Of these participants, 46 users and 34 controls also participated in brain imaging studies. Of the total group, cannabis users showed a greater ability to recognise and understand other peoples emotions and impressions, as adjudged by the Emotional Comprehension CE part of the Cognitive and
House committee pushed feds to study state marijuana laws; Cannabis amendments blocked; State Dept drug treaty comments; CA psychedelics
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BREAKING: Journalism is often consumed for free, but costs money to produce! While this newsletter is proudly sent without cost to you, our ability to send it each day depends on the financial support of readers who can afford to give it. So if you’ve got a few dollars to spare each month and believe in the work we do, please consider joining us on Patreon today. https://www.patreon.com/marijuanamoment / TOP THINGS TO KNOW Ohio voters approved a marijuana legalization ballot initiative, making the Buckeye State the 24th in the U.S. to end cannabis prohibition. The House Appropriations Committeeis pushing the Department of Justice to examine the “adequacy” of state marijuana regulations while allowing researchers to study cannabis products that consumers can purchase in legal markets. The House Rules Committeeblocked amendments to allow Washington, D.C. to legalize marijuana sales and end the practice of drug testing federal job applicants for marijuana from receiving floor votes. A U.S. State Department official’s comments at a recent United Nations meetingabout global drug treaties needing to be “highly respectful” of countries’ domestic policies that don’t have an “international dimension” bodes well for marijuana rescheduling, some legal experts say. A California senatorplans to file a revised psychedelics bill alongside an Assembly Republican that will focus on regulated therapeutic access—a departure from prior legislation to more broadly legalize substances like psilocybin that the governor vetoed. Israel is seeing a sharp increase in medical cannabis prescriptions—especially for PTSD and pain—amid the country’s war with Hamas. October saw the largest monthly increase ever recorded for prescribed marijuana by weight. / FEDERAL Sens. Jeff Merkley (D-OR) and Ron Wyden (D-OR)praised the passage of a spending bill containing funding for the U.S. Department of Agriculture to partner with institutions conducting biotech and genomics research to improve hemp genetic research and breeding with new techniques, saying that “hemp has quickly become one of Oregon’s leading cash crops.” Rep. Mariannette Miller-Meeks (R-IA)tweeted about meeting with members of the American Psychedelic Practitioners Association, saying, “Psychedelic-assisted therapy can be an effective tool for mental health care.” The Housemarijuana bankingbill got one new cosponsor for a total of 93. / STATES Wisconsin’sSenate minority leader posted a video urging people to pressure their lawmakers to legalize marijuana. TheOklahomaHouse Committee for Alcohol, Tobacco, and Controlled Substances held ahearingon accidental ingestion of marijuana products by children. TheOregonlegislature’s Joint Committee on Addiction and Community Safety Response met. TheNew JerseySupreme Court is accepting comments on proposed changes to rules on participation in pretrial intervention programs by people who received conditional discharges for marijuana offenses. New Yorkregulators published data on enforcement efforts against unlicensed businesses. Californiaregulators announced that the National Agricultural Workers Union is not a bona fide labor organization for the purposes of cannabis business labor peace agreement requirements. TheMinnesotaIron Range Resources and Rehabilitation Board is considering a loan application from a second cannabis company. Ohioregulators published updated medical cannabis patient and caregiver numbers. — Marijuana Moment is tracking more than 1,000 cannabis, psychedelics and drug policy bills in state legislatures and Congress this year. Patreon supporters pledging at least $25/month get access to our interactive maps, charts and hearing calendar so they don’t miss any developments. Learn more about our marijuana bill tracker and become a supporter on Patreon to get access.
