Increase military veterans’ access to access medical cannabis. Shield state marijuana laws from federal interference. Protect industrial hemp growers’ water rights. Allow marijuana businesses to be taxed fairly and to access banking services.
That describes just some of the nearly three dozen cannabis-related amendments that Republican leadership in the U.S. House of Representatives has blocked from even being voted on during the current Congress, a new analysis by Marijuana Moment finds.
On at least 34 occasions, lawmakers—Democrats and Republicans alike—filed marijuana and drug policy reform proposals only to be stymied by the powerful Rules Committee, which decides which measures can advance to the House floor.
One Man Is The Biggest Obstacle To Congressional Marijuana Reform.
That panel, led by Congressman Pete Sessions (R-TX), has for the past several years instituted an effective roadblock to cannabis law reform by refusing to make any amendments dealing with the plant “in order.” That means the full 435-member roster of House never even gets an opportunity to vote on the measures.
This analysis only covers the current 115th Congress, which began in January 2017. Republican leaders have made a practice of blocking cannabis amendments since the previous summer.
The last time the House was allowed to vote on marijuana, in May 2016, a measure to allow military veterans to get medical cannabis recommendations from Department of Veterans Affairs doctors was approved by a overwhelming vote of 233 to 189. Several other marijuana measures were approved on the House floor in the two years preceding that, including proposals to let marijuana businesses store their profits in banks and to protect state medical cannabis laws from Justice Department interference, the latter of which made it into federal law and is still on the books.
In June 2015, an amendment to expand that protection to prevent the Department of Justice from interfering with all state marijuana laws—including those allowing recreational marijuana use and sales—came just nine flipped votes short of passage.
Since that time, the number of states with legal marijuana has more than doubled, meaning that far more legislators now represent constituents who would stand to be protected. Advocates are confident they could get the measure approved if given another opportunity, but the cannabis blockade by Sessions’s Rules Committee has meant that no more votes on it have been allowed.
While House Republicans have instituted a broader policy of blocking amendments deemed to be “controversial” after floor disputes on gay rights and gun policy measures threatened the passage of several spending bills in 2015, Sessions, who is not related to U.S. Attorney General Jeff Sessions, seems to have a particular problem with marijuana.
“I, as probably everybody in this rooms knows, have a strong opinion on drugs, illegal drugs, alcohol,” he said just before stymying a measure to prevent federal intervention in state cannabis laws earlier this year. “Marijuana is an addictive product, and the merchants of addiction make it that way. They make it for addiction. They make it to where our people, our young people, become addicted to marijuana and keep going.”
On another occasion, Sessions claimed that cannabis is now more potent than it was when he was a young man—by a mathematically impossible factor.
“When I went to high school…in 1973, I graduated, marijuana, on average, is 300 times more powerful,” he said. “That becomes an addictive element for a child to then go to the next thing.”
Legalization Supporters Target Sessions For Defeat.
Sessions, like all members of the House, is up for reelection this year. The Cook Political Report, which tracks congressional races, moved his seat—Texas’s 32nd congressional district—from being rated “Lean Republican” to the closer “Toss Up” status last month. In 2016, Hillary Clinton won the district.
Sensing an opportunity, marijuana reform advocates are targeting Sessions for defeat in 2018.
Pro-legalization Congressman Earl Blumenauer (D-OR), who has authored several of the blocked amendments, started a PAC and pledged to fund in-district billboards spotlighting Sessions’s anti-cannabis tactics.
Six of the amendments blocked by Sessions and his committee concerned military veterans’ access to medical cannabis. Five had to do with marijuana businesses’ ability to use banking services. Seven would have allowed states and Washington, D.C. to implement their own marijuana laws without federal interference.
“These are not controversial measures. They have bipartisan support,” Blumenauer told Marijuana Moment in an emailed statement. “By blocking our amendments, Sessions is standing in the way of progress, commonsense, and the will of the American people—and that includes Republican voters.”
Sessions faces Democrat Colin Allred, a former NFL player, in November.
“I support the use of medical marijuana as an alternative to the habit-forming opioids that have become a national crisis,” the challenger told Politico. “This common-sense approach to alternative treatments has been opposed by Pete Sessions, and is something I will fight to expand.”
