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Congress Should Pass Marijuana Banking As Legalization Support Builds, Black Small Business Owners Say

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Some key lawmakers and legalization advocates argue that passing cannabis banking reform before justice-focused federal legalization is going to exclusively benefit large companies—but a group of small marijuana business owners aren’t buying it, and they’re making the case that the incremental policy change could actually help support social equity efforts.

The U.S. Cannabis Council (USCC) hosted several black marijuana entrepreneurs at an event titled “UNSAFE Banking & Cannabis: The Real-Life Impact on Public Safety and Social Equity” on Thursday. Participants responded to concerns expressed by Sen. Cory Booker (D-NJ) and others who’ve resisted advancing legislation that simply protects banks that work with state-legal marijuana businesses while broader justice-focused legalization is still pending.

Steven Hawkins, CEO of USCC, said that while stakeholders are cognizant of the concerns Booker and others have raised, the current lack of banking access for cannabis business is “creating a redlining effect” that’s allowing the largest multi-state operators in the industry to overcome financial hurdles while shutting out smaller companies, particularly those run by people from communities most impacted by cannabis criminalization.

“We are still forced with the harsh reality that we are denied access to basic financial services,” he said. “That has posed a significant threats to public safety—as businesses around the country have faced threats because of having to deal, specifically, with cash.”

“It also has posed a great barrier to entry for minority entrepreneurs, who are faced with the inability to access basic financial services and the opportunity to grow their businesses that would come through basic bank loans,” Hawkins, who also serves as executive director of the Marijuana Policy Project, added. “As a result of not having financial services available, we are creating a redlining effect, where larger companies—because they have the capacity to access, more generally, financial services at a higher cost but able to get some capital—are able to flourish.”

There’s been some tension within the advocacy world about what reform Congress should pursue first.

On the one hand, there’s a bipartisan bill that’s passed in the House five times now in some form that would simply prevent financial institutions from being penalized by federal regulators that work with state-legal cannabis businesses. Advocates believe it has the votes to pass in the Senate, if only leaders would allow it to advance. On the other hand, there are comprehensive legalization bills—like one that recently cleared the House Judiciary Committee and a separate proposal from Booker, Senate Majority Leader Chuck Schumer (D-NY) and Finance Committee Chairman Ron Wyden (D-OR)—that don’t necessarily have the same level of bipartisan support.

Rep. Ed Perlmutter (D-CO), sponsor of the Secure and Fair Enforcement (SAFE) Banking Act, and other lawmakers have been arguing that Congress should enact the more modest reform as soon as possible as broader legalization builds support. The congressman has made the case that doing so is a public safety imperative, as marijuana companies are currently targets of crime since they’re being forced to operate on a largely cash-only basis.

Perlmutter, who was originally set to speak at the USCC event before congressional scheduling conflicts got in the way, separately told Marijuana Moment on Thursday that “cannabis-related businesses—big and small—and their employees continue to be forced to operate as high-volume cash businesses that are being targeted by violent criminals and putting communities and people at risk.”

“Bottom line: The SAFE Banking Act is the best opportunity to enact some type of federal cannabis reform this term. By including the SAFE Banking Act in the final NDAA, we can safeguard our financial system, reduce the public safety risk in our communities, and help support Veteran and minority-owned businesses now,” he said, referring to the fact that his legislation most recently cleared the House as an amendment to the National Defense Authorization Act (NDAA).

“Enacting SAFE Banking is just the tip of the iceberg and it will help break the logjam and pave the way for broader, comprehensive cannabis reform and create a safer and more equitable industry,” Perlmutter said.

There are plenty of examples of congressional lawmakers who share that perspective, but others—particularly on the Senate side—have insisted on passing legalization first in order to ensure that social equity is prioritized.

For example, Schumer said last month that he and colleagues working to advance a federal marijuana legalization bill have an “agreement” that the body will not take up cannabis banking legislation until more comprehensive reform advances.

