OPEC Production Cuts: Is Russia Complying?

Authored by Tsvetana Paraskova via OilPrice.com,

Russia’s oil production held onto an 11-month high in April, flat compared to March and above its quota under the OPEC/non-OPEC deal for a second consecutive month, according to data by Russia’s Energy Ministry.

Russia pumped a total of 10.97 million bpd of oil in April, unchanged from March, and slightly above its quota under the production cut deal, according to energy ministry data, as carried by Reuters.

Russia’s pledge in the OPEC/non-OPEC deal is to shave off 300,000 bpd from its October 2016 level, which was the country’s highest monthly production in almost 30 years – 11.247 million bpd.

Last month, production at the larger Russian companies increased, while a decline at the smaller firms offset that growth. Production at Rosneft, the largest Russian oil company, inched up by 0.1 percent in April over March, while Gazprom Neft—which has an ambitious production growth plan—saw its oil production increase by 0.9 percent month on month. The combined production of the smaller oil companies decreased by 0.9 percent last month, offsetting the production gains at the bigger producers.

After three months of steady output, Russia’s crude oil production increased in March to 10.97 million bpd, the highest level since April 2017, as the top two Russian companies – Rosneft and Lukoil – boosted their production.

Russia is leading the non-OPEC group of oil producers part of the pact with OPEC to cut production in order to draw down inventories and boost oil prices. Analysts and official figures are already estimating that global oil stocks in developed economies are very close to or already within the five-year average—OPEC’s metric for the deal’s success.

Nevertheless, OPEC’s leader Saudi Arabia insists that there is more work to be done and the cuts should continue by the end of this year, as planned. Russia is more careful in comments, although it has repeatedly said that it is committed to the deal. Last month, Russia’s Energy Minister Alexander Novak said that at the June meeting, OPEC and allies could discuss ‘easing the cuts’ until the end of the year. 

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The Leader In The Self-Driving Vehicle Race Isn’t Uber Or Tesla: It’s The Pentagon

With all of the hype about autonomous driving focused on companies like Uber and Tesla, one big name has been left off the list of consideration in the public spotlight: the United States Government. And, it turns out with companies like Uber seeing self-driving fatalities causing major pushback in implementation of public testing, the government is the one leading the self-driving race. 

Monday morning Bloomberg reported that the Pentagon could be the first to win the race to implement useful autonomous driving. Bloomberg reported:

Forget Uber, Waymo and Tesla: the next big name in self-driving vehicles could be the Pentagon.

“We’re going to have self-driving vehicles in theater for the Army before we’ll have self-driving cars on the streets,” Michael Griffin, the undersecretary of defense for research and engineering, told lawmakers at a hearing on Capitol Hill this month. “But the core technologies will be the same.”

The implementation of autonomous driving on the battlefield is an easier landscape to work with than roadways, as there are no traffic lights or roadsigns to worry about if you’re just trying to just get supplies from point A to point B.

This makes autonomous vehicles a potentially lifesaving and wildly good idea for war zones – the delivering of things like medical supplies and food on the battlefield are a perfect fit:

The stakes for the military are high. According to Griffin, 52 percent of casualties in combat zones can been attributed to military personnel delivering food, fuel and other logistics. Removing people from that equation with systems run on artificial intelligence could reduce injuries and deaths significantly, he added.

“You’re in a very vulnerable position when you’re doing that kind of activity,” Griffin said. “If that can be done by an automated unmanned vehicle with a relatively simple AI driving algorithm where I don’t have to worry about pedestrians and road signs and all of that, why wouldn’t I do that?”

On top of that, the federal government has a much larger budget than any one company working on self-driving. The Pentagon’s budget comes in around $700 billion:

With an annual budget of almost $700 billion, the Pentagon can afford to aggressively pursue autonomous vehicle technology well beyond fuel and food delivery trucks. The Army, for instance, is pushing forward with efforts to develop unmanned tanks and smarter vehicles for bomb disarmament, though many of those technologies will be remote-controlled, not autonomous.

Major Alan L. Stephens, an officer at the Mounted Requirements Division of the U.S. Army Maneuver Center of Excellence in Georgia, said in December that the Army wants to start testing light, fast remote-controlled tanks with the same firepower as the current 70-plus-ton manned M1 Abrams tank within the next five years.

