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Colorado Marijuana Social Equity Businesses Would Be Defined Under New Bill

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Colorado lawmakers advanced a newly introduced bill on Wednesday that would create a statewide definition of which businesses qualify as marijuana social equity license applicants and are eligible for certain incentives.

The legislation, which is the product of months of dialogue between reform advocates, industry stakeholders and legislators, was filed by Rep. James Coleman (D) with just days left in the legislative session and cleared the House Finance Committee in a vote of 9-2 just one day after its introduction. It would build on a current statewide accelerator program allowing eligible individuals to use existing marijuana facilities to build their business.

As it stands, only those from economically disadvantaged communities qualify for the accelerator program. This bill would create two additional categories for eligibility, with a focus on restorative justice.

Under the proposal, a person would be eligible under the social equity program if they met at least one of three criteria: 1) they lived in a designated economically distressed community for a minimum of 15 years between 1980 and 2010, 2) the applicant or a member of their immediate family has been arrested or convicted for a marijuana offense or 3) their income is at or below an amount to be determined later in rulemaking.

“A person who meets the criteria in this section for a social equity licensee, pursuant to the rule and agency discretion, may be eligible for incentives available through the Department of Revenue or Office of Economic Development and International Trade, including but not limited to a reduction in application or license fees,” the text of the bill states.

Advocates say this definition would help resolve some of the confusion that individual jurisdictions like Denver have faced when enacting their own equity programs.

“One of the things that we could not determine [in Denver] was who was going to be a social equity candidate. For many reasons people felt that that’s not something that the city needs to determine. People couldn’t agree on it,” Sarah Woodson, executive director of The Color of Cannabis, told Marijuana Moment. “I quickly identified that that needs to happen on a state level and the accelerator is a space where we can define social equity.”

Conor Cahill, the press secretary for Gov. Jared Polis (D), told Marijuana Moment that “the administration is supportive of this bill and looks forward to seeing it pass.”

“This legislation would create a social equity definition in statute. This is an important first step toward developing a meaningful social equity program to assist those who have been disenfranchised by the failed war on drugs,” he said. “Having a definition in statute will help local governments currently considering equity programs. The governor is committed to working with stakeholders to promote diversity within this growing industry and ensure efforts around this challenge are meaningful and purposeful.”

The legislation would also amend a policy prohibiting those with felony convictions in the past three years from obtaining a marijuana business license. Those applying as social equity applicants would not be subject to that prohibition.

Coleman, the bill’s chief sponsor, told Westword that he deliberately drafted the bill so that it wouldn’t have a fiscal impact, simplifying its path to passage with limited time left in the legislative session.

“My concern is whether we have enough time. I know this isn’t the priority right now. We have to get the school finance bill passed and the overall budget taken care of,” he said. “COVID-19 is primarily a health pandemic, but it’s also an economic pandemic.”

“We just want to make sure this is a fair, equitable industry,” he added. “We had another bill we were going to attach this to, but that had a very specific focus, so instead of attaching it there, we drafted a separate bill.”

As one of the first states to legalize cannabis for adult use, Colorado didn’t have the benefit of learning from the experiences of other states in terms of implementing social equity and restorative justice provisions for people from communities historically targeted by prohibition enforcement. Now legislators seem to be playing catch-up, with defining social equity as part of that process.

Woodson said that “everyone has different opinions” on why the state didn’t consider these policies earlier.

“The way I personally feel is that there weren’t enough people of color at the table,” she said. “That’s just what it is—we’re seeing that happen in our own country right now where we’re addressing systemic racism and policies and laws that don’t benefit people of color.”

“If there were more people of color at the table creating policies, policies would have been made that took into consideration people that were participating in prohibition,” she said.

Separately, Colorado issued its first marijuana delivery license in March and a limited number of shops have started offering that service.

Polis’s administration is also looking into solutions to cannabis businesses’ banking access problems that exist because of the federal-state policy conflict on marijuana.

