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Chronicle AM -- July 24, 2014

There's dollar signs coming with marijuana legalization laws, Rand Paul moves to protect medical marijuana, but it's too late for one New York girl, there's a new opiate pain reliever out there (with a twist), and more. Let's get to it:

Chilean Senator Isabel Allende Bussi wants to legalize marijuana possession and cultivation. (wikimedia.org)
Marijuana Policy

Oregon Marijuana Legalization Could Generate $38.5 Million in Taxes in First Year, Report Says. An economic study commissioned by New Approach Oregon, the people behind the marijuana legalization initiative just approved for the November ballot, finds that legalization would produce $38.5 million in tax revenues in its first year.

Medical Marijuana

Rand Paul Files Medical Marijuana Amendment. US Senator Rand Paul (R-KY) today filed an amendment to Senate Bill 2569, the "Bring Jobs Home Act," that would explicitly allow states to pass medical marijuana laws despite the provisions of the federal Controlled Substances Act. The amendment would also bar prosecutions of patients and doctors for engaging in medical marijuana activities in states where it is legal.

New York Poster Child for Medical Marijuana Dies Without Her Medicine. Nine-year-old Anna Conte, whose family has been at the center of the Empire State medical marijuana debate, has died without ever gaining access to marijuana medicines that may have alleviated her condition. Conte suffered from Dravet Syndrome, which caused her to suffer hundreds of crippling seizures every day. The state passed a medical marijuana law last month, but it won't go into effect for another year and a half.

Minnesota Names Medical Marijuana Director. The state Department of Health has named department employee Michelle Larson the first-ever director of the Office of Medical Cannabis. She is charged with managing the office's staff and creating and implementing administrative policies for things like an application process for a manufacturer and a patient registry. The state's law limits medical marijuana to eight specified diseases or conditions and does not allow for the use of smoked marijuana.

Prescription Opiates

FDA Approves Oxycodone/Naloxone Combo Pain Reliever. The Food and Drug Administration (FDA) has approved a new opioid pain reliever that combines oxycodone and naloxone. Targiniq ER, produced by Purdue Pharma, the maker of Oxycontin, included naloxone to block the euphoric effects of oxycodone, making it less likely to be misused.

International

Poll Finds Strong Australian Majority for Medical Marijuana. A new ReachTel survey finds that nearly two-thirds of respondents support legalizing medical marijuana. Support was highest among people between 51 and 65. The poll comes as New South Wales inches toward approving medical marijuana.

Chilean Senators Propose Legalizing Marijuana Possession, Cultivation. Four Chilean senators have introduced a bill that would legalize the possession and cultivation of small amounts of marijuana for personal use, as well as for "therapeutic and spiritual reasons." The legislators include Sen. Isabel Allende Bussi, daughter of Salvador Allende, who died in the midst of a rightist military coup to overthrow him in 1973, and Juan Pablo Letelier, the son of Orlando Letelier, a Chilean politician assassinated by the Pinochet government in Washington, DC, in 1976.

Rand Paul Files Medical Marijuana Amendment

US Senator Rand Paul (R-KY) today filed an amendment to Senate Bill 2569, the "Bring Jobs Home Act," that would explicitly allow states to pass medical marijuana laws despite the provisions of the federal Controlled Substances Act. The amendment would also bar prosecutions of patients and doctors for engaging in medical marijuana activities in states where it is legal.

Rand Paul (congress.gov)
The amendment, No. 3630, is not yet available on the congressional web site, but a copy has been made available to the Chronicle.

"Notwithstanding section 708 of the Controlled Substances Act or any provisions of law (including regulations), a State may enact and implement a law that authorizes the use, distribution, possession, or cultivation of marijuana for medical use," the amendment says.

"No prosecution may be commenced or maintained against any physician or patient for a violation of Federal law (including regulations) that prohibits the conduct described in subsection (b) [Ed.: The paragraph above.] if the State in which the violation occurred has in effect a law described in subsection (b) before, on, or after the date on which the violation occurred."

The amendment then lists the 32 states and the District of Columbia that have laws allowing for the use of medical marijuana, including some that only allow for the use of low-THC, high-CBD cannabis oils.

Senate Bill 2569 was introduced in the Senate earlier this month.

Washington, DC
United States

Sentencing Commission Cuts Up to 46,000 Drug War Prisoners' Sentences [FEATURE]

In a much anticipated move, the US Sentencing Commission last Friday voted unanimously to retroactively apply previously approved reductions in federal sentencing guidelines to federal drug war prisoners already serving their sentences. The move means more than 46,000 federal prisoners will be able to apply for sentence reductions.

