After Prop 64 Passage, Black Market Pot Shops Still Thrive -- What Happened?

The Modesto Bee has reported that Stanislaus County sheriff's deputies are cracking down on illegal pot shops, which are eating away at the legal marijuana businesses, all recently established following the passage of Proposition 64. 

Wait a second!

I thought that legalizing recreational marijuana would do away with the black market? Certainly that's what the proponents of Prop 64 believed, and one of the reasons why the initiative passed by a significant margin in 2016.

What went wrong? What was in the iniative, and thus the reasons why I opposed the initiative, even though I believe that people should not be locked up, placed in jail for using a drug that simply makes you ... stupid.

I voted NO on Prop 64 precisely because there were so many poison-pill provisions in the legislation, including language which would undercut one of the goals of the bill--shut down the black market and bringing marijuana sales into the open. The initiative imposed a massive sales tax on recreational marijuana products. The initiative also included stiff penalties for marijuana related crimes, including the loss of one's Second Amendment Rights for a non-violent misdemeanor. These two problems, along with a host of other issues (the fact that marijuana use, sale, and distribution remains illegal at the federal level; the impossibility of banking because marijuana sales violate federal law, etc.) made Prop 64 a bad proposition.

But the biggest problem was that stiff added sales tax of 15%. Lo and behold, because the costs of legal marijuana are so high, much higher than the drugs pushed on the street, the black market survives and even thrives in the state of California. Why bother buying legal pot, which is excessively expensive, when you can buy it cheaper from the seedy drug dealer?

I favor decriminalization for possession and use of marijuana, since locking people up does not get them sober nor does it set them free from the addition. One reason why? It's even easier to get drugs in prison than on the street? However, Prop 64 was the wrong approach for many reasons to phase out onerous legal consequences for drug use or possession. The proof is the fact that the black market has not be closed down or forced out of business by the legal compte

Proponents expected a collect greater tax revenue with the passage of Prop 64. What happened instead is that the black market has only gotten bigger, while the marijuana revenue failed to meet projections. No end to the black market, lower-than-expected tax revenue, and now police officers throughout the state of California must divert their already strained resources to crack down on these illegal pot shops.

It's time to have a thoughtful discussion about decriminalization of controlled substances, one that recognizes the potential unintended consequences of marijuana use, one which allows law enforcement to stop down serious crimes and track down those criminals, but most importantly one which understands how markets work, how free enterprise works, and which recognizes the power of competition as well as government control.

Thriving black market in StanislausCounty is hurting legal cannabis businesses

BY ERIN TRACY

MAY 16, 2019 01:18 PM, UPDATED MAY 17, 2019 08:32 AM

 Play Video

Duration 1:55Take a look inside a legal marijuana business in Modesto

Bob Blink of Lyfted Farms and Michael O'Leary with Medallion Wellness describe the production and sales of Marijuana on Monday May 6, 2019 at Lyfted Farms in Modesto, Calif. BY JOAN L LEE

Since the outdoor growing season for cannabis began last month, the Stanislaus County Sheriff Department’s Special Investigations Unit has dedicated at least one day each week to eradicating illegal grows.

Critics say cannabis is legal now and it’s safe; law enforcement should focus their efforts on dangerous drugs like methamphetamine and heroin. The multi-jurisdictional SIU investigates those drug crimes as well, in addition to others like gang crimes and human trafficking.

But law enforcement and the businessmen who’ve obtained permits and licenses to grow and sell cannabis in Stanislaus County say the illegal grows not only undermine the legal operations but attract violent crime into neighborhoods, produce untested, sometimes unsafe products and create environmental hazards.

Sgt. Bruce Mitchell, supervisor of the SIU, said they are focused on large-scale operations, not small grows just over the 6-plant limit for personal use.

He said the large grows are targets for robberies and burglaries and both the criminal and the victim are usually armed, bringing gun violence into neighborhoods.

