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Immigrants Can Be Denied Citizenship for Working in Legal Marijuana Industry

U.S. Citizenship and Immigration Services (USCIS) issued guidance a day before the unofficial marijuana holiday that makes clear working in the marijuana industry, or even just possessing cannabis could be grounds to reject a citizenship application—regardless of whether it is done in a state where it is legal.

Violations of federal marijuana laws “are generally a bar to establishing good moral character for naturalization, even where that conduct would not be an offense under state law,” according to the guidance issued Friday. Merely being “involved in certain marijuana-related activities” could be sign that an applicant for citizenship “may lack good moral character” regardless of whether “such activity has been decriminalized under applicable state laws,” according to the USCIS statement.

California bill encourages banks to work with pot businesses

California legislators considered a plan Monday intended to encourage more banks to do business with marijuana companies that have been frozen out of thousands of financial institutions.

Most Americans live in states where marijuana is legally available in some form. But most financial institutions don't want anything to do with money from the cannabis industry for fear it could expose them to legal trouble since the federal government still considers marijuana illegal.

The conflict between state and federal law has left businesses in California's emerging legal pot industry in a legal dilemma, shutting many out of everyday services such as opening a bank account or obtaining a credit card. It also has forced many businesses to operate only in cash — sometimes vast amounts — making them ripe targets for crime.

$350,000 in cash? California marijuana taxes still make growers - and tax collectors - nervous

On tax days, it’s not hard to spot marijuana growers waiting to exhale in downtown Eureka.
They haul cash in grocery bags and boxes, making their way to a state office where they can pay their taxes.

One grower “holds his breath as he walks into the building,” said Terra Carver, executive director of the Humboldt County Growers Alliance. The distance is “no more than 20 yards, but the fact that he was holding $350,000 (makes it) ... a public safety issue.”

California still doesn’t have a better way to collect taxes from its burgeoning, licensed marijuana industry three years after voters passed an initiative to legalize recreational cannabis and 23 years after they sanctioned medical marijuana.

Bill Allowing Locals to Ban All Cannabis Deliveries Defeated in Committee

A bill that would have allowed local jurisdictions to ban cannabis deliveries originating outside their jurisdictional borders, was defeated in its first committee hearing today after cannabis activists and industry representatives objected to the bill.

Cal NORML wrote to the committee and testified against the bill, and promulgated an Action Alert that generated hundreds of letters to lawmakers in opposition. Thanks to all of our members and supporters who took action!

In introducing the bill, Asm. Cooley noted that he has been involved in both cannabis and local control issues for many years, citing his success as mayor of Rancho Cordova in enacting a local tax on cannabis businesses (however, that tax is overly high and was objected to by Cal NORML). Several times he referred to locals getting past a "parade of horribles" and tried to argue that passing the bill would somehow encourage locals to license cannabis businesses. He conceded that Prop. 64 allowed locals to ban adult-use cannabis businesses, not medical ones.

California only made half as much on 2018 marijuana taxes as expected

When California, the most populous state in America, legalized recreational marijuana last year, many had high hopes for the industry, writes Joseph Misulonas. But unfortunately, it appears initial projections for the success of the industry were a little off.

The California Department of Tax and Fee Administration announced that in 2018 the state collected $345.2 million from marijuana taxes. While that is a huge number, it's actually only slightly more than half of the state's initial projections of $643 million in tax revenue that they predicted they would receive in 2018. 

Many have argued why the state didn't make more money off of legal sales. The biggest reason seems to be the tax rate. California has some of the highest cannabis taxes in the nation, and customers can sometimes pay tax rates up to 45 percent on their marijuana purchases. These high prices are forcing many cannabis users to continue purchasing black market marijuana. This would also explain why California cannabis sales actually decreased between 2017 and 2018, despite it being legal recreationally last year.

Despite the fact that almost everyone acknowledges the tax rate is an issue, California legislators continue dragging their feet on the issue and not passing bills to lower the rate, despite several proposals to do so.