"This amendment received unanimous support from Commissioners because it is a measured approach," said Judge Patti Saris, chair of the Commission. "It reduces prison costs and populations and responds to statutory and guidelines changes since the drug guidelines were initially developed, while safeguarding public safety."

It's not going to be a flood of inmates suddenly walking out of federal prisons. Prisoners will not be able to seek sentence cuts until November 1 and none will be released before November 1, 2015. Those cuts will average about two years, turning what are currently average 11-year sentences to average nine-year sentences.

It is not quite a done deal. Congress has until November 1 this year to move to block it, but there appears to be little sign of any significant effort underway to do so.

The move is the latest in an effort by the Sentencing Commission to reduce the excesses of drug sentencing resulting from harsh laws passed mostly in the 1980s. It comes as the federal prison population continues to expand, even as state prison populations have begun to shrink following the enactment of sentencing reforms at the state level.

Before the Commission acted, it opened the issue to public comment, and the response indicated intense interest in making the move. The Commission received some 65,000 letters during the comment period, the vast majority endorsing the proposed change. Commenters included nearly a dozen US senators and representatives, including members of both the House and the Senate judiciary committees, all of them in support of the move, as well as federal judges, civil liberties, civil rights, and sentencing and drug reform groups.

According to the federal Bureau of Prisons, there are 100,549 people serving federal time for drug offenses, accounting for nearly half (49.7%) of all federal prisoners. The next two biggest categories are weapons offenses (15.7%) and immigration offenses (10.4%).

Sentencing Commission Chair Judge Patti Saris (uscourts.gov)
The federal prison population has tripled since 1991, largely driven by harsh drug war sentences, the Sentencing Commission found, and the federal prison budget is now eating up $6 billion a year, or one quarter of the entire Justice Department budget. The federal prison system is currently 32% over capacity, with that figure rising to 52% over capacity in maximum security prisons.

The Sentencing Commission acted in April to redress harsh prison sentences by reducing the base offense levels in drug quantity tables in the federal sentencing guidelines so that drug offenses are scored lower in the federal sentencing grid. That reduces the length of possible sentences for a given offense under the guidelines.

"The Commission has the statutory duty to ensure that the guidelines minimize the likelihood that the federal prison population will exceed capacity," Judge Saris explained. "Reducing the federal prison population has become urgent, with that population almost three times where it was in 1991" and high prison costs "are reducing the resources available for federal prosecutors and law enforcement, aid to state and local law enforcement, crime victim services, and crime prevention programs -- all of which promote public safety," she added.

"Many of the same factors which led us to vote in April to reduce drug guidelines support making those reductions retroactive," Saris continued. "The same changes in the guidelines and laws I mentioned earlier that made the lower guideline levels more appropriate prospectively also make lower guideline levels appropriate for those offenders already in prison, most of whom were convicted after many of these statutory and guideline changes were already in place. In addition, retroactive application of the amendment would have a significant impact on reducing prison costs and overcapacity, which was an important purpose of the amendment, and the impact would come much more quickly than from a prospective change alone."

The Sentencing Commission's action was greeted with cheers from the drug reform and sentencing reform communities.

The Sentencing Commission during a May public hearing. (uscourts.gov)
"We did it!" exclaimed Families Against Mandatory Minimums (FAMM) president and founder Julie Stewart. "We got full retroactivity of the drug guideline amendment! Because of your help, 46,000 federal drug offenders sentenced before November 1, 2014, will now be eligible to file a motion in federal court asking for a shorter sentence. I am thrilled with this outcome, especially because we did it together," she said. "More than two dozen FAMM supporters were present with me in the hearing room when the Commission voted in favor of full retroactivity. All of us were overjoyed at the result."

"The Sentencing Commission has promoted fundamental fairness by making its amendment retroactive, ensuring that sentence dates do not determine sentence lengths," said Marc Mauer, executive director of the Sentencing Project. "This vote reflects an historic shift in the decades-long war on drugs, which has filled half of federal prison cells with people convicted of drug offenses. That war has come at a ruinous cost for all Americans, but particularly for communities of color. Not only has there been an enormous financial cost to the public, but there is little evidence to suggest that excessively punitive federal drug policies have improved public safety," he said.

