Category Archives: California ballot November

Conflict Breeds Corruption

 

corruption

By John Geluardi

819cab198a0b83ce288b2cdd6afe483f_400x400Public corruption is a negative force that has an impact far beyond any single act of paying for favors and privilege. Public corruption cost taxpayer millions of dollars annually and casts a shadow over government ability to make sound policies, assert the rule of law and the citizen’s ability to pursue economic prosperity.

It’s for that reason the Federal Bureau of Investigation, and other law enforcement agencies, makes it a priority to investigate allegations of public officials who use their positions to enrich themselves. But suppressing corruption once it has occurred is expensive and not effective. It is also important for government officials to be  proactive by not enacting policies that foster corruption, rent seeking and extortion. That’s why it is critically important that the conflict between state and federal marijuana laws are resolved as soon as possible.

In those states that have legalized the sale of medical and recreation cannabis, the industry is flourishing. State and local laws have done great work in creating policies and laws that give such businesses a sense of stability that allows them to make business decisions with some confidence. But federal laws still regard cannabis as a schedule 1 narcotic and have not only closed access to reliable banking, the U.S. Postal Service and fair tax laws, but there is also the constant threat of law enforcement raids, lengthy and expensive court battles and prison.

Even in the states that have legalized cannabis, federal law has created a climate of fear and uncertainty among cannabis entrepreneurs and some politicians and law enforcement officers are exploiting that fear to enrich themselves. There are numerous examples of this type of corruption. In fact, The Daily Chronic, an online news source that covers the cannabis community, has a pages-long section devoted to cannabis related police corruption nationwide.

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Filed under California ballot November, Corruption, Crime, politics, Pot and Politics, Uncategorized

A Multibillion Dollar Industry Without a Bank

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By John Geluardi

As the California campaign for the Adult Use of Marijuana Act gains momentum and state economists forecast an industry that could grow to $15 billion annually by 2020, creating thousands of jobs and generating millions in tax revenue, there’s a dark cloud hanging over potential victory celebrations on Nov. 8:  The multibillion dollar industry will have no legal banking options.

If approved by voters, new cannabis businesses in California will have to overcome an obstacle that has dogged the industry in 25 medical marijuana states and four recreational-use states — Colorado, Oregon, Washington, and Alaska. There simply is no safe, efficient, and legal banking. The Attorney General’s Office made that very clear with the now infamous 2011 “Cole Memo,” which warned bankers not to open cannabis-related accounts or they could face money-laundering charges or possibly lose their FDIC insurance, which would be ruinous.

Oregon Sen. Jeff Merkley said the current cannabis banking laws are not only outdated, but they also inhibit reliable tax collection and create a business environment prone to crime and violence. Oregon’s estimated legal cannabis market is expected to bring in a half-billion dollars during its first 14 months, and Merkley said he is worried about the negative impact that poorly thought out federal banking regulations will have on cannabis employees and the community in general. “The federal government should not be forcing Oregon’s legal marijuana businesses to carry gym bags full of cash to pay their taxes, employees and bills,” Merkley says. “This is an invitation to robberies, money laundering, and organized crime.”

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Filed under Adult Use of Marijuana Act, AUMA, California ballot November, Pot and Politics, Uncategorized