BAE Systems Plc, the maker of the Army’s manned Armored Multi-Purpose Vehicle, also makes unmanned vehicles known as the Ironclad and the Armed Robotic Combat Vehicle. The Ironclad, which looks like a miniature tank missing a gun turret, is expected to have roles in reconnaissance, evacuations of injured personnel and explosive ordnance disposal, according to the London-based company’s website.

However, their enormous budget doesn’t mean that they are not going to be working with companies already developing this technology. Other companies may wind up with a chunk of the government’s $700 billion plus budget to help contribute to the project’s development:

“The regulatory structure here in the U.S. and the countries where the U.S. may be sending troops are very different,” Stanley said. “How autonomous vehicles are going to be regulated — in terms of safety, cybersecurity, privacy and liability — those are going to be critical issues” the Pentagon will have to address as well, she added.

The Pentagon has a long history of support that helped to develop or refine key technologies that become widespread later, including space flight and the internet.

Griffin said the Pentagon “absolutely must leverage” what private companies are doing to develop self-driving cars, though he didn’t mention any by name and his office declined to comment when asked for more details about the Pentagon’s plans.

The Defense Advanced Research Projects Agency, which Griffin oversees, has been funding research into self-driving cars for years and sponsored its first competition for the vehicles in 2004.

“The military is very eager to learn and build upon what’s been done commercially as opposed to try to reinvent and do it themselves,” said RAND’s Stanley.

The Navy is also already looking into unmanned underwater vessels, with companies like Lockheed and Boeing competing for these contracts:

Offshore, the Navy is seeking help developing technology for the next generation of large and extra-large unmanned underwater vehicles to incorporate artificial intelligence so they can handle navigation hazards such as deep-draft commercial ship traffic, fishing activities, marine mammals and prospecting for oil, gas or minerals. Lockheed Martin Corp. and Boeing Co., the largest and second-largest U.S. contractors, are competing on the program, with a critical design review scheduled for December.

Not all companies already working on AI and self-driving seem excited about being a part of the government’s plan, however. It was reported that employees at Google have already protested allowing the government to use the company’s AI technology:

Thousands of employees at Alphabet’s Google recently demanded an end to deals letting the military use the company’s artificial intelligence technology. Mattis visited Google headquarters in Mountain View, California, last year to discuss with executives the best ways to use AI, cloud computing and cybersecurity for the Pentagon.

Among critics’ concerns is the potential development of autonomous weapons that make their own life-and-death targeting decisions. Ash Carter, who was defense secretary under President Barack Obama, told a Silicon Valley audience in 2016 that “in the matter of the use of lethal force, there will always be — at least speaking for the United States — a human being involved in decision making.”

Charles Dunlap, a retired Air Force major general who’s now a law professor at Duke University, said companies will come under “enormous pressure” as they sort out these issues and try to make sure their artificial intelligence products for the military don’t put people in danger.

We reported back in late March that Nvidia had suspended its self-driving tests, shortly after Uber did the same following a fatal accident. This came just weeks after one of Ford’s self-driving prototypes also sent two people to the hospital in an accident. While a certain precursor seems to be in place for the Pentagon to roll out autonomous driving onto the battlefield, it’s ultimately still a project at the hands of the government and that means we won’t be surprised if it takes longer to implement than expected, costs more than estimated or never sees the light of day to begin with.

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The Trump Administration Is Not Bothering to Estimate Civilian Drone Deaths

Predator DroneIndependent observers are reporting dramatic increases in civilian deaths from U.S. drone strikes overseas. But don’t expect official numbers anytime soon: The federal government has stopped producing them.

Toward the end of his administration, in response to criticism of the secrecy surrounding his drone assassination program, Barack Obama ordered an annual report detailing how many people the United States had killed in countries, such as Yemen, Somalia, and Libya, where there were no ongoing military interventions. The counts included both enemy combatants and civilian casualties.

The deadline to release the tally for 2017 was on Tuesday, and the Trump administration missed it. The Washington Post reports that the White House may rescind or revise Obama’s executive order, which is currently under review.

