegal on the federal level. This poses regulatory challenges for financial institutions operating at the federal level and for some only operating in one state (because some are still subject to federal mandates, e.g., the Federal Deposit Insurance Act). Despite this disparate guidance, the multi-billion dollar U.S. cannabis market continues to expand. Dow Jones partnered with Baker McKenzie and FIBA, a nonprofit trade association of financial institutions from Europe, the United States, Latin America and the Caribbean to examine the provision of financial…

How to eliminate the marijuana black market? As the COVID-19 crisis continues to ravish state budgets, this question has become even more important, particularly in states like California, which have legalized marijuana but have not seen the expected tax revenues due to the persistence of the “tax exempt” black market. Increased enforcement would help, of course. But the best way to eliminate the illegal market is to support market entry by legitimate businesses. Several states have declared marijuana businesses “essential” and exempt from COVID lockdown requirements. Congressional appropriations riders prevent DOJ from prosecuting medical marijuana businesses that comply with state…

The U.S. Department of Agriculture (“USDA”) announced on February 27, 2020, that it would give hemp farmers a 20-month reprieve from a regulation requiring growers of hemp to have crop THC levels tested at laboratories registered with the Drug Enforcement Administration (“DEA”). The requirement had raised concerns in the industry that DEA-registered labs would be overwhelmed with crop samples at harvest time, leading to delays that could cost farmers sales. Delay in Requirement for DEA Lab Registration The 2018 Agriculture Improvement Act (known colloquially as the “2018 Farm Bill” or simply the “Farm Bill”) removed hemp, defined as cannabis containing…

As popular as cannabis has become as a recreational and medicinal agent, that popularity and the nascent nature of the cannabis industry have created a difficult scenario whereby manufacturers and sellers of these products are being sued with increasing frequency. Without a doubt, the legal and regulatory landscape for cannabis is complex. Several dozen states have legalized marijuana for medicinal and/or recreational purposes, but marijuana remains a Schedule I drug at the federal level. The Agricultural Improvement Act of 2018 (more commonly known as the 2018 Farm Bill) removed hemp (defined as cannabis products containing less than 0.3% THC on…

January 4, 2020 marked the two year anniversary of the “Sessions Memorandum” in which (then) Attorney General Jeff Sessions rescinded the Cole Memorandum and other Obama era DOJ guidance which essentially stated that DOJ would not prosecute state-compliant marijuana-related activity.  Many saw the statement as a declaration of a new “War on Drugs.” However, a review of DOJ cases brought over the last two years reveals that the Trump Justice Department has largely adhered to the Obama Administration’s enforcement priorities. The Cole Memorandum The Cole Memorandum stated that federal cannabis enforcement resources would be concentrated on cases involving: Revenue from…

Robert Mikos is one of the nation’s leading experts on federalism and drug law. His most recent scholarship analyzes the struggle among federal, state, and local governments for control of marijuana law and policy, which includes a first-of-its-kind casebook, Marijuana Law, Policy, and Authority. In this podcast, he discusses the intersection of federal and state cannabis law, the prospects for federal reform, the SAFE Banking Act and other hot topics in the field. Global Cannabis Compliance Podcast · Episode 2 – On Federalism and Drug Law

The risk of corruption in state cannabis licensing has once again been highlighted by recent reports that a federal grand jury has subpoenaed at least seven Massachusetts cities, including Boston, for information about contracts between cannabis firms and municipalities. The subpoenas apparently relate to “host community agreements,”  a contract between individual cannabis operators and their host community that is required by state law in Massachusetts.  Host community agreements, and similar arrangements in other states that have legalized cannabis, are well intentioned.  But like any arrangement that involves payment for permission to operate, they can be abused for corrupt ends.       …

On Tuesday, October 29, the US Department of Agriculture (USDA) established the US Domestic Hemp Production Program through the issuance of an interim final rule (the “Rule”). The USDA published the Rule on Thursday, October 31, in the Federal Register. The Rule took effect upon publication, but the USDA will take comment for 60 days. Pursuant to the Agricultural Improvement Act of 2018 (the “2018 Farm Bill”), the Rule outlines provisions for states and Indian tribes to submit their plans for the domestic regulation of hemp. Such plans will need to be approved by the USDA. The Rule also establishes…