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/ LOCAL TheAnchorage, AlaskaAssembly held a hearing on marijuana regulations. TheMiddletown, DelawareTown Council voted to ban recreational marijuana businesses. Oakland, Californiaofficials hosted a cannabis equity stakeholder meeting. / INTERNATIONAL A Victoria,Australiamarijuana legalization bill got a secondreadingin the Legislative Council. AEuropean Parliament psychedelics group held its first meeting. / SCIENCE & HEALTH A study suggested that “the functional enhancement of endocannabinoid signaling is a promising drug development target forstress-related anxiety disorders.” / ADVOCACY, OPINION & ANALYSIS The National Hispanic Cannabis Councilhas a new interim executive director. / BUSINESS Constellation Brands, Inc.allowed its warrants to purchase shares in Canopy Growth Corporation to expire, saying it has “no other present plans or future intentions that relate to Canopy.” Ascend Wellness Holdings, Inc.reported quarterly net revenue of $141.3 million and a net loss of $11.2 million. Shield Compliancepublished the results of a survey of licensed cannabis operators. / CULTURE Jimmy Kimmel askedMagic Johnsonabout a cannabis strain named after him and about the marijuana policy at his company.
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RFK on marijuana; CA psychedelics measure withdrawn; CO gov talks cannabis; MN psychedelics task force; WI legalization revenue; IN hearing
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Hold on, just one second before you read today’s news.Have you thought about giving some financial support to Marijuana Moment? If so, today would be a great day to contribute. We’re planning our reporting for the coming months and it would really help to know what kind of support we can count on. Check us out on Patreon and sign up to give $25/month today: https://www.patreon.com/marijuanamoment / TOP THINGS TO KNOW Food and Drug Administration officialswrote a new journal article and blog post reviewing the agency’s 50 years of studying marijuana and looking ahead to future work—including investigating more methods of consumption such as edibles and looking into lesser-known cannabinoids and terpenes. Independent presidential candidate Robert F. Kennedy Jr.released a new campaign ad about his plan to legalize marijuana and use the revenue to fund drug addiction recovery centers. Colorado Gov. Jared Polis (D)unveiled new marijuana revenue proposals in his budget, saying he wants the state to be at the “center” of the national and global cannabis market once broad federal reforms are achieved. California activistsare withdrawing a 2024 ballot initiative that would have created a $5 billion state agency tasked with funding and promoting research on the psychedelics after polling showed voters did not support the proposal. The Minnesota Psychedelic Medicine Task Force—which is charged with studying the medical benefits of psilocybin, MDMA and LSD and preparing the state for possible legalization—will hold its first meeting on Monday. The Wisconsin Department of Revenueestimates the state could generate nearly $170 million in new annual tax revenue if lawmakers enacted a marijuana legalization bill filed by the Senate minority leader. The Washington State Department of Commercereleased a plan to spend $200 million to address racial, economic and social disparities created by the war on drugs. SXSW’s announcement of panels for the 2024 festivalshows the shifting interest of the cutting-edge conference toward psychedelics and away from cannabis as marijuana becomes more embedded into the mainstream. The Indiana legislature’s Interim Study Committee on Commerce and Economic Developmentheld a hearing on the implications of legalizing marijuana. The Illinois Department of Commerce and Economic Opportunityis providing funding to social equity marijuana businesses, but canopy caps and other regulatory hurdles have created a situation where only 10 craft growers are currently operating in the state. / FEDERAL President Joe Biden’s son Hunter Bidenauthored an op-ed decrying the “demonization of addiction” he said is inherent in Republican criticism of his personal struggles. House Speaker Mike Johnson’s (R-LA)adopted son was arrested for allegedly running an illegal cannabis business. House Minority Leader Hakeem Jeffries (D-NY)praised the cannabis reform leadership of Rep. Earl Blumenauer (D-OR), who recently announced he is retiring from Congress. / STATES Ohio’sHouse speaker expressed concerns that the marijuana legalization initiative on Tuesday’s ballot could have negative economic and workforce impacts. TheOklahomaHouse Alcohol, Tobacco and Controlled Substances Committee will host a presentation on marijuana ingestion by children on Monday. Separately,regulatorsissued a recall of medical cannabis products. TheOregonlegislature’s Joint Committee on Addiction and Community Safety Response will meet on Monday. ANew Yorkassemblymember filed a bill to restrict marijuana advertisements along roadsides. AHawaiisenator is pushing to expand medical cannabis cultivation licensing following a federal raid on growers. TheGeorgiaCourt of Appeals ruled that products with delta-8 THC, delta-10 THC and other hemp-derived cannabinoids are not controlled substances. Coloradoregulators proposed changes to rules on marijuana decontamination, advertising, tracking and hospitality. Floridaregulators’ medical cannabis business licensing fee increase is being challenged with a new petition. Missouriregulators extended marijuana business variances and waivers. Washington Stateregulators seized what they said are unlicensed cannabis products. Alaska’sAdvisory Task Force on Recreational Marijuana will meet on Tuesday. — Marijuana Moment is tracking more than 1,000 cannabis, psychedelics and drug policy bills in state legislatures and Congress this year. Patreon supporters pledging at least $25/month get access to our interactive maps, charts and hearing calendar so they don’t miss any developments. Learn more about our marijuana bill tracker and become a supporter on Patreon to get access.