However, he said that he’s open to exploring an alternative way of advancing banking reform if lawmakers are able to incorporate social equity provisions of legalization—such as expungements for prior cannabis convictions—into the NDAA legislation that the chamber will be taking up soon.

The senator has previously expressed reluctance to advancing marijuana banking reform first—including in an interview with Marijuana Moment in April—but these more recent comments about an “agreement” to block the financial services reform put the situation in starkest terms yet.

For his part, Booker has said that he “will lay myself down” to block any other senators who seek to pass marijuana banking legislation before the body approves comprehensive cannabis reform.

Marijuana business owners do understand the argument the senator is making, but they’ve challenged the idea that passing SAFE Banking would only help large-scale stakeholders.

At Thursday’s event, a California-based cannabis business operator named Alphonso Blunt Jr. addressed Booker’s concerns and said he runs “a small business, and I need banking… If have to pay a bill and it’s $15,000, I have to go get 15 $1,000 money orders from potentially three different post offices—maybe four because you’re only going to get so many money orders at a time.”

Another participant, Leo Bridgewater Sr., who serves as director of Veteran’s Outreach for Minorities for Medical Marijuana, said he gets where “Senator Booker is coming from as far as [black people] actually built this industry on our backs in our lifetime.”

“And so you’re going to lock us up, turn around, make a buck off of this and then lock me out? No. I get that part,” he said. “But then there’s the other side, as far as being the entrepreneur and activist.”

Precious Osagie Erese, COO of Roll Up Life said that “no one is saying that Senator Booker’s reservations aren’t important.”

“As someone who goes nail-to-tooth when we talk about how do we include more black and brown people in this space,” she said, “I always say we just need to start. We just need to start, and we are behind.”

USCC, which hosted Thursday’s event with the small business owners, also counts among its membership several of the largest multi-state operators in the industry.

Rodney Hood, a board member of the National Credit Union Administration, wrote in a Marijuana Moment op-ed this month that legalization is an inevitability—and it makes the most sense for government agencies to get ahead of the policy change to resolve banking complications.

Meanwhile, an official with the Internal Revenue Service said this month that the agency would like to “get paid,” and it’d help if the marijuana industry had access to banks like companies in other legal markets.

Federal data shows that many financial institutions remain hesitant to take on cannabis companies as clients, however, which is likely due to the fact that the plant is a strictly controlled substance under federal law.

Teen Marijuana Use Is Not Increasing As More States Legalize, Another Federal Study Shows

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Indiana GOP Lawmaker Plans Medical Marijuana Bill As Democrats Push Full Recreational Legalization

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“It polls higher than any other issue. We’ve seen 38 other states step up and do the right thing for their citizens. We know it saves lives. We know it offers a better quality of life.”

By Margaret Menge, The Center Square

Democrats in Indiana have launched a campaign to legalize marijuana in the state and appealed to business-friendly Republicans to join to help the state’s economy.

There is some support from Republicans.

“I have a medical cannabis bill ready to go,” Rep. Jim Lucas, R-Seymour, said.

He said the bill will be similar to the one he introduced in the last session of the Indiana General Assembly, which would permit the use of medical marijuana by people with “serious medical conditions” as determined by a doctor, and would permit the “cultivation, testing, processing, transportation and dispensing” of medical marijuana by people who hold a valid permit issued by the state.

It also would put the Indiana Department of Health in charge of implementing and enforcing the medical marijuana program.

Indiana is one of just a handful of states that has not legalized medical marijuana.

“It polls higher than any other issue,” Lucas said. “We’ve seen 38 other states step up and do the right thing for their citizens. We know it saves lives. We know it offers a better quality of life.”

In 2016, the national American Legion, which is based in Indianapolis, called on Congress to remove marijuana from Schedule I of the federal Controlled Substances Act and reclassify it to “recognize cannabis as a drug with potential medical value.”

The Legion has also pushed for more research to be done on marijuana related to its potential in treating post-traumatic stress disorder and traumatic brain injury among veterans of the wars in Iraq and Afghanistan, in particular.