“We have had a number of incidents where people will try to break into places like this and grab five or six plants and there ends up being a shooting,” Mitchell said earlier this month at a 2,200-plant illegal grow in Patterson.

About 2,200 plants were eradicated from illegal indoor and outdoor marijuana grows at a property in the 2900 block of Orange Avenue, just outside of Patterson, on May 2. By Erin Tracy

Sheriff Jeff Dirkse said there was a period of time during changes in the law that illegal grows were not a priority.

“Beginning this year, we have a renewed our enforcement activities against illegal grows and removed over 22,000 plants in March alone,” he said. “If people want to use marijuana recreationally or medicinally, they have nothing to worry about from us so long as they follow the appropriate laws, no different than alcohol.”

But he said illegal grows “create a number of public safety hazards that we are concerned with, including illegal pesticides, black mold, armed robberies and general increased complaints and calls for service.”

The Sheriff’s Department estimates there are 1,500 illegal grows within the county at any given time. Mitchell believes as many as half of those involve Mexican drug cartels.

He said marijuana appeared to have motivated a 2017 unsolved double homicide near Riverbank in which two men were found dead at an illegal grow.

One man was found dead outside a warehouse behind the house on Claribel Road; a broken wooden bat next to him, according to court documents. A second deceased man was found tied to a chair inside the warehouse, where marijuana was being dried and processed. A grow inside the house had been cleared out.

Legal operations have safety plans approved and maintained through compliance checks by the Sheriff’s Department.

Those plans vary depending on the operation but include background checks on owners and their employees, burglar alarms, exterior and interior cameras, on-site security guards, panic buttons and plans in place in the event of takeover-style robberies or other crimes.

Michael O’Leary, owner of Medallion Wellness, a dispensary on north McHenry Avenue, has a surveillance system that is linked to a 24-hour crime center from which a dispatcher can send a security guard, sound an alarm and speak directly to the suspect.

In addition to keeping his business free from crime, he said it’s stopped a break-in at a neighboring business and interrupted a suspect who was trying to siphon gas from a vehicle in the parking lot.

His dispensary also has a panic button, as does the cultivation site from which he purchases product.

Bob Blink, owner of Lyfted Farms, currently is producing about 2,000 pounds of cannabis a year and continuing to expand in warehouses on Jerusalem Court.

Blink said he accidentally pushed the panic button shortly after it was installed and four sheriff’s deputies were at his business within five minutes.

“Illegal operations are completely clandestine so (when there’s) some sort of security event, they are on their own. They can’t pick up the phone and call the local sheriff’s office to come help them,” said Zach Drivon, an attorney who represents both O’Leary and Blink.

The businessmen, both Modesto natives, first started operating nonprofit medicinal cannabis collectives in 2015. Drivon said they were integral in passing a measure in Stockton that lifted the ban on medical cannabis dispensaries and cultivation and worked with Stanislaus County to fund a poll that showed majority support for cannabis businesses here. They also have been transparent with county officials who asked to tour their businesses.

So when the county started reviewing 33 applications for cannabis permits last year, O’Leary and Blink were at the front of the pack. They received the first cultivation and dispensary permits in the county in February and April, respectively.

Since then the county has issued permits to three other businesses for cultivation and four more businesses are going through the approval process now for nurseries, cultivation, distribution and retail, said Tera Chumley, senior management consultant for Stanislaus County.

The county has a cap of 61 cannabis permits, only seven of which can be dispensaries.

To grow cannabis, Blink not only is regulated by the Sheriff’s Department but by the state Water Resources Control Board and the County Agricultural Commissioner, which ensure the businesses are not polluting the water or using harmful pesticides.

In the rooms where cannabis is grown, Blink uses insulated metal paneling, typically utilized in cold food storage, to prevent mold.

The rooms are cleaned with bleach between each harvest.