It is unfortunate that Pete Sessions refuses to acknowledge that medical marijuana can help our veterans coming back from war who are struggling with PTSD and chronic pain. https://t.co/NxpfE55Xzr
— Colin Allred (@ColinAllredTX) June 7, 2018
The willingness to see Sessions go extends even to dedicated Republicans who could risk seeing control of the House tipped to Democrats in what is expected to be a very close midterm election overall.
“More often than not, elected officials respond to carrots and sticks. So if making Pete Sessions an electoral casualty is what it takes to advance drug policy reform, so be it,” Don Murphy, a Republican former Maryland state lawmaker who now serves as federal policies director for the Marijuana Policy Project (MPP), told Marijuana Moment. “If the GOP loses control of the House by one vote, it won’t be my fault. I tried to warn them.”
Former MPP executive director Rob Kampia says he’s aiming to raise half a million dollars to pour into the effort to defeat Sessions with his new outfit, the Marijuana Leadership Campaign, and a related political action committee.
More Cannabis Amendments Are Likely To Be Blocked Soon.
In the meantime, it seems likely that even more cannabis proposals will be added to the blocked tally when the Rules Committee considers a broad funding package this week which includes the Financial Services and General Government bill. Earlier versions of that annual appropriations legislation have been used as vehicles for measures concerning Washington, D.C.’s ability to spend its own money regulating marijuana and to allow cannabis growers, processors and retailers to access financial services.
Marijuana Moment’s analysis of blocked marijuana amendments relies heavily on a report issued in late May by Rules Committee Democrats, which tallied all blocked amendments across issues up to that point. (Marijuana Moment identified several subsequent cannabis measures that were prevented from reaching the floor following the Democratic report’s release.)
“Shutting down amendments and preventing debate is bad for the Congress as an institution, but is even worse for the country,” the Rules Committee minority, led by Congressman James McGovern of Massachusetts, wrote. “The inevitable result is partisan legislation written by a small number of Members, staff and lobbyists, with many bipartisan priorities left out in the cold.”
“Blocking amendments shuts out members of Congress from offering their ideas to improve legislation, and in doing so silences the voices of the millions of Americans they are elected to represent. So far during this record-breaking closed 115th Congress, 380 Members have had at least one amendment blocked from consideration by the Republican-controlled Rules Committee and Republican Leadership.
“These districts account for 270 million Americans. In other words, Representatives from roughly 80 percent of the county have been blocked from offering an idea for debate on the House Floor – the ideas their constituents sent them to Congress to advocate for on their behalf.”
In the report, which dubs the 115th Congress “the most closed Congress in history,” Democrats call out Speaker Paul Ryan (R-WI), who pledged to “uphold the rights of the minority” and “have a process that is more open, more inclusive, more deliberative, more participatory.”
“You are the first Speaker in history to have never allowed a truly open rule, which would permit all Members to offer their ideas on the floor of the House,” McGovern and Democratic colleagues wrote.
“The People’s House is meant to operate as a deliberative body. Shutting out the voices of the representatives of hundreds of millions of Americans erodes the foundation of our democracy, and makes the job of governing increasingly more difficult.”
While the Democrats highlight several issue areas such as guns, immigration, the environment, veterans affairs and criminal justice reform in their report narrative, they do not specially discuss the blocked marijuana amendments, which are included in an appendix that lists every submitted measure not “made in order” by the Rules Committee.
Among the cannabis-related amendments impeded during this Congress were measures to reduce funding for the Drug Enforcement Administration’s marijuana eradication efforts, shield military veterans from losing their benefits due to cannabis use, expand research on marijuana’s medical benefits, allow Indian tribes to enter the cannabis industry and create a federal excise tax on marijuana sales.
There were also measures that would have granted an official congressional apology for the damage done by the war on drugs and ceased the practice of punishing states that don’t automatically revoke drivers licenses from people convicted of drug offenses.
At a time when marijuana law reform enjoys overwhelming support from voters, and more states are modernizing their cannabis laws, lawmakers in the so-called “People’s House” are not even allowed to vote on the issue.
The Senate Saves The Day. Maybe.
For the past several years, cannabis reform advocates have been largely relying on the Senate to advance their proposals. Last month, for example, that chamber’s Appropriations Committee approved measures on veterans’ medical cannabis access and preventing Justice Department intervention in state medical marijuana laws. (The panel, however, blocked an amendment on banking for marijuana businesses.)
Meanwhile, advocates this year for the first time advanced a marijuana amendment out the House Appropriations Committee, circumventing the Pete Sessions floor blockade. That measure, to shield state medical cannabis laws from federal interference, has historically required House floor votes—now impossible, thanks to Sessions—or Senate action to advance.
