Hardrock69's Reefhead Madness Thread

[Hardrock69]

When alcohol Prohibition fell, it was in the same manner. One by one, individual states stood up to the Feds and decided they were not going to enforce Prohibition anymore. That left the Feds with no choice but to cave in.

In other news, 11 years ago Portugal decriminalized ALL drugs. What happened? As of July, 2011, drug abuse was down by over half.

http://www.forbes.com/sites/erikkain/2011/07/05/ten-years-after-decriminalization-drug-abuse-down-by-half-in-portugal/

7/05/2011 @ 3:09PM
Ten Years After Decriminalization, Drug Abuse Down by Half in Portugal

Drug warriors often contend that drug use would skyrocket if we were to legalize or decriminalize drugs in the United States. Fortunately, we have a real-world example of the actual effects of ending the violent, expensive War on Drugs and replacing it with a system of treatment for problem users and addicts.

Ten years ago, Portugal decriminalized all drugs: Link
One decade after this unprecedented experiment, drug abuse is down by half: Link

Health experts in Portugal said Friday that Portugal’s decision 10 years ago to decriminalise drug use and treat addicts rather than punishing them is an experiment that has worked.

“There is no doubt that the phenomenon of addiction is in decline in Portugal,” said Joao Goulao, President of the Institute of Drugs and Drugs Addiction, a press conference to mark the 10th anniversary of the law.

The number of addicts considered “problematic” — those who repeatedly use “hard” drugs and intravenous users — had fallen by half since the early 1990s, when the figure was estimated at around 100,000 people, Goulao said.

Other factors had also played their part however, Goulao, a medical doctor added.

“This development can not only be attributed to decriminalisation but to a confluence of treatment and risk reduction policies.”

Many of these innovative treatment procedures would not have emerged if addicts had continued to be arrested and locked up rather than treated by medical experts and psychologists. Currently 40,000 people in Portugal are being treated for drug abuse. This is a far cheaper, far more humane way to tackle the problem. Rather than locking up 100,000 criminals, the Portuguese are working to cure 40,000 patients and fine-tuning a whole new canon of drug treatment knowledge at the same time.

None of this is possible when waging a war.

[Hardrock69]

http://nationalcannabiscoalition.com/2012/11/members-of-congress-urge-feds-to-respect-state-cannabis-laws/

Members of Congress Urge Feds to Respect State Cannabis Laws
by Anthony Johnson November 21, 2012

Following the historic victories by cannabis legalization proponents in both Washington State and Colorado, prominent members of Congress have signed onto a letter to Attorney General Eric Holder and Michele Leonhart, Administrator of the Drug Enforcement Agency, urging the federal government to respect the will of the voters and allow the states to implement their laws regulating marijuana without federal interference. Cannabis law reformers, prohibitionists, politicians and policy makers are all waiting to see how the federal government responds to the two marijuana legalization measures. How the Obama Administration reacts will have a big impact upon how activists and reform-minded politicians craft measures that will end cannabis prohibition in upcoming states in the upcoming 2014 and 2016 elections.

While drug law reformers have been disappointed with the Obama Administration the last four years, there are some reasons for optimism about positive changes for reform in President Obama’s second term. Hopefully, President Obama will revert back to his earlier political days, before he started laughing off questions about ending prohibition after getting elected president.

The Obama Administration’s silence regarding their position on state legalization measures on this year’s ballot, despite lobbying from prohibitionists that urged the federal government to strongly oppose the state measures as well as the silence since the election is a positive sign. This silence was a 180 degree turn-around from 2010 when Attorney General Eric Holder warned California about the consequences of legalizing marijuana when the Sunshine State’s voters were contemplating whether to pass Prop 19. The stance of the federal government was one of the reasons the legalization measure suffered a narrow defeat. The federal government could have issued sweeping, dire warnings, before and after November 6th, but none have occurred thus far, despite the posturing of some prohibitionists. According to the Drug Policy Alliance’s Ethan Nadelmann at the Missouri Cannabis Law Reform Conference on November, the Obama Administration had whispered at fund raisers that they would be more progressive on drug law reform in a second term. While some are calling for a positive statement from the Obama Administration, even from President Obama himself, thus far, the silence is golden.

Also, the fact that that Colorado is a swing state and cannot be taken for granted by the Democratic Party gives me hope that the Obama Administration will be much better in the second term. Marijuana legalization received 55% of the vote in the Centennial State, compared to the 51% President Obama garnered. Unlike the “blue” West Coast states of Washington, Oregon and California, Colorado is a “purple” state that could swing to the Republicans in 2016 if the Democrats are seen as violating the will of their voters. I personally believe that politics always matter and that the cannabis law reform community is fortunate that the good people in the swing state of Colorado decided they were done with the failed and harmful consequences of cannabis prohibition.