"Retroactive application of the drug guidelines amendment is an important step toward addressing the unjust racial disparities produced through federal sentencing policies as well," Mauer added. "Because drug law enforcement has disproportionately affected African Americans and Latinos, reduced drug penalties will help to mitigate the effect of harsh sentencing policies on communities of color."

"It makes little sense, of course, to reform harsh sentencing laws proactively but not retroactively," said Ethan Nadelmann, executive director of the Drug Policy Alliance. "But that's what politicians do when they're scared of allowing people out of prison early. The Sentencing Commission really had no choice but to rectify the moral absurdity of keeping people locked up based on sentences that are no longer the law. What they did today was right and just."

The Sentencing Project's Mauer told the Chronicle Tuesday he thought it unlikely that Congress would attempt to block the reform.

"I have not heard of any significant opposition that is developing," he said. "My guess is that since it was a unanimous recommendation from the commission and that this is an election year and members have that on their minds, I'm optimistic there won't be any serious threat of this not going through."

Still, prisoners, their friends, families, and supporters will be waiting for that November deadline for congressional action to pass before they exhale. But it does look as if the federal government has taken a rather significant step in reversing some of the worst excesses of the drug war.

US Drug Policy and the Border Child Immigration Crisis [FEATURE]

The mass migration of tens of thousands of children and adolescents from Central America festered for months before exploding into a full-blown border refugee/immigration crisis in the last few weeks, as images of hundreds of children warehoused in temporary holding facilities competed with equally compelling images of crowds of angry Americans loudly protesting their presence.

At the border. (COHA)
The finger-pointing is in full swing. Much of it centers on the need to "secure the border" and the Obama administration's alleged failure to do so. Other Republican critics blame the administration's alleged "softness" on child immigrants as a factor pulling the kids north. Democrats counter that the GOP's blockage of long-pending immigration reform is part of the problem.

A lot of the discussion centers around the "pull" factors -- those policies or social or economic realities that draw these immigrants toward the US, but equally at play are "push" factors -- those policies or social or economic factors that impel these emigrants to seek new, better lives outside their homelands.

And there is finger-pointing going on about that, too, with some loud and prominent voices placing a good share of the blame on prohibitionist US drug policies in Latin America -- their emphasis on law enforcement and military responses, their balloon effects, and their other unintended consequences.

The majority of the child immigrants are coming from El Salvador, Guatemala, and Honduras, the so-called Northern Triangle of Central America (the isthmus also includes Belize, Nicaragua, Costa Rica, and Panama). Those Northern Triangle countries suffered not only devastating civil wars in the 1980s, with the US supporting conservative, often dictatorial governments against leftist popular guerrilla movements (or, in the case of Honduras, serving as a platform for counterinsurgency against the leftist Sandinista government in Nicaragua), but also chronic poverty and income inequality.

They are also the countries feeling the brunt of the expansion of powerful Mexican drug trafficking organizations -- the so-called cartels -- who, in response to increased pressure from the Mexican government (assisted by US aid under the Merida agreement) began pushing south into the region around 2008. And they are countries where transnational criminal gangs, such as the Mara Salvatrucha (MS-13) have taken on an increasingly high profile, bringing high levels of criminal violence with them. (San Pedro Sula, Honduras, bears the dubious distinction of having the highest murder rate in the world.)

Honduran President Juan Fernandez is one of the prominent voices placing the blame for the crisis squarely on the war on drugs.

"Honduras has been living in an emergency for a decade," Hernandez told Mexican daily newspaper Excelsior. "The root cause is that the United States and Colombia carried out big operations in the fight against drugs. Then Mexico did it. This is creating a serious problem for us that sparked this migration. A good part of (migration) has to do with the lack of opportunities in Central America, which has its origin in the climate of violence, and this violence, almost 85% of it, is related to the issue of drug trafficking," he said.

Former Clinton administration labor secretary Robert Reich has been another prominent voice pointing to the role of the drug war -- and earlier militaristic US interventions in the region. He let loose in a Facebook post last weekend.

"I've been watching media coverage of angry Americans at our southern border waiving signs and yelling slogans, insisting that the children -- most of whom are refugees of the drug war we've created -- 'go home' to the violence and death that war has created, and I wonder who these angry Americans are," he wrote. The "United States is not a detached, innocent bystander" when it came to the refugee crisis, he explained.

