(Via Politico Magazine) When Jeff Sessions announced Thursday morning he had removed the barrier that had held back federal prosecutors from pursuing marijuana cases in states that had made pot legal, he delivered on something he had all but promised when he was nominated as attorney general. Most of the marijuana world saw it coming, but they freaked out anyway.
A fund of marijuana-based stocks dropped more than 9 percent in value and, as a sign of how mainstream marijuana has become, Sessions’ decision to repeal the Cole Memo, an Obama-era protection for states that have legalized marijuana, even affected the stock price of Scotts Miracle-Gro Company, which dropped more than 5 percent. Business leaders in an industry that was worth $7.9 billion in 2017, called Sessions’ action revoking “outrageous” and “economically stupid.”
Capitol Hill screamed just as loudly. And it wasn’t just the Democratic members of the Congressional Cannabis Caucus. It was Republican senators, too. Cory Gardner of Colorado took the Senate floor to issue an ultimatum to Sessions: “I will be putting a hold on every single nomination from the Department of Justice until Attorney General Jeff Sessions lives up to the commitment he made to me in my pre-confirmation meeting with him. The conversation we had that was specifically about this issue of states’ rights in Colorado. Until he lives up to that commitment, I’ll be holding up all nominations of the Department of Justice,” Gardner said. “The people of Colorado deserve answers. The people of Colorado deserve to be respected.” Gardner is no fringe Republican; he’s the chair of the NRSC.
Even members who had been silent on the issue in the past vowed to squeeze the Department of Justice’s budget. Jeanne Shaheen, Democrat from New Hampshire, reminding reporters she’s the lead Democrat on the Department of Justice funding subcommittee, tweeted: “I’ll work to ensure that resources are devoted to opioid response NOT foolish policy of interfering with legal marijuana production.” Most of the Congressional leadership was silent on this issue, but not House Minority Leader Nancy Pelosi, who issued a blistering statement against Sessions, saying that she would push for an amendment in the new spending bill to protect states that had legalized not just medical marijuana but recreational use too, a move that could make ongoing budget negotiations much more tense.
Thursday may well turn out to be a pivotal moment in the marijuana industry’s evolution as a political force. Nearly 70 percent of Americans believe in some form of legalized marijuana, but does the nascent industry have the sway to rewrite nearly 50 years of federal drug policy? Or will it remain a splintered coalition of investors, libertarians, concerned parents of sick kids, cancer sufferers, and traumatized veterans, who have the numbers but not the concentrated lobbying effort necessary to once and for all remove marijuana from the crosshairs of federal drug enforcement?
“There’s a lot of [legislators] trying to have it both ways who are now going to have to make up their mind,” said Tick Segerblom, the Nevada state senator who is considered the father of the state’s legalization movement. “Are they going to go with what the voters of their state support, or are they going to join Sessions and crack down and try to re-instate prohibition?”
Right now, the answer seems to be the former. Sessions’ antipathy for a drug that has lost much of its stigma among a wide cross section of Americans has only galvanized disparate factions in Congress to protect an industry that is expected to generate $2.3 billion in state tax revenue by 2020.
Senator Pat Leahy of Vermont, who just a few weeks ago declined to comment to POLITICO Magazine about whether he would work to maintain protections for medical marijuana in the 2018 omnibus spending package, tweeted on Thursday, “I’m now fighting to include my amdt in the final omnibus Approps bill so we can protect patients and law-abiding businesses.”
Those law-abiding businesses are now fully engaged in this matter, and they aren’t just going to roll over and let Jeff Sessions shut them down.
“I expect any actions he and the Justice Department take against the industry will be met with significant pushback from states that are benefiting greatly from an economic and quality of life standpoint,” said Jeffrey Zucker, president of Green Lion Partners, a Denver firm that promotes marijuana businesses. “The cannabis industry will continue on regardless of this decision, and in the long run this should only be a roadblock.”
Leslie Bocskor, president of Electrum Partners, an asset-backed finance company invested in the marijuana market, expressed his displeasure with a wry dig at Sessions’ motives: “It is almost as if the rally in publicly traded stocks in the legal cannabis sector was too much for the AG to bear.” (Via Politico Magazine)