The House of Representatives approved a bill last week to protect banks that service marijuana businesses. But remarkable as it was to see the first standalone piece of cannabis reform legislation clear the chamber, perhaps even more impressive was the extent to which it garnered bipartisan support.
Every single Democratic present on the floor except one (229 members) voted in favor of the Secure and Fair Enforcement (SAFE) Banking Act, sponsored by Rep. Ed Perlmutter (D-CO). And nearly half of all Republicans (91 members) joined them. While advocates anticipated that it would pass, the final tally, 321-103, exceeded many expectations.
What changed since the last time Congress voted on cannabis banking?
This was a first-of-its kind vote on standalone marijuana legislation in the chamber. But a useful comparison comes from 2014, when the House voted on a similar but more limited appropriations amendment aimed at preventing the Treasury Department from penalizing banks that service cannabis businesses.
That measure passed 231-192 (though it was not enacted into law after the Senate declined to consider the provision). Among Democrats, 186 approved the earlier amendment, while 12 opposed it. About half as many Republicans voted for the 2014 amendment (45 members) than supported the SAFE Banking Act last week, while 180 voted against it.
In other words, Democratic support for a marijuana banking fix increased by 43 votes, or 21 percent, from 2014 to 2019. Republican support grew by 46 votes, or 68 percent, during that time period.
Among those present for both votes (235 members), here’s who flipped from “no” to “yes”:
- Rep. Andy Barr (R-KY)
- Rep. Rob Bishop (R-UT)
- Rep. Mo Brooks (R-AL)
- Rep. Tom Cole (R-OK)
- Rep. Doug Collins (R-GA)
- Rep. Henry Cuellar (D-TX)
- Rep. Charles Fleischmann (R-TN)
- Rep. Bill Flores (R-TX)
- Rep. Bob Gibbs (R-OH)
- Rep. Tom Graves (R-GA)
- Rep. Morgan Griffith (R-VA)
- Rep. Jaime Herrera Beutler (R-WA)
- Rep. Bill Johnson (R-OH)
- Rep. William Keating (D-MA)
- Rep. Mike Kelly (R-PA)
- Rep. Adam Kinzinger (R-IL)
- Rep. Daniel Lipinski (D-IL)
- Rep. Billy Long (R-MO)
- Rep. Kevin McCarthy (R-CA)
- Rep. David McKinley (R-WV)
- Rep. Cathy McMorris Rodgers (R-WA)
- Rep. Devin Nunes (R-CA)
- Rep. Pete Olson (R-TX)
- Rep. Scott Perry (R-PA)
- Rep. Collin Peterson (D-MN)
- Rep. Tom Reed (R-NY)
- Rep. Phil Roe (R-TN)
- Rep. Mike Rogers (R-AL)
- Rep. Linda Sánchez (D-CA)
- Rep. Mike Simpson (R-ID)
- Rep. Steve Stivers (R-OH)
- Rep. Glenn Thompson (R-PA)
- Rep. Scott Tipton (R-CO)
- Rep. Greg Walden (R-OR)
- Rep. Debbie Wasserman Schultz (D-FL)
- Rep. Steve Womack (R-AR)
- Rep. Ted Yoho (R-FL)
And “yes” to “no”:
- Rep. Larry Bucshon (R-IN)
- Rep. Chris Stewart (R-UT)
All told, 44 members voted differently this year as compared to 2014, including 37 who flipped from “no” to “yes” and two who went in the other direction. Two lawmakers who previously voted “yes”—Reps. Elijah Cummings (D-MD) and Jim Clyburn (D-SC)—were absent for this latest vote. One former “no” vote, Rep. Rick Crawford (R-AR), was absent for this vote. And finally, two members who were absent in 2014 voted “no” this round, Reps. Scott DesJarlais (R-TN) and Bradley Byrne (R-AL).
State marijuana action matters.
While support for letting banks service marijuana businesses isn’t necessarily indicative of support for legalization itself, it’s clear that the bill would benefit legal states, and Republican votes in favor of the legislation were significantly higher among those representing such states. Of GOP members representing states with either full adult-use or comprehensive medical cannabis programs, 41 opposed the SAFE Banking Act.