The ultimate fate of the various Senate-approved marijuana measures now rests with bicameral conference committees that will merge the two chambers’ bills into single proposals to be sent to President Trump’s desk.
For example, both the Senate and the House approved separate versions of large-scale food and agriculture legislation known as the Farm Bill this year, but only the Senate version has hemp legalization language in it. Sessions’s Rules Committee blocked a House vote. It will be up to the conference committee to decide which version prevails.
Regardless of which party controls the chamber when the 116th Congress is seated in January, Ryan, who is retiring, will be gone. And if legalization supporters have their way, so will Sessions.
See below for the full list of cannabis amendment blocked by Pete Sessions and the Rules Committee during the 115th Congress:
|Prohibits the use of funds to prevent any of various states from implementing their own laws that authorize the use, distribution, possessions, or cultivation of marijuana on non-Federal lands within their respective jurisdictions.||Polis (CO), McClintock (CA)|
|Specifies that cannabis-related businesses may utilize federal financial institutions when they are compliant with the law or regulation of their state or political subdivision of their state.||Gaetz (FL), Rohrabacher (CA)|
|Permits the District of Columbia to spend its local funds to regulate and tax recreational marijuana.||Norton (DC), Rohrabacher (CA), Blumenauer (OR), Lee, Barbara (CA)|
|Prohibits funds from being used to limit or interfere with the ability of VA healthcare providers to make appropriate recommendations, fill out forms or take steps to comply with a medicinal marijuana program approved by a state.||Blumenauer (OR), Amash (MI), Curbelo (FL), Gaetz (FL), Garrett (VA), McClintock (CA), Reed (NY), Rohrabacher (CA),
Cohen (TN), Young, Don (AK), Lee, Barbara (CA), Perlmutter (CO), Polis (CO), Titus (NV), Hunter (CA), Pocan (WI), DeFazio (OR), Correa (CA)
|Prohibits funds from being used to limit or interfere with the ability of VA healthcare providers to make appropriate recommendations, fill out forms or take steps to comply with a medicinal marijuana program approved by a state.||Blumenauer (OR), Amash (MI), Curbelo (FL), Gaetz (FL), Garrett (VA), McClintock (CA), Reed (NY), Rohrabacher (CA),
Young, Don (AK), Cohen (TN), Correa (CA), Lee, Barbara (CA), Perlmutter (CO), Polis (CO), Titus (NV), Hunter (CA), Pocan (WI), DeFazio (OR)
|Prevents the denial of water rights to a legal owner of an absolute or conditional water right, or an entity that receives or distributes water contracted from the Federal government for the cultivation of industrial hemp.||Polis (CO), Comer (KY)|
|Prevents the denial of water rights to a legal owner of an absolute or conditional water right, or an entity that receives or distributes water contracted from the Federal government for the cultivation of industrial hemp.||Polis (CO)|
|Prevents denial of federal water rights to hemp and marijuana farmers and growers.||Polis (CO), Blumenauer (OR), Young, Don (AK), Bonamici (OR)|
|Prohibits the Department of Justice from prosecuting individuals who are in compliance with their state’s medical marijuana laws, or otherwise interfering with the implementation of such laws.||Rohrabacher (CA), Blumenauer (OR), Young, Don (AK), Polis (CO), McClintock (CA), Lee, Barbara (CA), Joyce (OH), Cohen
(TN), Gaetz (FL), Titus (NV), Coffman (CO), Lewis, Jason (MN), Rosen (NV), Correa (CA)
|Prevents funds to the Department of Justice from being used in preventing or delaying the applications of research of schedule I controlled substances for conducting medical research in states and jurisdictions that said substance is legal for medicinal use pursuant to State law||Gaetz (FL)|
|Prohibits funds from being used to pay the salaries or expenses of personnel to fail to act on a marijuana research application.||Polis (CO)|
|Prohibits any funds from being used to prevent a state from implementing any law that makes it lawful to possess, distribute, or use cannabidiol or cannabidiol oil.||Perry (PA)|
|Reduces funds in the DEA Salaries and Expenses used for the Domestic Cannabis Eradication/Marijuana Suppression Program. Increases the spending reduction account by the same amount.||Lieu (CA), Polis (CO), Young, Don (AK), Titus (NV)|