Employers May Lose Cases for Firing Medical Marijuana Users

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 Health-care worker Katelin Noffsinger told a potential employer that she took medical cannabis to deal with the effects of a car crash, but when a drug test came back positive, the nursing home rescinded her job offer anyway.

A federal judge ruled in September 2018 that the nursing home, which had cited federal laws against cannabis use, violated an anti-discrimination provision of Connecticut‘s medical marijuana law.

It was the latest in a series of clashes between U.S. and state laws around the country that came out in favor of medical cannabis users trying to keep or obtain jobs with drug-testing employers.

The Connecticut decision was the first ruling of its kind in a federal case and followed similar recent rulings against employers by state courts in Massachusetts and Rhode Island. Earlier rulings had gone against medical cannabis users in employment cases by state supreme courts, including those in California, Colorado, Oregon, and Washington, over the past few years.

Advocates hope new the new decisions are a signal of growing acceptance of cannabis’ medicinal value.

“This decision reflects the rapidly changing cultural and legal status of cannabis, and affirms that employers should not be able to discriminate against those who use marijuana responsibly while off the job, in compliance with the laws of their state,” said Paul Armentano, deputy director of the National Organization for the Reform of Marijuana Laws (NORML).

Medical marijuana, like the cannabis cuttings growing in a Sira Naturals cultivation facility in Milford Massachusetts, is reshaping employment law. A U.S. District judge in New Haven, Connecticut, ruled in favor of a woman who alleged a prospective employer discriminated against her when she sought a health-care job and informed the company she used medical marijuana to treat post-traumatic stress disorder (PTSD) resulting from a car crash. The judge found that the nursing home violated Connecticut’s anti-discrimination law protecting medical cannabis users despite marijuana remaining illegal at the federal level. (Associated Press File Photo/Steven Senne)

 

Noffsinger sued Bride Brook Health and Rehabilitation Center in Niantic in 2016. She had been offered, and accepted, a job as recreation therapy director at the nursing home, contingent on her passing a drug test.

She told the nursing home that she took synthetic marijuana pills — legally under state law and only at night — to treat the post-traumatic stress disorder (PTSD) she developed after the 2012 car accident. But the company rescinded the job offer after the drug test came back positive for THC, the chemical in marijuana that gets people high.

As a federal contractor, the nursing home worried that it could be cut off from that revenue if it employed somebody who tested positive for drugs.

On Sept. 5, 2018, U.S. District Judge Jeffrey Meyer in New Haven ruled Bride Brook discriminated against Noffsinger based solely on her medical cannabis use in violation of state law. He denied her request for punitive damages. The case is now heading to a trial on whether Noffsinger should receive compensatory damages for lost wages from not getting the job.

A lawyer for the nursing home, Thomas Blatchley, declined to comment.

Noffsinger’s attorney, Henry Murray, said his client would not comment on the lawsuit. He said Noffsinger has taken another job in the health-care industry that doesn’t pay as much as the Bride Brook job.

In his ruling, Meyer said the federal Drug Free Workplace Act, which many employers including federal contractors rely on for policies on drug testing, does not actually require drug testing and does not prohibit federal contractors from employing people who use medical cannabis outside the workplace in accordance with state law.

The decision will likely be used in arguments in similar cases elsewhere, said Fiona Ong, an employment attorney with the Baltimore firm of Shawe Rosenthal.

“This is a very significant case that throws the issue in doubt for many of these federal contractors,” Ong said. “It’s certainly interesting and may be indicative of where the courts are going with this.”

Thirty-one states, Washington, D.C., Puerto Rico, and Guam now allow medical marijuana, while 15 others have approved low-THC products for medical reasons in certain cases, according to the National Conference of State Legislatures. Nine states and Washington, D.C., have legalized recreational marijuana.

Only nine states including Connecticut, however, specifically ban employment discrimination against medical marijuana users, who could continue to face difficulties in obtaining or keeping jobs in the 41 other states, employment lawyers say.

