For the past several years, the U.S. Senate Appropriations Committee has been more responsible for marijuana reform victories in Congress than any other panel of lawmakers.
Bipartisan measures to protect state medical cannabis laws, allow medical marijuana for military veterans and shield state industrial hemp research programs from the feds have all advanced there.
Those wins have been especially valuable for legalization supporters because in the other chamber, the House Rules Committee has blocked cannabis-related amendments from advancing to the floor over the same period of time.
But in recent weeks the Senate committee, which handles funding levels and spending riders covering federal agencies, has begun to make a number of anti-cannabis moves.
Last week, for example, it prevented a measure to allow marijuana businesses to access banks from advancing by a vote of 21-10. Nearly identical amendments were approved by the committee in 2015 and 2016, but this time several Democrats who position themselves as supporters of cannabis law reform spoke out against the proposal on procedural grounds.
Earlier this month the panel released a report incorrectly alleging an increase in impaired driving in states that have reformed their cannabis laws.
In a separate report this month the committee expressed concern about illegal marijuana cultivation on public lands, singling out states with legalization.
And now, in a new development that hasn’t yet been reported elsewhere, the committee is making moves to block Washington, D.C. from further legalizing marijuana.
“No funds available for obligation or expenditure by the District of Columbia government under any authority may be used to enact any law, rule, or regulation to legalize or otherwise reduce penalties associated with the possession, use, or distribution of any schedule I substance under the Controlled Substances Act (21 U.S.C. 801 et seq.) or any tetrahydrocannabinols derivative for recreational purposes,” reads a provision of the Financial Services and General Government funding bill approved by the committee on Thursday.
Unlike the House Appropriations Committee, which has consistently moved to block cannabis reform in the nation’s capital, the Senate panel for the past several years has kept its version of funding bill free of marijuana-related D.C. riders (though the spending bans have been enacted into law anyway because the House language has prevailed in bicameral conference committees that reconcile both chambers’ bills into final legislation).
Now that the Senate committee has moved to adopt the D.C. cannabis prohibition as well, its continuance into Fiscal Year 2019 is a virtual certainty, meaning that local officials will not be able to spend locally raised funds adding a system of taxed and regulated marijuana sales to the city’s existing law that allows low-level possession and home cultivation.
“I am disappointed that the committee chose to depart from their past practice of not including anti-D.C. riders,” Congresswoman Eleanor Holmes Norton (D-DC) said in a press release. “I will be fighting here in the House and Senate to strike all anti-D.C. riders and prevent any new riders from being included in the final spending bill.”
Also, committee report attached to the new funding bill also goes out of its way to wag its finger at Indian tribes that might be considering entering the marijuana industry.
“The Committee expects the CDFI Fund to ensure no funding is allocated to tribes to support marijuana production, manufacturing, or distribution and report to the Committee on any Tribe who engages in such activities and receives funding appropriated by this act,” the report says, referring to the Community Development Financial Institutions Fund, which focuses on economic revitalization in distressed communities.
None of this is to say that the Senate panel has defeated all recent marijuana reform measures. For example, this month it opted to continue protecting states where medical marijuana is legal from federal interference and approved an amendment that would allow Department of Veterans Affairs (VA) doctors to issue medical cannabis recommendations to veterans. And last month, it directed the Department of Agriculture to set aside half a million dollars to build a hemp seedbank.
Significantly, the language protecting state medical cannabis laws was included in the initial Justice Department bill as introduced by Republican leaders for the first time, whereas its enactment in past years has required a specific votes on amendments to add it.
But, in other ways noted above, the committee has clearly become less friendly to marijuana law reform efforts in recent months, and one major factor is its new chairman.
Sen. Richard Shelby (R-AL) ascended to the top position on the panel in April, following the retirement of Sen. Thad Cochran (R-MS). While Cochran was not exactly a champion of cannabis legalization, he left advocates with the sense that he just didn’t care much about the issue by allowing amendments to be voted on without applying significant behind-the-scenes pressure.
Shelby, on the other hand, who for years served alongside U.S. Attorney General Jeff Sessions in representing Alabama in the Senate, has made it clear that he doesn’t like the idea of attaching policy riders — marijuana or otherwise — to spending bills.
“Chairman Shelby was very anti-amendments this year,” Michael Liszewski of the Enact Group, told Marijuana Moment. “If you watched this year’s hearings, you probably noticed a decrease in the number of amendments offered. That’s because Shelby made it clear that he had very little tolerance for legislating through approps.”
And, he appears to be making deals with Democrats to accomplish his goal of reducing the number of policy riders on appropriations legislation.