"For decades, US governments supported unspeakably brutal regimes and poured billions into maintaining them ($5 billion in El Salvador alone). Implacable opposition to communism -- often defined as virtually any reformer -- gave these regimes a blank check," Reich continued. "The result is a legacy of dealing with opponents through extreme violence and a culture of impunity. Judicial systems remain weak, corrupt, and often completely dysfunctional. After the cold war ended, the United States lost interest in these countries. What was left was destruction, tens of thousands dead, and massive population displacement. The percentage of people living below the poverty line is 54 % for Guatemala, 36 % for El Salvador, and 60 % for Honduras. More recently gangs, organized crime, and drug cartels feeding the US market have become part of this unholy mix."

While the president of Honduras and Democrats like Reich could have political incentives in what is an increasingly ugly and partisan debate over the crisis, a number of experts on the region -- though not all of them -- agree that US drug policies in the region are playing a major role in the affair.

"Although there are many factors, clearly the drug war is one of them," said John Walsh, senior associate for drug policy for the Washington Office on Latin America (WOLA). "There can't be any doubt that drug trafficking and efforts to repress it are part of the criminality and violence in Central America," he told the Chronicle.

"It's not the only explanation, of course," he added. "There are decades of weak institutions and long histories of violence in the area. But if you take into account the shifting trafficking patterns resulting from the US helping other governments in the region put pressure on the industry and shift routes through Central America, it has certainly added to the problems."

"We've been engaged in a drug war for 40 years, and everywhere we put pressure, it bulges out somewhere else," said Nathan Jones, fellow in drug policy at Rice University's Baker Institute in Houston. "In the Miami Vice era, we put pressure on the Caribbean, and the trade moved to Mexico. We dismantled the Cali and Medellin cartels in the early 1990s, and in hindsight, we know that also empowered the Mexican cartels."

The pattern keeps repeating, Jones said.

"Through the Merida Initiative, we put more pressure on the Mexican cartels -- and for very good reasons -- but that resulted in their dispersal into Central America. The Zetas and the Sinaloa cartel established alliances and began carving out chunks of Central America. They shifted to two-state and multi-stage trafficking operations and tried to minimize their risk by having their loads stop in various countries."

Honduran President Juan Orlando Hernandez (wikipedia.org)
At the same time the Mexican cartels were pushing (and being pushed) into Central America, Central American gangs were rearing their tattooed heads. Ironically enough, gangs like Mara Salvatrucha (MS-13) had their origins in another US war in the region: the Reagan-era effort to thwart the rise to power of popular leftist guerrillas.

"Deportation got us into this mess in the first place," said Jones. "We had immigrants coming from Central America during the wars of the 1980s. Some of them formed their own gangs after being rejected by Mexican street gangs in places like Los Angeles, and when they showed up in the criminal justice system, we deported them back to their home countries. We transnationalized those gangs in the process, and now the violence from those very gangs is resulting in another mass migration flow. And now we are proposing the same solution of deportation. This doesn't deal with root causes."

"I'm not a big proponent of the drug war as an explanation for everything," countered Eric Olson, associate director of the Latin American Program at the Woodrow Wilson Center in Washington, DC. "We need to stop thinking about the violence in Central America as a drug problem. It's a factor in the violence but not really a primary factor. Community based criminal networks involved in extortion, kidnapping, and other forms of criminal activity -- including retail drug markets -- are more of a factor," he told the Chronicle.

"There is virtually no state presence in most of the areas of highest violence so it's a little hard to blame the drug war," Olson continued. "Where the drug war has been the biggest problem has been when there are mass operations and mass detentions, but even those arrests have less and less to do with drugs and more and more to do with the criminalization of gang membership, extortion, and other things. We've got to stop seeing everything through the drug war lens."

"Criminal groups have diversified their business models," WOLA's Walsh conceded. "Drug trafficking is only one aspect, but the revenues are so huge that there is more money to buy weapons and corrupt officials, so it contributes to crime and impunity. There is no doubt this is part of the problem."

"This is a very complicated issue, with lots of causal factors, and blaming it solely on US policy has lots of shortcomings," said Alicia Magdalena Duda, a researcher with the Council on Hemispheric Affairs (COHA). "But the drug war and the violence is a big issue."

Assigning blame for the status quo is a backwards looking exercise, but what is to be done moving forward? There are divergences of opinion there, too.

"We have to recognize that just equipping these countries to chase drugs around in the interest of interdicting them for our purposes isn't contributing much to reducing violence and increasing public safety," said Walsh. "Drug enforcement as measured by how much they're interdicting has no impact at best, and probably makes things worse. Rather than foster the illusion that we can eradicate the drug trade, we need to steer law enforcement there to reduce violence by going after the worst, most violent actors rather than measuring success in tons seized."