Winning creates momentum and a bandwagon effect. The fact that the St. Louis Cardinals have won 11 World Series titles compared to the lone championship by my beloved Kansas City Royals (though you can never take away the magical 1985 season from us), causes many people in my home state of Missouri to join Cardinals Nation instead of joining me as a suffering fan of the Royals. Now that two states have demonstrated that cannabis legalization can win convincingly, and even earn more votes than an incumbent president cruising to an Electoral College landslide, politicians have already been emboldened across the country. Not only have members of Congress sent a letter to the federal government urging respect of state marijuana laws, but elected officials in Maine and Rhode Island have already voiced their intention of sponsoring legalization measures in the upcoming legislative session. The brave legislators of Maine and Rhode Island will soon have company as more politicians realize that sensibly reforming our nation’s marijuana laws isn’t a political liability, but will actually benefit them politically in most areas of the country. Don’t be surprised to see legislation ending cannabis prohibition is introduced in Vermont, Massachusetts, California and Oregon as well. Republican Senator Rand Paul, not a supporter of cannabis legalization like his Congressman father Ron, has even stated that the Republican Party should be consistent of their support of states’ rights and adhere to the will of states that choose to end cannabis prohibition within their borders.

We are living in an extraordinary time for cannabis law reform. We have a huge opportunity, but we must seize upon it. We need to support organizations pushing for positive change across the country as well as politicians trusting us with their political livelihood. We won two major battles this November, but major battles are up ahead. We are the change we have been waiting for and if we keep moving forward, we shall soon be free.

Full text of the letter sent to the Attorney General and DEA Administrator:

Dear Attorney General Holder and Administrator Leonhart:

We are writing to urge federal law enforcement to consider carefully the recent decisions by the people of Colorado and Washington to legalize small amounts of marijuana for personal use by adults. Under the new laws, each state will establish a comprehensive regulatory scheme governing the production, sale and personal use of marijuana. We believe that it would be a mistake for the federal government to focus enforcement action on individuals whose actions are in compliance with state law.

We are concerned that the Department of Justice (DOJ) and the Drug Enforcement Administration (DEA) continue to threaten individuals and businesses acting within the scope of their states’ laws on the medicinal use of marijuana despite formal guidance on exercising prosecutorial discretion. These actions contradict assurances made by DOJ in 2009 that the Department would not prioritize criminal charges against those who act in compliance with state law. It is also a poor use of limited federal resources. We hope your agencies will not take a similar approach with regard to individuals and businesses who comply with Colorado’s and Washington’s new laws, each of which were approved with overwhelming public support.

As Supreme Court Justice Louis Brandeis once observed, states are the laboratories of democracy. The people of Colorado and Washington have decided that marijuana ought to be regulated much like alcohol, with strong and efficient regulation of production, retail sales, and distribution, coupled with strict laws against underage use and driving while intoxicated. The voters chose to eliminate the illegal marijuana market controlled by cartels and criminals and recognized the disproportionate impact that marijuana prohibition has on minorities. These states have chosen to move from drug policy that spends millions of dollars turning ordinary Americans into criminals toward one that will tightly regulate the use of marijuana while raising tax revenue to support cash-strapped state and local governments. We believe this approach embraces the goals of existing federal marijuana law: to stop international trafficking, deter domestic organized criminal organizations, stop violence associated with the drug trade and protect children.

While we recognize that other states have chosen a different path, and further understand that the federal government has an important role to play in protecting against interstate shipments of marijuana leaving Colorado or Washington, we ask that your Departments take no enforcement against anyone who acts in compliance with the laws of Colorado, Washington and any other states that choose to regulate access to marijuana for medicinal or personal use. The voters of these states chose, by a substantial margin, to forge a new and effective policy with respect to marijuana. The tide of public opinion is changing, both at the ballot box and in state legislatures across the country. We believe that the collective judgement of voters and state lawmakers must be respected. Thank you for your attention to this important matter.

The letter was signed by Steve Cohen, Jared Polis, Diana DeGette, Ed Perlmutter, Barney Frank, Earl Blumenauer, Jerrold Nadler, Adam Smith, Sam Barr, Jim Moran, Chellie Pingree, Jan Schakowsky, Barbara Lee, Dennis Kucinich, Mike Honda, Raul Grijalva, Robert C. “Bobby” Scott and John Conyers, Jr. Please be sure to support all of these legislators. I am lucky enough to be represented by Earl Blumenaur and I have let his office know that I appreciate that he stands up for sensible cannabis law reform and the will of the voters.

