Bill to Form State-Chartered Banks for California Marijuana Industry in the Hands of the State's Lawmakers - MJ Global Report
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Bill to Form State-Chartered Banks for California Marijuana Industry in the Hands of the State’s Lawmakers



California marijuana industry

Just a year later, again the bill that would enable the California marijuana industry to access the banking services from the state-chartered financial institutes, as well as credit unions, will be put on the sword. A year ago, a similar attempt to pass the state legislature failed.

So, will the lawmakers finally go ahead with the bill this time?

One thing is clear, the legal marijuana industry in California is struggling to compete favorably in the black market. The primary reason is that it faces great challenges, which include banking access as well as high taxes.  

State of the Proposed Law

For instance, Senate Bill 51 is meant to allow the state to license various private banks to easily handle the billions of dollars which are generated by the state’s legal cannabis industry.

The current situation in the state is that the pot retailers, as well as other cannabis companies, have been stopped from the long-established banking system.

Therefore, it means that the measure will now allow the
credit unions and private banks to safely apply for a state-charter to enable them to offer depository services to all licensed marijuana businesses.

As a common procedure for all state bills with a fiscal impact, the state Senate Appropriations Committee on Monday sent the SB 51 to the suspense file with the hearing staged on Thursday. It’s on that day that the committee members will determine the fate of the bill.

But Why are the Banks Scared?

At a glance or by far the bill is genuinely required to go through as it will benefit the state. However, there’s one side effect of the bill as well. The unfortunate negative could be the concentration of marijuana business assets into one or a plethora of easily identifiable institutions which may render them cheap targets of the federal law enforcement action.

Therefore, the banks are scared of the expense and trauma of exposing themselves. For that matter, the cannabis business which includes pot shops has no option than to deal principally in cash given that there are federal banking limitations which make it next to impossible for them to create accounts with the federally chartered banking institutions.

Besides, there’s an effort in place in the federal level aimed to get the legislation passed to enable banks into serving the cannabis-associated businesses without any risk of being prosecuted.

Significance of the Bill

Undoubtedly, marijuana businesses, as well as their employees, make large amounts of cash. So, it makes cannabis customers targets of violent crime as there’s a lot of money in the streets.

The solution lies with the banking relationship, which will help both the law enforcement officials as well as regulators to distinguish legal marijuana businesses from the illegal market operators.

Subsequently, the bill will set up some special checks for cannabis businesses as a way of paying state as well as local taxes, rent, and fees.

A Big Concern on the Cards

Last year, a similar bill didn’t pass the legislature with cost concerns being mentioned as the primary reason for the denial. The lawmakers hinted that new state workers need to be hired, which could cost almost $2 million a year.

Therefore, the same concerns may as well come up again, and according to industry observers, similar lawmakers opposing the cannabis sales may be watching from a corner. Nevertheless, it’s just a matter of time before we learn the fate of the bill.

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Photo by Jamie McInall from Pexels

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Green Organic Dutchman Holdings Ltd (OTCMKTS:TGODF) Tumbles 90%: What’s Behind The Dive?




A nearly 90% pullback from its all-time highs has brought Green Organic Dutchman Holdings Ltd (OTCMKTS:TGODF) down to its record lows. The selloff in TGODF comes as Canada’s regulated cannabis industry struggles with a number of headwinds.

First, Canadian authorities aren’t approving the opening of new cannabis retail outlets fast enough. For instance, in Ontario, Canada’s most populous province with a population of more than 14 million people, there are just 24 cannabis shops. That means that while there is demand for cannabis in Canada, the shortage of shops, getting the products to customers remains a major challenge. In turn, that limits sales for cannabis producers like TGODF.

In addition to the shortage of cannabis shops, black market is another headwind that Canada’s regulated cannabis businesses like TGODF have run into. Experts estimates that black market accounts for 86% of cannabis sales in Canada, thereby chocking the regulated market.

In response to the sluggish development of Canada’s regulated cannabis market, which is caused by shortage of cannabis shops, TGODF has decided to slow down investment in its production capacity expansion.

Slowing down capacity expansion will see TGODF cut back on spending. In turn, the company expects this move and other actions in plans to take will reduce its cash burn and  set it firmly on the path to profitability in the near-term.

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Country doctors concerned on Ireland’s night walk to legalize cannabis



Ireland cannabis

As proposals to liberalize cannabis laws are expected before Ireland’s cabinet in coming weeks, a panel of 20 doctors have raised distress over what they termed as ‘increasingly relaxed attitudes towards marijuana amongst the media, legislators, and commentators.’

The claim is that cannabis has now turned out to be the ubiquitous thing linked to drug-associated admissions to psychiatric hospitals throughout the country, mostly.

Furthermore, it’s the common drug that is involved in the new treatment sessions at a plethora of addiction services in Ireland. The doctors’ concern is that drug’s use during teenage increases risks of mental illness as well as impairments to thinking and memory.

Personal Possession of Cannabis

The proposals aimed at liberalizing the country’s drug laws are due to be brought to the Cabinet of the country in the coming days by the Minister of State for Drug Strategy Catherine Byrne.

The plans are that individuals caught with a little amount of the drugs will either be referred to a counseling or addiction service rather than being prosecuted.

The proposals came after a working group set in 2017 spent more than a year trying to examine alternative approaches to personal possession of illegal drugs. However, the group chaired by retired judge Garrett Sheehan didn’t produce an agreed report over the same issue.


According to the doctors, decriminalization and legalization is different but agreed that both medical cannabis and decriminalization campaigns have all proven to…

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Former health execs accused of medical pot smuggling in Minnesota



pot smuggling

After months of legal battles over the felony drug charges against the former chief medical officer of Vireo Health, Dr. Laura Bultman, and Vireo’s downtown White Plains dispensary, has been upheld.

A Court of Appeals in Minnesota upheld the charges rejecting the officers’ bid to toss the charges.  The appellate decision means that a trial is more likely now.

The Accusations

The two ex-Vireo senior execs were accused of smuggling medical marijuana from Minnesota to New York. The accusations note that the two used the firm’s armored automobile to move medicated cannabis oil between two states illegally.

After reviewing the case as to whether the laws addressed the smuggling of medical pot across the two-state borders well enough, the court ruled that the law didn’t allow the transfer.

The Legal Argument

According to the Minnesota regulations, the apparent smuggling case turns out to point out various legal arguments. For instance, the first argument could be either that some criminals desperately smuggled the medical cannabis in the armored SUV packed with almost $500,000 of cannabis oil.

The other scenario is that maybe respected corporate officers would have transported (behind the masks) the state-licensed medical cannabis from the Minnesota-based company to the affiliate in New York.

Some aspects of the case also have few other connections to the New York State’s medical cannabis program, like allegations that the cannabis oil was illegally sold to patients which were later tested…

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