|Provides that none of the funds made available in this Act to the Department of Justice may be used, with respect to any of the States of Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming, to prevent any of them from implementing their own laws that authorize the use, distribution, possession, or cultivation of marijuana on non-Federal lands within their respective jurisdictions.||McClintock (CA), Polis (CO), Blumenauer (OR), Amash (MI), Coffman (CO), Cohen (TN), Curbelo (FL), Heck, Denny (WA), Lee, Barbara (CA), Perlmutter (CO), Pocan (WI), Sanford (SC), Rohrabacher (CA), Young, Don (AK), Hunter (CA), Smith, Adam (WA|
|Prohibits any DOJ funds from being used to prevent a state from implementing its own state laws that authorize the use, distribution, possession, or cultivation of industrial hemp||Bonamici (OR), Polis (CO), Blumenauer (OR), Soto (FL), Comer (KY), Pocan (WI)|
|Prohibits the Department of Justice from prosecuting individuals from federally recognized Indian tribes who are in compliance with their tribal medical marijuana laws, or otherwise interfering with the implementation of such laws||Titus (NV), Polis (CO), Blumenauer (OR)|
|Permits the District of Columbia to spend its local funds to regulate and tax recreational marijuana.||Norton (DC), DeSaulnier (CA), Blumenauer (OR)|
|Blocks FinCEN from revoking guidance on how financial institutions should provide banking services to legitimate marijuana businesses.||Heck, Denny (WA), Young, Don (AK), Perlmutter (CO), Lee, Barbara (CA), Titus (NV)|
|Prohibits funds from being used to penalize a financial institution for serving a legitimate marijuana business.||Heck, Denny (WA), Young, Don (AK), Perlmutter (CO), Gaetz (FL), Lee, Barbara (CA), Titus (NV), Rosen (NV), McClintock (CA),
Blumenauer (OR), Correa (CA)
|Blocks FinCEN from altering guidance on how financial institutions should provide banking services to legitimate marijuana businesses.||Heck, Denny (WA), Young, Don (AK), Perlmutter (CO), Lee, Barbara (CA), Titus (NV), Collins, Chris (NY), King, Peter (NY)|
|Eliminates Section 159 of title 23, which reduces highway funding for states if they did not automatically suspend drivers licenses of anyone convicted of a drug offense.||O’Rourke (TX), Amash (MI), Jeffries (NY), Nadler (NY)|
|Exempts Cannabis businesses from 280e of the federal tax code||Polis (CO)|
|Applies a 15 percent excise tax on marijuana sales for the purposes of deficit reduction||Correa (CA)|
|Prevents the Drug Enforcement Administration (DEA) from prosecuting anyone for using, selling, or possessing marijuana in compliance with state laws, thus protecting the legal marijuana industry across the country from Federal interference.||Polis (CO)|
|Allows small businesses located in states that have legalized marijuana to utilize tax deductions||Polis (CO)|
|Creates a safe harbor for financial institutions that provide services to hemp legitimate businesses authorized under the pilot program in the 2014 Farm Bill and affiliated third parties.||Barr (KY)|
|Amends the Controlled Substances Act to exclude industrial hemp from the definition of “marijuana.”||Massie (KY), Polis (CO)|
|Removes industrial hemp from the definition of marihuana under the Controlled Substances Act and places it under the jurisdiction of the USDA as an agricultural commodity.||Comer (KY), Blumenauer (OR), Polis (CO), Barr (KY), Taylor (VA), Bonamici (OR)|
|Requires the VA to study medicinal marijuana as an alternative treatment option to prescription opioids.||Polis (CO), Correa (CA)|
|Forbids the VA from discriminating against veterans who use cannabis consistent with the laws of their state.||Crist (FL), Blumenauer (OR)|
|Prevents denial of federal water rights to hemp and marijuana farmers and growers.||Polis (CO), Blumenauer (OR), Bonamici (OR), Young, Don (AK)|
|Prohibits funds from being used by the Department of Veterans Affairs to deny VHA benefits to veterans, their dependents, and their survivors if they use marijuana in compliance with state law.||Blumenauer (OR), Correa (CA)|
|Prohibits funds from being used to limit or interfere with the ability of VA healthcare providers to make appropriate recommendations, fill out forms, or take steps to comply with a medicinal marijuana program approved by a state.||Blumenauer (OR), Amash (MI), Lee, Barbara (CA), Curbelo (FL), Crowley (NY), Gaetz (FL), Titus (NV), Jones (NC), Cohen (TN), McClintock (CA), Correa (CA), Reed (NY), Perlmutter (CO), Rohrabacher (CA), Pocan (WI), Young, Don (AK), DeFazio (OR), Sanford (SC)|
|Provides congressional apology for its role regarding the War on Drugs.||Watson Coleman (NJ)|
Marijuana Banking Bill Will Get A Full House Floor Vote This Month
A bipartisan bill to protect banks that service marijuana businesses will get a House floor vote by the end of the month, the office of Majority Leader Steny Hoyer (D-MD) confirmed to Marijuana Moment on Friday.