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/ LOCAL St. Charles and St. John, Missourivoters will decide on local marijuana tax measures on their ballots on Tuesday. Akron, Ohioofficials are considering selling city land for a medical cannabis development. / INTERNATIONAL AnItaliancourt ruled in favor of suspending a decree that would classify CBD as a narcotic substance until mid-January. Canadianregulators said that cannabis products intended to be consumed as food cannot be considered extracts. / SCIENCE & HEALTH A review concluded that “hemp plastic, which is 100% biodegradable, can be a betteralternative to synthetic plastic.” A review concluded that “psilocybin has demonstrated tolerability and safety in recent literature that has investigated its therapeutic potential in a variety ofpsychiatric or substance-dependence conditions.” / ADVOCACY, OPINION & ANALYSIS The Oregon League of Citiesis pushing lawmakers to repeal the state’s voter-approved drug decriminalization law. United Food and Commercial Workers Local 360 and The Cannabis Placepartnered on what they say is the U.S.’s first cannabis retail pre-apprenticeship training course. / BUSINESS Total Wine & Morebegan selling THC-infused beverages in Minnesota. MedMen Enterprises Inc.said it is unable to timely file its financial statements. Ascend Wellness Holdings LLCsettled a lawsuit filed by a Black former supervisor who alleged racial discrimination. Columbia Care Inc.is being sued by a former executive who claims he was not paid for his work. Illinoisretailers sold $138.8 million worth of legal recreational marijuana products and $26.2 million worth ofmedical cannabisproducts in October.
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On November 7, 2023 Ohio voters approved legalizing recreational marijuana use in the state making Ohio the 24th state to legalize cannabis for adult-use (previously Ohio legalized only medical cannabis). This measure known as “Issue 2”, allows the adult-use sale, purchase and possession of cannabis for Ohioans who are 21 and older. The measure, effective 30 days after the election, permits adults to possess up to 2.5 ounces of marijuana, up to 15 grams of marijuana concentrate and grow up to six plants at home.
Additionally, the measure establishes the Division of Cannabis Control within the Ohio Department of Commerce to oversee the compliance of the marijuana industry by regulating, investigating and penalizing cannabis operators and facilities.
The Growing Trend In Legalizing Cannabis – Current Standings:
Medical marijuana is legal in 38 states.
The medical use of cannabis is legal (with a doctor’s recommendation) in 38 states and Washington DC. Those 38 states being Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Hawaii, Illinois, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Dakota, Utah, Vermont, Virginia, Washington and West Virginia. The medical use of cannabis is also legal in the territories of the Northern Mariana Islands, Guam and Puerto Rico.
Recreational marijuana is legal in 24 states.
Twenty-three states and Washington DC, have legalized marijuana for recreational use — no doctor’s letter required — for adults over the age of 21. Those 23 states being Alaska, Arizona, California, Colorado, Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Montana, Nevada, New Jersey, New Mexico, New York, Ohio, Oregon, Rhode Island, Vermont, Virginia and Washington and the territories of the Northern Mariana Islands and Guam.