Over at Mother Jones, Kevin Drum wonders if Trump wants to hide the numbers because of the dramatic increases in civilian deaths in Syria and Iraq that have been reported by the nonprofit project Airwars. Airwars tracks civilian deaths and “friendly fire” casualties in Syria inflicted by Russian and Turkish strikes as well as U.S.-led coalition forces. In 2017, Airwars reported a dramatic increase—more than 200 percent—in civilian fatalities in Syria. The organization estimates that somewhere between 3,900 and 6,100 noncombatants were killed in Syrian strikes by coalition forces in 2017. Airwars noted a drop in civilian kills by Russian forces as they started withdrawing last year. It estimated that between 2,700 and 4,000 civilians were killed in Russian strikes last year, compared to 6,100-8,500 in 2016.

Contrary to what Drum implies, those numbers would not have been included in the report Obama ordered, which was limited to civilian deaths in countries where the United States was not engaged in direct military action. Iraq, Syria, and Afghanistan were all omitted.

The two reports published by the Obama administration were incomplete in other respects as well. Observers said the first report, which was released on a Friday afternoon before a holiday weekend in 2016, understated the number of civilian deaths in the countries it covered. The second report, released in January 2017, claimed just one civilian had been killed in U.S. drone strikes in these countries during 2016.

These reports created the illusion of transparency, a common theme of the Obama administration. The administration fought all demands for disclosures and accountability regarding the use of drones to execute people without trials or oversight from any other branch of government.

The executive order that mandated these reports also included rules of engagement for drone strikes that demanded “near certainty” that civilians would not be harmed when hitting a valid target. If President Trump rescinds the order, it could signal he is not so persnickety.

But the accountability promised by Obama’s order was as much an illusion as the transparency. Obama, like George W. Bush, used his the post-9/11 authorization for the use of military force (AUMF) as a justification for remote-controlled assassinations. Any rules of engagement were decided entirely by the executive branch.

The Trump administration is now crafting its own rules. If people do not want Trump’s military and CIA droning innocent people, they should demand that Congress do something, such as rescinding the long-abused AUMF.

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“Unaccountable” Pentagon Officials Have “Weaponized” Vetting Of Trump Appointees: WSJ

Authored by Sean Bigley, op-ed via The Wall Street Journal,

Unaccountable Pentagon officials block a security clearance for a would-be White House aide.

Nothing ends a Washington career like being branded an unacceptable national-security risk. That’s why officials adjudicating personnel-security cases must act in a mature, objective and nonpartisan fashion. But when it comes to vetting Trump appointees, they often aren’t.

Instead, security clearances are being weaponized against the White House by hostile career bureaucrats, thwarting the president’s agenda by holding up or blocking appointees.

Consider the case of Adam Lovinger. Mr. Lovinger is a highly regarded and politically conservative Defense Department official. In January 2017, the Trump administration made a “by name” request for him to serve as a senior director on the White House National Security Council.

Before departing the Pentagon that January, Mr. Lovinger raised documented concerns with his supervisor about the misuse of contractors. One outfit, run by a woman Chelsea Clinton describes as her “best friend,” was being used to perform foreign-relations activities on behalf of the U.S. Mr. Lovinger, an attorney, perceived the arrangement as violating a federal law delineating inherently governmental functions. He also took issue with millions of dollars in public funds being spent on contractor studies of questionable relevance. One taxpayer-funded study sought to determine whether Americans are a “war-like people.”

Months after Mr. Lovinger raised these issues, the Pentagon suspended his security clearance and his White House detail was canceled without warning. The reason? Specious, and constantly evolving, claims of misconduct. One of Mr. Lovinger’s alleged transgressions was that Pentagon officials had improperly marked an academic report he took aboard an airplane for reading.

The father of three, his family’s primary breadwinner, remains on administrative leave. The same official who suspended Mr. Lovinger’s security clearance is now moving to cut off his pay while the allegations are under review. Amplifying due-process concerns, the panel rendering the final decision reports to the official who suspended him. She refuses to recuse herself or her subordinates despite a conflict of interest.

Meanwhile, Pentagon officials ignored a longstanding executive order requiring they provide the accused with the government’s evidence within 30 days. This forced Mr. Lovinger to respond blindly to vague allegations, then contend with bureaucrats claiming he did not adequately rebut documents he has never seen. Pentagon officials underscored their contempt for anyone who challenges them by leaking false, defamatory information about Mr. Lovinger.

Mr. Lovinger’s lifeline is that his case, although symptomatic of a political agenda, is fundamentally one of whistle-blower reprisal. That affords him legal tools and remedies—including an inspector general investigation and potential monetary damages—that other Trump appointees, victims of similarly abusive practices, can’t access.