The Indiana American Legion, however, has not taken a position on the issue, and did not discuss the bill Lucas introduced in the last session, spokesperson Josh Marshall said.

He said the issue would have to be reviewed by the organization’s executive committee before any action were taken on the issue in the upcoming session of the legislature, which begins January 3.

Meanwhile, Indiana Democrats are pushing to get the issue on the table.

Rep. Sue Errington, D-Muncie, is set to lead a “community talking circle” at a pizza place in Muncie today to hear from the public about legalizing medical marijuana.

“The reality is that medical cannabis is becoming an accepted and preferred method of treatment throughout the country,” Errington said in a statement from the Indiana House Democratic Caucus on November 29. “Medical cannabis is a safe, non-addictive alternative to opioids that could benefit Hoosiers who live with chronic pain and anxiety disorders, including our brave veterans who struggle with post-traumatic stress disorder. Those who have sacrificed so much for our state deserve an effective treatment for their pain, rather than a potential criminal record.”

Republicans hold a supermajority in both houses of the legislature and hold every statewide office. But legislative leaders—some of them—have appeared more open on the issue in recent years.

In 2018, the Republican floor leader in the Indiana House of Representatives, Rep. Matt Lehman, R-Berne, authored a resolution calling for an interim study committee to research medical marijuana.

“Hoosiers rightfully want to know what direction Indiana will take,” he said at the time. “I believe it is wise of policymakers to carefully gather public and professional input.”

Lehman told Fox59 last month that he thinks there’s “always room for discussion” about medical marijuana, but that he thought the federal government would have to act first, before Indiana takes action.

This story was first published by The Center Square.

Ohio GOP Lawmakers File New Marijuana Legalization Bill

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DEA Backs White House Plan To Streamline Research On Marijuana, Psychedelics And Other Schedule I Drugs

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The Drug Enforcement Administration (DEA) and National Institute On Drug Abuse (NIDA) say they are in favor of a White House proposal to streamline the process of researching Schedule I drugs like marijuana and certain psychedelics.

The agencies testified at a House Energy and Commerce subcommittee hearing on Thursday, expressing support for the Office of National Drug Control Policy (ONDCP) research plan. While the focus of the meeting was mostly on a controversial move to strictly classify fentanyl-related substances, the Biden administration proposal’s research components would also help address concerns within the scientific community about the difficulty of studying other Schedule I drugs.

DEA said in written testimony that “expanding access to Schedule I research is a critical part of DEA’s mission to protect public safety and health.”

“It is critical that the scientific and medical community study Schedule I substances, as some may turn out to have therapeutic value,” DEA Principal Deputy Administrator Louis Milione said. “DEA supports the administration’s legislative proposal’s expansion of access to Schedule I research. DEA looks forward to continuing to work with the research community and our interagency partners to facilitate Schedule I research.”

In general, what the administration is proposing is to align the research requirements for Schedule I drugs with those of less-restricted Schedule II drugs. Scientists and lawmakers have consistently pointed out that the existing rules for studying Schedule I controlled substances are excessively burdensome, limiting vital research.

Rather than having each scientist involved in a Schedule I drug study obtain DEA registration, ONDCP wants to make it so multiple researchers at a given institution would be allowed to participate under a single registration. The administration also proposed a policy change where a research institute with studies taking place over multiple locations would only require one overall registration instead of needing to have a specific one for each site.

Another change would allow certain researchers to move ahead with conducting their studies after submitting a notification to the Department of Justice instead of waiting for officials to affirmatively sign off on their proposals. ONDCP’s plan would also waive the requirement for additional inspections at research sites in some circumstances and allow researchers to manufacture small amounts of drugs without obtaining separate registrations. The latter component would not allow cultivation of marijuana, however.

“Even experienced researchers have reported that obtaining a new Schedule I registration, adding new substances to an existing registration, or getting approval for research protocol changes is time consuming,” NIDA Director Nora Volkow said in her testimony. “Unlike for Schedule II through V substances, new and amended Schedule I applications are referred by the DEA to the HHS for a review of the protocol and a determination of the qualifications and competency of the investigator.”

