Cannabis Musings - August 27, 2024

A plethora of DEA news.

Friends, two pieces of cannabis news from the Drug Enforcement Administration in one day is never a good thing.  Vos kumt mir aroys fun der guter ku vos git a sakh milkh – az zi shlogt dernokh dos shefl oys? (“What good is the cow that gives plenty of milk and then kicks over the pail?”). But, well, it’s not all bad news.

First, we found out found out that the DEA doesn’t plan on arresting people for possession.  According to an NPR report, further reported by Marijuana Moment, in response to a question about Ohio and Michigan cannabis sales, a DEA spokesperson provides us with this gem:

“’Are we necessarily after the kid with an ounce of weed for that kid or for that group of people? …. Can a student be arrested by a federal agent? Whether it’s FBI, DEA, HSI? Yes, but that is not our intent or our goal to arrest users…who might have a substance on their person.’”

Oh, gee, thanks for nothing.  Fear of federal agents collaring for possession alone has never really been much of a threat.  I don’t have statistics, but I’d venture to guess that most, if not nearly all, simple cannabis arrests are done by state and local law enforcement.  It’s just not the kind of crime that the feds really focus on - they’re more interested in more esoteric crimes like climbing a tree at the Supreme Court. 

Now, to be fair, the DEA’s point is that they’re more focused on individual safety and knowledge:

“The DEA's Detroit office announced it is launching an effort on college campuses and their surrounding communities in both Ohio and Michigan, where marijuana is also legal.  The effort is not focused on drug enforcement, but rather on giving out resources, education and information on the dangers of drug abuse and misuse.”

Good!  College kids under 21 shouldn’t be using cannabis anyway – that’s not only violating federal law, it’s violating state law as well.  Maybe then we shouldn’t be so cynical about this news.  Instead, we should focus our cynicism and bitterness towards the more impactful news that the DEA has opted to hold a hearing regarding cannabis rescheduling on December 2, 2024.  As explained in the DEA’s notice, “the purpose of the hearing is to ‘receiv[e] factual evidence and expert opinion regarding’ whether marijuana [sic] should be transferred to schedule III of the list of controlled substances.”

This was always a possibility, and probably should not come as a surprise.  Nonetheless, the timing is honestly frustrating - any decision is not likely to come until 2025, after the November presidential elections.  We can of course speculate all day long on the reasons, on the dynamic between the agency and the Biden administration (let alone the Harris campaign), but what’s the point?  It is what it is, and at this point, there’s nothing we can do about it.  What we do know for sure is that the prize of 280E tax relief (if it comes) almost definitely won’t be happening during the 2024 tax year.  Oy gevalt. 

Both of these news stories have a commonality – they’re a good reminder that, as we are wont to say in these Cannabis Musings, all of this exists purely as a matter of grace on the part of the federal government.  For some reason, the feds aren’t shutting all of it down, but at the same time, they’re not going to make much effort to make it easier, despite the breathless exhortations of blowhards and naifs.  Don’t expect the worst, but definitely don’t expect anything good, either.

Be seeing you!

© 2024 Marc Hauser and Hauser Advisory.  None of the foregoing is legal, investment, or any other sort of advice, and it may not be relied upon in any manner, shape, or form.  The foregoing represents my own views and not those of Jardín.