He uses only organic pesticides that are so mild the plant must be treated weekly. There are other pesticides that will kill any insect with one treatment per harvest, O’Leary said, but they are dangerous to humans and become carcinogenic when heated and inhaled, which is how most people consume cannabis.

Mitchell said he sees those toxic pesticides being used at illegal grows and marijuana being grown in moldy, unsanitary conditions that can be harmful to the consumer and the environment.

Samples are tested from every strain of cannabis in every quarterly harvest at Lyfted Farms. A lab tests for 66 types of pesticides, as well as microbials (bacteria), toxins from mold and heavy metals like arsenic and lead. If any were ever detected (none have been), the batch would be destroyed.

Blink also tags every plant with a unique number that is entered into the state’s track and trade system.

“It tells me when it was created, when it was flowered, when it was sprayed, what was sprayed, who had hands on it; the whole history of the plant from seed to sale,” he said.

 MOD_JBLLyftedFarms2

Processor Brad Nunes trims marijuana product at Lyfted Farms Monday May 6, 2019 in Modesto, Calif. Joan Barnett Lee JLEE@MODBEE.COM

But O’Leary said most consumers don’t consider all the safeguards in place by legitimate businesses and the potential dangers of cannabis grown illegally.

“In the cannabis market, as long as your flower looks pretty and smells pretty, you’re going to give it a shot, ” he said.

As a result, many consumers are still willing to purchase cannabis on the black market because it costs half of what you’d pay in a dispensary. The taxes alone are 33 percent, O’Leary said.

“We as legal operators have shelled out hundreds of thousands of dollars to become compliant and it is hard for us to even recoup what we put in when there is such a lucrative black market out here right now,” O’Leary said.

In addition to operating costs and state taxes, they must pay the county a community benefit fee, which funds enforcement, and a community benefit contribution, which supports local charities, community programs and public projects with a focus on youth.

Blink pays $70,000 a year for the fee and $35,000 for the contribution. That number will increase annually as profits grow. O’Leary will pay a fee of 8 percent on every sale and a community benefit contribution of $12,000, which also will increase annually.

Mitchell said the money that is coming in from the community benefit fee will soon fund two new deputies to join the SIU to combat illegal operations and conduct compliance checks on the legal businesses.

“There is more of a focus now because the county is getting pressure from these businesses … for us to go out and (eradicate) the illegal grows,” he said

Still, for now their efforts to fight illegal grows are “barely scratching the surface.” They take one down and another pops up, Mitchell said.

“Not only is the black market undermining the price of cannabis for the legal operators but it’s detracting from the best interest of the community, the health, safety and welfare of the general public,” Drivon said. “It only makes sense from a policy perspective to control this market, to control this agricultural commodity.”

Fireworks (And Early Christmas Presents) in Cudahy (Photos and Report)

December 18, 2018.

I wasn't sure whether I wanted to go the Cudahy City Council meeting last night. On December 4th, 2018, I had attended the city council meeting and royally mocked the losing corruptos who got shut out of re-election.

It was an early Christmas Present that all of them got the boot. I will never forget watching Cristian Markovich fleeing the Cudahy City Council chambers on Santa Ana Street two years ago. Most of the members of We the People Rising have told me that one of their favorite activist events occured that January evening in 2016.

We had made some headway in Huntington Park, then we found out about the city of Cudahy. I was surprised to learn that in spite of all the pro-illegal activism in the Southeastern Los Angeles County area, there was one elected official who had refused to support any kind of a so-called sanctuary city policy: Jack Guerrero.

That takes some guts, and that takes some integrity.

But January 11th, 2016 was fun!

And we had fun driving these corrupt councilmembers crazy for the next two years!

Since that January 11th, 2016 evening, I saw some of the most egregious violations of the Ralph M. Brown Act. The city attorney was repeatedly interrupting members of the audience. The people in the city were up in arms during a suddenly-called special meeting. The council insited on moving the city council meetings because they feared for the safety.

