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Diet weekend edition finally this week the great American cannabis experiment is about seven years old now but with every new state they legalize marijuana the contradiction between state and federal laws become more apparent well marijuana continues to remain illegal under the controlled substances act the cannabis industry is growing and generated over ten billion in sales last year what all this means is that some Americans are making money producing and selling cannabis while others are being arrested in charge for the same activity Natalie Fertig reporter at politico joins us to break it all down legalization of medical marijuana and now recreational marijuana on the state level is really unprecedented there isn't anything comparative in American history in terms of state legalized man or creating an entire economic systems and market and regulations for something that I really legal there are other times in history where the federal government has been accomplished obviously the civil war the most notable of those but also the entire civil rights era was just one of the longest conflict between the federal and state governments it was not as widespread even though I would say it was a bigger conflict we at this point have forty six they have some sort of cannabis laws that are in conflict with the controlled substances act thirty three of those how the actual market either medical or Canada which means active and regulations and producers and distributors and growers the other day that you go up to the forty seven just have legal CBT you for some medical issues only four states that are actually in compliance with the controlled substances act right now and that's just totally unprecedented create these huge complex and most of them really were not anticipated because there is nothing like this sometimes people try to compare the queue alcohol prohibition but that was really early illegal and federally legal where this is coming from the state up and there's nothing that regulators can look to as president before that so athletes have legalized paying the rent so many different colonel because they discover the problem what can we do about it a weight we can't do anything about it the only one that can do anything about that little thing right and there is tons of money in the industry billions in sales are generated hundreds of thousands of people have been employed states themselves have been making millions hundreds of millions of dollars in taxes in places where it's been legalized you wrote about one specific instance the green lady dispensary on Nantucket island tell us a little bit about that because that kinda illustrates pretty perfectly all the discrepancies between state and then federal laws and how difficult it is to operate a can of his business Nicole Campbell and the green lady dispensary on Nantucket island and what's interesting about Nantucket island and although Martha's vineyard falls into the same category as this is the part of the state of Massachusetts they both legalize cannabis they had pretty high numbers in favor of cannabis legalization into in the high sixties and low seventies in some areas of both of those island but they're so far off the coast of Massachusetts that there's federal water that lies between the mainland of the state of Massachusetts and Nantucket and Martha's vineyard that you island and because that marijuana is federally illegal even though that still within state it kind of classified is going out of state usually go through federal water to get back into the other portion of the state so Nicole and her business can not the worst product from Maine were not his youth it typically dispensaries don't grow their own product and process it and create a gold even if they do a couple product and how they're not doing their entire inventory that's just a locket pretty ambitious to do everything and how she also did you have seen it house which a special provision was created by the state so that any of the countries that open on the island can do that they just can't after all the same things that you would have in a big scientific instability these testing facility on the mainland but they kind of got into the point where they know that they're going to have a really important basic covered and the shield but at the at home yes you can even send samples back to the mainland for testing yeah it's just so crazy because as you said you know a regular cannabis business dispensary can source all that stuff from different providers she cancer she has to do everything she has to manage all the licenses for it it's just a lot for one business to do on its own considering all the different discrepancies there so the big weed experiment now is about seven years old that's when in twenty twelve voters and washed in Colorado chose to make cannabis in their states legal for recreational use but as we've been saying there's just a lot of different things because of all these federal restrictions research on marijuana can't really be done to maximum affect people they want to do research have to get federally approved marijuana they come from the university of Mississippi I think it is banking regulations is a huge one talk a little bit about that so there's so much in finance when the articles of confederation were in that and the United States constitution what started in the seventeen eighties each state gave up its right to finance one of the big thing that was really create a lot of difficulties among the state under the article confederation the money is a big thing that the federal government controls though banking services are really hard working with businesses yeah you open a bank account is really difficult there's been credit unions and some smaller community banks in a lot of the date that had opened their doors but even then usually cannot have to pay a couple hundred dollars a month for that bank account because the bank is not a lot more risk with their business sense because the bank is now accepting money that technically still classified as a drug cartel so you know it it's become a big enough issue that this is the thing that the federal government is starting to move on the banking act has passed the US house of representatives and Republicans the technically Idaho senator who is the chairman of the Senate banking committee has that he would take it out and market up in the Senate with a kind of an expected because his state is one of those for that is actually in compliance with the controlled substances act so people were saying what is his motivation for doing that but there's a lot of banks and his date and the banking industry has really got behind the bill because they want to know what they should do with the money how clear regulations could be left in fear of being shut down or be investigated by the federal government so that's kind of a big focus but there's all these other things too one aspect that people talk about but it really hasn't had much focus on Capitol Hill as the banking act is packed into eighteen which essentially is the character that said Hey if you are in violation control comes back if you're earning money that it's not really a legal you're a drug cartel you can't write off your business expenses like sorry your business is a legal no you can't write off ads that you buy to take notes will hurt your illegal business you need me man except for that these are not legalized these businesses these businesses are completely legal in each state but they can't write off any other business expenses that's been the big major has attempts on the part of the federal government to either remove marijuana from the schedule one classification that has or just kind of change the laws all together I know senator Mitch McConnell has said he's not gonna take up anything that has to do with marijuana and I know that's a big hurdle there but what's the big has a chance and there is a handful of senators like senator Mitch McConnell but the way that the network is if a committee chairman does not want to take up a bill but that was not taken up and does not make it before and if the Majority Leader Mitch McConnell does not want to take up the bill it does not comes before we're looking in the house right now there's a couple different the federal Intel's and the house is democratic glad and there's been a lot of movement in favor of cannabis the scheduling which is legalization because they're the same thing but you know with in that contact there's still a lot of questions there's a lot of questions hi John eighteen Oct the controlled substances act Natalie Fertig covering cannabis policy for politico thank you very much for joining us yeah thank you for having me.

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