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Justice Department Memo Says Marijuana Investigations Were Appropriate, But Another Probe Is Ongoing

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An office within the Justice Department that investigates misconduct concluded this month that allegations about the attorney general directing improper antitrust investigations into marijuana company mergers due to personal bias were unfounded. But that doesn’t mean officials are completely off the hook, as another probe of the matter is still underway.

In a June 11 memo, which was referenced at a House Judiciary Committee hearing on Wednesday that included testimony from one of two whistleblowers who made the allegations, the Justice Department’s Office of Professional Responsibility (OPR) determined that no rules were violated and the Antitrust Division (ATR) did its due diligence in the multiple cannabis investigations.

The whistleblowers initially took their complaints to the executive Office of Special Counsel, which referred the case to OPR. When OPR approached the division with the allegation of impropriety, officials contended that because of their lack of experience assessing the industry, which “was rapidly expanding and consolidating,” the antitrust investigations were appropriate despite claims they were influenced by Attorney General William Barr’s animosity toward the marijuana industry. They also argued that, in contrast to the argument that there were “no competitive concerns” at issue, the federal-state marijuana policy conflict “made it impossible” for them to reach that conclusion in a timely manner.

The investigations resulted in the production of millions of documents from 10 cannabis companies, including MedMen and Pharmacann. Ultimately, across six of the 10 investigations for which data are available, 5,965,000 documents were produced by the marijuana companies under inquiry. The division ended up closing the cases.

“The cannabis industry provided a unique challenge to federal and state regulators alike, and it was reasonable for ATR to seek additional information from the industry through its Second Request process,” OPR said in the memo, which was first reported by Politico. “In addition, contrary to the whistleblowers’ allegations, the documents provided by ATR reflect significant, and successful, negotiations among ATR and the cannabis companies concerning narrowing the scope of the Second Requests.”

“Furthermore, the internal memoranda recommending the closure of the investigations reflect that ATR staff conducted a significant amount of analysis regarding the competitive impact of the proposed mergers, and often explained how the actions of state regulators offset any competitive concerns,” it added.

However, Elias said that what he found “very concerning” about the situation is that Barr reportedly ordered the antitrust investigations out of personal animus and intended to slow the industry’s growth. OPR did not directly respond to that claim, but the memo did state that it agrees the Antitrust Division has significant “latitude” when pursuing these cases.

“Accordingly, even if the whistleblowers’ allegations were true, OPR finds that ATR’s Second Requests would not have violated any relevant laws, regulations, rules, policies, or guidelines,” the document says. “Because OPR concludes that ATR acted consistent with all applicable laws, regulations, and DOJ guidelines in its review of the proposed cannabis mergers, OPR is closing its investigation.”

While OPR’s investigation into the whistleblower complaint is closed, Elias said at the hearing that the allegations are also being separately reviewed by the Justice Department’s inspector general.

Barr’s alleged personal opposition to the cannabis industry doesn’t seem consistent with statements he’s made in various congressional hearings, where he’s expressed interest in resolving the state-federal conflict over marijuana policy.  Last year, he said that while he personally opposes legalization, he would prefer for Congress to pass a bill respecting the rights of states to implement their own cannabis policies rather than maintain blanket federal prohibition.

Read the full OPR memo on Justice Department marijuana merger investigations below:

DOJ memo on cannabis mergers by Marijuana Moment on Scribd

Virginia Black Lawmakers Push To Legalize Marijuana In Special Session This Summer

Photo courtesy of Mike Latimer.

Marijuana Moment is made possible with support from readers. If you rely on our cannabis advocacy journalism to stay informed, please consider a monthly Patreon pledge.

Kyle Jaeger is Marijuana Moment's Los Angeles-based associate editor. His work has also appeared in High Times, VICE and attn.

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Texas Lawmakers Approve Marijuana Decriminalization Bill In Committee

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A bill to decriminalize marijuana possession in Texas—as well as a separate proposal to reduce penalties for possessing cannabis concentrates—advanced out of a key House committee on Friday.

These are the latest developments that have come after a week where Texas lawmakers have considered a medley of marijuana reform measures. But arguably the most significant piece of cannabis legislation to move out of committee would make possession of up to an ounce of marijuana a class C misdemeanor that carries a fine but no threat of jail time.

The full House of Representatives approved a cannabis decriminalization bill in 2019, but it did not advance in the Senate that session.

This time around, the House Criminal Jurisprudence Committee approved the decriminalization bill, which would also prevent law enforcement from making arrests over low-level possession. Other decriminalization proposals that were under consideration by the panel this week would not prohibit that enforcement action, which is key because police are currently able to incarcerate people who are arrested for class C misdemeanors even though the charge itself does not carry the risk of jail time in sentencing.

The advancing legislation, HB 441, sponsored by Rep. Erin Zwiener (D), would also prevent the loss of a driver’s license or the creation of a criminal record for possession of up to one ounce.