Really? They actually feared the wrath of the constituents in their city, fed up with the corruption and abuse of power.

Two years later, and the corrupt Cristian Markovich, Cristian Hernandez, and Baru Sanchez are GONE!

But ... what was going to happen at the December 18th, 2018 Cudahy City Council meeting?

I actually had a really good time.

The biggest disturbances came from two people:

First, Edin Alex Enamorado, who has been pushing pot in the city of the last two years, caused a big disturbing for attacking me at the podium during a public hearing. It was really strange. What did I have to do with the continued issuance of marijuana permits in the city of Cudahy?

He started talking about Jack Guerrero for some reason, and the audience burst into applause.

It was really gratifying to see everyone in the audience boo him and shout him down, especially when he started attacking me. He was really out of line.

Most of the people in the audience yelled at him:

The room had to be cleared because of the growing disturbance all over the city council chambers.

This didn't seem fair at all. Why should anyone person ruin the meeting for everyone else? Things were really getting heated. I joked with the two deputies on scene: "I didn't disrupt the meeting. This was not my fault!"

They got the message, then ordered everyone to clear out of the room.

I met with some of the other residents in the city council chambers who congregated outside. I met one of the new city council members. I encouraged her to speak to the city council to take steps so that we could all come back inside.

Chris Garcia would not have looked good clearing out the room the way he had done. It would have probably invited some uproar throughout the city if he had told everyone to leave. He came outside and said to everyone that the outbursts needed to stop.

Funny, how he wants to bring back decorum to the Cudahy City Council meetings, when he and his corrupt puppets in crime keep pushing marijuana onto the city residents, and how they insist on spending money that the city does not have for projects that the city does not need.

I had prayed God for favor that all of us would get back into that city council meeting. And it worked out.

While walking back into the meeting, Nestor Valencia, one of the city councilmembers from Bell, gave me a high five. "Hi Arthur!" He said to me. At the time, I didn't know who he was. He then told me that he has listened to a lot of my stuff. "I see you all over the country!" he told me. He had to add that he did not agree with me, but I was glad that he greeted me.

"Hi Arthur!"

Once everyone settled back into the council chambers, more members of the community spoke out against the ongoing push for marijuana into the city. The city council, on its final day before the reoganization of the city council members, was determined to push through every marijuana ordinance possible. It's such a shame to see what is happening in that city.

Two elected officials want to stop the marijuana, and yet there is no majority that is interested in doing what is best for the city. It must be really frustrating for residents trying to make a difference, to make things better. People need to pay more attention to what is happening in their own cities. The vote, the outcomes should not be so arbitrary. It's untenable.

The came the moment I had come to see: out with the old, and in with the new:

It was really vindicating to see Jack Guerrero, who has done nothing wrong and has been outspoken on a host of issues which Cudahy residents care about, have his seat restored to him on the city council. He had been unlawfully removed from the city council, according to numerous reports. There he was, re-elected to another seat. Incredible.

And yet, who knows what is going to happen?

Then things really got heated at the end of the meeting.

The new city council, having installed Jose Gonzales to be the next mayor, was having a really difficult time of dealing with the new transition of power. It was pretty clear that Gonzales is taking all his orders from Chris Garcia, who is irrepressibly corrupt.

Elizabeth Alcantar is a swing vote on every issue. She refused to allow the mayor to adjourn the meeting. Jack Guerrero fought hard a number of times to seek a stay on a number of the items which had been rammed through at the last minute.

An ongoing dispute between the city attorney and Guerrero broke out, and then the city council went into recess for five minutes to figure out what to do.

Naui began wandering around the room, harassing and irritating others. He tried to start a fight with me, but I just showed up a picture of his brutal punishment after harassing women and children in 2006:

He was so incensed by it, he ripped it out of my hands!

Wow! It really set him off. No matter how many times he wants to repeat "criminal! criminal!" to me, their shame, their hatred remains unabated. They just can't wear me down!