In Massachusetts, the state’s highest court ruled in 2017 that a sales and marketing company wrongly fired a worker after her first day on the job after she tested positive for cannabis, which she used under the state’s medical marijuana law to treat her Crohn’s disease. Also in 2017, the Rhode Island state Supreme Court said a college student was wrongly denied an internship at a fabric company where officials refused to hire her after she acknowledged she could not pass a drug test because she used medical marijuana.

In both cases, the two women told the companies during the hiring process that they used medical marijuana, but would not consume it while on the job.

The American Bar Association called the Connecticut, Massachusetts, and Rhode Island cases “an emerging trend in employment litigation” and cautioned employers to consider state medical cannabis laws when analyzing their drug use and testing policies.

Several bills are pending before Congress that would undo marijuana’s Schedule I classification as a controlled substance with no medicinal value. But Armentano of NORML said it is unlikely they will go anywhere while Republicans control Congress.

Some employers, though, have dropped marijuana from the drug tests they require of employees, saying the testing excludes too many potential workers in a challenging hiring environment.

Report Shows Teen Marijuana Use in California Has Declined

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A statewide study in California has found that cannabis use by teens in the state has declined. Results of the California Healthy Kids Survey were released by the California Department of Education on Monday. The study is funded by the state’s health and education departments and is conducted every two years.

According to the research, 4.2 percent of 7th graders reported that they had used cannabis at any time between 2015 and 2017. That figure represents a 47 percent drop from the last survey when 7.9 percent of 7th graders reported using marijuana from 2013 to 2015.

Among 9th graders, 17.4 percent reported that they had used cannabis at some time during 2015 to 2017. That is a 25 percent decline from the 23.1 percent who reported using marijuana in the previous study.

Eleventh graders also showed a reduction in marijuana use. In the last survey, 37.9 percent of high school juniors said they had used cannabis between 2013 and 2015 while this year’s result for 2015 to 2017 recorded a 16 percent decline with 31.9 percent claiming cannabis use.

 

The percentage of teens who had used cannabis in the 30 days prior to the survey also declined. For 7th graders, the figure dropped from 5.0 percent in the last survey to 2.3 percent for the latest one. For 9th graders, the drop was from 13.4 percent to 9.5 percent, and for 11th graders, the number declined from 20.1 percent to 16.7 percent.

Will Legalization Affect Future Results?

The study’s authors noted that the survey was conducted prior to the legalization of recreational marijuana sales, which began in California at the beginning of 2018.

“How the recent legalization of marijuana use for adults in California [affects] the declining trend among youth warrants attention,” they wrote.

 

“The next biennial survey will be of particular interest to shed light on whether the change in state marijuana laws [affects] these findings,” researchers added.

Tom Torlakson, the State Superintendent of Public Instruction, said in a press release that educators have a role in making sure that cannabis legalization does not lead to increased use by young people.

“We must continue to be diligent in our efforts to prevent, or at least limit, marijuana use in light of the potential effect of the legalization for adults as a result of the passage of Proposition 64 two years ago,” Torlakson said.

 

Cannabis Activist Responds

Ellen Komp, deputy director of California NORML, said in a blog post from the advocacy group that the legalization of recreational cannabis is actually a factor in the decline of use by teens.

“These initial reports confirm that legalizing and regulating cannabis doesn’t increase youth marijuana use, but rather it has the opposite effect,” said Komp. “The fact that the biggest drop in reported use came from younger age groups is a particularly encouraging indicator of the success of regulation.”

Komp also said that sound cannabis policy reforms are the best way to keep California residents and their communities safe.

“It’s time to stop trying to ‘send a message’ to young people about drugs and instead implement sound, science-based policies that best protect our children and public safety, along with our privacy and human rights,” Komp said.

Legal Weed: California Lawmakers Leave Many Marijuana Policies in Suspense

California lawmakers returned from summer recess to a busy week of committee hearings. Seventeen cannabis bills had hearings in Sacramento for the week ending Friday, August 10, 2018. We’ve broken down the status of each bill and what steps are to follow.