[Hardrock69]

http://blog.norml.org/2012/11/26/two-of-the-largest-american-newspapers-opine-in-favor-of-allowing-states-to-legalize-marijuana/?utm_source=feedburner&utm_medium=twitter&utm_campaign=Feed%3A+NORMLBlog+%28NORML+Blog%29

Two of the Largest American Newspapers Opine in Favor of Allowing States to Legalize Marijuana

by Erik Altieri, NORML Communications Director November 26, 2012

In the wake of the historic votes for marijuana law reform on November 6th, there has been a renewed focus on the topic and a shift in tone amongst the mainstream media. While previously, many outlets have either covered our efforts with a wink and a nod (or didn’t cover them at all), now that two states have called for the end of marijuana prohibition, reporters are rushing to cover the story. Along the way it seems they are also getting a crash course education in the concepts of civil liberties, federalism, and the disasters of our country’s prohibition on cannabis. Many are beginning to wake up to the reality that we have long identified: cannabis prohibition is a failed policy that has destructive effects on our society and these effects can be remedied by legalization and regulation.

Look no further for a sign of the changing times than editorials featured this weekend by two of the United States’ largest newspapers, the New York Times and the Washington Post. Both papers featured columns from their staff opining in favor of marijuana law reform. It seems the days of traditionally conservative editorial boards writing against cannabis law reforms may be coming to an end.

There is a seismic shift happening in the national consciousness on marijuana policy in response to the legalization of cannabis in Colorado and Washington, we are winning new converts by the day and those previously afraid to speak out are now doing so with passion and vigor. This recent influx of mainstream media outlets jumping on board with reform is just the beginning of the avalanche of change that is to come.

http://opinionator.blogs.nytimes.com/2012/11/22/give-pot-a-chance/

http://www.washingtonpost.com/opinions/marijuanas-foot-in-the-door/2012/11/25/a1746d46-3347-11e2-bb9b-288a310849ee_story.html

[Hardrock69]

Here is the official .pdf of the Executive Order signed by the governor of Colorado legalizing reefers:

http://www.colorado.gov/cs/Satellite?blobcol=urldata&blobheadername1=Content-Disposition&blobheadername2=Content-Type&blobheadervalue1=inline%3B+filename%3D%22A64+Proc.pdf%22&blobheadervalue2=application%2Fpdf&blobkey=id&blobtable=MungoBlobs&blobwhere=1251841374116&ssbinary=true

[Nitro Express]

If enough people want it bad enough they get it. Grassroots movements are very powerful. If potheads can organize and do it, we should be able to do it on bigger and more important things like banking reform. The problem is the average person doesn't understand or care about banking. They understand lighting up a bong though. LOL!

[Hardrock69]

http://abcnews.go.com/US/marijuana-clubs-ring-year-colorado-legalized-pot-smoking/story?id=18108083#.UON7F6zgfdR

[ThrillsNSpills]

It's a bad drug if it caused the afterschool special above to happen.
The acting's awful and it actually glorified use.
Reality tv's not so bad after seeing that, is it?

[Hardrock69]

The next 7 states most likely to legalize pot:

http://www.rollingstone.com/politics/news/the-next-seven-states-to-legalize-pot-20121218

Oregon
Cali
Nevada
Alaska
Maine
Vermont
Rhode Island

[Hardrock69]

U.S. Marijuana Laws Ricochet Through Latin America

http://world.time.com/2013/01/07/u-s-marijuana-laws-ricochet-through-latin-america/

President Obama has yet to deliver a clear response to the November decision by Colorado and Washington to legalize recreational marijuana use — asked whether the government would enforce Federal laws that override the verdict of those states’ referenda, he answered simply that he has “bigger fish to fry”. But leaders from across Latin America responded within days of the Colorado and Washington vote, demanding a review of drug-war policies that have mired the region in violence. Latin American decision-makers are now openly questioning why they should continue to sacrifice police andsoldiers to enforce drug laws when legal markets for marijuana now exist in the United States.

“Everyone is asking, what sense does it make to keep up such an intense confrontation, which has cost Mexico so much, by trying to keep this substance from going to a country where it’s already regulated and permitted?” says Fernando Belaunzarán, a congressman from Mexico’s opposition Democratic Revolutionary Party who introduced a marijuana legalization measure in the legislature a week after U.S. elections. The measure, Belaunzarán tells TIME, is modeled on the Washington State law, and would put the federal government in charge of marijuana production, regulation and sales. The congressman said he expects the lower house to convene public hearings on marijuana legalization by May 2013.