(The following analysis doesn’t include those states allowing CBD only.)
GOP members who voted “no” representing legal states:
- Rep. Jack Bergman (R-MI)
- Rep. Andy Biggs (R-AZ)
- Rep. Gus Bilirakis (R-FL)
- Rep. Vern Buchanan (R-FL)
- Rep. Ken Buck (R-CO)
- Rep. Ken Calvert (R-CA)
- Rep. Steve Chabot (R-OH)
- Rep. Paul Cook (R-CA)
- Rep. Mario Diaz-Balart (R-FL)
- Rep. Neal Dunn (R-FL)
- Rep. Jim Jordan (R-OH)
- Rep. Greg Gianforte (R-MT)
- Rep. Paul Gosar (R-AZ)
- Rep. Garret Graves (R-LA)
- Rep. Sam Graves (R-MO)
- Rep. Andy Harris (R-MD)
- Rep. Vicky Hartzler (R-MO)
- Rep. Bill Huizenga (R-MI)
- Rep. Mike Johnson (R-LA)
- Rep. John Joyce (R-PA)
- Rep. Darin LaHood (R-IL)
- Rep. Doug LaMalfa (R-CA)
- Rep. Doug Lamborn (R-CO)
- Rep. Robert Latta (R-OH)
- Rep. Debbie Lesko (R-AZ)
- Rep. Frank Lucas (R-OK)
- Rep. John Moolenaar (R-MI)
- Rep. Markwayne Mullin (R-OK)
- Rep. Bill Posey (R-FL)
- Rep. John Rutherford (R-FL)
- Rep. Steve Scalise (R-LA)
- Rep. John Shimkus (R-IL)
- Rep. Christopher Smith (R-NJ)
- Rep. Jason Smith (R-MO)
- Rep. Chris Stewart (R-UT)
- Rep. Michael Turner (R-OH)
- Rep. Ann Wagner (R-MO)
- Rep. Tim Walberg (R-MI)
- Rep. Daniel Webster (R-FL)
- Rep. Brad Wenstrup (R-OH)
- Rep. Bruce Westerman (R-AR)
Though it’s not clear from this vote which members might be inclined to extend their support for modest marijuana banking reform to broader policy changes such as descheduling, those who voted “no” would in all likelihood not be supportive of comprehensive reform at this point.
It was easy to find the outlier among Democrats, as only one member defected and opposed the bill: Rep. Terri Sewell (D-AL), whose office did not respond to a request for comment about why the congresswoman voted against the legislation.
But there were also some notable votes in favor of the SAFE Banking Act that came from Republican leadership in the House.
The highest ranking Republican in the House, Minority Leader McCarthy, voted in favor of the bill, while the rest of the party’s leadership—Minority Whip Steve Scalise (R-LA), Republican Conference Chair Liz Cheney (R-WY) and Policy Committee Chair Gary Palmer (R-AL)—voted no. (McCarthy is the only one of the bunch representing a state with a legal cannabis market.)
Collins, ranking member of the Judiciary Committee, which plays a key role in shaping federal drug laws, changed his vote to “yes” after having been opposed to the 2014 amendment.
Stivers, an original cosponsor of the SAFE Banking Act who voted in favor of it on Wednesday, voted against the previous amendment with the narrower scope.
Barr of Kentucky flipped to a “yes” even after voting against the measure in the House Financial Services Committee earlier this year. It’s likely that a last-minute amendment clarifying that the banking protections also apply to hemp and CBD businesses was a factor in his decision.
Griffith, Perry and Roe each voted “yes” this round, possibly related to their more recent involvement in medical cannabis-related legislation.
Two Democrats who voted against the banking amendment in 2014 and who are now facing primary challenges from progressive opponents—Lipinski and Cuellar—opted to approve the SAFE Banking Act this time.
Finally, Wasserman Schultz, who has stood out among Democrats in her longstanding opposition to marijuana reform even as a former chair of the party, voted in favor of the bill on Wednesday.