That’s the conclusion that can reasonably be drawn from an exchange between Shelby and Sen. Patrick Leahy (D-VT), who has been a champion of marijuana law reform efforts in the committee, that could be faintly heard on the committee’s audio feed just moments after the Vermont Democrat helped lead the charge to kill the cannabis banking measure last week:
SHELBY: “Thank you, Pat.”
LEAHY: “I told you I would.”
While Leahy said during a debate before the vote to table the measure that he objected to its advancement on procedural grounds concerning the alleged inappropriateness of legislating policy on spending bills, the fact is that Leahy himself is more responsible than any other senator for the continuance of the separate rider preventing Justice Department interference in state medical cannabis laws, so his public argument seems at least a little disingenuous.
Advocates who did not wish to be quoted for this story speculated that Democrats may have extracted some concessions on immigration policy in exchange for not pushing the marijuana banking rider, but that could not be immediately confirmed.
Another key change on the appropriations panel is the fact that Sen. James Lankford (R-OK), a vocal cannabis opponent, recently became chair of its Financial Services and General Government Subcommittee, which handles Washington, D.C.
His ascendancy to the subcommittee chairmanship likely explains the panel’s inclusion of anti-marijuana language in the relevant funding bill for the first time in years. (Of note, however, the Senate bill covering D.C. doesn’t contain language from the House version of the legislation that would add a new restriction on the use of funds to support opening safe consumption facilities where people could consume illegal drugs under the supervision of medical professionals.)
Justin Strekal of NORML told Marijuana Moment in an interview that the committee’s seeming shift away from support for marijuana law reform in recent weeks may, perhaps counterintuitively, have to do with cannabis legalization’s growing political support.
“We’ve gained more momentum,” he said, referring to the fact that numerous lawmakers — including party leaders like Sen. Chuck Schumer (D-NY) — are embracing legislation that would provide more permanent fixes to the federal-state cannabis law gap than annual appropriations riders can.
“The stark realities are much crisper now,” he said. “Every amendment that tinkers with [cannabis enforcement] is still dancing around the fact that we still live under a regime of complete prohibition.”
“It’s increasingly going to be more difficult to get lawmakers to be OK with cutesy little fixes when the need for comprehensive reform is crystalizing.”
But in order to enact broader solutions, it’s going to take movement by committees that set federal drug policy and enact authorizations for relevant federal agencies.
Unfortunately, those panels — the House and Senate Judiciary Committees — at least for now, are controlled by ardent legalization opponents. But with a midterm election coming up that observers believe could reverse party control of one or both chambers, anything can happen in 2019.
Illinois Will ‘Blow Past’ $1 Billion In Legal Marijuana Sales In 2021, Chamber Of Commerce President Says
“Are we going to get to a billion dollars? I think we’re going to blow past the billion dollars based on the experience in smaller states,” the Chamber leader said.
By Elyse Kelly, The Center Square
Illinois’s cannabis industry is growing up fast, with adult-use recreational cannabis sales expected to hit $1 billion by year-end.
In March alone, Illinoisans spent $110 million on recreational marijuana.
Todd Maisch, president and CEO of the Illinois Chamber of Commerce, said one factor contributing to Illinois’ explosive growth is that most neighboring states haven’t legalized marijuana yet.
“What we saw early on in states like Washington and Colorado is they did have demand come in from surrounding states, which frankly benefits our industry and benefits the taxes collected,” Maisch said.
Cannabis sales have already surpassed alcohol’s tax revenues for the state, and Maisch said he thinks $1 billion estimates are conservative.
“Are we going to get to a billion dollars? I think we’re going to blow past the billion dollars based on the experience in smaller states,” Maisch said.
There are only a couple of things that could stop Illinois’ explosive cannabis market growth, Maisch said. He said that policymakers could ruin things by pushing taxes too high as evidenced by the tobacco market.
“As taxes have gone up and up and up, they’ve pushed people all the way into the black market or they’ve created this grey market in which people are ostensibly paying some of the taxes, but they’re still getting sources of tobacco products that avoid much of the tax,” Maisch said.
The other thing that could head off continued growth is other states opening up recreational-use markets.
“So if you start to see surrounding states go to recreational, that’s definitely going to flatten the curve because we’re not going to be pulling in demand from other states,” Maisch said.
Maisch points out some concerns that accompany the explosion of Illinois’s recreational cannabis market including workforce preparedness.
“All of those individuals who are deciding to go ahead and consume this product are really taking themselves out of a lot of job opportunities that they would otherwise be qualified, so there’s a real upside and a downside,” Maisch said.
While it’s easy to track the revenues this industry brings into state coffers, he points out, it will be harder to track the lack of productivity and qualified individuals to operate heavy machinery and other jobs that require employees to pass a drug test.
DEA Finally Ready To End Federal Marijuana Research Monopoly, Agency Notifies Grower Applicants
The Drug Enforcement Administration (DEA) on Friday notified several companies that it is moving toward approving their applications to become federally authorized marijuana manufacturers for research purposes.