Belaunzarán joins a growing list of Latin American leaders calling for a change in the drug war paradigm — one that considers drug decriminalization and legalization as alternatives to the U.S.-led prohibitionist model, the enforcement of which has helped turn swaths of Latin American into the world’s most violent regions. Shortly after U.S. elections, former Mexican President Felipe Calderon, along with the presidents of Honduras, Belize and Costa Rica, said the United Nations General Assembly should hold a special session the drug prohibition by 2015. They also called on the Organization of American States to study the impact of current drug policy on the region. That OAS review, well underway, is expected in June.

A major concern centers on drug cartels. Estimates of Mexican cartel profits from marijuana sales to the U.S. vary from $2 billion to $20 billion annually. And recent studies suggest that the Colorado and Washington pot laws could dent cartel profits by up to 30% given the probable emergence of cheaper, U.S.-produced marijuana. That loss of revenue, and therefore of power, could generate more violence in the region, experts fear. But the notion that drug cartels would suffer mammoth losses remains an open question. It also underestimates the growing sophistication of Mexican criminal groups.

Mexican cartels have diversified their criminal portfolios with impressive speed since 2006, when Calderon began deploying the army against them. Besides marijuana profits, cartels generate an estimated $15 billion annually from human trafficking, preying on Central and South American migrants making their way north toward the United States. Criminal gangs are also increasingly relying on Pemex, Mexico’s state-owned oil behemoth, for added income. Oil theft has surged in recent years, netting cartels roughly$500 million annually, according to Mexican studies. And the methamphetamine market represents another opportunity to supplement any revenue lost to marijuana sales. Cartels have responded to a recent drop in U.S. meth production by flooding the market with the synthetic drug, producing it on mass scale in northern Guatemala.

“The (U.S.) marijuana laws will have absolutely no impact on criminal group’s balance sheets,” Edgardo Buscaglia, an organized-crime expert and senior scholar at Columbia University, tells TIME. “They have diversified their criminal activity with astounding efficiency, just like any legal enterprise.”

Whether the U.S. laws will undercut cartels at all remains to be seen, but no impact is likely to be felt any time soon. Still, the Washington and Colorado referendum results have reshaped the drug-war debate in Latin America, emboldening regional leaders to press for a global discussion on drug policy, organized through the U.N., aimed at changing drug-war tactics.

(MORE: Uruguay’s Plan to Legalize Marijuana Sales: Should the Rest of the World Follow?)
Until now, the U.N. has ignored those calls, but there are signs it may soon take up the matter, according to former Brazilian President Fernando Henrique Cardoso, who, with the former presidents of Mexico and Colombia, launched the hemispheric debate on drug decriminalization in 2009. That year he wrote an open letter criticizing the current drug war and calling on the region to discuss alternative strategies. “Members of the U.N. agree we need to revisit the subject, but the problem is that sectors within the U.N. that deal specifically with drugs are very conservative,” Cardoso tells TIME. “In my meetings at the U.N., I noticed that the pressure to unite a U.N. assembly specifically dedicated to discussing the subject is mounting. And that’s important.”

Global drug policy is unlikely to change soon. But decriminalization advocates see encouraging signs. In just a few months, they point out, the Marijuana legalization discussion has reached levels of urgency and legitimacy never seen before. Marijuana legalization, they point out, is now a political reality throughout the hemisphere. They are also encouraged by President Obama, whorecently framed the marijuana conflict between state and federal law as one to be resolved, instead of simply dismissing state law. “It’s time the world discuss a new paradigm to confront drugs,” says Belaunzarán. “In Latin America it’s already happening. And the U.S. is applying it de facto because states are already regulating marijuana.”

[Hardrock69]

http://www.theweedblog.com/ny-governor-cuomo-makes-passionate-call-for-marijuana-policy-reform-in-state-of-the-state-address/

NY Governor Cuomo Makes Passionate Call For Marijuana Policy Reform In State Of The State Address

Today in his State of the State address, Governor Cuomo made a passionate call for reforming New York’s marijuana possession laws in order to reduce unlawful, biased, and costly arrests. The governor noted the discrepancy in the law between public and private possession of small amounts of marijuana, and proposed standardizing penalties for possession.

In his prepared written statement, the governor referenced the original intent of the marijuana possession law from 1977: “The legislature finds that arrests, criminal prosecutions, and criminal penalties are inappropriate for people who possess small quantities of marihuana for personal use. Every year, this process needlessly scars thousands of lives and wastes millions of dollars in law enforcement resources, while detracting from the prosecution of serious crime.”