"How to end the violence is a long-term issue," said COHA's Duda. "Those countries are facing extreme violence and poverty. To address this immigration crisis, we have to actively engage with them, and not just with monetary packages. One of the contributors to poverty is corruption, and corruption is rampant there. Ignoring that and just continuing with the present approach is not effective, either," she said.

Duda even broached a very controversial response, one that has also been heard in regard to Mexico and the prohibition-related violence there.

"Maybe they have to engage in peace talks with the gangs and cartels," she suggested.

"One of the great frustrations about Central America is that we supported those right-wing regimes during the Cold War, but we didn't deal with any of the underlying conditions, the grievances, the extreme income inequality, the crushing, grinding poverty," said Jones. "We need a sustained engagement with Central America, but we also have to leverage those host governments to do the right thing. We can't have a situation where wealthy elites are not paying their fair shares of taxes. We have societies fundamentally structured along wrong principles. It will take decades to turn things around, but it needs to happen."

"Our focus should be on reducing violence and addressing the factors that are actually driving the violence," said Olson. "This should include targeted law enforcement, but also prevention programs as well as gang intervention and reintegration programs. Only by reducing violence and the stranglehold criminal networks have on communities will people consider staying in place."

This is a complicated problem with no easy solutions and a lot of different suggestions. Whether prohibition and US drug policies have played a key role or only a supporting one, it does seem clear that, at best, they have not helped. At worst, our drug policies in the region have increased violence and corruption in the region, enriching the worst -- on both sides of the law.

Sentencing Commission Makes Drug Sentencing Reductions Retroactive

The US Sentencing Commission Friday voted unanimously to make previously agreed upon federal drug sentencing reductions retroactive. That means tens of thousands of federal drug prisoners could see sentence cuts beginning in November 2015.

The move comes after the Commission's April decision to amend federal sentencing guidelines by lowering base offense levels in the guidelines' Drug Quantity Table across all drug types, which should lead to lower sentences for most federal drug offenders. Today's vote means that sentencing judges can extend that reduction to people currently serving drug sentences.

"This amendment received unanimous support from Commissioners because it is a measured approach," said Judge Patti Saris, chair of the Commission. "It reduces prison costs and populations and responds to statutory and guidelines changes since the drug guidelines were initially developed, while safeguarding public safety."

"We did it! We got full retroactivity of the drug guideline amendment," an elated Julie Stewart, president and founder of Families Against Mandatory Minimums (FAMM), wrote to supporters. "Because of your help, 46,000 federal drug offenders sentenced before November 1, 2014, will now be eligible to file a motion in federal court asking for a shorter sentence. The average sentence reduction for those who qualify will be two years!"

The Sentencing Commission had asked for public input on its pending decision and was swamped with some 65,000 letters. FAMM took credit for much of that.

"I am thrilled with this outcome, especially because we did it together," Stewart wrote. "With your help, we generated most of the 65,000 letters the US Sentencing Commission received about this issue. And more than two dozen FAMM supporters were present with me in the hearing room when the Commission voted in favor of full retroactivity. All of us were overjoyed at the result."

It is not quite a done deal. Congress has until November 1 to reject the amendment to reduce drug guidelines. If it fails to act by then, federal courts could begin considering petitions for sentence reductions, but no prisoners would be released under the reductions until November 15, 2015.

"The delay will help to protect public safety by enabling appropriate consideration of individual petitions by judges, ensuring effective supervision of offenders upon release, and allowing for effective reentry plans," Saris said.

Look for a Chronicle feature article on this ground-breaking move early next week.

Washington, DC
United States

Chronicle AM -- July 18, 2014

Tens of thousands of federal drug prisoners could get out early after the US Sentencing Commission votes to make guideline reductions retroactive, the Ohio Supreme Court moves to cut some crack sentences, FedEx gets indicted for shipping pills for Internet pharmacies (and not taking a deal with the feds), and more. Let's get to it:

Federal Correctional Institution, Englewood, CO. There may soon be room at the inn. (wikimedia.org)
Medical Marijuana

New York Medical Marijuana Business Alliance Formed. Albany-area medical marijuana lobbyists have formed a business alliance to jointly fight for their interests. The group is called the Medical Cannabis Industry Alliance of New York. Members will include growers, advocates, real estate interests, and other businesses associated with medical marijuana.

