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Banks Accepted Significantly More Marijuana Businesses In 2019, Federal Data Shows

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Banks and credit unions have been accepting significantly more marijuana businesses in 2019, according to new federal data.

At the end of the last quarter of 2018, there were 438 banks and 113 credit unions actively servicing cannabis businesses. By March 2019, those numbers grew to 493 and 140, respectively.

That data comes from the Treasury Department’s Financial Crimes Enforcement Network (FinCEN), which tracks financial services for the marijuana industry by analyzing suspicious activity reports, or SARs, that institutions file in accordance with cannabis banking guidance issued by the Obama administration in 2014.

Via FinCEN.

While banks run the risk of being penalized by financial regulators by accepting cannabis business accounts because their products are still federally controlled substances, an increasing number of them are willing to take that chance. The latest update of quarterly numbers, posted late last month, comes as bipartisan legislation that would protect banks that service state-legal markets advances toward the House floor for a vote.

“As of 31 March 2019, FinCEN has received a total of 81,725 SARs using the key phrases associated with [marijuana related businesses],” the federal agency wrote.

FinCEN also breaks down the types of SARs the banks and credit unions reported for marijuana businesses.

The vast majority (61,036) were considered “marijuana limited,” a term that refers to cannabis businesses that appear to be operating in compliance with state law and meet the agency’s standard for being serviceable under existing federal guidelines.

Via FinCEN.

About 6,000 were defined as “marijuana priority,” which means they “may raise one or more of the red flags” under federal guidelines or they “may not be fully compliant with the appropriate state’s regulations” and are thus under investigation while the banks continue to service the businesses.

Finally, about 20,000 were marked as “marijuana termination.” That means has the cannabis business has violated at least one federal enforcement priority or state regulation and so “the financial institution has decided to terminate its relationship with” the business.

The Secure and Fair Enforcement (SAFE) Banking Act would do a lot to resolve uncertainty in the banking sector as it concerns marijuana. The bill cleared the House Financial Services Committee in March and is expected to get a full House floor vote next month.

Advocates argue that providing for the lawful banking of cannabis businesses would increase financial transparency, mitigate public safety risks associated with operating on a largely cash basis and simplify the tax process.

The legislation enjoys broad support outside of Congress as well. Twenty U.S. governors recently signed a letter encouraging its passage, as did banking associations representing all 50 states, a coalition of state attorneys general and another comprised of state treasurers.

Meanwhile, an annual spending bill that covers the Treasury Department and includes temporary language protecting banks from being punished for working with cannabis businesses is on the House floor this week.

20 Bipartisan Governors Urge Congress To Pass Marijuana Banking Bill

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

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

Politics

DC Activists Have A New Plan To Get Psychedelics Decriminalization On The Ballot Despite Coronavirus

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Activists in Washington, D.C. are considering a new strategy to get a measure to decriminalize psychedelics on the November ballot, with the coronavirus outbreak having forced them to suspend in-person signature gathering.

While Decriminalize Nature D.C. hoped that officials would pass emergency legislation allowing the digital collection of signatures, they aren’t actively considering that option. And the District Council’s chairman said he would not simply place the initiative on the ballot for voters to decide regardless of the signature count.

That’s left the group in a challenging position. But they’re not out of ideas yet.

Now the campaign is exploring the possibility of conducting “micro-scale petition signature collection” to make the ballot. The plan would involve having petitions mailed to supporters, who would circulate it and collect signatures from “registered DC voters in their immediate vicinity, such as family, roommates, friends and close-by neighbors” and then return the signed petitions to the campaign headquarters.

They’ve launched an online survey to determine the feasibility of the option. It asks prospective volunteers to estimate how many signatures they could theoretically collect under that limited scope and provide their mailing information should the campaign decide to move forward with the plan.

This is one of the last remaining options for the 2020 effort, which is working to make a wide range of psychedelics among the district’s lowest law enforcement priorities.