Today, marijuana possession is the number one arrest in New York City. The governor cited the harmful outcomes of these arrests – racial disparities, stigma, fiscal waste, criminalization - and called on the legislature to act: ”It’s not fair, it’s not right. It must end, and it must end now.”

A powerful statewide coalition of community groups, faith and civil rights leaders, parents and young people applauded the Governor’s strong leadership in tackling this issue.

“We cannot have the same laws applied differently to different groups of people when the dividing line is race,” said gabriel sayegh, New York state director for the Drug Policy Alliance. “The governor’s proposal is an essential step towards bringing greater fairness and equity to both our drug laws and policing practices in our state. The criminalization of our young people must end — the legislature must now act now to pass the governor’s bill.”

Last year, Governor Cuomo introduced similar legislation to reform the law, but it the Senate refused to act – despite the fact that the reform proposal was supported by law enforcement leaders throughout the state, including Commissioner Ray Kelly, all five City district attorneys, Rochester Police Chief James Sheppard, and many others.

“I hope Senator Skelos and the entire legislature heard Governor Cuomo loud and clear when he said it’s time to end marijuana arrests that ‘stigmatize and criminalize’ young people of color, which have been one of the leading consequences of stop and frisk,” said Alfredo Carrasquillo, VOCAL-NY’s Civil Rights Organizer. “Governor Cuomo’s right that these arrests mean more than a night in jail – they can have lasting effects on a person’s access to jobs, housing and a better future.”

“With stop and frisk and needless criminalization, too many of our young people are swept up in the criminal justice system. Governor Cuomo’s reform proposal is a critical step towards a brighter future for our youth,” said Kyung Ji Kate Rhee of Center for NuLeadership. “Instead of wasting money on these arrests, we should be investing in community development and resources that are far more effective at guiding our youth in the choices they make towards fulfilling their best potential.”

The need for reform is abundantly clear: In the last 15 years, over 600,000 people were arrested for marijuana possession, mostly in New York City. More than 50,000 people were arrested for marijuana possession in the City in 2011 alone, far exceeding the total marijuana arrests from 1981-1995. Most of those arrested, nearly 85%, are Black and Latino, mostly young men – despite federal government data on drug use showing that whites use marijuana at higher rates. The costs of these arrests to taxpayers is at least $75 million a year. Last year, the New York City Council passed a resolution calling on Albany to act. Governor Cuomo’s proposal would end tens of thousands of racially biased and unlawful marijuana possession.

[Hardrock69]

http://www.theweedblog.com/federal-judge-says-nations-medical-cannabis-model-harborside-health-center-can-stay-open/

Federal Judge Says Nation’s Medical Cannabis Model, Harborside Health Center, Can Stay Open

U.S. District Court Denies Landlord Injunctions In Oakland And San Jose

Oakland, Calif. – On Monday, January 7, Chief Federal Magistrate Maria-Elena James ruled in favor of Harborside Health Center (HHC), and denied motions by Harborside’s landlords asking the court to order an immediate halt of cannabis sales at their properties. In a highly significant, 17-page opinion released today, Judge James also declined to grant a motion from the City of Oakland to immediately enjoin the federal government’s legal efforts to close Harborside, but scheduled a hearing later this month to hear further arguments in the City of Oakland’s lawsuit.

“We are grateful that Judge James carefully considered the facts and arguments in the Harborside case, and decided to grant us our day in court,” said HHC Executive Director Steve DeAngelo. “We have always believed that a Bay Area jury will recognize the value that Harborside brings to the community, and refuse to allow the federal government to seize the properties where we are located. We look forward to proving our case in front of a jury, and continue to believe we will prevail. In the meantime, we ask the Department of Justice to immediately freeze enforcement actions against Harborside and any other cannabis providers acting in full compliance with state law. Our nation’s law enforcement officers should concentrate on real crime.”

In addition, the court found that entering injunctions against Harborside would not be an appropriate means of preventing illegal use of the property and that “there is nothing… indicating that Harborside’s continued operation compromises the existence, value, or title of either the Oakland or San Jose Property.” The court ruling stated, “Any argument about the urgency of stopping Harborside’s activities rings hollow.”

Harborside’s lead attorney, Henry Wykowski, commented, “We are gratified that Judge James listened to and analyzed the parties’ arguments so thoroughly and has now rendered an opinion that will ensure Harborside has the right to present its case to a jury. Despite the government’s efforts to shortcut the case, Harborside will now be able to fully defend itself at trial. That is all we had asked, and the court has now agreed. The stage is now set for a jury trial on the underlying issues of the litigation, which will probably take place in about one year.”

Notably, in response to initial federal forfeiture actions, HHC attorneys cited the statute of limitations, as Harborside has been in business for over six years. All other claimants in these proceedings, including the City of Oakland, have adopted this defense.