The city council reconvened after the recess. The city attorney refused to recognize Councilman Guerrero's motions. It was really clear that the city council corruption was not going to get by as easily as it had done in the past.

Chris Garcia and the big money marijuana industry in the region had issued the most blistering attacks against Guerrero, and none of it worked. The previous, corrupt city council colluded against the law to have him removed from the council. He got re-elected in his own right notwithstanding. At this time, there is another person on the council who shares his concerns about issues, too.

Chris Garcia was clearly cajoling the newly-appointed mayor, who was going back and forth and had no idea what he was doing. He even adjourned the meeting without a vote from the council! The attorney told

Then things escalated from there.

Nazi Huitzilopochtli began hounding Jack Guerrero. Residents of the community have really grown tired of this guy. They saw him harassing other people in the audience. The sheriff's deputies stepped in and they arrested him!

It was a glorious sight! Indeed, it was quite a turnaround. JUSTICE!

Outside the city hall, I celebrated with other people from the city. Some of them even shouted "Viva Trump!"

I shouted back "Feliz Navidad!"

A few of the residents reached out to me afterwards, and they wanted my help with making things better in the city. I was really honored to be there. Some of the residents had greeted me inside, and others passed by and told me "Thank you for coming!"

There were so many Christmas presents--of a sort--that came out of this city council meeting, and I am really glad that I had come. I wasn't even sure I was going to bother coming. After I had arrived, I couldn't even find a parking spot the first time around! Then I came into the parking a lot a second time, and there was a spot for me right there!

Everything really worked out for me that night. I hope that things work out for the better for the residents and the new city council too:

1. Last minute spot opened up.
2. Bigot attacks me at the podium, and he gets shut down by the whole audience.
3. Three corrupt city councilmembers get tossed of the city council.
4. Two honest city councilmembers elected.
5. Naui gets arrested.

Who could ask for anything more during a Southeastern Los Angeles County City Council meeting?

Visiting Weed and Mount Shasta, Siskiyou County California (Photos)

The California Governor's Race: Right-wing Dreams and Left-wing Nightmares

Jerry Brown is retiring—for good this time. Governor Moonbeam has been an unmitigated disaster for California, and God forbid that his children run for statewide office. Californians have an open governor’s seat again. Well, sort of. Gavin Newsom, former Mayor of San Francisco, won the Lieutenant Governor’s seat in 2010, defeating a moderate Republican incumbent.

Much like a pampered Vice President running for President, Newsom is campaigning like the heir apparent: a reckless, lawless social justice warrior politician with a penchant for every woman but his wife—and always with a flawless smile and slicked-back hairline. As mayor, he signed off on gay marriage licenses, even when it was illegal to do so. He champions sanctuary cities and state policies, and pledges to go all the way for the progressive vision of California’s hardened left-wing base.

The horror! The horror!

The other major candidates are:

2. Antonio Villaraigosa, former Assemblyman, Speaker of the Assembly, and two-term failed mayor of Los Angeles. Also a dubious lobbyist for Herbalife, and now working hard (with establishment GOP consultant support) to flash some blue-collar, Latino credibility with the state’s growing Latino voting bloc

3. John Chiang, State Treasurer (and fellow Torrance resident). He wants to position himself as a saner Democratic-lite alternative centrist. He won’t go for single-payer because the state can’t afford it, but wants a public option, like what Obama had promised in 2009.

4. Delaine Eastin: The only woman, a former city councilmember, assemblywoman and state official (Superintendent of Schools). She is striving to position herself to the left of Newsom, with lots of talk about more money for healthcare, schools, and protection for all residents, especially illegals.

5. John Cox: a wealthy businessman, accountant, and thrice-failed candidate from Chicago. He has invested his considerable fortune to repeal the hated gas tax increase and sponsor a New Hampshire style neighborhood legislature initiative. He also voted for Gary Johnson for President.