Council Chairman Phil Mendelson (D) said during a press conference on Friday that he “would not say that we’re looking for legislative action to put [the initiative] on the ballot” outside of the conventional process.

Board of Elections Chairman Michael Bennett also took a question about the prospect of allow electronic signature collection. He said his panel is not considering the possibility “at this point.”

Watch the comments below, starting around 22:15:

Decriminalize Nature D.C. is one of numerous groups working to change local and state drug policy laws. And it’s not alone in its struggle amid the current pandemic.

A California campaign to legalize psilocybin mushrooms is struggling and asking for electronic signature gathering to qualify for the ballot.

In Oregon, advocates for a measure to decriminalize drug possession and a separate initiative to legalize psilocybin for therapeutic purposes have suspended in-person campaign events amid the pandemic.

Activists in California recently released a video asking California officials to allow digital signatures for a petition to revise the state’s adult-use marijuana program. An effort to legalize medical cannabis in Nebraska is facing similar signature gathering challenges. A campaign to legalize cannabis in Missouri is also in jeopardy.

Arizona activists shared some more positive news last week, however, announcing that they have collected more than enough signatures to qualify for the state’s November ballot—though they have not yet been submitted to or verified by the state.

Marijuana Legalization Left Out Of New York Budget, According To Draft Summary Document

Photo elements courtesy of carlosemmaskype and Apollo.

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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Marijuana Legalization Left Out Of New York Budget, According To Draft Summary Document

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The New York legislature seems poised to eliminate a proposal to legalize marijuana through the budget this year, according to an unverified document outlining the policies included in the spending legislation currently under final negotiations ahead of a vote this week.

The draft budget report, which was shared with Marijuana Moment, includes a line stating that the “Adopted Budget omits the Executive proposal to legalize adult use cannabis.”

It also “eliminates $34.31 million in funding for the Office for Cannabis Management,” a government body that would have been responsible for regulating the marijuana market.

The apparent exclusion of Gov. Andrew Cuomo’s (D) legalization proposal, while disappointing to reform advocates, is not entirely surprising in the context of the coronavirus outbreak. While the governor repeatedly stressed that the policy change should be enacted through the budget, he and top lawmakers have tried to temper expectations in recent weeks as legislative priorities have shifted during the pandemic.

But to some, the draft adopted budget report isn’t necessarily a death knell for the reform move, and they hope lawmakers can still accomplish legalization this year through separate legislation.

“We are disappointed adult use is not in the budget since it would have been a huge economic benefit to New York farmers and small businesses,” Allan Gandelman, president of the NY Cannabis Growers & Processors Association, told Marijuana Moment. “We hope to continue working with the governor and the legislature to get this done as soon as possible.”

The legislature must still vote on the final budget, but there’s little time left to hash out a deal on comprehensive reform ahead of a Wednesday deadline. Sen. Liz Krueger (D) filed a revised standalone legalization bill earlier this month, language of which could have theoretically been inserted into the budget, but it’s not clear that option remains on the table.

Marijuana Moment reached out to Senate and Assembly leadership for comment about the draft budget summary, but representatives were not immediately available. The document, which according to its metadata was last modified on Sunday afternoon, contains highlighted sections for issues that are “still open” for negotiation, but that is not the case for the cannabis items.

This is the second year in a row that Cuomo has pitched legalization as part of his spending plan. Last year, months of negotiation between his office and lawmakers failed to produce a passable bill—with disagreements centering on issues such as how tax revenue would be allocated—and so the effort carried over to this year.

The governor seemed confident that 2020 would be the year for legal cannabis in New York, and he included the proposal in his State of the State address in January. As recently as last week, he indicated the effort was still alive, though he also recognized that it may prove too complicated an issue to ultimately deliver through the budget this round.