***

About Harborside Health Center:

Harborside Health Center is the nation’s largest not-for-profit model medical cannabis dispensary with locations in Oakland and San Jose, California. The collective was co-founded in 2006 by national cannabis leader Steve DeAngelo, and serves approximately 100,000 registered patients. A landmark facility, HHC offers patients free holistic health services, lab-tested medicine, a low-income care package program, substance misuse support and education, while strictly complying with state and local laws regarding medical cannabis. For more details, visit the Oakland medical cannabis dispensary online at http://www.harborsidehealthcenter.com/.

[Hardrock69]

http://www.theweedblog.com/pennsylvania-senator-prefiles-cannabis-legalization-bill-pennsylvanians-approve/

Pennsylvania Senator Prefiles Cannabis Legalization Bill, Pennsylvanians Approve


Last week, state Senator from Montgomery County Daylin Leach announced his intentions to file legislation that would legalize the adult use of marijuana, in a way similar to the laws recently approved in Colorado and Washington.

“I acknowledge that it may take a while, but like same-sex marriage,” stated Sen. Leach, “this will inevitably happen. Demographics and exposure will in time defeat irrational fears, old wives tales and bad science. This bill furthers the discussion, which hastens the day.”

This legislation, if approved, would help halt the arrest of thousands of Pennsylvanians annually. Since 2006, 24,685 arrests were made for just marijuana possession at a cost of over 300 million dollars to the state’s taxpayers.

“It is time for Pennsylvania to be a leader in jettisoning this modern-day prohibition, and ending a policy that has been so destructive, costly, and anti-scientific,” Sen. Leach declared.

Pennsylvania has long been considered a bellwether state, so to see the issue at least being entertained in the state legislature can only be a positive sign of things to come. Let’s hope other elected officials in Pennsylvania join with state Senator Leach to support these sensible reforms.

If NORML’s Take Action Center is anything to go by, the citizens of the Keystone State want it. In just the first 24 hours of going live, Pennsylvanians sent over 900 emails and letters to their elected officials urging them to support this legislation.

If you live in Pennsylvania and want to join in the call for marijuana legalization, simply click here and you can easily send a prewritten email or letter to your elected officials telling them it is time to support legislation to legalize and regulate marijuana, not criminalize it.

PENNSYLVANIANS: Click here to contact your representatives in favor of this bill today!

Don’t live in Pennsylvania? There is already marijuana reform legislation filed in ten other states, with many more sure to follow in the coming days. Be sure to keep checking NORML’s Take Action Center to see if your state is one of them and to contact your officials!

Together, we can NORMLIZE CONGRESS. Together, we will legalize marijuana.

[Hardrock69]

LINKY

For Investors, Marijuana Remains a Cloudy Bet
By Tim Sprinkle | The Exchange – Fri, Jan 11, 2013 1:52 PM EST

It’s hard to deny the appeal of investing in legal cannabis. After all, how often do you get the chance to participate in a bona fide gold rush, with an ever-shifting market, few established players and consumer demand that is all but waiting to explode?

The recent, historical approval of marijuana for recreational use in Colorado and Washington state adds a brand-new element to the business. For investors, the smell of a once-in-a-lifetime opportunity is in the air. And who doesn’t want to add “drug kingpin” to their resume?

“Cannabis is really already a structured and mature market, it just exists in the black market,” says Derek Peterson, CEO of Terra Tech (TRTC), a startup that manufactures hydroponic growing systems. “It’s moving to the white market, or at least the gray market, but we still didn’t have to make the market, it already exists. We’re just taking it out of the hands of the cartels and putting it in the hands of legitimate business.”

And the upside potential is huge.

“It’s an industry that has a lot of problems, but that’s part of the opportunity,” explains Brendan Kennedy of Privateer Holdings, a Seattle-based private equity firm that’s focused on legal cannabis. “The companies are immature, the managers are unprofessional, it’s highly fragmented, there are no standards, the branding and marketing bar is very low and there are no established players. There are not even any Wall Street analysts that study this industry yet.”

Bigger than corn

Still, despite these problems, the sector has annual revenues in the neighborhood of $40 billion, which Kennedy says makes the cannabis market even bigger than corn. “How many people trade corn as a commodity?" he asks. "How many sub-industries are focused on corn? There will be a desk at Goldman where you have analysts studying cannabis. It’s going to happen and it’s going to happen faster than anyone thinks.”

Of course, the reality is that marijuana remains very much an illegal product in the eyes of the federal government, despite the rulings in Colorado and Washington and the fact that it's legal for medicinal purposes in more than a dozen other states. As an investment, it doesn’t get much riskier than that.

