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Amid Federal Threats, State Treasurer Pushes For Marijuana Banking Access

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In the face of threats from one of the state’s federal prosecutors, West Virginia’s top fiscal official is calling on the Trump administration to clarify its position on whether marijuana growers and sellers should be able to put their profits in banks.

“I support the rights of my fellow West Virginians, and I recognize the need for medical marijuana as an option for people who are suffering,” Treasurer John Perdue said in a press release on Friday. “I want to do everything in my power to move our state toward a lawful solution; however, I want to be clear that there are real banking challenges at the federal level that my office may not be able to resolve alone.”

Because of ongoing federal criminalization of cannabis, many banks are reluctant to work with marijuana businesses that operate legally in accordance with a growing number of state laws. As a result, those entities must often operate on a cash-only basis.

Perdue, who is announcing a series of moves to step up pressure on the federal government to resolve the issue, said last month that his office was “unwilling to accept the funds derived from medical cannabis” due to conflicts with federal law. In response to that stance, Gov. Jim Justice (R), who signed medical marijuana into law last year, line item vetoed the transfer of funds to the program in the state budget, saying that officials should hold off on implementation until a fiscal solution materializes.

Now, Perdue, a Democrat, says he will send a letter to U.S. Treasury Secretary Steven Mnuchin “asking for clear banking guidance dealing with medical marijuana-related transactions.”

And on Monday, his office is releasing a Request for Information in search of “banking solutions for sales, fees, licenses, taxes and other transactions related to state sanctioned medical cannabis.”

“Our hope is to find a banking alternative, similar to other states that have legalized medical marijuana, in an effort to move forward with offering this option to those who need it in West Virginia,” Perdue said. “Once we have more facts, we may be able to solicit for a workable contract on behalf of the state.”

Perdue’s push comes as the top fiscal officials in four other states requested a meeting with U.S. Attorney General Jeff Sessions to discuss cannabis businesses’ access to banks, and as members of Congress are stepping up the push for a legislative solution.

State Treasurers Want Marijuana Meeting With Sessions

In the press release, the West Virginia treasurer said he would join at least ten top fiscal officials from other states in a separate letter to congressional leaders calling for “commonsense legislative changes to protect medical marijuana patients.”

Mike Stuart, the U.S. attorney for West Virginia’s Southern District, has repeatedly signaled he intends to enforce federal marijuana laws regardless of the state’s move to legalize medical cannabis.

Now, the state treasurer is requesting clarity on the issue from Stuart’s bosses in the federal government.

“The fact is that the fate of medical marijuana in West Virginia depends on how President Trump’s administration approaches the enforcement of marijuana and banking laws,” he said in the new press release. “At the very least, I want West Virginia to be treated like all other states that have implemented or started implementation of a medical marijuana program.”

But Stuart indicated that even if West Virginia officials fix banking issues, he wouldn’t hold off on enforcing federal laws, including those that bar medical cannabis patients from purchasing guns.

Mnuchin, the federal treasury secretary, has indicated on a number of occasions that he sees solving cannabis businesses’ access to financial services as an important issue.

Marijuana Banking At “Top Of The List,” Treasury Secretary Says

Trump Treasury Secretary Wants Marijuana Money In Banks

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.

Tom Angell is the editor of Marijuana Moment. A 15-year veteran in the cannabis law reform movement, he covers the policy and politics of marijuana. Separately, he founded the nonprofit Marijuana Majority. Previously he reported for Marijuana.com and MassRoots, and handled media relations and campaigns for Law Enforcement Against Prohibition and Students for Sensible Drug Policy. (Organization citations are for identification only and do not constitute an endorsement or partnership.)

Politics

Mitch McConnell Says Hemp Could Replace Tobacco And Argues That’s Why Voters Should Reelect Him

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Senate Majority Leader Mitch McConnell (R-KY) said on Thursday that his role in getting industrial hemp legalized is at “the top of the list” of reasons Kentuckians should reelect him next year.

He also said that hemp could essentially replace tobacco, historically a big cash crop for the state that could take a hit under new legislation he introduced to raise the age requirement for tobacco sales from 18 to 21 nationwide.

“How does my job as majority leader help you? Help Kentucky?” McConnell said at a press conference. “At the top of the list I would put hemp.”

Then he pivoted into a discussion of his tobacco legislation, saying that his proposal to deter young tobacco use “underscores the transition in our state from tobacco to something new.”

McConnell led a ten-year federal buyback program meant to compensate tobacco farmers, whose profitability has sunken. He said one factor that contributed to Kentucky’s high rates of tobacco use was industry loyalty, with farmers and other industry workers feeling loyal to the crop that earns them their living and, therefore, choosing to smoke it.