Read the social equity bill below: 

Colorado social equity bill by Marijuana Moment on Scribd

This story has been updated to include comment from the governor’s office and to note the bill advancing in committee.

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Michigan Prosecutor Won’t Pursue Psychedelics Possession Cases Following Local Decriminalization Vote

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A soon-to-be county prosecutor in Michigan said his office will not be pursuing psychedelics possession cases following a City Council vote to decriminalize entheogenic substances in Ann Arbor.

Eli Savit, who won in a three-way Democratic primary for Washtenaw County prosecutor last month and is running unopposed in the general election, said in a statement to the advocacy group Decriminalize Nature Ann Arbor that he supports the measure and will extend the policy county-wide, rather than just at the city level.

“I support the decriminalization of entheogenic plants. I believe the War on Drugs has been an abject failure, and I see no reason to criminalize—or prosecute—people for their use of such plants,” he said. “That was my position before the Ann Arbor City Council resolution, and it’s true with even greater force afterwards.”

The official, who campaigned on a pro-reform platform, said that drug criminalization has “created a cruel roulette wheel of sorts” and “it’s a weighted wheel, as the data clearly shows that Black people and people of color are far more likely to face criminal consequences related to drug use than white people.”

“The Ann Arbor City Council resolution of course applies only in Ann Arbor,” he said. “But, consistent with the resolution, I do not plan to prosecute the use or possession of entheogenic plants in any other part of the county.”

The unanimous City Council vote earlier this month made Ann Arbor the third city in the U.S. to make it so enforcement of laws against a wide range of psychedelics such as psilocybin, ibogaine and ayahuasca are among the lowest police priorities. Oakland was the first to do so, followed by Santa Cruz. Washington, D.C. could be next, as activists successfully placed the issue on the November ballot.

The broader reform movement kicked off in earnest shortly after Denver voters approved a measure last year focused on decriminalizing psilocybin.

Savit’s support for the Ann Arbor policy change stands out as an example of how the messaging behind these local reforms can have an impact beyond the individual jurisdiction it directly applies to.

“While we were not surprised, we were absolutely thrilled to find out that Eli Savit supports the DNA2 resolution! This left us feeling very hopeful for the future of our county,” Julie Barron, chair of Decriminalize Nature Ann Arbor, told Marijuana Moment. “Mr. Savit spoke extensively during his campaign about ending the war on drugs. It is great to know that he will continue this promise to the county with an action plan not to prosecute the possession and use of entheogenic plants/fungi.”

“We have a strong drug reform advocate here, and we cannot wait for him to take his position of Washtenaw County Prosecutor,” she said.

Several other prosecutors have similarly enacted policy changes to avoid low-level marijuana cases. For example, the top cop in Fairfax County, Virginia said in January that he “directed my office to dismiss prosecutions of adults for simple possession of marijuana.”

The top prosecutor in Baltimore is proactively closing warrants and dismissing hundreds of cases for certain offenses, including simple drug possession, that her office is no longer pursuing amid the coronavirus pandemic.

Montana Marijuana Legalization Initiative Endorsed By Environmental Conservation Groups

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Montana Marijuana Legalization Initiative Endorsed By Environmental Conservation Groups

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Montana activists behind a marijuana legalization initiative are being backed by a uniquely “Big Sky Country” coalition: environmental conservation groups.

The state—widely known for its public lands and parks that attract tourists from across the country—would see a significant influx of revenue for environmental conservation programs from cannabis taxes if the legalization measure passes in November. Half of the public revenue from marijuana sales would be earmarked for such purposes.

Organized by the legalization campaign New Approach Montana, a new Public Lands Coalition (PLC) is comprised of four conservation organizations, including the Montana Conservation Voters and Montana Wildlife Federation.

“All Montanans share the values of open space, as Montanans we collectively own and steward some of the most special places on earth. We are in fact, the Last Best Place, and that’s a central part of our identity as Montanans,” Pepper Petersen, political director for New Approach Montana, told Marijuana Moment.

“The allocations in I-190 reflect our values as Montanans and you see that in the initiative,” he said. “Montanans know that marijuana revenue should be invested wisely, and our public lands in Montana are a great investment.”

The group said in an op-ed published in The Missoulian newspaper on Sunday that there is currently $60 million in “unmet conservation needs in Montana” for services such as “funding for landowners who want to offer access for hunting and fishing.” Legalizing cannabis could help fill that gap, the coalition said.

“In order to continue to offer Montanans and our millions of guests an experience worth coming back for, we need to invest in our public lands,” PLC, which also includes Wild Montana Action Fund and the Trust for Public Land, wrote. “A vote for 118 and 190 is a vote to maintain and create trails, protect land for wildlife, and fund our state parks.”

The new coalition’s website says that legalization “would provide more than $18 million per year to benefit our public lands; both maintaining current access and opening up new opportunities for recreation.”

“These additional funds would help to address the state’s backlog of repairs to campgrounds, trails, wildlife habitat, opening access and increasing maintenance on our public lands,” the groups said.

Via the Public Lands Coalition for 118 & 190.

Interestingly, the campaign is also making the case that legalizing federally illegal cannabis on the state level will help open up access to additional federal funding.

“The Land and Water Conservation fund is the largest piece of federal funding for our public lands. Now that the LWCF is fully and permanently funded, there are $900 million federal dollars per year that can be leveraged with matching state resources,” the coalition website says. “Tax revenue from I-190 could allow Montana to access more of this funding through matched federal grants. Montana should take every opportunity to use this money, and I-190 represents a golden opportunity to do so.”

There will be two separate marijuana measures on the state’s November ballot.

One initiative, a statutory change, would create a system of legal cannabis access for adult-use. A separate constitutional amendment would ensure only those 21 and older can participate in the market.

If the statutory measure is approved by voters, possessing up to an ounce of cannabis would be allowed, and people could cultivate up to four plants and four seedlings at home.

The Montana Department of Revenue would be in charge of regulating the legal industry and would issue business licenses by January 1, 2022. Existing medical cannabis businesses would be first in line to enter the adult-use market.

There would be a 20 percent sales tax on recreational marijuana, while the tax on medical cannabis products would be reduced from two to one percent. Besides public land funding, those tax dollars would also go toward veteran services, substance misuse treatment, health care, local governments that allow cannabis businesses and the state general fund.

“We are excited to have the support of our neighbors and friends from the PLC,” Petersen said. “Countless Montanans will continue to enjoy this special place because of the funding I-190 is creating and because of the hard work of the folks like those who make up the Public Lands Coalition who believe and invest in Montana’s public lands and waters.”

Montana voters approved a medical cannabis legalization initiative in 2004 and later passed a 2016 expansion measure.

For the current cycle, New Approach Montana submitted their petitions for the cannabis initiatives in June. That came after they initially suspended signature gathering activities amidst the coronavirus pandemic, which they later relaunched with social distancing measures in place.

In July, the group announced that data from county officials indicated they would make the ballot. And in August, state officials officially qualified the measures.

The Montana Democratic Party adopted a platform plank endorsing marijuana legalization in June.

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House Democrats Keep Marijuana Banking Protections In Revised COVID Bill After Delaying Legalization Vote

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A slimmed-down coronavirus relief bill that House Democrats released on Monday again includes marijuana banking protections.

Despite pushback from GOP lawmakers who challenged the germaneness of including the cannabis language in a prior version that the House approved in May, the text of the Secure and Fair Enforcement (SAFE) Banking Act was again inserted into the new legislation. It could get a floor vote as early as this week—and that would mark the third time the chamber has taken up the banking measure in some form in the past year.

The SAFE Banking Act would protect financial institutions that service state-legal marijuana businesses from being penalized by federal regulators, and on its own has significant bipartisan support. But its inclusion in the COVID-19 relief legislation was widely criticized by Republicans who insisted that it was part of an expansive Democratic wishlist of items not related to the health crisis.

Senate Majority Leader Mitch McConnell (R-KY) has been particularly critical of the House proposal, specifically taking issue with industry diversity reporting provisions of the SAFE Banking Act, for example. Other vocal opponents include Vice President Mike Pence and Sens. James Lankford (R-OK) and John Kennedy (R-LA).

The Senate did not add cannabis banking language to its own version of COVID relief legislation filed in July.

“We appreciate that Democratic leadership is standing firmly behind the bipartisan SAFE Banking Act, despite some Republicans in Congress preferring to treat this public safety issue like some kind of comic relief,” Steve Fox, president of VS Strategies, told Marijuana Moment. “Far from being non-germane, the pandemic has only underscored the importance of this legislation.”

“At a time when businesses all across the country are relying on electronic transactions to protect public health, cannabis businesses are being forced to exchange currency. This bill is timely and necessary,” he said.

A summary of the banking provision prepared by House leaders states that it would “allow cannabis-related legitimate businesses, that in many states have remained open during the COVID-19 pandemic as essential services, along with their service providers, to access banking services and products, as well as insurance.”

Notably, the document highlights the diversity reporting language that some Republicans have slammed, signaling that Democrats are not shying away from those components despite the criticism. It explains that the legislation “requires reports to Congress on access to financial services and barriers to marketplace entry for potential and existing minority-owned cannabis-related legitimate businesses.”

Advocates, stakeholders and lawmakers have argued that providing marijuana banking protections will mitigate the spread of the coronavirus by making it so cannabis businesses don’t have to rely on cash transactions. House Speaker Nancy Pelosi (D-CA) said she agrees that the measure is an appropriate component of the bill.

“The inclusion of the SAFE Banking Act in the HEROES 2.0 package is a positive development,” NORML Political Director Justin Strekal said. “In the majority of states that regulate the marijuana marketplace, cannabis businesses have been deemed essential during this pandemic.”

“Unfortunately, at the federal level, prohibition compounds the problems that this emerging industry faces,” he said. “Small cannabis businesses in particular are facing tough economic times and access to traditional financial tools will help ensure that they can weather this pandemic.”

While the incremental reform measure would help alleviate financial complications in the cannabis market, news that House Democrats opted to stick to their guns on the industry-focused marijuana banking legislation could frustrate advocates who were disappointed when the chamber’s leadership decided to postpone a planned vote on a comprehensive cannabis legalization and social equity bill earlier this month.

The banking provisions are generally considered industry friendly without addressing the systemic problems resulting from the war on drugs. In the past, some activists have made the case that lawmakers should’t approve the SAFE Banking Act until marijuana is descheduled and restorative justice policies are implemented.

The House was expected to hold a floor vote on the Marijuana Opportunity, Reinvestment and Expungement (MORE) Act to federally legalize cannabis last week, but leaders announced they were delaying it after certain centrist Democrats expressed concern about the optics of advancing marijuana reform legislation without first passing additional COVID relief.

All that said, others do view the banking protections as a boon for social equity in that they would help minority-owned cannabis businesses that currently struggle to get access to capital and financial services.

“Without access to much needed capital to maintain throughout the crisis, it is possible that we could see an acceleration of the corporatization of the cannabis industry in a manner that is inconsistent with the values and desires of many within the cannabis space,” Strekal said. “Enactment of the SAFE Banking Act would ensure that small businesses could compete in this emerging marketplace.”

In July, bipartisan treasurers from 15 states and one territory sent a letter to congressional leadership, urging the inclusion of the SAFE Banking Act in any COVID-19 legislation that’s sent to the president’s desk. Following GOP attacks on the House proposal, a group of Democratic state treasurers renewed that call.

The House last year approved the standalone SAFE Banking Act. For months, the legislation has gone without action in the Senate Banking Committee, where negotiations have been ongoing.

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