“We will pass a budget and address the policy items that we laid out and we discussed because it’s not just about passing a budget and the numbers,” he said. “There are many policy initiatives that I laid out back in January, and we’re going to pursue all of them.”

“The only caveat was if you have a really complex issue that normally would require weeks of nuanced, detailed negotiation to do it right, that we won’t do. Because I don’t want to pass any bills that are not really intelligent that I then have to come back and deal with again next year,” he continued. “If it’s a highly complex issue, I get it and then let’s put it off because we don’t want to do something sloppy.”

Another part of the governor’s legalization plan originally involved visiting legal cannabis states to learn from their experiences and take lessons back home. However, Cuomo said that trip was also impacted by the COVID-19 outbreak.

Meanwhile, drug policy reform efforts across the country are struggling amid the pandemic.

Activists in California recently released a video asking California officials to allow digital signatures for a petition to revise the state’s adult-use marijuana program. In Washington, D.C., advocates for a measure to decriminalize psychedelics similarly wrote to the mayor and local lawmakers, imploring them to accept online signatures for their ballot petition.

Another California campaign to legalize psilocybin mushrooms is struggling and asking for electronic signature gathering to qualify for the ballot. An effort to legalize medical cannabis in Nebraska is facing similar signature gathering challenges. A campaign to legalize cannabis in Missouri is also in jeopardy.

In Oregon, advocates for a measure to decriminalize drug possession and a separate initiative to legalize psilocybin for therapeutic purposes have suspended in-person campaign events amid the pandemic.

Arizona activists shared some more positive news last week, however, announcing that they have collected more than enough signatures to qualify for the state’s November ballot—though they have not yet been submitted to or verified by the state.

Senate Housing Bill Would Prevent Evictions For State-Legal Marijuana Extraction

Photo courtesy of Philip Steffan.

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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Senate Housing Bill Would Prevent Evictions For State-Legal Marijuana Extraction

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A new congressional bill designed to promote affordable housing in the U.S. includes a provision that would prevent landlords from evicting people over manufacturing marijuana extracts if they have a license to do so.

Under the legislation, filed earlier this month by Sen. Jeff Merkley (D-OR), there’s a list of “just causes for eviction” such as failure to pay rent or causing significant damage to a property.

The “manufacture of a cannabinoid extract” is another cause for eviction, “unless the tenant holds a license to manufacture the cannabinoid extract under Federal, State, or Tribal law.”

Curiously, however, the bill lacks any additional protections for other state-legal cannabis activities, including simple possession. It’s possible that a drafting error is to blame, but Merkley’s office did not respond to Marijuana Moment’s request for comment.

Just above the manufacturing provision is another that states that “the unlawful manufacture, delivery, or possession of a controlled substance” is ground for eviction, though it contains no caveat exempting state-legal activity as cause for eviction.

Despite the growing number of states moving to allow cannabis for medical or recreational use, it remains “unlawful” under the federal Controlled Substances Act.

While advocates would likely applaud the inclusion of state-legal protection language, it’s also the case that eviction proceedings are handled at the state level, and so some courts would presumably defer to state law when it comes to cannabis-related eviction cases.

Also, when it comes to the manufacturing provision, states generally do not provide licenses that would specifically allow individuals to produce marijuana extracts in their residences, so it’s unclear how impactful that policy would be in practice if enacted into law.

Of course, the cannabis provision is just one notable part of a comprehensive housing bill, which aims to “address the shortcomings of our current housing policies and funding levels by holistically addressing disparities and systematic obstacles and ensuring an equitable outcome for the most vulnerable Americans.”

Rep. Alexandria Ocasio-Cortez (D-NY) and Sen. Kamala Harris (D-CA) rolled out a different kind of housing reform bill last year that would protect people with low-level drug convictions from being denied access to or being evicted from public housing.

Letting VA Doctors Recommend Medical Marijuana To Veterans Won’t Cost Anything, Congressional Analysts Say

Photo courtesy of Mike Latimer.

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