Separately, the committee advanced legislation to make possession of up to two ounces of cannabis concentrates a class B misdemeanor.

Both bills were among the subjects a lengthy hearing the panel held on Tuesday.

“Marijuana bills are moving through the committee process at record speed this session,” Heather Fazio, director of Texans for Responsible Marijuana Policy, told Marijuana Moment. “There’s good reason to be optimistic about the upcoming votes and the House and advocates will be doubling down their efforts to influence senators.”

This action comes one day after the House Public Health Committee unanimously approved a bill to significantly expand the state’s medical marijuana program.

Sponsored by Chairwoman Stephanie Klick (R), the bill would add cancer, chronic pain and post-traumatic stress disorder (for veterans only) as conditions that could qualify people for the state’s limited medical cannabis program.

It would further allow the Department of State Health Services to add more qualifying conditions via administrative rulemaking. And it would also raise the THC cap for medical marijuana products from 0.5 percent to five percent.


Marijuana Moment is already tracking more than 900 cannabis, psychedelics and drug policy bills in state legislatures and Congress this year. Patreon supporters pledging at least $25/month get access to our interactive maps, charts and hearing calendar so they don’t miss any developments.

Learn more about our marijuana bill tracker and become a supporter on Patreon to get access.

On Thursday, the House Agriculture and Livestock Committee also discussed legislation that would make certain changes to the state’s hemp program, including imposing rules related to the transportation and testing of consumable hemp products.

While the Texas legislature has historically resisted most cannabis reforms, there are signs that this session may be different.

House Speaker Dade Phelan (R) said during a Texas Young Republicans event last month that while he wouldn’t be able to distinguish marijuana from oregano, he said, “I understand the issue.”

The speaker said that he voted for a limited medical cannabis legalization bill during his freshman year in the legislature, and his support for the reform is partly based on the fact that he has a “sister with severe epilepsy, and small amounts of CBD oil makes a big difference in people’s lives.”

Phelan also noted that he was a “joint author—no pun intended” of cannabis decriminalization legislation last session.

“I was able to go back home and explain it, and it wasn’t a big deal,” he said. “To me, it’s a reasonable criminal justice reform issue.”

Texans’ support for legalizing marijuana has grown significantly over the past decade, according to a poll released last month.

Sixty percent of state voters now back making cannabis legal “for any use,” the University of Texas and Texas Tribune survey found. That compares to just 42 percent who said the same back in 2010.

Leaders in both chambers of the legislature have recently indicated that they anticipate more modest proposals to be taken up and potentially approved this session, particularly as it concerns expanding the state’s limited medical cannabis program.

Phelan said he thinks “the House will look at” reform measures this year, including bills to legalize for adult use. He said the lawmakers will likely “review those again, and some will get traction, some will not.” However, the Senate remains an obstacle for comprehensive reform.

Legislators in the state prefiled more than a dozen pieces of cannabis legislation ahead of the new session. That includes bills that would legalize recreational marijuana, allow high-THC cannabis for medical use and decriminalize low-level possession of marijuana.

That said, Lt. Gov. Dan Patrick (R), who presides over the Senate, has killed prior efforts to enact reform in the state, raising questions about the prospects of far-reaching changes advancing in the chamber.

Nevada Lawmakers Approve Marijuana Bill To Allow On-Site Consumption Lounges

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Nevada Lawmakers Approve Marijuana Bill To Allow On-Site Consumption Lounges

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A bill to allow on-site marijuana consumption lounges advanced through a Nevada Assembly committee on Friday. The panel separately passed a measure making it so the concentration of THC in a person’s blood cannot be singularly used to determine impairment while driving.

The social use legislation, sponsored by Speaker Pro Tempore Steve Yeager (D), would create two new licensing categories for cannabis businesses in the state. One would be for “retail cannabis consumption lounges” and the other would be an “independent cannabis consumption lounge.”

Existing retailers could apply for the former license and sell products that could be consumed on-site by adults 21 and older. Independent lounges would not be permitted to sell cannabis on their own, but would need to have marijuana products delivered to consumers from another source.

That said, independent licensees could submit a request to regulators to sell cannabis that they produce or to enter into a contract with an adult-use retailer to sell their products.

The state’s Cannabis Compliance Board would also be responsible for creating regulations for on-site facilities and setting fees for license applicants. Businesses that qualify as social equity applicants would have a reduced fee.

Under the legislation, a person “who has been adversely affected by provisions of previous laws which criminalized activity relating to cannabis, including, without limitation, adverse effects on an owner, officer or board member of the applicant or on the geographic area in which the applicant will operate” is considered a social equity applicant.


Marijuana Moment is already tracking more than 900 cannabis, psychedelics and drug policy bills in state legislatures and Congress this year. Patreon supporters pledging at least $25/month get access to our interactive maps, charts and hearing calendar so they don’t miss any developments.

Learn more about our marijuana bill tracker and become a supporter on Patreon to get access.