Wednesday’s vote is the latest example of waning support for the status quo of prohibition in the most marijuana friendly Congress in history.
Though not a vote on ending federal prohibition, the banking legislation represented what many advocates regard as the first step toward legalization, and the result proved promising for the prospects of broader reform. It’s less clear how the bill will fare in the Republican-controlled Senate, which officially received the SAFE Banking Act from the House on Friday, but the largely bipartisan nature of the vote could help push it forward in the other chamber.
Senate Banking Committee Chairman Mike Crapo (R-ID), whose panel already held a hearing on the issue earlier this year, said he wants to have a vote on cannabis banking legislation by the end of the year—a notable evolution from his previous criticism of advancing such a reform while marijuana remains federally illegal.
“The fact that it got nearly 100 percent of Dems and pretty close to 50 percent of Republican demonstrates how mainstream cannabis reform has come,” Michael Liszewski, senior regulatory affairs counsel at 4Front Ventures, told Marijuana Moment. “Even [Reps. Henry Cuellar (D-TX) and Debbie Wasserman Schultz (D-FL)] couldn’t vote against. The fact that so many Republicans supported it shows that it can be successful in the Senate.”
“I won’t pretend to assume that we have a proportionate level of support for SAFE in the Senate, but even with a reasonable drop off, we can get to 60,” he said. “And now we can encourage all of the Republicans who voted in favor of SAFE to urge the senators from their states to cosponsor SAFE.”
Photo courtesy of Brian Shamblen.
Bernie Sanders Congratulates Canada On One-Year Marijuana Legalization Anniversary
Sen. Bernie Sanders (I-VT) offered his congratulations to Canada on Thursday, marking the one-year anniversary of the country’s implementation of a legal marijuana market.
“Congratulations to our neighbors to the north on completing their first year of marijuana legalization!” the 2020 Democratic presidential candidate said on Twitter. “Vermont shares a border with Canada, and as far as I can tell, the sky has not fallen and the cities have not plunged into anarchy on the other side.”
Congratulations to our neighbors to the north on completing their first year of marijuana legalization! Vermont shares a border with Canada, and as far as I can tell, the sky has not fallen and the cities have not plunged into anarchy on the other side. https://t.co/O5qnBHrwCZ
— Bernie Sanders (@SenSanders) October 17, 2019
Canadian Prime Minister Justin Trudeau made cannabis legalization a key campaign promise, and while it took longer than some had anticipated, lawmakers approved a historic reform bill in June 2018. It went into effect on October 17 last year.
He also acknowledged the anniversary on Thursday, stating at a press conference that the decision “to keep our communities safer and remove profits of the pockets of organized crime was the right one.”
Liberal leader Justin Trudeau speaking in Quebec earlier on the one year anniversary of the legalization of recreational cannabis possession and use.
— Seán O’Shea (@ConsumerSOS) October 17, 2019
It’s not clear how much of a boost that achievement will give Trudeau when voters head to the polls on Monday for a national election that could see the Liberal Party removed from the majority as the prime minister faces backlash over controversies such as revelations he on several occasions wore blackface and brownface.
But regardless of the election outcome, leaders from all parties—including the Conservatives, all of whom voted against the legalization bill in the Senate except one—have said they would not reverse the law. Instead, one of the main drug policy issues that have separated the leaders is their respective positions on decriminalizing possession of substances beyond marijuana.
Trudeau and Sanders share a personal opposition to the reform move, with the senator stating on two occasions recently that he’s “not there yet” on the issue. The prime minister has similarly stated that decriminalization is not on his agenda and that he remains focus on cannabis.
The New Democratic Party and its leader, Jagmeet Singh, are in favor of broad drug decriminalization, as are the Green Party and its leader Elizabeth May.
The issue also came up during a Democratic presidential debate in the U.S. on Tuesday. Entrepreneur Andrew Yang and former Rep. Beto O’Rourke (D-TX) both expressed support for decriminalizing possession of opioids.