“The first thing I would point out to a prospective investor is that these companies are still breaking federal law,” says Irvin Rosenfeld, a South Florida-based stockbroker and author of the pro medical marijuana book, “My Medicine.”

“While Obama has said that the federal government has bigger fish to fry," Rosenfeld continues, "that hasn’t stopped the feds from going into states like California and telling dispensary owners that their tax dedications are disallowed, or the DEA from shutting down dispensaries that are near schools or parks.”

Money to Burn?

But that’s not to say there isn’t money being made in cannabis. The key, says Privateer’s Kennedy, is being very, very careful.

“We avoid all public companies in this space,” he says, “as that’s not something that interests us at all. And many of the reasons these companies are public is they couldn’t raise private money. We’re mostly interested in businesses that serve growers and dispensaries, and then consumer products -- entities that serve the legal consumer market.”

Privateer, which holds no investments in cannabis growing or distribution operations and is in the process of closing a $7 million round of funding, is focused on mainstream brands, such as the marijuana review site Leafly.com, which it bought last year when the site's revenues were effectively zero. Leafly.com finished 2012 with about $400,000 in revenues and is forecast to reach $1 million by the end of this year.

“It was the perfect company for us,” Kennedy says. “It has that mainstream look and feel. So you could be a 30-year-old professional or a 40-year-old soccer mom or a baby boomer and could embrace that brand.”

Troy Dayton, CEO of The ArcView Group, a venture-funding network for legal cannabis companies, is likewise focused on ancillary marijuana businesses such as point-of-sale systems, inventory-tracking services and even insurance. The key for him is finding a business that has mainstream counterparts that are not yet involved in the cannabis sector.

“I think staffing is an area where we’re not seeing much action but I see huge opportunity,” Dayton says. “For example, trimming has notoriously been an ad hoc sort of thing that’s time consuming and difficult. But as the industry professionalizes, it would be great to be able to outsource that kind of work to a team that’s already together and knows what it’s doing. But a lot of the regular staffing companies aren’t into the idiosyncrasies of this industry yet, and may be staying out of it for reputational reasons, so that’s an opening.”

The public option

For retail investors, however, the pickings are still slim. THCBiz.com only has 16 publicly traded companies on its list of cannabis related companies, all of which trade OTC or on the pink sheets and represent a range of ancillary industries like grow-room hardware, lighting, pharmaceuticals and general business services. Only a handful report any sort of financial information or give potential investors insights into their business prospects.

That is slowly changing, however. Terra Tech, for example, has been fully reporting since day one and is shooting for an American Exchange or Nasdaq listing in the next 24 months. And the company's CEO, who also owns Blum, a marijuana dispensary in Oakland, Calif., says he has been able to recently secure funding for his venture via more traditional means: investment bank Midtown Partners in New York.

Cannabis investing may still be the Wild West, but at least some law and order is starting to come to the industry.

[Hardrock69]

http://www.theweedblog.com/state-law...hol-in-hawaii/

House Speaker Souki Will Introduce Bill To Establish A Legal Market For Businesses To Cultivate And Sell Marijuana To Adults 21 And Older

HONOLULU - Newly elected State House Speaker Joseph Souki (D-8) is scheduled to introduce a bill today to remove penalties for private adult marijuana possession and establish a system in which the cultivation and sale of marijuana would be regulated and taxed in a manner similar to alcohol. House Bill 150, the Personal Use of Marijuana Act, is the first of several anticipated bills on marijuana legalization this legislative session.

“Regulating and taxing marijuana similarly to alcohol takes marijuana sales out of the hands of criminals and puts them behind the counter in legitimate businesses that will generate significant new revenue for Hawaii,” said Mason Tvert, director of communications at the Marijuana Policy Project. “Law enforcement resources should be focused on preventing and responding to serious crimes rather than enforcing antiquated marijuana prohibition laws.”

If passed, H.B. 150 would allow adults 21 years of age and older to privately possess up to one ounce of marijuana and to cultivate a limited number of marijuana plants in a secure and locked location. The bill would also authorize the state to license marijuana retail stores, cultivation facilities, product manufacturing facilities, and testing facilities. Public marijuana use, driving under the influence of marijuana, and use by individuals under the age of 21 would remain illegal.

A QMark Research poll released earlier this month found 57% of Hawaii voters believe marijuana should be regulated, taxed, and legal for adults. According to an economic analysis performed by University of Hawaii economist David Nixon, the state would generate $20 million per year in new tax revenue and criminal justice savings.

