Cannabizness: Supporters, with No Opposition, Testify at Senate Tax Bill’s Hearing in Annapolis

By Van Smith

Baltimore, Jan. 17, 2019

Cannabis businesses, like all other legal enterprises in Maryland, would be able to write off standard business deductions on their taxes if state Sen. Ron Young’s Senate Bill 9 (SB 9) makes it into law. At today’s hearing on the bill before the Senate Budget and Taxation Committee, the lack of controversy over such a proposal was apparent: no naysayers came to testify, and the supporting testimony prompted no questions from committee members.

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State Sen. Ron Young (D-TK District, Frederick County) after giving testimony today in support of his tax bill to allow cannabis businesses take standard business deductions. (Photo: Van Smith)

Young stressed to the committee that Maryland medical cannabis growers, processors, dispensaries, or independent testing laboratories comprise the “only business in the state that is not allowed to take business deductions,” and the added cost “affects the price of cannabis.”

Young told two stories – one of a family with twins, now nine years old, whose survival of a form of fatal childhood epilepsy is attributed to cannabis; and another about his family dog, who was starting to show signs of age until “we put him on cannibis, and he’s acting much younger now.” – before casting SB 9 as “a matter of fairness” to a “growing business” that is “helping a lot of people” and “employing a lot of people.”

Carissa Cartelemi of Baltimore’s Starbuds dispensary – billed as “the first Starbuds location in Maryland” for the Colorado-based company – told the committee that her business is “really struggling” from not having the tax write-downs like other Maryland businesses, a situation she characterized as “a punishment.” Passing SB 9, Cartelemi added, “helps the thousands of patients who rely on us.”

The two lobbyists who spoke – Ashlie Bagwell for the Maryland Medical Dispensary Association and Joseph Bryce on behalf of the Maryland Wholesale Medical Cannibis Trade Association – stressed that, as Bagwell put it, SB 9 “does not create any kind of special treatment” for cannibis businesses, while Bryce said, “very simply, this is not a special break.”

 

Cannabizness: Bill to Aid Gun-Owning Medical Cannibis Users Gets Another Look in Maryland

By Van Smith

Baltimore, Jan. 15, 2019

Regulated firearms owners in Maryland who seek certification as medical-cannibis patients are in a pickle: a handgun license requires that holders are not presently habitual users of controlled dangerous substances such as cannibis. A bill attempting to rectify this, by establishing that a person may not be denied firearms rights solely due to being a certified medical-cannibis patient, was introduced in the Maryland Senate yesterday.

The bipartisan bill – Senate Bill 97 – is co-sponsored by state Sen. Michael Hough (R-4th District) of Frederick and Carroll counties and state Sen. Bobby Zirkin (D-11th District) of Baltimore County. The two men tried it last year, too, with Senate Bill 602, but after being scheduled for a hearing nothing more came of it in the Senate Judicial Proceedings Committee.

The “Fiscal and Policy Note” for last year’s bill – the analysis of it, conducted by the Department of Legislative Services – concluded that “the bill’s changes are inconsistent with provisions of State law and may result in a violation of federal law.” Free State Cannablawg is reaching out to Hough and Zirkin, asking if they have reason to believe this year’s bill has the legs that last year’s lacked, and will update if they respond.

 

Cannapress: The Stranger in Seattle versus the gullible media elite

By Van Smith

Baltimore, Jan. 14, 2019

Lester Black is the Stranger‘s hard-partying staff writer, and boy-howdy was he spot on about something recently: the anti-pot scaremongering that’s been hitting the headlines of late is fueled by the release of cannabis-contrarian Alex Berenson’s book-length polemic, Tell Your Children: The Truth About Marijuana, Mental Illness, and Violence, and Berenson’s recent editorial, “What Advocates of Legalizing Pot Don’t Want You to Know,” published by his alma mater, the New York Times. In the nuance-averse ecosystem that is our fast-click media landscape these days, Berenson’s fighting screeds quickly were picked up and bounced around prominently as products of deeply researched science-based journalism done by a pro. Just as quickly, Black shot the story full of holes.

Black exposed how Berenson repeatedly conflated correlation and causation when looking at science and data. Confusing the two can lead to drastically different, or even diametrically opposed, policymaking outcomes, hamstringing society’s best intentions. And confusing the two, whether purposefully or out of ignorance, can also dupe editors at top publications into running baseless stories that, while they look and smell sophisticated, are in effect fake news feeding nonexistent controversies. There’s no question science needs to gather and understand much more evidence about cannabis use, and let the paths to policy lead us sensibly, but Berenson only succeeded in convincing many that false flags were actual threats.

As Black writes, “We need people to be critical about our policy decisions, and we need scientists to keep studying what happens when we smoke pot (and if they keep looking, they will likely keep finding new benefits). But people like Berenson who merely have a book to sell and don’t care who they damage in the process don’t deserve to be listened to. And the media blitz surrounding Berenson’s book clearly shows how much East Coast media circles need to learn about pot.”

 

Cannapress: Maryland Leaf is a glossy new cannabis magazine

By Van Smith

Baltimore, Jan. 13, 2019

The Free State has a new glossy monthly magazine, Maryland Leaf, that readers can see online here. The ones you can hold – “the Leaf will be covering the entire state beginning with 15,000 monthly copies,” writes founder and editor-in-chief Wes Abney – are available at dispensaries and doctors’ offices. A subsidiary effort of Abney’s established Northwest Leaf, the new mag is edited in Maryland by Michael Hughes, a magician and (full disclosure, of course) longtime friend of mine. Congrats to Leaf! Now, back to baking cornbread while it snows …

Cannapress: Doug Donovan is killing it

By Van Smith

Baltimore, Jan. 13, 2019

If you’re interested in Maryland’s medical-cannabis scene, stay up with the Baltimore Sun‘s Doug Donovan. This week alone, he notched two insightful pieces that can serve as a roadmap of the industry and its issues. First up, on Jan. 9, was an unveiling of what’s likely to be a hot legislative issue in Annapolis this year: whether management agreements that increasingly are allowing med-pot businesses get around rules intended to keep national or out-of-state chains from dominating Maryland’s industry should be reined in. Then, on Jan. 10, Donovan explored the Maryland Medical Cannabis Commission‘s new report concluding that, while some anecdotal evidence exists that cannabis can help opioid addicts as they try to kick their habits, scientific evidence is lacking – and some studies show that it can exacerbate dependency issues. (Baltimore City state Del. Cheryl Glenn has, as FSC reported this week, introduced a bill this session in the Maryland General Assembly to add opioid abuse disorder to the list of conditions that can qualify patients for medical-cannibis certification.) Cheers to Donovan for his good work.

 

Cannabizness: In Annapolis, Five Cannibis Bills So Far this Session

By Van Smith

Baltimore, Jan. 11, 2019

Five cannabis-related bills are in play in Annapolis as the Maryland General Assembly’s legislative session gets underway this week. Three seek to expand the medical-pot industry that has sprung up under the aegis of the Natalie M. LaPrade Medical Cannibis Commission (the MCC), one wants to give the industry some tax write-offs, and one would prohibit legal-weed products from correctional settings, including home detention.

Moving fast, compared to the other five, is Senate Bill 9, the tax-change bill whose chief sponsor is Frederick County state Sen. Ron Young (D-3rd District), who pre-filed it last summer. The Senate Budget and Taxation Committee has scheduled a hearing for it at 10:30am on Jan. 17. Should it pass, according to the bill text, cannabis growers, processors, dispensaries and testing labs in Maryland would be allowed to write off ordinary business expenses, including reasonable salaries or other compensation, when calculating their Maryland adjusted gross income.

Three bills pre-filed last November by Balitmore City state Del. Cheryl Glenn (D-45th District), one of Maryland’s staunchest medical-pot advocates, would broaden the MCC’s program in significant ways. House Bill 17 would allow dispensaries to serve food containing medical cannabis to qualifying patients or caregivers. House Bill 18 would allow board-licensed physical therapists, psychologists, and physician assistants to certify MCC patients, and add to the MCC’s membership representatives of those professions. House Bill 33 would add opioid use disorder to the list of medical condtions for which the MCC is encouraged to approve applications for the program. All three of Glenn’s bills await action by the House Health and Government Operations Committee.

Senate Bill 86, sponsored and pre-filed last November by Washington County state Sen. Andrew Serafini (R-2nd District), has been assigned to the Senate Judicial Proceedings Committee. It would allow for criminal prosecution of those possessing medical cannibis at a local correctional facility and of offenders possessing it while on home detention.

If and when these bills move forward, and if and when I learn more about them, I’ll revisit them in more detail. Now, back to cooking and cleaning …

 

Full Disclosure: This non-lawyer will be committing Free State Cannablawg’s upcoming acts of journalism

By Van Smith

Baltimore, Jan. 8, 2019

About eight years ago, as I was hustling to nail down all the details involved in the fast-moving story of Reptilian Records’ owner Chris X pleading guilty to drug dealing in Baltimore City, I realized something crucial: on a handful of occasions years earlier, I’d actually gone to Chris’ since-shuttered Fells Point store to buy some pot from him. I put that fact in the resulting City Paper story, a disclosure that generated attention from the Baltimore Sun, the Association of Alternative Newsmedia, and Jim Romanesko, who published my explanation for doing so:

Journalistic reasons. Had to. No other options, given deadline, foreclosing possibility of someone else writing the piece instead, which would’ve been preferable. My long-ago interactions with the subject only dawned on me after I’d interviewed him and was writing up the part in which he poured out his guts and said he’d dealt weed for years. After giving it some thought, including trying to rationalize NOT disclosing, I realized there simply was no other way to deal with the situation. Disclosure was the only thing to do, and let the chips fall where they may – including, I suppose, a Romenesko mention. Believe me, I’m not as Gonzo as this may make me seem.

I went on to do what I’d being doing for years, and would continue to do for years more as a staff writer for City Paper in Baltimore: a frenzied mix of heavy lifting and light work, largely unpredictable in its direction and lacking in any traditional sense of “beat,” but generally fueled by my own curiousity about Baltimore, Maryland, and life. Duty often called, as well, and I would cover regularly local and state electoral and legislative politics.

Mostly, though, I was known as an investigative reporter, and that was true enough for a good, long stretch as CP‘s alt-weekly model matured in profitability and courage. But as time passed – Craigslist! the Great Recession! the Death of Print! – the job changed. The business of print journalism was increasingly imbued with fear, infecting the whole enterprise. I maintained an appearance of investigativeness while doing the best I could under the here-now-fast-and-furious circumstances, which dictated that clicks would save us all. Eventually, in 2015, having run the numbers – my take-home pay was only a bit more than it cost to have our children looked after – I quit.

Over the years, I’d covered pot here and there, almost invariably as crime stories like Chris X’s. Memorably, there were the chainsaw–dismemberment debacle and long-running chronicles of a gargantuan global pot conspiracy involving, among many others, a real-estate developer and a night club in downtown Baltimore. But the last piece I ever turned in at City Paper was on cannabis policy, “The Maryland GOP on Pot: Free State Republicans have been warming to marijuana reform, but support for legalization so far remains a pipe dream.” Now, nearly four years later, the details in that article will help me start this blawg.

I stopped buying illegal pot years ago because I’d come to understand that doing so injected my chump change into the shadow economy I covered as a journalist, and so was, at the very least, an appearance of a conflict of interest. Also, having become a risk-averse father, I simply wanted to stay out of the way of potential legal trouble. Now, in the era of medical marijuana, such concerns have disappeared in Maryland – lawful, state-regulated businesses sell it to certified users who, as long as they follow reasonable rules, are safe from prosecution.