As an attorney who defends security-clearance holders, including Mr. Lovinger, I have had a front-row seat to behavior that only a year ago I would have dismissed as a conspiracy theory. Across the federal government, what was long an apolitical process with clearly defined standards has devolved to the point that wildly unfounded accusations are now being used to smear reputations and settle petty vendettas. And it all occurs in closed-door proceedings not appealable to the courts. Failure to stop these abuses risks undermining the integrity of the entire personnel-security system.

In Mr. Lovinger’s case, those weaponizing the security-clearance process include a senior official who remains on the job despite publicly disparaging President Trump as “unfit” to lead, a Pentagon attorney who instructed colleagues on the importance of concealing retaliatory motives behind their actions, and the Defense Department’s security adjudications chief, who persists in advancing false allegations.

They and other unelected partisans are quietly usurping presidential prerogatives through a litany of seemingly small but slowly compounding abuses of bureaucratic power. Their efforts evidence a philosophy that laws and rules are not static boundaries of societal norms, but flexible tools of the administrative state.

It is imperative that federal-agency heads and inspectors general step in to stop the power grab, lest those targeting Mr. Lovinger and others like him believe themselves immune to accountability. Failure to act decisively will mean not only the continued destruction of lives and careers, but also a precipitous dwindling of the pool of patriots willing to subject themselves to such abuses.

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Stocks Jump Into Green After “Pretty Positive” First Day Comments From China

Two little words was all it took to ramp stocks back into the green after they bounced off the 200DMA shortly after Europe closed…

First thing this morning we said that “traders are on edge ahead of the US-China trade talks taking place today and tomorrow.” And moments ago, we finally got some tentative indication of how the first day of negotiations concluded:

White House Economist Mark Calabria commented after the first day of trade discussions in China that he was “optimistic” and that US has “discreetly” given China a list of asks and that the day ended “pretty positive.”

And that was enough to ignite the momentum into the green for the day…

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Watch Live: Cohen, Giuliani Loom Large Over White House Press Briefing

White House Press Secretary Sarah Huckabee Sanders is going to have her work cut out for her during Thursday’s press conference.

Last night, Rudy Giuliani stunned observers by stating during an interview with Sean Hannity last night that President Trump did, in fact, know about Michael Cohen’s payoff to Stormy Daniels, a porn star with whom he allegedly had an an affair (something that President Trump appeared to confirm this morning).

Then, early Thursday afternoon, NBC News reported that the FBI had wiretapped Cohen’s phone and recorded at least one conversation between him and the White House, Sanders will likely be facing a fusillade of questions about the Mueller probe, whether Trump lied about the Daniels payoff and – of course – whether Cohen will turn on his boss.

Watch the press conference live below. It’s expected to start at 2 pm ET:

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After 108 Years, Boy Scouts Drop “Boy” In Name, Become Gender-Neutral

Authored by Alex Christoforou via TheDuran.com,

After 108 years with no issues pertaining to its gender specific name, the Boy Scouts of America has finally fallen to the pressure of liberal left, identity politics and is now set to drop the gender from its name and re-brand as “Scouts BSA”… a name that is more “inclusive”.

The gender neutral BSA will also soon welcome girls into its ranks, which means that the Girl Scouts of America will now be faced with the prospects of losing would be members to the new BSA. 

Isn’t it funny how feminism and identity politics always seems to leave women (and girls) worse off than where they originally started.

Chief Scout Executive Mike Surbaugh, said of the announcement to drop the “Boy” in Boy Scouts…“we’re trying to find the right way to say we’re here for both young men and young women.”

Fox News reports…

Boy Scouts of America, the parent organization of the Boy Scouts program, made the announcement Wednesday. Though the decision to toss “Boy” aside was considered controversial by some, Chief Scout Executive Mike Surbaugh said the new name came about after an “incredibly fun” deliberation.

“We wanted to land on something that evokes the past but also conveys the inclusive nature of the program going forward,” he said. “We’re trying to find the right way to say we’re here for both young men and young women.”

The name change is expected to take effect next February. Boy Scouts of America and Cub Scouts will keep their titles. Cub Scouts – the program for 7- to 10-year-olds – has already started to admit girls.

The 11- to 17-year-olds who join Scouts BSA will likely start referring to themselves as scouts without a gender modifier, Surbaugh said.