He made a similar point at an earlier press conference Thursday, arguing that the ubiquity of tobacco farms “only further enhanced the view that I ought to be using this product which provides my livelihood” and that “Kentucky agriculture is moving in a much different way with industrial hemp, which we hope to lead the nation in.”

“What comes next? Well, in the previous Farm Bill five years ago, I inserted a provision that allowed pilot projects—because remember hemp was considered a controlled substance under federal law going back to right after World War II so it was treated like this more controversial cousin that we’ve all heard of,” he said, referring to marijuana. “Some states are actually legalizing that, but that’s not what we’re involved in. We’re talking about industrial hemp.”

“The pilot projects showed that there was a good deal of interest in Kentucky, particularly among young farmers,” he said, adding that his success in getting the president to sign the 2018 version of the agriculture legislation that legalized hemp is “an example of how my being in the job I’m in benefits our state.”

McConnell, who also touted his hemp provision in his reelection launch video last week, boasted about how his position as majority leader gives him access and influence. He called the Senate Agriculture Committee chair and got him to include hemp legalization in the Farm Bill. Nobody in the committee tried to shoot it down. But, because the House Agriculture Committee didn’t include hemp legalization in their version, McConnell said he leveraged his power to get the proposal past the goal line and to the president’s desk.

“When you have two different versions, you have a conference to work out the differences before they go back to each house,” he said. “Who appoints the conferees? I do. Who did I appoint? Myself.”

The majority leader also requested that Rep. James Comer (R-KY) be appointed a House conferee, ensuring a smooth process that would kept hemp legalization intact.

“Nobody ever made an effort to take it out. The reason I make this point is there’s certain advantages to Kentucky having someone like me in this job because I allows us to punch above our weight,” he said. “My being in the position I’m in I think really helps Kentucky.”

Mitch McConnell Touts Hemp Legalization Achievement In Reelection Campaign Ad

Photo courtesy of WLKY.

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Culture

Lots Of Politicians And Companies Are Tweeting About Marijuana On 4/20

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It’s 4/20 again, and that means another slew of tweets from politicians and mainstream brands looking to use the marijuana holiday as a hook to get their message out.

Here’s a roundup of some of the best, funniest, most important or otherwise notable cannabis-related tweets of the day…

Sen. Cory Booker (D-NJ), a presidential candidate:

Sen. Bernie Sanders (I-VT), a presidential candidate:

Sen. Kamala Harris (D-CA), a presidential candidate:

Sen. Kirsten Gillibrand (D-NY), a presidential candidate:

Rep. Tulsi Gabbard (D-HI), a presidential candidate:

Rep. Eric Swalwell (D-CA), a presidential candidate:

Former Rep. Beto O’Rourke (D-TX), a presidential candidate:

Former Sen. Mike Gravel (D-AK), a presidential candidate:

Washington State Gov. Jay Inslee (D), a presidential candidate:

Former San Antonio, Texas Mayor Julián Castro (D), a presidential candidate:

Democratic presidential candidate Andrew Yang:

Senate Minority Leader Chuck Schumer (D-NY):

House Committee on Small Business:

Congressional Black Caucus:

Sen. Jacky Rosen (D-NV):

Rep. Earl Blumenauer (D-OR):

Rep. Ilhan Omar (D-MN):

Rep. Barbara Lee (D-CA):

Rep. Ro Khanna (D-CA):

Rep. Charlie Crist (D-FL):

Rep. Steve Cohen (D-TN):

Rep. Deb Haaland (D-NM):

Pennsylvania Lt. Gov. John Fetterman (D):

Los Angeles, California City Council President Herb Wesson (D):

Cook County, Illinois State’s Attorney Kim Foxx (D):

The American Civil Liberties Union:

Ben & Jerry’s:

Denny’s:

Hidden Valley Ranch:

Carl’s Jr.:

Boston Market:

George Washington’s Mount Vernon:

Bill Maher:

Miley Cyrus:

311:

The Onion:

Ben & Jerry’s Stands Out From Companies Just Trying To Make Money From 4/20

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State-Legal Marijuana Use Makes Immigrants Morally Unfit for Citizenship, Trump Administration Warns

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A federal immigration agency clarified on Friday that using marijuana or engaging in cannabis-related “activities” such as working for a dispensary—even in states where it’s legal—is an immoral offense that makes immigrants ineligible for citizenship.

When applying for naturalization, the process of gaining citizenship, individuals must have established “good moral character” in the five years preceding the application. Good moral character is a vague requirement that has been criticized by scholars and civil rights advocates, as assessing morality is arguably subjective.

