Global Ganja Report

Is the relieved pressure on cannabis in the United States undermining the Mexican cartels, as we'd long hoped? There are encouraging signs. Global Post cites a new report by California cannabis industry think-tank The ArcView Group finding that legal marijuana sales jumped 74% in 2014 to a new high of $2.7 billion—a growth pace expected to continue for several more years. And Mexican producers may be taking the hit. In 2014, the US Border Patrol saw a plunge in pot seizures—1.9 million pounds, down 24% from 2011, the year before Colorado and Washington voted to legalize.  

The Pinoleville Pomo Nation of Northern California's Mendocino County is set to be the first Native American tribe to grow cannabis, pursuant to the new Justice Department policy taking a hands-off approach to cultivation on Indian reservations. The 250-member tribe signed a contract last month with Kansas-based FoxBarry Farms and Colorado-based United Cannabis to develop a large-scale grow operation on its 99-acre rancheria just north of Ukiah. "We anticipate construction to begin in early February, and operations to commence by the end of the month," Barry Brautman, president of FoxBarry Development Company, told Indian Country Today Media Network. "Our first phase will include 90,000 feet of greenhouse space, and another 20,000 feet of indoor space." FoxBarry will also oversee distribution for California's medical market. Cannabis grown on the rancheria will be distributed only to card-holding medical users and dispensaries. “Our business model involves doing everything legally and by the book,” Brautman emphaszied to the Santa Rosa Press-Democrat.

Identical twin brothers Pedro and Margarito Flores on Jan. 27 were the latest to be sentenced in a series of high-profile federal cases targeting the Sinaloa Cartel's operations in Chicago. Accused of running a continent-spanning trafficking ring, they each received 14 years in prison after US District Judge Ruben Castillo agreed to sharply reduce their term in recognition of their work as government informants. Castillo called the Flores twins, natives of Chicago's West Side, the "most significant drug dealers" he'd dealt with in two decades on the bench, stating that they had "devastated the walls" of US national security by bringing at least 70 tons of cocaine and heroin into the country from 2005 to 2008. Prosecutors also charged the twins smuggled $1.8 billion back to Mexico—wrapped in plastic and duct tape. But it was federal prosecutors who pleaded for leniency, hailing the twins for gathering evidence against the Sinaloa Cartel's long-fugitive kingpin "El Chapo" Guzmán, who was finally busted in Mexico last year. 

In the most serious challenge yet to Colorado's cannabis legalization policy, the states of Nebraska and Oklahoma took the unusual move of filing a case against it directly with the US Supreme Court. The two states argue that "the State of Colorado has created a dangerous gap in the federal drug control system...  Marijuana flows from this gap into neighboring states, undermining Plaintiff States' own marijuana bans, draining their treasuries, and placing stress on their criminal justice systems." Lawyers for the Cornhusker State and the Sooner State assert that local authorities have registered a big uptick in cannabis entering their towns since Colorado legalized with voter-approved Amendment 64 in 2012. The suit also claims Colorado's legalization policy violates the Supremacy Clause of the US Constitution.

The new Justice Department policy to take a hands-off approach to cannabis cultivation on Indian reservations could be a boon for the Lakota Sioux, who have long been pressing their right as a sovereign nation to grow industrial hemp. US Attorney for North Dakota Timothy Purdon (who is also the US Attorney General's pointman for Native American issues) told AP he's not aware of any tribes in either North or South Dakota actively considering a cannabis industry. The tribal council of the Oglala Lakota Nation this year rejected a proposal to allow cannabis cultivation on the Pine Ridge Reservation in southwest South Dakota. The council's Law and Order Committee chair Ellen Fills the Pipe said: "For me, it's a drug. My gut feeling is we're most likely going to shoot it down." (The San Francisco Chronicle's cannabis-friendly Smell the Truth blog couldn't help noting the irony of her name, but also acknowledged fears, realistic or not, that rez pot sales could excacerbate already existing alcohol abuse problems.) But that's the smokable variety, not the industrial. Chairman Dave Archambault of the Standing Rock Sioux, with a reservation straddling North and South Dakota, said that his tribe might consider industrial hemp cultivation.

In an historic move to respect Native American sovereignty earlier this month, the US Department of Justice (DoJ) issued a memo instructing US attorneys to not interfere with tribes cultivating or selling cannabis on reservation lands. The caveat is that the tribes have to be in conformity with state law, limiting the new policy to states that have legalized (Colorado, Washington) or have strong medical marijuana programs (California, Montana). Tribes must also maintain "robust and effective regulatory systems," as John Walsh, US attorney for Colorado, told the Los Angeles Times. But US attorney for North Dakota Timothy Purdon, the Attorney General's pointman on Native American Issues, added: "The tribes have the sovereign right to set the code on their reservations." US News & World Report even speculated: "Marijuana may displace casinos as reservation cash cows."

The House and Senate appropriations leadership has hammered out a budget bill that includes an historic amendment to curb federal Department of Justice (DoJ) enforcement in medical marijuana states. The measure, which was originally passed by the House in May with a 219-189 vote, aims to prohibit the DoJ from spending taxpayer money to undermine state medical marijuana laws. "This is great news for medical marijuana patients all across the country," said Rep. Sam Farr (D-CA), one of the co-authors of the House measure. "This amendment protects patients while the federal government catches up with the views of the American people. Patients will have access to the care legal in their state without fear of federal prosecution. And our federal dollars will be spent more wisely on fighting actual crimes and not wasted going after patients."

US representatives Earl Blumenauer (D-OR) and Dana Rohrabacher (R-CA), along with ten bipartisan co-sponsors introduced, the Veterans Equal Access Act (VEAA) Nov. 20, to allow our country's veterans to become medical marijuana patients in states where it's legal. The VEAA would allow Veterans Affairs (VA) physicians to recommend medical marijuana to their patients, a right enjoyed by physicians outside of the VA system. "Post traumatic stress and traumatic brain injury are just as damaging and harmful as any injuries that are visible from the outside," said Blumenauer, the bill's author. "Sometimes even more so because of the devastating effect they can have on a veteran's family. We should be allowing these wounded warriors access to the medicine that will help them survive and thrive, including medical marijuana, not treating them like criminals and forcing them into the shadows. It's shameful."