House leadership announced the decision to Democratic lawmakers at a closed-door meeting on Thursday.
“Mr. Hoyer said at the Whip meeting yesterday that he intends to move it this month,” a Hoyer staffer said in an email. “We’re discussing it with Members, but it hasn’t been scheduled just yet.”
Prior to confirmation from Hoyer’s office, four sources initially described the development to Marijuana Moment, with some saying the vote would be made under suspension of the rules—a procedure that is generally reserved for non-controversial legislation.
Voting on suspension would require two-thirds of the chamber (290 members) to vote in favor of the Secure and Fair Enforcement (SAFE) Banking Act in order for it to pass. The bill, which cleared the House Financial Services Committee in March, currently has 206 cosponsors, including 26 Republicans.
No amendments would be allowed to be added on the floor under the suspension process.
Problems could arise if lawmakers aren’t able to rally additional votes from conservative members or if there’s pushback over the strategy from progressive lawmakers, though it is unlikely Democratic leadership would advance the bill if they didn’t believe they have the votes for passage.
While interest in resolving the banking issue is generally bipartisan, it’s within reason to assume that lawmakers on both sides of the aisle might have wanted the opportunity to offer provisions such as extending protections to hemp businesses or adding language promoting social equity policies. That said, it is possible that leadership could file an entirely new piece of legislation that is similar to the SAFE Banking Act but contains modified provisions negotiated with key members and use that as the vehicle for floor action.
Many expected cannabis banking legislation to receive a floor vote before the August recess, but that did not come to fruition.
In any case, the development comes as the Senate Banking Committee is also preparing to hold a vote on marijuana banking legislation, with Chairman Mike Crapo (R-ID) announcing on Thursday that his panel is “working to try to get a bill ready.” He didn’t offer a timeline, however, other than saying he hoped to advance the legislation by the end of the year.
While sources told Marijuana Moment that Hoyer made his decision to allow cannabis banking vote following an earlier Wednesday meeting on the issue, it is likely that building momentum in the GOP-controlled Senate added to pressure on the House to act so that Democrats wouldn’t be seen as lagging behind Republicans on cannabis reform, an issue the party has sought to take political ownership of.
Following Crapo’s statement on advancing the banking legislation, Rep. Ed Perlmutter (D-CO), chief sponsor of the SAFE Banking Act, told Marijuana Moment that he welcomes the senator’s “commitment to resolve the banking conflicts that have been created by the misalignment in state and federal law on the issue of cannabis.”
“I remain focused on passing the SAFE Banking Act out of the House and look forward to working with my colleagues in the Senate as they take up the SAFE Banking Act or work to develop and pass similar legislation,” he said.
Banking access is largely seen as one of the most achievable pieces of cannabis legislation that stands to pass this Congress. Advocates and reform-minded lawmakers view it as one of the first steps on the path toward ending federal marijuana prohibition.
“We are seeing the blueprint in action and moving forward on critical legislation to protect state legal cannabis banking,” Rep. Earl Blumenauer (D-OR) told Marijuana Moment, referring to a memo he sent to House leadership last year outlining a committee-by-committee process for passing incremental cannabis bills leading up to major legislation to end federal prohibition. “Earlier this summer, the House passed protections for state and tribal cannabis laws. In the most cannabis friendly Congress in history, we need to keep up this momentum. There is still much to be done.”
There has been some disagreement within advocacy circles about whether it’s prudent to pass legislation viewed as primarily favorable to the industry before advancing comprehensive legislation that deschedules cannabis and takes steps to repair the harms of prohibition enforcement.
“It is our hope that after the successful passage of the SAFE Banking Act in the House, we will be able to advance legislation that ends the federal criminalization of cannabis once and for all,” Justin Strekal, political director of NORML, told Marijuana Moment. “Now is our time to demonstrate that marijuana law reform is both good policy and good politics.”
“We will not stop until otherwise law-abiding Americans are no longer discriminated against or criminalized due to the past or future choice to consume cannabis,” he said.
Neal Levine, CEO of the Cannabis Trade Federation, told Marijuana Moment that the group is “delighted that the U.S. House of Representatives is on the brink of passing a landmark piece of cannabis policy legislation that modernizes our antiquated banking laws to reflect the will of the people.”
“This is welcomed and long overdue news for the over 200,000 employees that work in the industry, cannabis businesses, and for public safety in the communities in which we operate,” he said. “Once the SAFE Banking Act passes the U.S. House, we call on the U.S. Senate to move quickly to protect our businesses and our workers.”
Pressure has been building all year from stakeholders and policymakers alike to get the legislation passed. Endorsements aren’t just coming from reform groups, either; 50 state banking associations, the National Association of State Treasurers, the top financial regulators of 25 states, a majority of state attorneys general and bipartisan governors of 20 states have also voiced support for the SAFE Banking Act.
Earlier this month, the head of the American Bankers Association predicted that the bill would be passed in the House “as early as September.”
This story was updated to add comment from Perlmutter and Hoyer’s office.
New ‘Marijuana 1-to-3 Act’ Would Reclassify Cannabis Under Federal Law
Another bill to reschedule marijuana was filed in Congress on Thursday.
Rep. Greg Steube (R-FL) introduced the legislation, which is titled the “Marijuana 1-to-3 Act.” True to its name, the bill would simply require the attorney general to move cannabis from Schedule I to Schedule III under the Controlled Substances Act, with the aim of increasing research on the drug’s effects.
“As marijuana is legalized for medical and recreational use across the United States, it is important that we study the effects of the substance and the potential impacts it can have on various populations,” Steube said in a press release. “By rescheduling marijuana from a schedule I controlled substance to a schedule III controlled substance, the opportunities for research and study are drastically expanded.
Today, I introduced a bill to reschedule marijuana from a schedule I to a schedule III controlled substance. The Marijuana 1-to-3 Act will allow additional research to be done on the benefits of marijuana by removing bureaucratic red tape. https://t.co/w45WAKHBr9
— Congressman Greg Steube (@RepGregSteube) September 12, 2019
“With this rescheduling, researchers can now access federal funds to research this substance and determine its medical value,” he said.
The press release came hours after a bipartisan pair of lawmakers introduced separate legislation to reschedule marijuana, also to Schedule III.
That bill contained additional provisions that would require federal agencies to develop research agendas for marijuana within one year of its enactment and also establish a system whereby universities could be designated as “Centers of Excellence in Cannabis Research” if they conducted comprehensive studies on issues related to marijuana.
Rep. Matt Gaetz (R-FL), who is a sponsor of the broader research bill, is also cosponsoring Steube’s more focused rescheduling proposal.
It’s not clear why Steube chose to file his own reclassification bill or whether the other legislation’s additional provisions were a factor.
The congressman’s two-page bill states that “the Attorney General of the United States shall, by order not later than 60 days after the date of enactment of this section, transfer marijuana…from schedule I of such Act to schedule III of such Act.”
“We hear every day about the positive health benefits of marijuana,” Steube said. “Whether it’s young children with seizure disorders, or veterans suffering from chronic pain, it is clear that there are medical benefits to marijuana and I think it’s time we remove the bureaucratic red tape that prevents us from thoroughly studying this substance.”
While he emphasized that the intent of his legislation is to encourage research into marijuana, placing cannabis in Schedule III would also have implications for marijuana businesses, who are currently ineligible for federal tax deductions under an Internal Revenue Code section that applies to anyone “trafficking in controlled substances” in Schedule I or II.
Read the full text of the bill below:
Photo by Ndispensable.
GOP Senate Chair Says He Plans Marijuana Banking Vote
The Republican chair of the Senate Banking Committee said on Thursday that his panel will hold a vote on legislation allowing banks to service state-legal marijuana businesses this year.
Chairman Mike Crapo (R-ID) told Politico that while he doesn’t support ending federal cannabis prohibition, his committee will take up the industry’s banking issues, which was the subject of a hearing the panel held in July. Because marijuana remains federally illegal, many financial institutions remain wary of taking on cannabis business clients—forcing them to operate on a cash-only basis—and there’s a growing bipartisan call to resolve the problem.