This is a significant development—and one of the first cannabis-related moves to come out of the Biden administration. There is currently a monopoly on federal cannabis cultivation, with the University of Mississippi having operated the only approved facility for the past half-century.
It was almost five years ago that DEA under President Barack Obama first announced that it was accepting applications for additional manufacturers. No approvals were made during the Trump administration. And the delay in getting acceptances has led to frustration—and in some cases, lawsuits—among applicants.
But on Friday, organizations including the Biopharmaceutical Research Company (BRC), Scottsdale Research Institute (SRI) and Groff NA Hemplex LLC were notified by the agency that their requests were conditionally accepted.
“DEA is nearing the end of its review of certain marijuana grower applications, thereby allowing it to soon register additional entities authorized to produce marijuana for research purposes,” DEA said. “Pending final approval, DEA has determined, based on currently available information, that a number of manufacturers’ applications to cultivate marijuana for research needs in the United States appears to be consistent with applicable legal standards and relevant laws. DEA has, therefore, provided a Memorandum of Agreement (MOA) to these manufacturers as the next step in the approval process.”
The Wall Street Journal first reported on the move, and it’s unclear just how many organizations have received a DEA communication so far.
Matt Zorn, who has represented SRI in a suit against DEA over the processing delays, told Marijuana Moment that the agency explained that it is “moving forward” with the facility’s application and that it appears to be “consistent with public interest” to give the institute the ability to grow marijuana for study purposes.
SRI’s Dr. Sue Sisley is in a process of completing a memorandum of agreement that DEA requested “so that it can be executed and official,” according to a press release.
BRC CEO George Hodgin said in another press release that after being finalized, “this federal license will forever change the trajectory of our business and the medicinal cannabis industry.”
“The DEA’s leadership will set off a nationwide wave of innovative cannabis-derived treatments, unlock valuable intellectual property and create high quality American jobs,” he said. “The BRC team is already familiar with DEA compliance procedures based on our extensive history of controlled substances activity, and our world class staff is ready to hit the ground running on this new business arm that the DEA has authorized.”
DEA said it has presented applicants that appear to meet legal requirements “with an MOA outlining the means by which the applicant and DEA will work together to facilitate the production, storage, packaging, and distribution of marijuana under the new regulations as well as other applicable legal standards and relevant laws.”
“To the extent these MOAs are finalized, DEA anticipates issuing DEA registrations to these manufacturers,” the agency said. “Each applicant will then be authorized to cultivate marijuana—up to its allotted quota—in support of the more than 575 DEA-licensed researchers across the nation.”
DEA said it “will continue to prioritize efforts to evaluate the remaining applications for registration and expects additional approvals in the future” and will publicly post information about approvals as they are finalized.
Following a 2019 suit against DEA by SRI, a court mandated that the agency take steps to process the cultivation license applications, and that legal challenge was dropped after DEA provided a status update.
That suit argued that the marijuana grown at the University of Mississippi is of poor quality, does not reflect the diversity of products available on the commercial market and is therefore inadequate for clinical studies.
That’s also a point that several policymakers have made, and it’s bolstered by research demonstrating that the federal government’s cannabis is genetically closer to hemp than marijuana that consumers can obtain in state-legal markets.
Last year, DEA finally unveiled a revised rule change proposal that it said was necessary to move forward with licensing approvals due to the high volume of applicants and to address potential complications related to international treaties to which the U.S. is a party.
SRI filed another suit against DEA in March, claiming that the agency used a “secret” document to justify its delay of approving manufacturer applications. And that was born out when the Justice Department Office of Legal Counsel document was released last year as part of a settlement in the case, revealing, among other things, that the agency feels that its current licensing structure for cannabis cultivation has been in violation of international treaties for decades.
Photo by Aphiwat chuangchoem.
Mississippi Supreme Court Overturns Medical Marijuana Legalization Ballot That Voters Approved
A voter-approved initiative to legalize medical marijuana in Mississippi has been overturned by the state Supreme Court.
On Friday, the court ruled in favor of a Mississippi mayor who filed a legal challenge against the 2020 measure, nullifying its certification by the Secretary of State. The lawsuit was unrelated to the merits of the reform proposal itself, but plaintiffs argued that the constitutional amendment violated procedural rules for placing measures on the ballot.
While the court acknowledged that a “strong, if not overwhelming, majority of voters of Mississippi approved Initiative 65” to legalize medical cannabis in the state, Madison Mayor Mary Hawkins Butler’s (R) petition was valid for statutory reasons.
Madison’s challenge cites a state law stipulating that “signatures of the qualified electors from any congressional district shall not exceed one-fifth (1/5) of the total number of signatures required to qualify an initiative petition for placement upon the ballot.” But that policy went into effect when Mississippi had five congressional districts, and that’s since been reduced to four, making it mathematically impossible to adhere to.