New Hampshire Advocates to Demonstrate at Statehouse Next Wednesday to Criticize Medical Marijuana Program Delays. Next Wednesday is the one-year anniversary of Gov. Maggie Hassan's signing of the state's medical marijuana bill, but the state's program is beset with needless delays, say advocates, who will gather at the statehouse in Concord next Wednesday to shine a media spotlight on the problem. Click on the link to RSVP.

Northern California Congressman Calls on US Attorney to Go After "Trespass" Marijuana Growers, Not People Complying With State Law. US Rep. Jared Hoffman (D-CA) sent a letter Wednesday to Northern California US Attorney Melinda Haag urging her "to focus prosecutorial and enforcement resources on trespass marijuana growers, not low-level marijuana offenders complying with state law." Hoffman called "trespass" growers "the greatest emerging threat to public safety and environmental health" in Northern California. Click on the link to read the letter in its entirety.

New Synthetic Drugs

Alaska Tries New Tactic in Battle Against Synthetics -- Fining Stores That Sell Them. Gov. Sean Parnell (R) Wednesday signed into law a bill designed to block the retail sale of synthetic drugs by defining them as products with "false or misleading labels" and imposing fines similar to traffic tickets on people who sell or possess them. The move comes after earlier efforts to suppress the new synthetics were undermined by manufacturers who adjusted their recipes to avoid lists of banned synthetics.

Law Enforcement

FedEx Hit With Criminal Indictment for Shipping Internet Pharmacy Drugs. A federal grand jury in San Francisco has indicted FedEx, the world's largest cargo company, on criminal charges of conspiracy to distribute controlled substances and distribution of misbranded drugs. Federal prosecutors are seeking to forfeit and seize at least $820 million in what they say are proceeds from such illegal shipments. Read the indictment here.

Sentencing

US Sentencing Commission Votes Unanimously for Retroactivity in Drug Sentencing, Could Affect 46,000 Federal Prisoners. The United States Sentencing Commission voted unanimously today at a public meeting to apply a reduction in the sentencing guideline levels applicable to most federal drug trafficking offenders retroactively, meaning that many offenders currently in prison could be eligible for reduced sentences beginning November 2015. Unless Congress disapproves the amendment, beginning November 1, 2014, eligible offenders can ask courts to reduce their sentences. Offenders whose requests are granted by the courts can be released no earlier than November 1, 2015. The Commission estimates that more than 46,000 offenders would be eligible to seek sentence reductions in court. These offenders' sentences could be reduced by 25 months on average. Click on the link for more information.

Ohio Supreme Court Rules Crack Defendants Sentenced After New Law to Reduce Disparities Went Into Effect Must Be Resentenced. The state Supreme Court ruled Wednesday that defendants convicted before laws reducing the penalty for possessing crack cocaine went into effect, but sentenced after they went into effect must be resentenced under the new law. The case is State v. Limoli.

International

Australia Drug Use Survey Released. The 2013 National Drug Strategy Household Survey, conducted by the Australian Institute of Health and Welfare, was released Thursday. Cigarette smoking is down, youth drinking is down, and so is the use of heroin, ecstasy, and GHB. The misuse of pharmaceuticals is up, and the use of meth remains steady.

Ending Moratorium, Singapore Executes Two Convicted Drug Dealers. Singapore today hanged two convicted drug dealers, the first executions for drug offenses since it imposed a moratorium on them in 2011. Tang Hai Liang, 36, had been convicted of trafficking 89.55 grams (3.2 ounces) of pure heroin and Foong Chee Peng, 48, had been found guilty of dealing 40.23 grams of the same illegal drug. Both are Singapore citizens. They had chosen not to seek resentencing under a 2012 law that abolished mandatory death sentences in some drug trafficking cases.

FedEx Indicted on Criminal Charges for Shipping Internet Pharmacy Drugs

A federal grand jury in San Francisco has indicted FedEx, the world's largest cargo company, on criminal charges of conspiracy to distribute controlled substances and distribution of misbranded drugs. Federal prosecutors are seeking to forfeit and seize at least $820 million in what they say are proceeds from such illegal shipments.

FedEx truck, Chicago (wikimedia.org)
Read the indictment here.

The move comes after FedEx rejected offers from federal prosecutors to cut a deal. FedEx's chief competitor, UPS, settled a similar case last year by agreeing to pay $40 million after being linked to the shipment of prescription drugs by illegal online pharmacies. Both cases were brought by US Attorney for the Northern District of California Melinda Haag. [Ed: Haag is loathed by the medical marijuana community for action taken against northern California providers.]