6. Travis Allen: a financier and wealth manager, small businessman, Assemblyman from Huntington Beach elected in 2012. Allen has openly touted his support for President Trump and his populist, pro-enforcement agenda. (Full disclosure: he is my preferred candidate.)

There have been three gubernatorial debates so far. The first hosted Cox and Allen alone, the second and third with all six candidates at USC and UCLA, respectively. The UCLA forum focused on Latinos and their take on issues.

What topics have dominated the debates among these candidates?

1.       Trump.  The first question at the USC debate referred to President Trump’s unsubstantiated “sh*thole” comments. “Is the President a racist?” asked the moderator, a stunningly biased, offensive question. The three more left-wing Democrats predictably affirmed “Yes!” to wild applause from the mostly college-age audience. Chiang ignored the question, as did Allen and Cox. Last time I checked, Trump is not running for governor, but it’s a great left-wing talking point to avoid the issues and increase their polling.

Support for Trump divided Allen and Cox at the Redlands Tea Party debate, too. Allen was engaging, lively, prepared to answer all questions. Humped in his seat, Cox appeared uncomfortable, unable to shake off his vote for Gary Johnson, an open borders, pro-pot, pro-cap and trade statist. The audience overwhelmingly supported Allen.

2.       Immigration. How will candidates stand up to the “Trump Deportation Machine”? What about DACA recipients? The sanctuary city and state issues have featured prominently, with Democrats strutting their anti-Trump, pro-illegal bonafides. In deft contrast, Allen and Cox have championed enforcement of all federal immigration laws. Allen has been particularly adamant about a commitment to repeal the Sanctuary State law through special legislative session within his first 100 days in office. Cox has sought for a more nuanced view, recognizing the need for immigrant labor while upholding the rule of law.

3.       Single-payer healthcare. To what extent will candidates expand government intervention into the state healthcare system? It’s laughable yet amazing to see the four Democrats contort themselves to the extreme-left or the moderate left on this issue. Villaraigosa says he agrees with single-payer “philosophically”—whatever that means. The money isn’t there, but Democratic candidates don’t calculate cost when counting votes, right?

The Republican candidates have sharply distinguished themselves from their Democratic counterparts. They both denounce single-payer healthcare without hesitation: “Why not guaranteed housing and food?” Cox asked one crowd. Allen pointed out the insurmountable cost of the program, $400 billion and counting.

4.       Marijuana. US Attorney General Jeff Sessions is cracking down on states which have legalized recreational pot use. This issue and California’s pro-illegal alien policies highlight the constitutional crisis between California and the US Government. Whom will the governor side with?

5.       Transportation. California’s roads, bridges, and byways are crumbling. Republicans attacked the failed Democratic leadership and their misplaced priorities. The Democrats by and large talk up big promises to fix everything and to find the money to do it.

6.       Homelessness. A state with so much plenty and promise is now overrun with homeless on the streets and tent cities in the suburbs. Onerous regulations and high taxes have pushed up rents. Republicans have fingered the Democrats’ one party rule for this disaster. The Democratic candidates roll out their compassionate rhetoric and promise more money. From where? Who knows.

Despite California’s dispiriting jungle primary, which means the top two candidates advance to the general election regardless of party, this primary season has been engaging and encouraging. At the UCLA debate, the moderators, two Spanish-language journalists, expected each candidate to his-pander to the heavily Latino, pro-illegal audience. Cox fumbled at the end, derisively trying to form a pro-Latino connection with the audience. Allen affirmed his commitment to repeal sanctuary state and ensure that single-payer never happens in California. In spite of booing from the crowds, he maintained incredible calm and composure. That’s what leadership is about.

Despite the pervasive anti-Trump animus, I hope to elect a governor that actually governs California, not a show-boat Democrat posturing for the Presidency in 2020. At this point, one can only hope for the best.