Sanders didn’t weigh in on the issue at that debate, but when asked to address his recent health episode, Sen. Cory Booker (D-NJ) chimed in to joke that “Sanders is in favor of medical marijuana, I want to make sure that’s clear as well.”
“I do,” Sanders said, adding that “I’m not on it tonight.”
Photo courtesy of Phil Roeder.
Key GOP Senate Chairman Outlines Changes He Wants For Marijuana Banking Bill
The head of the Senate Banking Committee is clarifying which aspects of a House-passed marijuana banking bill he would like to change as his panel moves toward taking up the legislation.
In a Thursday interview with Marijuana Moment on Capitol Hill, Chairman Mike Crapo (R-ID) described modifications he is working on to the Secure and Fair Enforcement (SAFE) Banking Act, which cleared the House along bipartisan lines in a 321-103 vote last month.
“The things we’re looking at are, first of all, to make sure we improve and clarify the interstate banking application of all of this,” Crapo said. “Secondly, money laundering issues with regard to legacy cash to make sure how that is managed properly. [Financial Crimes Enforcement Network] issues and other related issues. And then finally the health and safety issues about what is going to be banked.”
“Take tobacco for example, every state I think has some kind of regulatory parameters around the utilization of tobacco, even if it’s just an age limit on who can purchase it or what have you and the types of products that are going to be allowed,” he continued. “That gets into a legal issue that I think the states need to be more engaged in, but it also impacts the question on what would be banked. Those kinds of issues—health and safety, interstate commerce and money laundering.”
While it’s not exactly clear which language changes Crapo has in mind for the House-passed legislation, his reference to “health and safety issues about what is going to be banked” could refer to certain restrictions on cannabis businesses that want to store their profits in financial institutions, or even requirements that states enact certain policies in order for operators within their jurisdictions to qualify.
In response to another reporter’s question about the spike in vaping-related injuries, the chairman said that’s “a good example of one of the big concerns that I have that we need to address in the bill, which is the health and safety aspects of the use.”
“We are working to revise the bill and develop the support for the bill to move forward,” he said.
Crapo first announced last month that he’d like to take up legislation addressing the issue in his panel before the end of the year and that the reform measure will likely enjoy bipartisan support in the full Senate. However, he’s held off on endorsing the SAFE Banking Act as currently written. His committee held a hearing on banking concerns in the cannabis industry in July.
“We’re working to try to get a bill ready,” the senator perviously told Politico. “I’m looking to see whether we can thread the needle.”
If the Banking Committee does pass legislation protecting banks that service state-legal cannabis businesses from being penalized by federal regulators, it may encounter resistance in the full Senate from some pro-legalization lawmakers such as Senate Minority Leader Chuck Schumer (D-NY) and Sens. Bernie Sanders (I-VT), Cory Booker (D-NJ) and Kamala Harris (D-CA), each of whom have said comprehensive marijuana reform that addresses social equity should be prioritized over legislation that’s viewed as primarily friendly to industry stakeholders.
Crapo also told Marijuana Moment on Thursday that he has not spoken to Majority Leader Mitch McConnell (R-KY) about a low-key trip the top GOP senator took to California last week, during which he met marijuana industry representatives and reportedly toured a cannabis-related business.
McConnell’s buy-in will be key to advancing the cannabis banking legislation to President Trump’s desk if it moves through Crapo’s committee.
Aaron Houston contributed reporting for this story from Washington, D.C.
Governors Of Northeastern States Adopt Coordinated Marijuana Legalization Plan
A group of governors representing states across the Northeast convened on Thursday for a marijuana summit at which they agreed to basic principles for legal cannabis programs they plan to pursue in 2020.
New York Gov. Andrew Cuomo (D) and Connecticut Gov. Ned Lamont (D) organized the meeting. They were joined by New Jersey Gov. Phil Murphy (D) and Pennsylvania Gov. Tom Wolf (D), who came out in favor of legalization last month. Representatives from Massachusetts, Rhode Island and Colorado also attended.