Yeager proposed a large-scale amendment to the proposal before it was approved by the Assembly Judiciary Committee. It builds on the definition and scoring system for social equity applicants, revises public safety requirements for lounges and ensures that products purchased at lounges cannot be removed from the facility, among other changes.

The Las Vegas City Council in 2019 approved an ordinance allowing for social consumption sites within city limits.

That year, Alaska became the first state to enact regulations that provide for the on-site use option at dispensaries. Colorado followed suit with legislation approved that legalized cannabis “tasting rooms” and “marijuana hospitality establishments” where adults could freely use cannabis. Social consumption sites are also provided for in New York’s recently enacted marijuana legalization law.

In Nevada, adding new license types and giving consumers this option—especially in the tourist-centric state—could further boost marijuana and other tax revenues. And Gov. Steve Sisolak (D) has had a particular interest in ensuring that those tax dollars support public education, which he talked about during a State of the State address in January.

Sisolak has also committed to promoting equity and justice in the state’s marijuana law. Last year, for example, he pardoned more than 15,000 people who were convicted for low-level cannabis possession.

That action was made possible under a resolution the governor introduced that was unanimously approved by the state’s Board of Pardons Commissioners.

Under the impaired driving bill that separately cleared the committee on Friday, the per se blood test for THC would no longer be used in determining impairment.

Advocates have argued that the limit is arbitrary and there’s a lack of scientific evidence demonstrating a link between the amount of THC metabolites present in the blood and active impairment.

New Mexico Governor Sends Marijuana Bill Sponsors A ‘Save The Date’ For Expected Legalization Bill Signing

Photo courtesy of Martin Alonso.

Marijuana Moment is made possible with support from readers. If you rely on our cannabis advocacy journalism to stay informed, please consider a monthly Patreon pledge.
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Biden Gets Yet Another Congressional Letter Blasting Marijuana-Related White House Firings

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President Joe Biden has received yet another letter from a lawmaker demanding answers about his administration’s practice of firing or otherwise punishing staffers for prior marijuana use.

Rep. Angie Craig (D-MN) noted the national push to end prohibition and how the White House’s actions reveal a troubling disconnect.

“Cannabis is legal for either medical or adult use in 36 states, with numerous states pursuing efforts to further legalize for adult use,” the congresswoman wrote. “In Minnesota, our state legislature is expected to vote on measures to legalize cannabis in the coming months following years of political and community organizing by activists throughout the state.”

“Minnesotans and the American people are demanding change to our harsh and unequally applied cannabis laws,” she wrote. “I look forward to seeing your Administration reverse course on this harmful and unnecessary hurdle to hiring diverse and talented public servants.”

Craig also mentioned efforts to legalize marijuana at the federal level and commented on Biden’s prior statements on more modest reforms.

“I stand ready to work with you as we revisit our country’s drug laws, including the descheduling of cannabis as a Class 1 drug at the federal level,” she said. “You have previously expressed your commitment to decriminalizing cannabis in acknowledgement that a cannabis conviction or even the stigma of cannabis use can ruin lives and prevent people from voting, gaining employment and contributing to society.”

This is the third letter from lawmakers that Biden has been sent regarding the federal marijuana employment controversy.

A coalition of 30 members of Congress sent a letter last month that sharply criticizes the administration for terminating or punishing multiple White House staffers who disclosed their prior cannabis use. They pointed out that Vice President Kamala Harris and at least one one other Cabinet member are on record about their own marijuana use experiences.

Prior to that, Rep. David Joyce (R-OH) sent a similar message to the president condemning news of the marijuana-related firings for people who were honest about their history with cannabis on a federal form that’s required as part of the background check process.

“Simply put, in a nation where the truth is considered malleable, we need to demonstrate to our young public servants that telling the truth is an honorable trait, not one to be punished,” the congressman wrote. “I respectfully request that your administration discontinue punishment of staff for being honest about their prior cannabis use and reinstate otherwise qualified individuals to their posts.”

White House Press Secretary Jen Psaki addressed the controversy last month, saying during a press briefing that while Biden could theoretically end the policy of firing staff over prior marijuana use himself, that’s not happening as long as cannabis is federally illegal.

She later said that the president’s stance on marijuana legalization “has not changed,” meaning he’s still opposed to the comprehensive reform.

Psaki has previously attempted to minimize the fallout over the cannabis firings, with not much success, and so her office released a statement last month stipulating that nobody was fired for “marijuana usage from years ago,” nor has anyone been terminated “due to casual or infrequent use during the prior 12 months.”

Read the new letter to Biden on White House marijuana employment policy below: 

Letter to Biden Regarding C… by Marijuana Moment

New Mexico Governor Sends Marijuana Bill Sponsors A ‘Save The Date’ For Expected Legalization Bill Signing

Marijuana Moment is made possible with support from readers. If you rely on our cannabis advocacy journalism to stay informed, please consider a monthly Patreon pledge.
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