The program will have separate units for boys and girls, which Surbaugh said should alleviate concerns that girls joining the new program might be at a disadvantage in seeking leadership roles.

The Girl Scouts said their organization was blindsided by the move and are planning an aggressive campaign to ramp up recruitment numbers

“Girl Scouts is the premier leadership development organization for girls,” Sylvia Acevedo, the Girl Scouts’ CEO, said.

“We are, and will remain, the first choice for girls and parents who want to provide their girls opportunities to build new skills…and grow into happy, successful, civically engaged adults.”

Boy Scout leaders have cited busy and diverse families as a reason to make the change. They said they hoped the switch would give parents more options. The Boy Scouts began offering co-ed programs in 1971. Leaders have said participation has been at 2.3 million – down from 2.6 million in 2013.

Laura Ingraham and Raymond Arroyo weigh in on new gender neutral BSA…

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Start-Ups Make Cheap Alternative to Braces, Dental Trade Groups Cry for Regulation

Who has the right to fix your smile? Trade groups representing the dental industry are fighting tooth and nail to prevent innovative new companies from offering discounted dental services to customers, arguing they’re too dangerous and need regulation.

SmileDirectClub, a startup company with a different approach to orthodontics, says it has developed a cheaper, more convenient alternative to braces that allows customers to skip in-office check-ups. But dental industry trade groups say the company’s services are “illegal,” and that moving teeth is a “complex medical process” that requires direct supervision.

The American Association of Orthodontists (AAO) filed complaints with state dental boards in 36 states last April, in which they claim SmileDirectClub “creates medical risks.” The American Dental Association (ADA) “strongly discourages” their use. In November, SmileDirectClub sued the Michigan division of the ADA for making “false and defamatory statements” about the company. The suit is still ongoing.

“We have long held the position that it is in the best and safest interest of the public to have the treatment under the direct and ongoing supervision of a licensed orthodontist,” Kevin Dillard, general council to the AAO, told Reason.

Critics of medical association monopolies say the American public will be losers in this battle if the ADA and AAO win their crusade against these companies.

Braces are a burden. People have to miss work, arrange for child care, and travel to the orthodontist office over the span of a two to three years. Teens have to cut classes and ditch those after school events to make room for appointments. Then there’s the price. Traditional Braces cost on average $5,000. Invisalign—a clear, plastic alternative to braces that is available only through licensed dental care providers—run around $8,000.

SmileDirectClub’s aligners—clear plastic mouth guards designed to straighten teeth—cost $1,850. CandidCo., another dental startup, charges $1,900. The fitting and monitoring uses a telemedicine model. Customers who can’t or don’t want to get their teeth scanned in store can have impression kits delivered straight to their door. “Alligners” based on those molds are then delivered to customers at home. It’s part of an emerging trend in dental care known as teledentistry, which uses alternative platforms like mobile apps, video chats, and dashboards to give people remote access to dental care.

The stark difference in cost and convenience matters. Many insurance companies do not cover orthodontic work, which is cosmetic for 98 percent of consumers. Private plans typically have a small cap for orthontic coverage, leaving most people on their own to foot the bill. The AAO states that roughly 80 percent of Americans could benefit from orthodontics, yet less than four million people receive orthodontic treatment each year. According to the ADA, high costs are the chief reason why one-third of Americans don’t receive adequate dental care.

Dental startups could help close that gap, but not if the ADA and the AAO succeed in regulating them out of the market.

“If a patient is taking their own model of their teeth, any number of things could go wrong,” AAO’s Dillard said. “They could get the impression wrong, they could get chipped trays, which could cut the gums. Orthodontist is a complex medical and biological process. You’re moving teeth.” SmileDirectClub, Dillard adds, is breaking the law.

“When they are taking the impressions without any oversight—especially in states in which they have stores—by their own admission, I think, they recognize they don’t have any licensed dentists at those locations taking impressions at those locations,” he said.

But Lauren Altmin, the communications director for SmileDirectClub, said the entire process is supervised remotely by licensed dentists or orthodontists.