Trump Derangement Syndrome: Oregon Congressman Lies about Tax Reform and More

Update from Congressman Peter DeFazio Here's an update of what I'm working on both in Oregon and in Washington, D.C.:  GOP Tax Bill: The Wrong Priorities Even before the Republican tax bill passed Congress and was signed into law by President Trump in December, House Speaker Paul Ryan began proposing we ransack domestic programs in order to offset the vast amount of debt created by his new tax bill. The programs he and other Republicans want to cut include Social Security, Medicare, Medicaid, and more. These ill-conceived ideas are far from the priorities that the American people want Congress to address. In fact, Americans are strongly opposed to cutting these programs. Instead of the partisan tax cuts for corporations and the wealthy that Speaker Ryan and the Republicans jammed through Congress without a single public hearing, the federal government could pay for programs that provide real jobs and real benefits to Americans. For example, the Republican tax bill costs almost $1.5 trillion to lower the corporate tax rate from 35 percent to 21 percent. Rather than padding corporate profits and enriching Wall Street even further, this $1.5 trillion could be used to fully fund IDEA – federally-mandated special education for students with disabilities in our public schools – and provide every high school senior in America with up to $25,000 in tuition assistance over the next decade. The Republican tax bill was touted as a way to bring jobs back home to America. In reality, the Republican plan contains loopholes to encourage corporations to move overseas in order to get a lower tax rate, raising the deficit by $207 billion. Rather than increasing our national debt by $207 billion to encourage corporations to move jobs overseas, we could invest $207 billion to improve infrastructure throughout the country, which would create 3 million jobs in America over a decade. These jobs would span construction, design, engineering, high-tech, small businesses, manufacturing, and more. Moreover, the Republican plan reduces taxes for those earning over $500,000 a year, increasing the debt by $130 billion. We could instead utilize this money to create a cost-of-living-adjustment (COLA) for Social Security and Medicare beneficiaries that actually reflects cost of living increases for seniors. And, we would still have $40 billion left over to help lower the costs of prescription drugs for all Americans. In addition, the Republican plan borrows $72 billion to give a new tax break to heirs of estates worth at least $11 million (or $22 million for couples). Alternatively, this $72 billion could fully cover the cost of both the Children’s Health Insurance Program (CHIP) and community health centers (CHCs) over the next decade – items that the Republicans say we as a country just can’t afford any more. Instead of cutting Social Security, Medicare, Medicaid, and other essential programs to provide tax breaks for corporations and the wealthy, we could provide real jobs and real benefits to the American people. You can be sure that I will continue doing everything in my power to protect Oregonians from cuts to critical programs and provide common-sense investments in education, jobs, infrastructure, health care, and more. VA Investigation at Roseburg and Eugene Clinics This past fall, after receiving more than 200 messages from VA Roseburg Healthcare System (VARHS) employees documenting alarming claims of misconduct, mismanagement, and degraded patient care at both the Eugene and Roseburg facilities, I demanded the VA initiate an investigation. As a result, the VA sent a team comprised of officials from the Office of the Medical Inspector (OMI) and the Office of Accountability and Whistleblower Protection (OAWP) to investigate these issues. On January 11, I met with senior leaders from the U.S. Department of Veterans Affairs (VA) to receive a preliminary report on their investigations. During the briefing, the VA outlined a number of personnel and statutory changes that have been or will be implemented within the hospital system. While investigations are ongoing on a number of fronts, I pushed the team to provide the final public results and implement reform within weeks, not months. The VARHS has suffered for years from mismanagement resulting in an inability to recruit and retain high-quality providers, which has seriously hindered patient care. This is not the first crisis of management and patient care at VARHS, and previous short-term fixes have only compounded the problem. Oregon’s veterans and VARHS employees deserve lasting, long-term, sustainable change at the VARHS. I have a long history of fighting to ensure that veterans receive the care they deserve. I am pleased that the VA is finally taking these issues seriously, but I remain committed to ensuring that the investigation produces long-term solutions that will allow the VA