Pot Stocks Tumble After Jeff Sessions Rescinds Policies Allowing States To Legalize Pot

Just days after California started selling recreational marijuana to anyone over the age of 21, Attorney General Jeff Sessions has announced plans to rescind policies that have allowed states to circumvent federal laws and legalize the drug.  According to the Associated Press, the move by Sessions will require U.S. attorneys where pot is legal to decide whether to aggressively enforce federal marijuana law.

Attorney General Jeff Sessions is going after legalized marijuana. Sessions is rescinding a policy that had let legalized marijuana flourish without federal intervention across the country.

That’s according to two people with direct knowledge of the decision. They were not allowed to publicly discuss it before an announcement expected Thursday and spoke on condition of anonymity.

The move will leave it to U.S. attorneys where pot is legal to decide whether to aggressively enforce federal marijuana law. The move likely will add to confusion about whether it’s OK to grow, buy or use marijuana in states where it’s legal, since long-standing federal law prohibits it.

Sessions

This is not great news for the folks that have plowed roughly $158 million into the weed ETF over the past week. Following the report, pot stocks have tumbled on sudden crackdown fears.

Oh well, Bummer dude....

Weed

* * *

For those who missed it, below is some background on the weed laws in California and other states around the country.

A long-awaited law in California kicked in today allowing anyone 21 and older to purchase marijuana at licensed shops, grow up to six pot plants at home and possess up to an ounce (28 grams) of the drug - joining Colorado, Oregon and Nevada's expansion into recreational use by adults. 

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Pot-smoking grandmas

Opponents say the law will encourage gateway drug use and lead to higher DUI rates.

Californians voted on the legislation in November, 2016, which has paved the way for around 90 licensed retailers - concentrated mostly in San Diego, Santa Cruz, Silicon Valley and Palm Springs.

It’s been so long since others and myself could walk into a place where you could feel safe and secure and be able to get something that was good without having to go to the back alley,” Jeff Deakin, 66, who waited in Oakland with his wife, Mary, and their dog all night for Harborside dispensary to open at 6 a.m told the USA Today. “This is kind of a big deal for everybody."

Los Angeles and San Francisco, however, was unable to sort out local regulations in time to start issuing licences to local pot sellers, while Bakersfield, Fresno and Riverside have adopted laws forbidding recreational marijuana sales. The San Diego Union-Tribune estimates that over 70% of California cities have banned either the sale or cultivation of cannabis

In late December, Los Angeles officials announced that they would not begin accepting license applications to sell recreational marijuana until Jan. 3, and it may take several weeks before licenses are issued. Meanwhile, lawyers advising medical dispensaries who wish to also sell recreational marijuana have advised businesses to continue to sell pot as "collectives" until local and state licenses are secured, according to Jarred Kiloh of the United Cannabis Business Association. There are around 1,000 existing medical marijuana dispensaries statewide. 

The new pot laws include several specific provisions governing its use; no smoking pot in public areas or anywhere cigarettes aren't allowed, while traffic laws prohibit marijuana use in vehicles - smoked or ingested, even riding as a passenger. 

Cannabis cannot be sold before 6 a.m. or after 10 p.m., and diespensaries and similar busineses can't operate within 600 feet of any school - and must maintain 24-hour surveillance for security reasons. 

California is also imposing a 15% levy on all pot sales, including medical pot products - while local governments are piling new taxes on top of the statewide levy - which could result in a 70% increase in the price of marijuana. In Oakland, for example, taxes for most customers will increase from 14.25% to 34.25%. The state estimates an increase in annual tax revenue of $1 billion from the legal adult-use marijuana industry, which itself is expected to have a projected value of $7 billion. 

As Fortune reports: 

In order to collect $1 billion a year in taxes, the state will need to reach a projected $7 billion in annual legal recreational cannabis sales. (California residents already reportedly spend that much on marijuana annually, but most of it is still on the black market.) At that rate, California would easily be the country’s largest legal marijuana market, as the entire legal cannabis industry in the U.S. is expected to pull in roughly $10 billion in total sales for 2017. That number would almost certainly get a boost in the coming years, as legal markets grow in California and other states, such as Nevada (where legal recreational marijuana sales kicked off over the summer) and Massachusetts (where the adult-use market is expected to open in July 2018).

Five states have already created regulated marketplaces for recreational marijuana, with Maine and Massachusetts preparing to begin legal recreational sales next summer. according to Fortune, here’s how other states that have legalized recreational marijuana collect taxes on the substance:

In anticipation of the new law going into effect, Jack in the box Inc. has partnered with a digital media company backed by Snoop Dogg to bring back their "munchie meal." 

The “Merry Munchie Meal” will be available at three California locations for a week in January. Its price is an elbow-in-the-ribs $4.20, also the time of the day notorious for smokers to light up. The meal features two tacos, french fries, onion rings, five mini churros, three chicken strips and a small drink. -Deadline

Here's a 2014 promotion for the pot-themed meal:

Meanwhile, grandmas across the state can rejoice and partake of cannabis without worrying about getting busted by the fuzz.