Recreational marijuana is legal in 6 tribal nations.
Six Tribal nations have legalized marijuana for recreational use. Those 6 tribes being the Flandreau Santee Sioux Tribe (South Dakota), Oglala Lakota Sioux Tribe (South Dakota), Suquamish Tribe (Washington state), Squaxin Island Tribe (Washington State), Eastern Band of Cherokee Indians (North Carolina) and St. Regis Mohawk Tribe (New York).
Conflict With Federal Law.
Under Federal law (Controlled Substances Act 21 U.S.C. 801) marijuana is designated as a Schedule I controlled substance due to the historical belief that it has a high potential for abuse, no currently accepted medical use in treatment, and lack of accepted safety for use under medical supervision.
Higher Taxes Still Remain
While the developments listed above are favorable for cannabis business, it still remains to be seen whether the Federal government will respond favorably and when favorable changes will be made to the Internal Revenue Code which treats businesses in the marijuana industry differently resulting in such business paying at least 3-times as much in taxes as ordinary businesses.
Generally, businesses can deduct ordinary and necessary business expenses under I.R.C. §162. This includes wages, rent, supplies, etc. However, in 1982 Congress added I.R.C. §280E. Under §280E, taxpayers cannot deduct any amount for a trade or business where the trade or business consists of trafficking in controlled substances…which is prohibited by Federal law. Marijuana, including medical marijuana, is a controlled substance. What this means is that dispensaries and other businesses trafficking in marijuana have to report all of their income and cannot deduct rent, wages, and other expenses, making their marginal tax rate substantially higher than most other businesses.
Reporting Of Cash Payments Still Remain
The Bank Secrecy Act of 1970 (“BSA”) requires financial institutions in the United States to assist U.S. government agencies to detect and prevent money laundering. Specifically, the act requires financial institutions to keep records of cash purchases of negotiable instruments, and file reports of cash purchases of these negotiable instruments of more than $10,000 (daily aggregate amount), and to report suspicious activity that might signify money laundering, tax evasion, or other criminal activities. The BSA requires any business receiving one or more related cash payments totaling more than $10,000 to file IRS Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business.
The minimum penalty for failing to file EACH Form 8300 is $25,000 if the failure is due to an intentional or willful disregard of the cash reporting requirements. Penalties may also be imposed for causing, or attempting to cause, a trade or business to fail to file a required report; for causing, or attempting to cause, a trade or business to file a required report containing a material omission or misstatement of fact; or for structuring, or attempting to structure, transactions to avoid the reporting requirements. These violations may also be subject to criminal prosecution which, upon conviction, may result in imprisonment of up to 5 years or fines of up to $250,000 for individuals and $500,000 for corporations or both.
Marijuana-related businesses operate in an environment of cash transactions as many banks remain reluctant to do business with many in the marijuana industry. Like any cash-based business the IRS scrutinizes the amount of gross receipts to report and it is harder to prove to the IRS expenses paid in cash. So it is of most importance that the proper facilities and procedures be set up to maintain an adequate system of books and records.
How Do You Know Which Cannabis Tax Attorney Is Best For You?
Given that cannabis is still illegal under existing Federal law you need to protect yourself and your marijuana business from all challenges created by the U.S. government. While cannabis is legal in California, that is not enough to protect you. It’s coming down that the biggest risk is TAXES. So it is best to be proactive and engage an experienced cannabis tax attorney in your area who is highly skilled in the different legal and tax issues that cannabis businesses face. Let the cannabis tax attorneys of the Law Offices Of Jeffrey B. Kahn, P.C. located in Orange County (Irvine), the Inland Empire (Ontario and Palm Springs) and other California locations protect you and maximize your net profits. And if you are involved in crypto currency, check out what a bitcoin tax attorney can do for you.
Delaware legislators spent years debating whether to permit recreational marijuana use and create a regulated industry in the state. After Gov. John Carney stood down his opposition in April allowing legalization bills to pass, new debates are now filtering down to local municipalities. Under the