“Our platform is for the use of technology for doctor-directed at home alligner therapy,” Altmin tells Reason. “We have a digital network of 225 affiliated state licensed dentists and orthodontists overseeing customer treatment plans, from the impressions made from at-home kits and digital scans from one of the 70 smile shops across the U.S.” When patients take impressions of their teeth or get scans at one of the Smile Direct locations, those scans or impressions are sent to a licensed professional, who then continues remotely working with the patient. Every 90 days, patients are alerted to send in new photos of their teeth to be assessed by their care provider, according to Altmin.

The crux of the regulatory and legal issue revolves around who has the right to make impressions of people’s teeth. Most industry groups feel that direct supervision is required in order to fit and take impressions, while advocates of teledentistry feel remote supervision can equally meet the needs of patients.

Dr. Marc Bernard Ackerman, the director of orthodontics at Boston Children’s Hospital and the executive director of the American Teledentistry Association, says teledentistry platforms like SmileDirectClub expand access to care and give patients “greater autonomy and flexibility” over their dental health.

“[THe AAO] is not a public advocacy group, they are an orthodontist advocacy group,” Ackerman tells Reason. “Like all trade organizations, they represent their stakeholders. When these groups talk about the effects—like loose teeth not biting properly—those same results happen every single day in bonafide traditional orthodontist practices.”

Ackerman teaches residents in both pediatric dentistry and orthodontics at the Harvard School of Dental Medicine, and is a third generation orthodontist. He doesn’t see a risk to patient safety, because SmileDirectClub only treats mild to moderate teeth alignment problems. Fixing that degree of imperfection, Ackerman says, has been perfected “to the extent that [it is] being automated.” With such small teeth movements, Ackerman says it’s “unbelievable to me that more problems are being caused by such a limited intervention.”

He’s also upset by what appears to be an attempt by his fellow medical care providers to prioritize protecting their monopoly over increasing the number of patients who can afford care.

“What has saddens me over time is that organized orthodontics groups—the AAO in particular—have launched frivolous complaints to state boards specifically directed about one party in the market,” Ackerman says. “There are a number of different vendors in this space but there has been a crusade against SmileDirectClub. There is this encouragement to find customers who are unsatisfied with their treatments and have them file complaints with their state dental board. This borders on collusion.”

This isn’t the first time trade groups have tried to stamp out dental innovation in the name of patient protection. Tooth whitening once caused mass hysteria among licensed dentists, who claimed that whitening services performed by non-dentists threatened patient safety. In 2003, a North Carolina Dental Board began firing off cease-and-desist letters to any non-dentist offering whitening services, causing a mass exodus of manufacturers and distributors who offered over-the-counter teeth-whitening products. The Federal Trade Commission sued the state dental board and claimed the board was engaging in anticompetitive practices by forcing out their competition, and the United States Supreme Court ruled in favor of the FTC.

Despite the efforts of trade groups, “no state has taken action against SmileDirectClub,” Altmin told Reason. “Eleven out of the 36 states that filed complaints against SmileDirectClub have closed their cases.”

Meanwhile, teledental companies continue to enter the market and teledentristy seems to be a lucrative investment.

“This is a disruptive innovation, which is why you’re seeing protectionist policies being put into action,” said Ackerman. “Orthodontists see themselves losing money to the teledentistry model, which is why there is this behavior.”

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Maine Legislators Override Governor’s Veto of Marijuana Legalization

For the last year and a half, Maine’s governor, Paul LePage, has been blocking implementation of a 2016 ballot initiative that legalized marijuana for recreational use. Yesterday state legislators showed their patience with LaPage’s objections had been exhausted, overriding his veto of a bill aimed at creating a system to license and regulate commercial production and distribution of cannabis. The vote was 109 to 39 in the House and 28 to 6 in the Senate, well in excess of the two-thirds required.

LePage’s April 27 veto message made it clear that he is implacably opposed to the marijuana policy that voters endorsed when they approved Question 1 in 2016. “Under federal law, marijuana is a Schedule 1 controlled substance,” he wrote. “The federal government has deemed that marijuana has a high potential for abuse and has no currently accepted medical use in treatment in the United States. In Maine, doctors cannot legally prescribe marijuana to patients; they only ‘certify’ its use. Possession of any amount of marijuana under federal law is a misdemeanor crime. In 2011, I took an oath to support the Constitution of the United States, and I cannot in good conscience support a law that, on its face, violates federal law.”