The Maryland legal-weed business is a go, and it’ll get tweaked by that which birthed it: the Maryland General Assembly. For the 2019 session, at least, I’ll do my best to explain what’s being tweaked how, when, why, and by whom, while also keeping tabs on other possible pot-law developments that may arise and bumping the relevant work of others. I’m no lawyer, but I know a lot of them and I think many of them would agree: It’s better I do this than they. At the very least, I’ve proven myself adept at providing full disclosures.

Sweet Deal: Reptilian Records’ Chris X pleads guilty, gets probation on drug charges

By Van Smith

Published on March 23, 2011 in City Paper

On March 15, 44-year-old Christopher Neu, better known as “Chris X,” owner of Reptilian Records in Baltimore, started five years of probation during which he could face up to 60 years of incarceration if he is found to be in violation.

As Baltimore City Circuit Judge Lawrence Fletcher-Hill explained from the bench that day, after Neu pleaded guilty to possession with intent to distribute cocaine, hydrocodone, and oxycodone, “I’m going to strike the convictions and enter probation before judgment” on all three counts, each of which carries a maximum 20-year prison sentence.

The outcome was hammered out during a bench conference between the judge, Neu’s attorney Andrew Cooper, and Baltimore City Assistant State’s Attorney Staci Pipkin. If Neu is convicted of new crimes or violates the terms of his probation during the next five years, Fletcher-Hill said he can “enter the convictions without any further proceedings” and Neu will face “the possibility of 60 years” in prison.

Neu, who was busted last summer as a result of a narcotics investigation, said in a post-hearing phone interview that “I feel damn good not to be in jail, and you can quote me on that.”

Cooper, also reached by phone after the hearing, explains that Pipkin’s plea-deal offers for Neu had come in a succession of proposals carrying ever-lighter sentences. At first, she offered 10 years in prison, with all but five years suspended; then she dangled the prospect of suspending all but one year. In the end, Cooper says, probation before judgment “was a good result for everyone involved,” but was “a big benefit” for Neu.

Cooper predicts that Neu, who has no prior criminal record, is unlikely to violate the terms of his probation. He also points out that two other people charged in the investigation received probation before judgment despite the fact that one of them, whose past included prior run-ins with the law, had a gun seized when the police arrested him. Cooper also says he believes that the police conducted an illegal search when they came for Neu. Had the prosecutor continued to press the charges, Cooper contends, the case may have fallen apart before trial with a ruling that the seized drugs could not be used as evidence.

Baltimore City State’s Attorney’s Office spokesperson Mark Cheshire, in an e-mail, says that “the defense claim that this case involved an illegal search is baseless and played absolutely no role in the outcome.” Cheshire also took issue with Cooper’s assertion that Pipkin offered anything short of “prison time for the defendant. The presiding judge sentenced him to five years of probation, which is [the judge’s] prerogative and a decision we respect.”

Reptilian Records has long received coverage from City Paper, including awards in the annual Best of Baltimore issue in 1996 (“Best Open/Closed Store Sign”), 2001 (“Best Punk Rock Bastion”), 2004 (“Best Record Label”), and 2007 (“Best Relocation”). The store had operated on South Broadway in Fells Point for 17 years until 2007, when it relocated to North Howard Street, next to Ottobar, and then shuttered in 2009 (“Vinyl Destination,” Music, Jan. 14, 2009), opting for online-only sales. In addition to noting Chris X’s book-publishing foray (Q&A, June 22, 2005), CP marked two of Reptilian’s anniversaries with coverage: in 2003 (“Noise to the World,” No Cover, Nov. 26, 2003) and in 2010, when it was described as “Baltimore’s cornerstone underground heavy music outlet and record label” (“Chris X,” Music, Nov. 24, 2010). In the latter piece, Neu’s legal name was given incorrectly as Christopher Xavier Donovan; confusion over Neu’s identity delayed CP’s ability to obtain records of his legal troubles.