According to the U.S. Citizenship and Immigration Services (USCIS), state-legal marijuana consumption renders individuals morally unfit for citizenship. The new policy clarification reflects a sentiment once expressed by former Attorney General Jeff Sessions, who said that “good people don’t smoke marijuana.”

The USCIS memo says that “violation of federal controlled substance law, including for marijuana, established by a conviction or admission, is generally a bar to establishing [good moral character] for naturalization even where the conduct would not be a violation of state law.”

Further, an applicant “who is involved in certain marijuana related activities may lack GMC if found to have violated federal law, even if such activity is not unlawful under applicable state or foreign laws,” the document says. The policy also applies to individuals who worked in the state-legal cannabis industry.

There have already been reports of people being denied citizenship due to their proximity to state-legal marijuana businesses. Earlier this month, Denver Mayor Michael Hancock hosted a group of immigrants who said their work in the state’s cannabis industry was being used as justification by federal officials to deny them citizenship.

“In Colorado, cannabis has been legal for 5 years. For work in a legal industry to be used against an individual trying to gain citizenship is a prime example of why we need to harmonize our state and federal laws to ensure that states like Colorado that have moved to legalize cannabis can act in our own authority to expand and regulate our cannabis industry,” Rep. Joe Neguse (D-CO), told Marijuana Moment in reaction to the Trump administration memo.

Legalization activists also criticized the move.

“The cruel treatment of immigrants for offenses related to something as minor as marijuana is illustrative of the way this administration has used the war on drugs to pursue communities of color,” Michael Collins, director of national affairs at the Drug Policy Alliance, told Marijuana Moment. “It also shows that pursuing a state by state approach to federal policy doesn’t work for these communities. Federal descheduling is essential.”

While the federal policy deeming marijuana use a violation of “good moral character” standards for immigration purposes was already on the books, it seems the spread of state-level cannabis legalization has prompted the agency, which is part of the Department of Homeland Security, to issue the clarification.

“A number of states and the District of Columbia (D.C.) have enacted laws permitting ‘medical’ or ‘recreational’ use of marijuana. Marijuana, however, remains classified as a ‘Schedule I’ controlled substance under the federal CSA,” the updated USCIS policy manual now reads. “Schedule I substances have no accepted medical use pursuant to the CSA. Classification of marijuana as a Schedule I controlled substance under federal law means that certain conduct involving marijuana, which is in violation of the CSA, continues to constitute a conditional bar to GMC for naturalization eligibility, even where such activity is not a criminal offense under state law.”

“Such an offense under federal law may include, but is not limited to, possession, manufacture or production, or distribution or dispensing of marijuana. For example, possession of marijuana for recreational or medical purposes or employment in the marijuana industry may constitute conduct that violates federal controlled substance laws. Depending on the specific facts of the case, these activities, whether established by a conviction or an admission by the applicant, may preclude a finding of GMC for the applicant during the statutory period. An admission must meet the long held requirements for a valid ‘admission’ of an offense. Note that even if an applicant does not have a conviction or make a valid admission to a marijuana-related offense, he or she may be unable to meet the burden of proof to show that he or she has not committed such an offense.”

The underlying policy does provide an exception for “a single offense of simple possession of 30 grams or less of marijuana.”

An additional update to the policy manual stipulates that the exception “is also applicable to paraphernalia offenses involving controlled substances as long as the paraphernalia offense is ‘related to’ simple possession of 30 grams or less of marijuana.”

That detail wasn’t included in an earlier 2014 version of the USCIS policy manual.

The policy alert is similar to an update the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) issued in 2017 when the federal gun purchase application form was revised to include a warning that the “use or possession of marijuana remains unlawful under Federal law regardless of whether it has been legalized or decriminalized for medicinal or recreational purposes in the state where you reside” and therefore disqualifies applicants.

But the USCIS clarification also reflects a recent ratcheting up of anti-immigration policy moves under the Trump administration.

Jason Ortiz, vice president of the Minority Cannabis Business Association, told Marijuana Moment that the new memo reflects a “callous and irrational decision” by the administration and “is a reminder that without comprehensive cannabis reform our communities of color will continue to be prosecuted and subject to deportation for activity that is legal for affluent communities around the country.”

“Proposals such as the STATES act which seek to simply ease the risk on business do not address these deeper issues related to federal prohibition,” he said. “Considering the devastating effects our war on drugs had on Latin America, immigration reform must be a necessary component of any comprehensive cannabis legalization policy.”

People Could Use Marijuana In Public Housing Under New Congressional Bill

This story has been updated to include comment from Neguse.

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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