But unlike UPS, FedEx refused to settle. And now, it is vowing to fight the charges.

"FedEx is innocent of the charges," the company said in a statement. "We will plead not guilty. We will defend against this attack on the integrity and good name of FedEx and its employees."

In the past, the company has said it wouldn't settle because it doesn't believe it has done anything wrong. FedEx argues that it should not be held responsible for the contents of the tens of millions of packages it ships each year. The company has acknowledged that it has been under grand jury scrutiny for several years.

The grand jury indictment accuses FedEx of knowingly shipping prescription drugs for two different online pharmacy operations, both of which were prosecuted by the Justice Department. It accuses FedEx of ignoring warnings about doing so for years.

"The advent of Internet pharmacies allowed the cheap and easy distribution of massive amounts of illegal prescription drugs to every corner of the United States, while allowing perpetrators to conceal their identities through the anonymity the Internet provides," said US Attorney Haag. "This indictment highlights the importance of holding corporations that knowingly enable illegal activity responsible for their role in aiding criminal behavior."

The charges carry with them a sentence of up to five years probation and fines totaling "twice the gross gains derived from the offense," or $820 million. Because no individuals are named in the indictment, however, it's not clear who or what would be on probation if FedEx is tried and convicted.

San Francisco, CA
United States

House Votes to Let Banks Take Deposits from Marijuana Businesses

In an historic vote Wednesday, the US House has approved an amendment to the Treasury Department appropriations bill barring the agency from spending any money to punish financial institutions that provide services to marijuana businesses in states where it is legal.

The amendment was sponsored by Reps. Heck (D-WA), Perlmutter (D-CO), Lee (D-CA) and Rohrabacher (R-CA). It passed with bipartisan support.

This is the second time in less than two months that the House has voted to roll back marijuana law enforcement. In May, the House passed an amendment prohibiting the Drug Enforcement Administration (DEA) from undermining state medical marijuana laws and passed two amendments prohibiting the DEA from interfering with state hemp laws.

"Congress is yet again rejecting the failed war on marijuana," said Bill Piper, director of national affairs for the Drug Policy Alliance. "They have read the poll numbers and are doing both what is right and what is politically smart."

Washington, DC
United States

Chronicle AM -- July 16, 2014

The House okays marijuana banking, DC decriminalizes tomorrow, DC expands its medical marijuana program, Miami-Dade taxpayers pay for a particularly heinous killer drug raid, a lot of states did sentencing reforms last year, and more. Let's get to it:

Marijuana businesses could go to the bank under a measure passed by the House today. (Drug Policy Alliance/Sandra Yruel)
Marijuana Policy

House Votes to Let Banks Take Deposits from Marijuana Businesses. In a historic vote this afternoon, the US House has approved an amendment to the Treasury Department appropriations bill barring the agency from spending any money to punish financial institutions that provide services to marijuana businesses where it is legal. The amendment was sponsored by Reps. Heck (D-WA), Perlmutter (D-CO), Lee (D-CA) and Rohrabacher (R-CA). It passed with bipartisan support.

DC Decriminalization Law Goes Into Effect Tomorrow. As of one minute after midnight, the possession of an ounce or less of marijuana will be decriminalized in the nation's capital. Jail time for pot possession will be replaced with a $25 fine. A Republican-led effort in the House to block it remains alive, but will not stop the law from taking effect -- at least for now. That effort still has to get through the Congress and overcome White House opposition, and that looks like a long-shot at this point.

Grosse Point, Michigan, Initiative to Legalize Up to an Ounce Turns in Signatures. A municipal initiative campaign to legalize the possession of up to an ounce of pot in the Detroit suburb of Grosse Point turned in more than 600 signatures today. The group needs 493 valid voter signatures to qualify for the November ballot. Grosse Point is one of a handful of Michigan towns with similar campaigns this year, including Berkley, Hazel Park, Huntington Woods, Oak Park, and Pleasant Ridge.

Santa Fe, New Mexico, Initiative to Decriminalize Marijuana Possession Turns in Signatures. Progress Now New Mexico and Drug Policy Action (the campaign arm of the Drug Policy Alliance) have submitted more than 7,000 signatures for an initiative that would decriminalize the possession of up to an once of marijuana. They need 5,763 to qualify for the ballot.