Neu was arrested on the night of July 30 last year, after Baltimore City police arrived at his closed record store at 2545 N. Howard St. They came there after having served a search-and-seizure warrant at 4903 Harford Road in Waltherson, where they arrested two men—38-year-old Michael Deming and 37-year-old Daniel Mersheck—and seized about 7 ounces of cocaine, 4 ounces of marijuana, 27 oxycodone pills, a loaded 9mm handgun, and other contraband.

Deming, court records state, told the police “that he and his friend, later identified as Christopher Neu, ‘went halfs’ on a brick of cocaine” and “that a significant amount of cocaine was located” at Neu’s Howard Street business. As a result of this information, “two uniform officers were sent” there “to secure the location pending an investigation.”

After the uniformed officers arrived at Reptilian Records, court records state, a search turned up a pharmacopeia of mind-altering substances. In all, about 13 ounces of cocaine (street value: $16,740), more than 21 ounces of marijuana (street value: $3,635), 14 grams of psilocybin mushrooms, and hundreds of pills—mostly hydrocodone and oxycodone, but also Valium, Oxycontin, methadone, and muscle relaxers—were seized, along with other contraband.

“Neu advised he had borrowed more than $12,000 from a friend to purchase the amount of cocaine which he had possession of,” the court records state, noting that Neu “was cooperative throughout the entire investigation.”

Neu is also cooperative with CP, openly discussing his charges and the context in which he was caught. He is anxious to explain that he’d entered the coke-dealing arena only recently, in an attempt to dig himself out of debt, and that he had obtained the pills by purchasing monthly prescriptions from elderly public-housing residents who had come to rely on his cash payments to supplement their meager household incomes.

“I sold weed for years,” Neu says—something that this writer, as a patron of Reptilian Records and acquaintance of Chris X’s, had known, having purchased small quantities of marijuana at the store more than 10 years ago while working as a freelance journalist and bartender. “But I always said I’d never sell coke,” Neu explains, adding, “I broke my own rule and that’s basically why I fell. I never would have done that had I not been so desperate” financially, due to unpaid mortgage and property-tax payments. “Now I’m more in the hole than I was before,” he says, and “my first concern is paying [family and friends] all back for helping with my bail and my lawyer.”

Neu’s Howard Street property is currently listed for sale, he explains, which “is the only reason it hasn’t been foreclosed on.” He has been selling off belongings, and says he still has “plenty of stuff to sell,” including comics, posters, records, and other collectibles.

As for the pills, Neu says, “The truth is, I got them from older people who live in public housing, who got by by selling me their prescriptions. But I’m not running around selling this stuff—that’s why [the pills] were stockpiled. I was kind of loaded up on them, because I only sold them to a few people I trusted who had drug problems, so they wouldn’t run out and buy heroin off the streets. It was a way for them to stop putting needles in their arms.”

Regarding the police search, Neu says the officers “lied to get in the door. They said they had an anonymous tip of a woman screaming” inside his business. Cooper adds that, when the case was first brought in Baltimore City District Court last summer, “The officers admitted this in discussions outside the courtroom, that they made up the reason to go in to begin with. They needed a warrant, but instead they used a ruse to get into his place of business.”

Furthermore, Cooper says, having already found the drugs, the police secured Neu’s consent to a search. To be lawful, such consent must be given beforehand and voluntarily, but Cooper and Neu say it was tendered after-the-fact and under duress. “They told me,” Neu recalls, “that if I didn’t sign the consent, they’d get a warrant and tear the place apart.”

“It was a horrible search,” Cooper concludes. In the end, though, Cooper did not have to argue these legal points before a judge, since Neu agreed to probation in return for a guilty plea without a trial.

The experience prompts Neu to offer cautionary words for others who may be tempted to try to turn a quick buck in the drug game: “Hey kids,” he says, “don’t do what I did. Pay your taxes and keep your noses clean.”