AB 1744 — After-school Programs (Placed in suspense file)

AB 1744 would allocate cannabis tax revenues to provide grants for the After-School Education and Safety Program. Qualifying after-school programs are required to provide youth development activities that promote healthful lifestyle choices and behaviors in order to receive funding. AB 1744  was placed in the suspense file with a vote of 7-0 by the Senate Appropriations Committee Monday, Aug. 6, 2018. The suspense file is a holding placing for any bill with an annual cost to the state greater than $150,000. Bills are held in the suspense file before the fiscal deadline to offer each legislative chamber time to allocate funds. Bills that are moved out of the suspense file go to the floor for a final reading and vote, while bills held in suspense die.

AB 1793 — Resentencing for Cannabis Convictions (Placed in Suspense File)

AB 1793 would require the California Department of Justice (DOJ) to review all convictions that could potentially be eligible for resentencing under the Adult Use of Marijuana Act of 2016 (AUMA), or Proposition 64, before July 1, 2019. The bill would allow prosecutors to challenge convictions that do not fully meet the eligibility requirements. AB 1793 was also placed in the suspense file Monday, Aug. 6, 2018, with a 7-0 vote by the Senate Appropriations Committee.

AB 1863 — Personal Income Tax Deductions (Passed Committee)

AB 1863 would allow California-licensed, state-compliant cannabis businesses to deduct business expenses under the Personal Income Tax Law. If passed, the bill would go into effect immediately. The Senate Governance and Finance Committee voted 6-0 to pass AB 1863 on Wednesday, Aug. 8, 2018. The bill will proceed to the Senate Appropriations Committee.

AB 1996 — California Cannabis Research Program (Placed in Suspense File)

AB 1996 would establish the California Cannabis Research Program to develop studies and conduct cannabis research. The bill proposes to allocate resources from the California Tax Fund to cultivate cannabis for research purposes. The Senate Appropriations Committee placed AB 1996 in the suspense file Monday, Aug. 6, 2018.

AB 2020 — Temporary Event Licenses for Onsite Sales (Placed in Suspense File proposes a state temporary cannabis event license to be issued to a licensee for events to be held at any venue zoned or approved by a local licensing authority for events. Additionally, the bill would authorize onsite cannabis sales and consumption for adults 21 and older, as long as all participants in the event are licensed under the Medicinal and Adult-use Cannabis Regulation and Safety Act (MAUCRSA). AB 2020 was placed in the suspense file following a Senate Appropriations Committee hearing on Monday, Aug. 6, 2018.

AB 2215 — Veterinary Cannabis Medicine Ban (Ordered for Third  Reading)

AB 2215 proposes to prohibit a veterinarian from recommending or administering cannabis to an animal patient. The bill would authorize the Veterinary Medical Board to revoke or suspend a license, or to assess a fine for violating a controlled substances law. AB 2215 was read a second time Monday, Aug. 6, 2018, before the Senate Appropriations Committee, which ordered a third reading.

AB 2255 — Transportation Limits (Ordered for Third Reading)

AB 2255 would prohibit licensed distributors from transporting cannabis that exceeds the amount stated on a shipping manifest. Violations would result in fines. Additionally, the bill would prevent law enforcement officers from seizing cannabis in transport without probable cause. AB 2255 was read a second time Monday, Aug. 6, 2018, before the Senate Appropriations Committee, which ordered a third reading.

AB 2402 — Personal Information Privacy (Ordered for Third  Reading)

AB 2402 prohibits a MAUCRSA licensee from sharing a consumer’s personal information to a third party without the consumer’s consent. The bill would also prevent a licensee from denying a consumer a product or service if they do not consent to sharing their information. AB 2402 was read a second time Monday, Aug. 6, 2018, before the Senate Appropriations Committee, which ordered a third reading.