to provide veterans with the best care possible and recruit and retain high-quality medical providers. Defending Oregon’s Marijuana Laws I was disappointed to see Attorney General Jeff Sessions announce his intent to repeal an Obama-era policy that protects states that have legalized marijuana from federal prosecution. The Attorney General’s announcement is a gross overreach of federal authority that will impair thousands of small businesses in Oregon while doing absolutely nothing to stem the tide of opioid addiction and abuse. I have long advocated for states’ rights to regulate marijuana use for their citizens without federal intervention. Against all logic, marijuana is currently classified at the federal level as a Schedule I drug, the highest possible restriction. These drugs are considered the most dangerous with the highest potential for abuse and no recognized medical benefits. Including marijuana in Schedule I classification means the Drug Enforcement Agency (DEA) considers it to be just as dangerous as heroin and LSD. This is completely absurd. That’s why I am a cosponsor of H.R. 975, the Respect State Marijuana Laws Act, which would amend the Controlled Substances Act (CSA) to prevent federal officials from prosecuting residents who are acting in accordance with their state’s marijuana laws. I have also signed onto a letter in support of the McClintock-Polis Amendment, which would include a provision in any upcoming funding bill that would provide protections from the federal government to states that have medical or recreational marijuana laws on the books.  Meanwhile, Oregon's death rate from opioids has more than quadrupled in the last 10 years. The Oregon Health Authority reported that an average of three Oregonians die per week from prescription opioid overdose. And it’s not just Oregon. According to an estimate by the Centers for Disease Control and Prevention (CDC), over 52,000 Americans died of drug overdose in 2016, and tens of thousands more died in 2017. Our Justice Department ought to be focusing its resources on the opioid epidemic, not on attacking law-abiding citizens who are acting in accordance with their states’ own regulations. Furthermore, the Attorney General’s announcement is a major blow to thousands of small marijuana-related businesses which are already facing challenges with federal taxation and access to banking services. As a member of the Congressional Cannabis Caucus, I have and will continue to work with my colleagues to develop policies and legislation that can help bridge the gap between current federal laws that prohibit marijuana use and the current state laws that have legalized it for medical or recreational purposes. Positive Train Control Technology On December 18, a terrible Amtrak train crash occurred near Dupont, Washington, killing three people and injuring many more. In its investigation of the crash, the National Transportation Safety Board (NTSB) reported that the accident could have been prevented by positive train control (PTC) technology, which can automatically stop a train before certain types of accidents occur. In light of this incident, I recently introduced the Positive Train Control Implementation and Financing Act, which would speed up the implementation of life-saving PTC technology that could prevent catastrophic human-caused rail accidents.  Since Congress first passed legislation to mandate PTC implementation in 2008, some railroads have been diligent in implementing PTC while others have clearly been dragging their feet. Two years ago, Congress granted them more time, pushing the PTC implementation deadline to December 31, 2018. As we approach that deadline, many of the railroads do not appear to be on track to meet the PTC mandate. This is unacceptable – there should be no more delays, no more extensions, and no more excuses from railroads who have had ten years to implement PTC technology. My legislation requires that PTC be installed by the end of this year, prevents future deadline extensions of this life-saving technology, and provides critical grants for cash-strapped commuter and intercity passenger railroads to implement PTC. To help passenger railroads meet the deadline, the bill includes just over $2.5 billion in grants for intercity and commuter passenger railroads to implement PTC. Moreover, in response to the recent Amtrak crash in Washington, my legislation would prohibit commuter and intercity passenger railroads from beginning new service on a route unless PTC is fully implemented and operational. It also requires that Amtrak report its progress toward installing PTC on routes that are not owned by Amtrak, but are operated by the railroad, such as the Amtrak Cascades line. As Ranking Member of the House Committee on Transportation and Infrastructure, you can be sure that I will continue to monitor PTC implementation and fight for improved railroad safety across the country.   Sincerely, Peter DeFazio