Crapo doesn’t support cannabis legalization. But he says he’s been compelled to act bc cannabis businesses w/o bank access are forced to transact in cash and there are issues surrounding transactions with businesses like plumbers, hardware stores, etc that serve the industry
— Zachary Warmbrodt (@Zachary) September 12, 2019
“We’re working to try to get a bill ready,” the senator said. “I’m looking to see whether we can thread the needle.”
Legislation to provide financial services to marijuana businesses—the Secure and Fair Enforcement (SAFE) Banking Act—already exists and was approved by the House Financial Services Committee in March. That bill has 206 cosponsors, including 26 Republicans. The companion Senate bill has nearly a third of the chamber signed on.
It’s not clear what changes Crapo is hoping for, but there’s been talk of adding hemp-specific banking protections, or including language to prevent activities such as Operation Choke Point, an Obama-era policy that conservatives view as biased against certain industries such as gun manufacturers, in order to bolster the proposal’s GOP appeal.
This development comes as Congress returns from a summer recess. Cannabis reform advocates hoped that the Democratic-controlled House would put the SAFE Act to a vote before August, but that window passed.
There have been renewed rumors that House leadership is planning to schedule a vote on the SAFE Act soon, but some dispute has broken out among cannabis reform supporters about the notion of passing a bill seen as industry-focused prior to moving broader legislation to deschedule marijuana and repair the harms of past prohibition enforcement.
Many supporters of more far-reaching moves have zeroed in on a bill House Judiciary Committee Chairman Jerrold Nadler (D-NY) filed, but it’s unclear when that legislation would be able to see a markup by the panel, which for now is focused on issues such as gun reform and the prospect of impeachment proceedings.
If the Republican-controlled Senate were to pass marijuana banking legislation soon, it could increase political pressure on House majority Democrats to follow suit lest they be seen as lagging on an issue on which their party has increasingly sought to lead.
Don Murphy, federal policies director for the Marijuana Policy Project, told Marijuana Moment that polling in Crapo’s home state of Idaho—one of only three states that currently have no legal cannabis laws on the books—shows that voters in the state support cannabis reform and that “it appears Chairman Crapo is seeing similar results.”
“Apparently MPP hasn’t done the only marijuana poll in Idaho recently,” he said. “Idaho voters support marijuana policy reform and with his support of the SAFE Act the Senator is moving in their direction. What took years to develop could end up in a photo finish as each chamber attempts to beat the other to a floor vote. If true, this is a very good news.”
Idaho activists are working to place a medical cannabis measure on the state’s 2020 ballot.
While it’s not clear Crapo that endorses the SAFE Act as written or that he would use an amended version of the existing bill as the vehicle to advance the issue, he’s made several statements indicating that he’s interested in a legislative fix on cannabis banking.
“We may craft our own bill or we may work with them to craft any amended legislation,” he told Politico.
“It would be terrific for the Senate Banking Committee to hold a markup on The Safe Banking Act, which we believe would result in a favorable bipartisan vote,” NORML Political Director Justin Strekal told Marijuana Moment. “Now more than ever, members of Congress spanning all types of geographic and political diversity recognize the need to amend existing law and move us towards ending federal prohibition.”
Crapo told Politico that he’s particularly interested in passing cannabis banking reform legislation because of the negative impact of the ban on ancillary businesses like plumbing and hardware companies that work with such businesses but don’t deal directly with marijuana.
The head of the American Bankers Association (ABA) predicted last week that the House would vote on the legislation before October.
THIS is a very important development- thank you @MikeCrapo for helping advance this legislation that will allow people and businesses access to the banking sector in states that have legalized cannabis and address the state/federal law inconsistency https://t.co/GzHo5cXuxA
— Rob Nichols (@BankersPrez) September 12, 2019
“THIS is a very important development- thank you [Sen. Crapo] for helping advance this legislation that will allow people and businesses access to the banking sector in states that have legalized cannabis and address the state/federal law inconsistency,” he wrote in response to the senator’s latest comments.
Politically, passing the banking bill in the Senate could give Sen. Cory Gardner (R-CO), its chief GOP cosponsor, a much-needed win heading toward next year’s election. Democratic candidates, including former Colorado Gov. John Hickenlooper (D) are targeting the seat, and Gardner has made much of his work to support the state’s legal cannabis market.