AB 2555 — Legal Language of Cannabis (Ordered for Third Reading)

AB 2555 proposes to amend sections of the California Business and Professions code by adding definitions for the terms “immature cannabis plant,” “mature cannabis plant,” and “plant.” Additionally, instead of requiring a unique identifier to be issued for each cannabis plant, the bill would require a unique identifier for each mature cannabis plant. AB 2555 was read a second time Monday, Aug. 6, 2018, before the Senate Appropriations Committee, which ordered a third reading.

AB 2641 — Temporary Event Licenses for Sales (Ordered for Third Reading)

AB 2641 proposes for the Bureau of Cannabis Control (BCC) to issue a temporary cannabis retailer license to qualified licensees for the transportation and sale of any cannabis products at a licensed temporary cannabis event. The bill would require an application be sent to the BCC, including a list of all licensed participating business. AB 2641 was read a second time, and ordered to a third reading following a Senate Appropriations Committee hearing on Monday, Aug. 6, 2018.

AB 2899 — Cannabis Advertisement Restrictions (Ordered for Third Reading)

AB 2899 would prohibit a licensee from publishing advertisements or marketing materials for cannabis and cannabis products under a suspended license. The bill was read a second time Monday, Aug. 6, 2018, before the Senate Appropriations Committee, which ordered a third reading.

AB 2914 — Cannabis in Alcoholic Beverages (Ordered for Third Reading)

AB 2914 would prohibit a cannabis licensee from producing or selling cannabis products in alcoholic beverages. Additionally, this bill would prevent any alcoholic beverage licensee from selling, offering, or providing cannabis or cannabis products. AB 2914 would authorize the Department of Alcohol Beverage Control (ABC) to suspend or revoke a license if a violation is found. The bill was read a second time Monday, Aug. 6, 2018, before the Senate Appropriations Committee, which ordered to a third reading.

AB 2980 — Common Areas Shared by Cannabis Businesses (Ordered for Third Reading)

AB 2980 would require that sections of the MAUCRSA not be misinterpreted in a manner that would prevent two or more licensed premises from sharing common-use areas, as long as all licensees comply with the requirements of the act. The bill was read a second time Monday, Aug. 6 2018, before the Senate Appropriations Committee, which ordered to a third reading.

AB 924 — Commercial Cannabis Regulation on Native American Tribal Lands (Hearing Postponed by Committee)

AB 924 would establish the Cannabis Regulatory Enforcement Act for Tribal Entities (CREATE Act). Under the CREATE Act, participating tribes would be required to enter a tribal cannabis regulatory agreement with the governor for the purpose of establishing a tribal cannabis regulatory commission or agency. All tribal cannabis regulatory agreements and subsequent tribal commissions and agencies must be approved by the Legislature. A hearing for AB 924 was rescheduled for Monday, Aug.13, 2018, before the Senate Appropriations Committee.

SB 1459 — County Agricultural Commission Reporting (Passed Committee)

SB 1459 would require county agricultural commissioners to include cannabis among reports of the condition, acreage, production, and value of agricultural products submitted to the secretary of Food and Agriculture. SB 1459 passed the Assembly Appropriations Committee 13-4 and has been ordered for a third reading on the Senate floor.

SB 829 — Compassionate-care Licenses (Placed in Suspense File)

SB 829 proposes the BCC issue and regulate compassionate-care licenses, which are issued to donors of medicinal cannabis or marijuana products to qualified patients who possess a physician’s recommendation. SB 829 was placed in following an Assembly Appropriations Committee hearing Wednesday, Aug. 8, 2018.   

SB 930 — State-chartered Financial Institutions for Cannabis (Placed in Suspense File)

SB 930 would create a state charter for privately financed banks and credit unions for the purpose of offering banking services to licensed cannabis businesses. Administered by the Commissioner of Business Oversight and the Department of Business Oversight, the program would also create the Cannabis Limited Charter Bank and Credit Union Advisory Board to include the treasurer, the controller and the chief of the BCC as policy directors. SB 930 was placed in the suspense file Wednesday, Aug. 8, 2018, by the Assembly Appropriations Committee.