The secretary of state and other officials pushed back against the lawsuit and argued that a plain reading of the state Constitution makes it clear that the intention of the district-based requirement was to ensure that signatures were collected in a geographically dispersed manner—and the result of the campaign met that standard.
But in the court’s 6-3 ruling released on Friday, the justices said that their hands were tied. The legislature or administration might be able to fix the procedural ballot issue, but it had to follow the letter of the law.
“We find ourselves presented with the question squarely before us and nowhere to turn but to its answer,” the decision states. “Remaining mindful of both the November 3, 2020 election results and the clear language in section 273 seeking to preserve the right of the people to enact changes to their Constitution, we nonetheless must hold that the text of section 273 fails to account for the possibility that has become reality in Mississippi.”
In sum, a Census-driven change in the number of congressional districts in Mississippi “did, indeed, break section 273 so that, absent amendment, it no longer functions,” meaning there’s no legal way to pass a constitutional ballot initiative in the state.
“Whether with intent, by oversight, or for some other reason, the drafters of section 273(3) wrote a ballot-initiative process that cannot work in a world where Mississippi has fewer than five representatives in Congress. To work in today’s reality, it will need amending—something that lies beyond the power of the Supreme Court.”
“We grant the petition, reverse the Secretary of State’s certification of Initiative 65, and hold that any subsequent proceedings on it are void,” the court ruled.
One justice who dissented said that the district-based requirement is arbitrary as it concerns Mississippi elections. While the federal government defines the state as having four congressional districts, the state Constitution “lays out the five districts,” and “there have been zero changes to the five districts” as far as the state’s laws are concerned.
In any case, this marks a major defeat for cannabis reform activists in the state who collected more than 214,000 signatures for their initiative. Sixty-eight percent of voters approved a general ballot question on whether to allow medical cannabis, and 74 percent signed off on advocates’ specific measure in a separate question.
“The Mississippi Supreme Court just overturned the will of the people of Mississippi,” Ken Newburger, executive director for the Mississippi Medical Marijuana Association, said in a press release. “Patients will now continue the suffering that so many Mississippians voted to end. The Court ignored existing case law and prior decisions. Their reasoning ignores the intent of the constitution and takes away people’s constitutional right.”
“It’s a sad day for Mississippi when the Supreme Court communicates to a vast majority of the voters that their vote doesn’t matter,” he said.
Today the MS Supreme Court ruled against the state’s ballot initiative process, killing the medical marijuana program 74% of Mississippians voted to pass. This is devastating for not only patients, but voters as a whole. Below is our statement: https://t.co/jrDoJM3K16 pic.twitter.com/AR3xuId3xR
— Mississippi Medical Marijuana Association (@medmarijuanams) May 14, 2021
Under the voter-approved initiative, patients with debilitating medical issues would have been allowed to legally obtain marijuana after getting a doctor’s recommendation. The proposal included 22 qualifying conditions such as cancer, chronic pain and post-traumatic stress disorder, and patients would have been able to possess up to 2.5 ounces of marijuana per 14-day period.
There was an attempt in the legislature to pass a bill to legalize medical marijuana in the event that the court overruled the voter-approved initiative, but it failed to be enacted by the session’s end.
The Mississippi State Department of Health told WJTV that it will cease work on developing medical cannabis regulations in light of the court ruling.
“However, the agency has certainly learned a lot in the process of putting together a successful medical marijuana program, and we stand ready to help the legislature if it creates a statutory program,” Liz Sharlot, director of the Office of Communications for the department, said.
This is the latest state Supreme Court setback to affect cannabis reform efforts.
Last month, the Florida Supreme Court dealt a critical blow to marijuana activists working to legalize marijuana in the state—killing an initiative that hundreds of thousands of voters have already signed and forcing them to start all over again if they want to make the 2022 ballot.
While a Nebraska campaign collected enough signatures to qualify a reform initiative in 2020, the state Supreme Court shut it down following a legal challenge. It determined that the measure violated the state’s single-subject rule, much to the disappointment of advocates.
In South Dakota, the fate of an adult-use legalization initiative that voters approved last November is also in the hands of the state’s Supreme Court, where a sheriff is challenging its constitutionality based on a single subject rule as well.
Opponents to a Montana marijuana legalization measure that was approved by voters have also filed lawsuits contesting the voter-approved initiative for procedural reasons, arguing that its allocation of revenue violates the state Constitution. While the state Supreme Court declined to hear the case last year, it did not rule on the merits and left the door open to pursuing the case in district and appeals court, which plaintiffs then pursued.
Read the Mississippi Supreme Court ruling on the medical cannabis initiative below: