A coalition of organizations including the American Civil Liberties Union, Human Rights Watch and Drug Policy Alliance is urging congressional Democratic leaders to delay a planned vote on a marijuana banking bill next week until more far-reaching legislation ending federal cannabis prohibition advances first.
“We are concerned that if the House approves this bill, it will undermine broader and more inclusive efforts to reform our country’s marijuana laws,” the groups wrote to House Speaker Nancy Pelosi (D-CA) and House Majority Leader Steny Hoyer (D-MD) in a letter on Tuesday.
Hoyer’s office confirmed to Marijuana Moment last week that the House planned to vote on the cannabis financial services legislation by the end of the month.
“The Congress has a unique opportunity to address the myriad injustices created by this nation’s marijuana laws. For decades, people of color have suffered under harsh and racially-biased marijuana laws,” the groups, which also include Center for American Progress, Leadership Conference on Civil and Human Rights and JustLeadershipUSA, wrote. “The banking bill does not address marijuana reform holistically. Instead, it narrowly addresses the issues of banking and improved access to financial services, measures that would benefit the marijuana industry, not communities who have felt the brunt of prohibition.”
The letter is the most public sign yet of a dispute that has been brewing among advocates in the marijuana policy reform movement, with some seeing a successful vote on banking legislation as demonstrating momentum for broader reform and others expressing concern that the financial services proposal primarily helps the industry and could take the wind out of the sails of a full-scale push to end prohibition.
Advocates who want broader reform have focused on a bill that House Judiciary Committee Chairman Jerrold Nadler (D-NY) filed this summer that would remove cannabis from the Controlled Substances Act and invest money into programs aimed at repairing the harms of the war on drugs, which has been waged in a racially disproportionate manner.
“Individuals and communities who are still suffering from the destabilizing collateral consequences of prohibition need reform and should not be second in line behind the industry,” Queen Adesuyi, policy coordinator for Drug Policy Alliance, told Marijuana Moment. “We need to ensure that the sequencing of federal marijuana bills, especially under House Democratic Leadership, is well thought out and done in a way that centers the millions directly impacted by overenforcement. We want to avoid the banking bill becoming Congress’ only bite at the apple for cannabis reform this session.”
Nadler’s bill, the Marijuana Opportunity Reinvestment and Expungement (MORE) Act, has been referred by House leadership to eight committees, none of which—including his own—have scheduled a vote on it. The financial services legislation—the Secure and Fair Enforcement (SAFE) Banking Act—cleared a committee with a bipartisan vote in March and has been waiting on the House calendar for floor action for months.
“It’s a difference in tactics, not desired outcomes,” NORML Political Director Justin Strekal, who supports going forward with the banking vote next week, told Marijuana Moment. “It’s our hope that the SAFE Banking vote demonstrates which members of Congress are willing to recognize the successes of state level reforms as we continue to move the MORE Act through the committee process.”
Morgan Fox, media relations director for the National Cannabis Industry Association, took a similar view.
“The SAFE Banking Act is a necessary reform that would represent a major step toward more sensible cannabis laws, and it’s looking increasingly likely that it can actually pass soon,” he said. “We have an opportunity to end policies that actively endanger people, hurt small businesses, and stymie equitable participation in the cannabis industry. Banking reform is certainly not the end of the road, and the industry is committed to working in support of far more comprehensive reforms that more fully address the harms caused by prohibition. Passage of this legislation will only add momentum to those efforts.”
But the groups signing the new letter disagree.
“Marijuana legislation must first address the equity and criminal justice reform consequences of prohibition,” they wrote to Pelosi and Hoyer.
“To be clear, we recognize the challenges facing marijuana businesses that lack access to financial services. However, we believe it is a mistake to move this issue forward while many of the other consequences of marijuana prohibition remain unresolved,” they wrote in urging the House not to vote on cannabis financial services legislation next week. “The banking bill does not solve the underlying problems of marijuana prohibition – namely, that many people of color have been saddled with criminal records for a substance that is now legal in many states, and that communities have been shut out of the emerging and booming marijuana industry.”
Meanwhile, on the other side of Capitol, Senate Banking Committee Chairman Mike Crapo (R-ID) said last week that he plans a vote on the marijuana banking bill in his panel by the end of the year. That chamber’s version of the legislation got its 33rd senator signed on this week, meaning that it now has the proactive support of a third of the body’s membership.
Because House leaders plan to bring the marijuana banking bill to the floor under a procedure known as suspension of the rules, which requires a two-thirds majority to pass, any Democratic votes lost as a result of the groups’ opposition could jeopardize the legislation. The SAFE Banking Act currently has 207 lawmakers signed on, whereas 290 votes are needed to approve a bill under suspension.
“Since the start of the 116th Congress, we have expressed concern to House Leadership, the House Financial Services Committee, and member offices, that if the banking bill moved to the Floor before broader reform, it would jeopardize comprehensive marijuana reform,” the concerned groups wrote in their letter. “Therefore, we have pushed for a conversation among advocates, Committee leadership, and House Leadership to formulate a plan for moving marijuana legislation in a way that is comprehensive and does not result in carve-outs for the industry and leave behind impacted communities.”
“We ask that you delay any vote on the banking bill until agreement has been reached around broader marijuana reform,” they said.
Read the full letter urging a delay on the marijuana banking vote below:
This story has been updated to include comment from Drug Policy Alliance and National Cannabis Industry Association.
Trade Associations And Civil Rights Groups Send Mixed Messages On Marijuana Banking To Senate
A coalition of trade associations sent a letter to Senate Banking Committee leadership on Thursday, urging a vote on legislation to protect financial institutions that service state-legal marijuana businesses.
But those senators are also feeling pressure from leading civil rights groups like the ACLU and Human Rights Watch, which sent an earlier letter insisting that they not allow cannabis banking to detract from more comprehensive reform that addresses social equity.
The organizations involved in the latest letter—including the American Bankers Association and Credit Union National Association—said that advancing the Secure and Fair Enforcement (SAFE) Banking Act or similar legislation is pivotal to ensuring that stakeholders receive needed clarity and are shielded from being penalized by federal regulators.
The letter, addressed to Banking Chair Mike Crapo (R-ID) and Ranking Member Sherrod Brown (D-OH), emphasized the bipartisan nature of the House passage of the bill in September and the growing movement at the state level to legalize cannabis for medical or recreational purposes.
“Our organizations support an initial legislative step that allows the legal cannabis industry into the banking system,” the groups, which also include the Council of Insurance Agents and Brokers, International Council of Shopping Centers and National Association of REALTORS, wrote. “Ultimately, protecting law-abiding financial institutions and ancillary businesses from their currently untenable position and addressing increasing public safety concerns.”
As more states reform their marijuana laws, however, “distribution, sale, possession, research, transaction, housing, employment, and a broader landscape of cannabis is becoming increasingly problematic” for stakeholders under federal prohibition.
“Ultimately, this creates more legal and security concerns that impact the operations and safety of businesses and consumers,” they said. “Finally, the lack of an available safe harbor for cannabis will continue to challenge the full adoption and deployment of the legal hemp and CBD products market in the U.S. due to the inextricable link between hemp and cannabis.”
“To resolve this, we urge the Committee to vote on the SAFE Banking Act or similar measures. Such measures are meant to create a safe harbor for depository institutions that provide a financial product or service to businesses in a state permitting the use of cannabis. A safe harbor will enable law enforcement and states to effectively monitor and regulate businesses while simultaneously bringing billions into the regulated banking sector.”
12 groups including ABA just wrote @MikeCrapo @SenSherrodBrown @senatemajldr @SenSchumer urging a vote on the #SAFEBanking Act. It's time to end the legal limbo over banking cannabis in the growing number of states where it's legal. Read the letter: https://t.co/1529vIHawq
— American Bankers Association (@ABABankers) December 12, 2019
The letter, also signed by Americans for Prosperity and R Street, recognizes that creating a federal regulatory scheme for marijuana will take time but says that the SAFE Banking Act represents “a critical first step to ensure that legal cannabis marketplaces are safe, legal, and transparent.”
Crapo has said that he’s interested in holding a vote on resolving the cannabis banking issue in his panel before the year’s end, but so far nothing has been scheduled. The chairman told Marijuana Moment in earlier interviews that there are several changes to the House-passed bill that he’d like to see but that he’s worried impeachment proceedings against the president will interfere with plans to hold a vote.
All that said, pressure from civil rights advocacy groups could complicate congressional efforts to get the banking bill approved. In October, several organizations including the ACLU, Drug Policy Alliance, Human Rights Watch and Center for American Progress sent a letter to Senate leadership, as well as Crapo and Brown, demanding that “marijuana legislation considered in the Senate include provisions that will guarantee equity in the industry.”
The letter, which doesn’t appear to have been previously reported and was obtained by Marijuana Moment, states that while the coalition agrees the SAFE Banking Act “is an incremental step toward rolling back the federal prohibition of marijuana, it fails to help communities that have been historically and disproportionately devastated by United States’ punitive drug laws.”
“As the Senate Committee on Banking, Housing, and Urban Affairs considers similar legislation, we insist that the legislation include provisions that ensure equity in the marijuana industry by creating opportunities for individuals who have been prohibited from this growing business either by legal or financial means,” the letter, which was also signed by the Immigrant Legal Resource Center, Leadership Conference on Civil and Human Rights and National Association of Social Workers, states.
“Indeed, this Congress has shown it understands the economic impact of legalization. But while progress on the business side of legalization is promising, it is not sufficient. Federal marijuana legislation must be comprehensive and lead with equity, addressing past and current harms to communities of color and low-income communities who bore the brunt of the failed war on drugs. We demand that any marijuana reform or legalization bill considered by the Senate] include robust provisions addressing equity. More than simply adding equity provisions to bills that address industry concerns, we need comprehensive reform that deschedules marijuana and addresses the inequities and harms continually inflicted by the failed war on drugs.”
In other words, the groups are insisting on broad reform prior to a vote on a bill viewed as largely beneficial to the cannabis industry—similar to a request they made of House members prior to the legislation’s passage in the chamber.
Read the marijuana banking letters from the trade associations and civil rights groups below:
GOP Congressman Knocks His Party For Failing To Pass Marijuana Reform
A Republican congressman says that whichever party is responsible for passing federal marijuana reform will “instantly” shoot up in the polls, while lamenting the fact that the GOP failed to do so when they controlled the House.
Rep. Thomas Massie (R-KY), a vocal advocate for hemp, was asked by Fox Business host Kennedy on Wednesday whether cannabis should be rescheduled under federal law.
“Absolutely,” he said. “The first party that does this—and I don’t understand why either party won’t do it—is going instantly gain 10 points in the general poll on which party versus the other.”
“We should have done it when we were in the majority,” he added. “The liberals should be asking Pelosi why she hasn’t put it on the floor yet.”
The House Judiciary Committee approved legislation last month to end federal marijuana prohibition, but it hasn’t yet been scheduled for floor action.
Massie made similar points during an interview with Marijuana Moment earlier this year, stating that if Republicans had advanced states’ rights-focused marijuana legislation, “I think we might still be in the majority.”
Of course, while Massie has supported legislation to allow states to set their own cannabis policies without federal intervention, as well as other more modest reform measures such as protecting banks that service marijuana businesses, he’s so far declined to cosponsor any bills that seek to deschedule cannabis.
The congressman has also expressed interest in changing federal gun control laws to allow cannabis consumers to purchase firearms.
Though it’s not clear exactly how much of a boost either party would get by passing a marijuana reform bill, a Pew poll released last month does show that there’s majority support for legalization among those who lean Republican (55 percent) as well those who lean Democratic (78 percent).
Photo courtesy of YouTube/Rep. Massie.
State Department Warns Travelers About Flying With Cannabis Oil Internationally
The U.S. State Department is warning international holiday travelers that while hemp-derived CBD might be legal in the U.S., it can land you in trouble if you take it certain places abroad.
“Make sure your gift isn’t a fa la la la la la la la la fail,” the department said in a tweet on Thursday. “Bringing along gifts like drones, CBD oils, and firearms can land you in trouble in foreign countries. Research what is and isn’t allowed before you travel.”
(Marijuana Moment’s editor provides some content to Forbes via a temporary exclusive publishing license arrangement.)
Photo courtesy of Flickr/DHS.