“This is a very important topic,” Cuomo said in his opening statement. “It is probably one of the most challenging issues that I know I’ve had to address in the state of New York. It is complicated, it is controversial and it is consequential. That is a very difficult and challenging combination.”
Great that leaders from RI, CO, and Mass. are here also.
Can't wait for what will be a very meaningful policy discussion.
— Andrew Cuomo (@NYGovCuomo) October 17, 2019
“It’s consequential because if you do not do it right, you can do harm, and the whole purpose here is to do good,” he said.
The summit is being broken up into five sessions: on vaping and related issues, market regulation and social justice issues, public health consequences of cannabis, public safety issues and a “best practices” panel led by Colorado representatives.
“The point is, this is a challenge for all of us,” Cuomo said. “There is a desire to do this. I believe the people of this state and our surrounding states have a desire to do it. But the old expression the devil is in the details, how you do this makes all the difference. And as I said it can be a positive if done right, it can be a negative if it is not done correctly.”
Lamont, who also talked cannabis with Cuomo during a fishing trip in August and again during a meeting last month, said the current “patchwork quilt” approach that states have taken to marijuana regulations is “unconscionable” and emphasized the need for regional coordination.
Today I'll be meeting with @NYGovCuomo of #NY, @GovMurphy of #NJ, @GovernorTomWolf of #PA, and officials representing #RI and #MA to discuss the emerging health concerns of vaping, as well as opportunities to legalize and standardize recreational marijuana on a regional basis. pic.twitter.com/P9bkAjZWGV
— Governor Ned Lamont (@GovNedLamont) October 17, 2019
“This makes sense: sitting down, working together, working together with New Jersey, working with Pennsylvania and our other neighbors to make sure that what we do, we do it on a standardized basis, we do it on a well-regulated basis with health and safety paramount,” the governor said. “I think we’re much stronger when we work together and that’s what this meeting is all about.”
The governors agreed to determine an ideal tax scheme for marijuana and impose certain limitations on licensing to “ensure a fair and competitive market.” The taxes will also be designed to prevent an increase in consumption.
Importantly, the officials said their systems will include “social equity initiatives to ensure industry access to those who have been disproportionately impacted by the prohibition of cannabis” and to prioritize “small and diverse businesses’ participation in the cannabis industry.”
Another policy calls for the implementation of “meaningful social justice reform with regard to cannabis policy, including expediting expungements or pardons, waiving fees associated with expungements or pardons and securing legislation to support these reforms.”
In terms of public health, the governors were in consensus about imposing restrictions on modes of cannabis consumption and advertising. They said they will prohibit advertising that targets youth and create “strict penalties” for selling marijuana to those under 21. Public education campaigns will also be utilized “ to inform youth and the general public about the health and safety consequences of cannabis use.”
To ensure public safety, the governors said they agreed to have uniform standards for law enforcement trained as drug recognition experts to identify impaired driving. Methods will be developed to target the illicit market and identify “bad actors” in the industry.
Congress should pass a bill allowing banks to service marijuana businesses, they said.
“So long as it remains difficult to open and maintain bank accounts, the state-legal marijuana industry will largely rely on cash to conduct business and operate, which results in public safety issues and creates unique burdens for legal marijuana businesses,” the core principles document says.
The officials also agreed to a set of regulations for vaping products, including a ban or strict regulations on flavored cartridges, preventing the use of adulterants, imposing labeling requirements and increasing enforcement against retailers that sell vaping products to those under 21.
All told, the agreed-upon policies are likely to appeal to reform advocates, as nothing especially controversial made it into the list of principles. There were some concerns that a ban on home cultivation or smokable marijuana products would be included, as Cuomo recently hinted he might push for the latter policy.
“Cooperating as a coalition of states on these issues is the best path forward—as we not only share borders, but we share economic interests, public health priorities, and a joint understanding that the more states that work together on these kinds of issues, the better the policy results will be for our residents,” Lamont said.