While anyone who grows or sells marijuana is committing a federal felony, it is less clear that officials who license and regulate marijuana businesses are thereby violating the Controlled Substances Act. Arguably they are simply certifying that the businesses have met the requirements to escape punishment under state law. Assuming that the CSA does prohibit licensing and regulation of the marijuana industry, it is clearly at odds with the federalist principles embodied in the 10th Amendment, which let each state decide for itself how to deal with production and distribution of cannabis within its borders. Presumably that is one reason why even Maine legislators who opposed legalization are determined to follow the will of the state’s voters.

The bill approved yesterday, LD 1719, does second-guess voters in some respects. While Question 1 allowed home cultivation of up to six flowering plants at a time, LD 1719 draws the line at three. Legislators added an excise tax of $335 per pound (about $21 per ounce), payable by growers, to the 10 percent retail sales tax described in Question 1. They increased restrictions on participation in the industry for the first three years, requiring that licensees be Maine residents and taxpayers for at least four years.

The bill eliminates provisions allowing “marijuana social clubs” where cannabis can be bought and consumed, a significant step backward in light of the problems that other states have encountered after legalizing the sale of marijuana without legalizing places to use it. In the absence of marijuana social clubs, consumption will be permitted only “on private property” that is “not generally accessible by the public” with the owner’s explicit permission.

“We are grateful that regulators can now—after months of undue delay—finally begin moving forward with the process of licensing adult use marijuana sales and regulating this retail market,” said Paul Armentano, deputy director of the National Organization for the Reform of Marijuana Laws. But he added that “it is unfortunate that lawmakers felt it necessary to amend and repeal other important provisions of Question 1…in what ultimately was futile effort to curry favor with the governor.”

While possession, sharing, and home cultivation have been legal in Maine since last year, LePage’s obstructionism has delayed the opening of marijuana farms and stores. The legislature has charged the state Department of Administrative and Financial Services with writing marijuana regulations, which the legislature has to approve next year. State-licensed marijuana merchants are not expected to start serving recreational customers until the spring of 2019.

That schedule puts Maine well behind the three other states that legalized marijuana in 2016. Legal recreational sales began in Nevada last year and in California last January. They are expected to start in Massachusetts this summer.

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FBI Wiretapped Michael Cohen, Intercepted Conversations With White House

Tell us again, James Comey, about how the Deep State doesn’t exist?

In the latest bombshell about the FBI’s investigation into President Trump’s personal attorney Michael Cohen, NBC News reported Thursday afternoon that the FBI had been wiretapping phone lines used by Cohen during the weeks before the raid on his home, office and hotel room, as well as for an unknown amount of time before.

And what’s more, NBC says prosecutors recorded at least one call between Cohen and somebody at the White House. We think we could venture a guess about whom that might be…

Federal investigators have wiretapped the phone lines of Michael Cohen, the longtime personal lawyer for President Donald Trump who is under investigation for a payment he made to an adult film star who alleged she had an affair with Trump, according to two people with knowledge of the legal proceedings involving Cohen.

It is not clear how long the wiretap has been authorized, but NBC News has learned it was in place in the weeks leading up to the raids on Cohen’s offices, hotel room, and home in early April, according to one person with direct knowledge.

At least one phone call between a phone line associated with Cohen and the White House was intercepted, the person said.

Previously, federal prosecutors in New York have said in court filings that they have conducted covert searches on multiple e-mail accounts maintained by Cohen.

After the raid on Cohen’s office, members of Trump’s legal team reportedly advised him to speak with Cohen. But later, when Rudy Giuliani learned about the call, he advised Trump not to speak with Cohen on the phone again for fear prosecutors might be listening. Giuliani has also reportedly advised Trump that Cohen is likely to flip on him.

It is unclear what incriminating information Cohen could give prosecutors on Trump, if he chose to cooperate. He represented Trump and the Trump Organization in its business dealings for nearly two decades before Trump became president. Special counsel Robert Mueller is interested in any information that federal investigators in New York may pick up that would be relevant to his investigation into possible collusion between the Trump campaign and Russia.

Cohen has previously said publicly that he would invoke his Fifth Amendment rights if subpoenaed to avoid incriminating himself before a grand jury and there is no indication from public filings that Cohen is cooperating in the probe.

Given the volume of Trump legal drama scoops that have dropped this week, we expect to see more reports fleshing out what exactly the Fed’s gleaned from eavesdropping on conversations between Cohen and – presumably – his No. 1 client.

 

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