Commonwealth of the Northern Mariana Islands Votes to Legalize Marijuana

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5,871 miles of open Pacific Ocean waters separate the Commonwealth of the Northern Mariana Islands (CNMI) from the coast of California. But the 15-island chain that makes up the United States’ westernmost territory is poised to do something no U.S. state has ever done.

On Wednesday, 18 of CNMI’s 20 legislators voted to approve a bill to legalize cannabis for adult use. The bill would also legalize medical cannabis and industrial hemp. And if CNMI Governor Ralph Torres enacts the bill, the territory will make legalization history—twice.

CNMI Would Be First U.S. Jurisdiction to Go From Total Prohibition to Full Legalization

This isn’t the first time CNMI lawmakers attempted to legalize cannabis. As recently as May, the CNMI Senate approved a piece of legislation nearly identical to the House-approved bill. Procedural issues, however, stymied the bill’s progress.

After another false start in the Senate, the House opted to file its own bill. It took less than a week for the full chamber to vote to approve the proposal.

 

That act alone makes CNMI unique among the 9 U.S. states that have legalized adult-use marijuana. Vermont comes closest, having legalized marijuana through a legislative process rather than a ballot initiative. But unlike CNMI’s proposed legislation, Vermont’s law doesn’t establish a retail market. The Mariana Islands’ legislation would.

There’s a second way CNMI would make legalization history if the bill becomes law. Every U.S. state that has legalized adult-use marijuana did so only after establishing a medical cannabis program. But in CNMI, there is no medical marijuana. The territory would be the first U.S. jurisdiction to go from total prohibition to full legalization.

What’s Next for Legal Cannabis in U.S. Territories?

Despite the tremendous distance between the Commonwealth of the Northern Mariana Islands and the continental United States, the territory has been closely watching legal cannabis unfold there. Indeed, the overwhelming support for the proposal in the House is due to lawmakers’ recognizing the significant benefits of legal weed.

 

The full text of the legislation, SB 20-62, cites how states with regulated markets for marijuana “have observed real and significant benefits to public health, safety and quality of life for all residents,” and goes on to list medical benefits like treatments for pain, epilepsy and PTSD, social benefits like a reduction in overdose deaths and lowered crime and economic benefits like tax revenue and job growth.

But the bill still has a couple more hurdles to clear before it becomes law. The CNMI Cannabis Act of 2018 is currently on its way back to the Senate for approval. After that, it will head to the desk of Gov. Ralph Torres, a Republican who has expressed concerns about legalization.

In response to House passage of the bill, Torres stressed the importance of taking “a look at both sides of the coin.” Torres wondered about the crime statistics in states with legal weed and other public safety issues.

 

Whether those reservations would ultimately lead Gov. Torres to veto the legislative effort and oppose the will of CNMI residents, however, remains to be seen. Public hearings about the act had higher attendance than any hearings senators could remember. Initially, legislators had designed the bill as a voter referendum before adopting it in the Senate.

Marijuana festivals, and businesses that benefit from them, are hurting now that cannabis is legal in California

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Marijuana festivals, and businesses that benefit from them, are hurting now that cannabis is legal in California

July 5, 2018 

Marijuana festival organizers were banking on this to be their biggest year yet, now that recreational cannabis is legal in California and the state is legitimizing such events by licensing them for the first time.

Promoters say they planned to stop operating under the loose protections of the state’s medical marijuana laws, where they’d force attendees to get doctor’s recommendations for cannabis before entering the gates. Instead, they hoped to have licenses that would allow anyone 21 and older to buy and smoke cannabis, just like they can buy and drink beer at other festivals.

But with local authorities now able to block such festivals even from the limited venues where they’re permitted by new state rules, there weren’t any state-sanctioned events in Southern California during the first half of the year. And none are on the horizon for the rest of 2018.

The picture is a bit brighter in Northern California. The state licensed marijuana festivals this spring in Sacramento and in Santa Rosa, where the massive Emerald Cup is also expected to go off in December without a hitch.