Medical Marijuana

DC City Council Approves Medical Marijuana Expansion. The city council Tuesday approved legislation to loosen restrictions on the District's medical marijuana program. The measure replaces a restrictive list of defined illnesses and conditions with a blanket authority for doctors to recommend medical marijuana for "any condition for which treatment with medical marijuana would be beneficial, as determined by the patient's physician."

Michigan Legislature Set to Vote on Medical Marijuana Improvement Measures This Week. Senate Majority Leader Randy Richardville (R) said he expects the Senate to vote this week on a pair of measures to improve the state's medical marijuana program. One would allow localities to govern their own dispensaries; the other would allow the sale of edibles and concentrates.

LA Medical Marijuana Farmers' Market Hit With Temporary Injunction. A Los Angeles Superior Court judge Tuesday issued a temporary restraining order shutting down a medical marijuana farmers' market that drew thousands when it opened a couple of weeks ago. A hearing on a permanent injunction is set for August 6.

Thousands Sign Petition Supporting Fired University of Arizona Researcher. A petition demanding that the University of Arizona research scientist Dr. Suzanne Sisley be rehired after being fired after she won federal approval to study marijuana for military veterans with post-traumatic stress disorder has received more than 27,000 signatures. Sisley made no bones about blaming conservative Arizona political figures for her firing. Click on the link to read her comments.

Harm Reduction

Ohio Cops Slow to Carry Overdose Reversal Drug. Gov. John Kasich (R) signed a law allowing law enforcement officers to carry and administer the opiate overdose reversal drug naloxone in March, but Ohio police are slow to get with the program. Police in Columbus said they have no plans to carry it "anytime soon," and many rural agencies are also unwilling to do it. About 17 people a week are dying from opiate overdoses in Ohio. Under the new law, the drug is also available to friends, family members, and "others who may be in a position" to assist with reversing overdoses.

Law Enforcement

Miami Agrees to Pay in Death Squad-Style Police Drug Robbery Sting Killings. Miami-Dade taxpayers will shell out $600,000 to the families of three men killed by a Miami-Dade SWAT team during a drug house robbery sting. Four men, including an informant for the police, were gunned down when they appeared on the scene of a home they had been told was stuffed with drugs for them to rob. The informant's family didn't join the settlement; it is pursuing a wrongful death lawsuit in federal court. Police video of the raid shows officers firing dozens of shots into the body of a man already on the ground. It also shows the informant surrendering to police moments before they shot and killed him, too. Prosecutors suspect police officers of misconduct but were unable to develop enough evidence to charge any of them.

Almost All US Wiretaps Are for Suspected Drug Deals. A new Administrative Office of US Courts report reveals that not only did wiretaps hit an all time high last year, but that nearly 90% of them were for drug investigations. Of the 3,576 wiretaps sought by federal law enforcement agencies, 3,115 were for drug investigations.

Sentencing

Vera Institute of Justice Releases Report on 2013 State Sentencing Reforms. The report, Recalibrating Justice: A Review of 2013 State Sentencing and Corrections Trends, finds that 35 states passed at least 85 bills to reform sentencing and corrections last year. The legislation generally focused on reducing prison populations, strengthening community-based corrections, supporting reentry, and creating better research and analysis to drive policy decision-making.

International

Dutch Border Town Cannabis Café Owner Cleared of Most Charges. The owner of the Checkpoint Café in the in the town of Ternuezen near the Belgian border has been cleared of most charges against him by an Amsterdam appeals court. The café was closed in 2007 for violating government rules on soft drug sales, and the owner was found guilty of membership in a criminal organization. But the appeals court ruled that the state had not proven Checkpoint knowingly broke the rules. It was the second such decision in the past month.

House Votes to Let Banks Take Deposits from Marijuana Businesses

In a historic vote this afternoon, the US House has approved an amendment to the Treasury Department appropriations bill barring the agency from spending any money to punish financial institutions that provide services to marijuana businesses where it is legal.

The amendment was sponsored by Reps. Heck (D-WA), Perlmutter (D-CO), Lee (D-CA) and Rohrabacher (R-CA). It passed with bipartisan support.

This is the second time in less than two months that the House has voted to roll back marijuana law enforcement. In May, the House passed an amendment prohibiting the Drug Enforcement Administration (DEA) from undermining state medical marijuana laws and passed two amendments prohibiting the DEA from interfering with state hemp laws.

“Congress is yet again rejecting the failed war on marijuana,” said Bill Piper, director of national affairs for the Drug Policy Alliance. “They have read the poll numbers and are doing both what is right and what is politically smart.”

Location: 
Washington, DC
United States

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