Comments

fairmontobsever shitshitshit Thu, 01/04/2018 - 17:39 Permalink

    Your username is extremely offensive, especially when deliberately placed next to the most precious symbol of the Russian Orthodox Church.
 The Russian Orthodox Church lost 40,000 clergy, more than 100,000 monastics, and 40,000 churches to Communist massacres. 
It is a miracle that it still exists, and you are showing cultural-religious hatred by using our sacred symbol with your offensive username.

    It is very offensive for you to use the Russian Orthodox Christian cross, no matter what you think of yourself call yourself and your moral standing (reflected in your username). You have nothing to do with Christianity in Russia. Otherwise, I and others will consider that usage(symbol + offensive wording) an actual example of Nazi-like propaganda. Are you going to use other religions' most beloved symbols in your demonic hatred of all things good?

In reply to by shitshitshit

Citizen_x fairmontobsever Thu, 01/04/2018 - 18:27 Permalink

Wake up.

You're trying to have a sincere conversation with a computer program AI.  And a dollar store one at that.

The topic is passionate potheads, focker!  Has anyone started to realize they are trying mightily to start a war?  Any war.  Any where.  NK last season, Iran last week, Russia/Syria the last few years.  Democrats wouldn't take to the streets last spring.  Black Americans wouldn't start riots.  And now they are picking on the potheads.  Anything and everything for bloodletting.  Leave no stone unturned.  What's with these freaks and their Armageddon fetish?

Man, what a shitty B movie.  I want my money back!

In reply to by fairmontobsever

Hongcha Mango327 Thu, 01/04/2018 - 14:06 Permalink

Agreed.  It's the guns they want.  The win for Big Pharma is secondary.  

CA et al. will cross databases with the alphabet agencies and draw up a list of registered gun owners who are also licensed to smoke weed.  Then, they will send out letters demanding turning in ALL guns & ammo by x date.  Then if you don't, they will get the IRA and Franchise Tax Board on your ass.

But if they make recreational cannabis OK, you don't need the med card and thence they don't have the database.  So ...

In reply to by Mango327

The Gun Is Good Fritz Thu, 01/04/2018 - 11:12 Permalink

It may also become dangerous.

Here in Maine we have Pussy LePage, who was all balls-out anti-federalist when Obitchma was in office… but who now has the D.C. dick in his mouth, what with a Repugni-can’t WH admin taking their turn at fucking up the country.

Glad I just sighted in my AR platform .308 with long-range glass. Fuck Sessions and whatever slime he presumes to send up here. Some of them will go back to D.C. in boxes. Go ahead and SWAT my raw milk farmer or pot grower and see what happens. (And I aim high. I won’t waste time with armored low-level goons; I go for high-value leadership targets and embrace the doctrine of preemptive strikes. Fuckers. If it’s war they want, it’s war they’ll get….)

On a more rational and peaceful note, this is a great opportunity to further states’ rights!  :-)

In reply to by Fritz

Stud Duck The Gun Is Good Thu, 01/04/2018 - 17:40 Permalink

This old VN vet  says, "lets get it on, if that what you want" !!!  Wasting a high level Fed, DEA preferred, has been one of the things on my basket list for a long time... It is now time, to pick up a gun and let them know your gonna use it!

I have got a 1943 issue German Mauser 98 with original scope, used at Stalingrad per the paper on the serial number.Everytime I walk by it, it says "lets go killa Fed"!

In reply to by The Gun Is Good

William Dorritt BaBaBouy Thu, 01/04/2018 - 10:21 Permalink

Prohibition worked great.

The mafia was created, Kennedy and others got rich supplying them.

Federal law enforcement was created

Families lost their ability to make their own wine and spirits, and forgot how to do it

After the repeal:

the beer, wine and spirits industries and distribution were concentrated into the hands of the connected few.

In reply to by BaBaBouy

Meat Hammer William Dorritt Thu, 01/04/2018 - 10:49 Permalink

The pharmagovernment’s goal is prescription THC pills, in my opinion.

”Hey, honey, will you pick up my prescription for Weedasec capsules while you’re out?”

Your copay will be equal to the cost of an eighth of weed that you could’ve bought on your own had your government not been controlled by big pharma. Pharma execs are as evil as banksters. Hang them all.

In reply to by William Dorritt

HopefulCynical Meat Hammer Thu, 01/04/2018 - 11:19 Permalink

Pharma execs are as evil as banksters. Hang them all.

The fact that Obongo's DEA refused to reschedule weed, which is still classified with heroin, is to me absolute proof that Pharma parasites (Pharmacites?) are the real reason for all of this crap. And fuck their THC pills; in the process of making their damn molecule patentable, they'll make it cause all sorts of jacked up side effects.

It is possible that Trump and Sessions are cracking down on weed in order to provoke a backlash that will cause the public to stand up and shout "Just LEGALIZE THIS SHIT, already!" Trump campaigned on the Rule of Law actually meaning something again. Obongo's choosing to ignore Federal pot laws actually set a precedent for him to be able to ignore ANY law he didn't like - and he did. This could all be part of a long game designed to force the legalization issue at the Federal level, to establish that laws may NOT simply be ignored because those in power find them inconvenient. IOW, change the law - or live by it. Those are the only two choices in an honest society.

In reply to by Meat Hammer