“In Hawaii, as across the nation, arrests for marijuana possession are one of the most common ways that individuals get caught up in the criminal justice system, at great social and economic cost,” said ACLU of Hawaii executive director Vanessa Chong in a release announcing the poll and economic analysis. “These studies provide important, updated facts for the Hawaii community as we consider new directions.”

In November 2012, voters in Colorado and Washington approved ballot initiatives to make marijuana legal for adults and establish systems in which marijuana is regulated and taxed similarly to alcohol. Similar proposals are expected to be introduced this year by lawmakers in Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont.

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http://swampland.time.com/2013/02/06/pot-plans-efforts-surge-in-congress-to-reform-marijuana-laws/

Driven by a groundswell of public opinion, Colorado and Washington State last November became the first states in the U.S. to legalize the recreational use of marijuana. That wave of support, it now seems clear, has echoed through the U.S. Congress, which on Tuesday formally questioned the federal government’s prohibitionist drug policy in the form of marijuana-reform bills.

Representatives Jared Polis, a Democrat from Colorado, and Earl Blumenauer, a Democrat from Oregon, introduced two separate bills that would drastically change U.S. marijuana laws by addressing what they say are the human and fiscal costs associated with marijuana-related arrests.

It’s not the first time marijuana-reform bills have been introduced in Congress, but Tuesday’s measures are considered historic in scope and give further momentum to a marijuana-legalization movement that has surged recently from Colorado to Washington to Latin America.

The Polis bill, the Ending Federal Marijuana Prohibition Act, would call on the federal government to regulate marijuana much like it does alcohol. Under the measure, cannabis growers would have to obtain a federal permit in states that legalize the drug. The bill does not force any state to legalize pot, but it does allow states that approve recreational- and medical-marijuana regulatory systems to operate without the fear of crackdowns from the Drug Enforcement Administration (DEA). The measure would also transfer authority to regulate marijuana from the DEA to a renamed Bureau of Alcohol, Tobacco, Marijuana and Firearms.

“In my short time in Congress, and certainly over the last few decades, Americans have increasingly come to the conclusion that the drug war is a failed policy,” said Polis. “While substance abuse is a real problem we need to address, we need to address it increasingly as a public-health issue more than a criminal issue.”

The Blumenauer bill, meanwhile, would create a taxation framework for pot similar to that in place for tobacco and alcohol. The Marijuana Tax Equity Act would impose an excise tax of 50% on the “first sale” of marijuana, from growers to processors or retailers. The measure would also tax pot producers $1,000 annually and other marijuana-related businesses $500. Blumenauer said imposing such a tax would help lower the national deficit while providing funds for drug-treatment centers and law-enforcement units.

“There is an opportunity for us to make, at a minimum, a $100 billion difference over the next 10 years,” said Blumenauer.

There were 1.5 million drug arrests made in the U.S. in 2011, according to the FBI. Of those arrests, over 660,000 were for possession of marijuana. The enforcement of federal marijuana laws, including incarceration, costs at least $5.5 billion annually, according to a study by the Cato Institute. In New York State alone, the estimated cost of marijuana-related arrests surpasses $75 million every year, according to the Drug Policy Alliance, a nonprofit that supports drug-policy reform.

Passage of the two bills remains a long shot, according to analysts, but Blumenauer said the measures are just the beginning of a congressional push to reform what he calls “antiquated, ineffective and, in some cases, nonsensical federal policies and laws.” Blumenauer pointed to a growing swell of support for marijuana-reform measures among his colleagues on Capitol Hill.

In December, Senate Judiciary Committee chairman Patrick Leahy, a Democrat from Vermont, said he intends to hold hearings on the conflicts between state and federal marijuana laws. And Representative Dana Rohrabacher, a Republican from California, is soon expected to introduce a measure that would allow states to establish pot policies without federal interference.

“These are the first two of what will probably be eight, 10 bills or more,” said Blumenauer, referring to Tuesday’s measures. Added Polis: “There is growing support within the Democratic caucus and also within the Republican caucus for re-examining the future of the drug war.”

The sudden flurry of federal action on cannabis comes as national polls highlight an outpouring of support for marijuana legalization in recent years. A Gallup poll in October showed that a record high 50% of Americans believe marijuana should be legal. By contrast, just over 30% of Americans held the same view in 2000. Support for medical marijuana is even stronger. A 2012 Gallup poll indicated that 70% of Americans believe it should be legal for a doctor to prescribe pot to reduce pain and suffering.

“Congress is frequently a lagging indicator for public opinion,” said Polis. “Public opinion is that it should be up to states and local governments how to deal with marijuana — it’s just a question of how we’re going to catch up, not if.”