When states work together collaboratively, carefully and thoughtfully we can create better policies. pic.twitter.com/wzfUXqbxco
— Governor Ned Lamont (@GovNedLamont) October 17, 2019
Wolf noted that his administration had recently concluded a statewide listening tour to hear from residents about proposals to legalize cannabis and said that based on that input, “we need to bring this into the open.”
Thankful for the opportunity to have this meaningful policy discussion so we can better serve our citizens and keep them safe.
— Governor Tom Wolf (@GovernorTomWolf) October 17, 2019
“We need regulation, we need to make sure we’re protecting public health, public safety. But that’s regulation, not prohibition,” he said. “It’s also really important that we work together as a region to make sure that we’re on the same page.”
Pennsylvania Lt. Gov. John Fetterman (D), who led the statewide cannabis tour, was also present at the summit.
Truly honored to attend with @GovernorTomWolf to discuss regional strategies on cannabis.
— John Fetterman (@JohnFetterman) October 17, 2019
Murphy emphasized that “doing things in an intelligent, coordinated, harmonious way is good for the entirety of not just our states but our residents.” He added that there are two main issues the leaders must tackle: combating the spike in vaping-related injuries and promoting social justice.
Our states are stronger when we work together. Join me live at the Regional Cannabis and Vaping Policy Summit with @NYGovCuomo, @GovernorTomWolf, and @GovNedLamont as we work to align our policies on adult-use marijuana legalization and vaping.https://t.co/aWlGehcNWA
— Governor Phil Murphy (@GovMurphy) October 17, 2019
“We’ve got a shocking gap between persons incarcerated in our system along racial lines, and it’s almost entirely due to low-end marijuana offenses,” he said. “Putting aside all of the other factors that come into the cannabis discussion, the social justice, at least in New Jersey, screams out at us and it’s why we’ve come to the table with such passion.”
Proud to join @NYGovCuomo, @GovernorTomWolf, and @GovNedLamont for the Regional Cannabis and Vaping Policy Summit. Working together, we can collaborate on vaping regulations while forging a comprehensive, justice-oriented vision for adult-use marijuana legalization in our region. pic.twitter.com/zD5qJWuFuq
— Governor Phil Murphy (@GovMurphy) October 17, 2019
New Jersey Senate President Steve Sweeney (D) also participated.
It was great participating in the Cannabis & Vaping Regulation Summit w/ leaders from across the northeast – if we want to regulate vaping or cannabis effectively, we need to take a regional approach! @NYGovCuomo @GovernorTomWolf @GovRaimondo @CharlieBakerMA @NedLamont @GovMurphy pic.twitter.com/xzqWOdxvjZ
— Steve Sweeney (@NJSenatePres) October 17, 2019
“In the absence of federal leadership, Governors are coming together and taking a regional approach to vaping and cannabis regulations,” Rhode Island Gov. Gina Raimondo (D), who did not attend the summit herself, said in a press release. “The principles we’ve agreed to today will allow us to better coordinate our efforts as we address some of the most challenging issues facing our states. Through this partnership, we will work together to protect families from the dangers posed by the illicit cannabis market and vaping.”
Following the opening statements, panels led by experts were invited to testify about their respective cannabis and vaping-related topics for five minutes and then answer questions. While the governors’ opening statements were livestreamed online, the discussion sessions were closed to press.
The list of principles that came out of the summit was released Thursday afternoon.
The governors each represent states where lawmakers have unsuccessfully attempted to legalize marijuana. Efforts stalled in New York following months of negotiation between Cuomo and the legislature, with disagreements centering on issues such as tax rates and how revenue would be earmarked.
In New Jersey, bids to legalize cannabis for adult use failed, with lawmakers suggesting they might advance the issue through a referendum for voters to decide on next year.
Pennsylvania lawmakers discussed a legalization bill during a joint Senate and House Democratic Policy Committee in April, but that did not materialize either. However, following the listening tour and with the backing of Wolf, a comprehensive piece of legalization legislation that was introduced on Tuesday is believed to stand a better chance.
This story has been updated to include additional comments and information about legalization principles the governors agreed to.
Photo courtesy of Gov. Andrew Cuomo.