“Researchers have reported that sometimes these challenges impact Schedule I research and deter or prevent scientists from pursuing this critical work,” she said.

In an interview last week, Vokow said that even she—the top federal official overseeing drug research—is personally reluctant to conduct studies on Schedule I substances like marijuana because of the “cumbersome” rules that scientists face when investigating them.

When ONDCP first announced its proposed Schedule I policy changes in September, some experts tempered expectations about the practical effects of aligning Schedule I and Schedule II applications. The difference is largely a matter of extra paperwork for the more restrictive category, they contend.

Regardless, several lawmakers who attended Thursday’s subcommittee hearing expressed enthusiasm about the prospects of these policy changes.

“I’m particularly interested in eroding existing barriers of federal law that limit researchers at academic medical centers from studying Schedule I substances,” Rep. Doris Matsui (D-CA) said. “So I’m grateful that our research agencies are working to find effective solutions.”

Rep. Tony Cárdenas (D-CA) also weighed in, saying that “we all agree that the current scheduling classification system has made it very difficult for scientists to research the effects of scheduled compounds, which may have medicinal properties.”

“For example, we know that compounds in marijuana have legitimate and beneficial medical uses, despite it being Schedule I,” he said. “So I’m encouraged to see that efforts are being made to allow researchers to study the effects of various compounds. In this proposal.”

ONDCP’s intent to streamline research into Schedule I drugs has been notable and seems to be part of a theme that developed within the administration.

For example, DEA has repeatedly proposed significant increases in the production of marijuana, psilocybin and other psychedelics for research purposes, with the intent of aiding in the development of new federally approved therapeutic medications.

NIDA’s Volkow told Marijuana Moment in a recent interview that she was encouraged by DEA’s prior proposed increase in drug production quota. She also said that studies demonstrating the therapeutic benefits of psychedelics could be leading more people to experiment with substances like psilocybin.

But while the production developments are promising, advocates are still frustrated that these plants and fungi remain in the strictest drug category in the first place, especially considering the existing research that shows their medical value for certain conditions.

There has been at least one recent development in the fight to modernize marijuana research. President Joe Biden signed a massive infrastructure bill last month that includes provisions aimed at allowing researchers to study the actual cannabis that consumers are purchasing from state-legal dispensaries instead of having to use only government-grown cannabis.

But that’s just one of numerous research barriers that scientists have identified. A report that NIDA recently submitted to Congress stressed that the Schedule I status of controlled substances like marijuana is preventing or discouraging research into their potential risks and benefits.

A federal appeals court recently dismissed a petition to require the DEA to reevaluate cannabis’s scheduling under the Controlled Substances Act. However, one judge did say in a concurring opinion that the agency may soon be forced to consider a policy change anyway based on a misinterpretation of the therapeutic value of marijuana.

Meanwhile, DEA has given hemp businesses that sell delta-8 THC products a boost, with representatives making comments recently signaling that, at the federal level at least, it’s not a controlled substance at this time.

Separately, the Washington State attorney general’s office and lawyers representing cancer patients recently urged a federal appeals panel to push for a DEA policy change to allow people in end-of-life care to access psilocybin under state and federal right-to-try laws.

White House Pressed To Mediate Marijuana Finger-Pointing Between DEA And HHS

Photo courtesy of Brian Shamblen.

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Ohio GOP Lawmakers File New Marijuana Legalization Bill

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A pair of Ohio Republican lawmakers on Thursday filed a bill to legalize marijuana in the state. The move comes as activists are nearing completion of the first phase of their signature drive for a cannabis legalization initiative.

Reps. Jamie Callender (R) and Ron Ferguson (R) first announced their plan to push the legislative reform proposal in October and circulated a co-sponsorship memo to build support for the measure. Now they’re moving ahead with formal introduction of the “Ohio Adult Use Act.”

The bill would allow adults 21 and older to purchase and possess up to 50 grams of cannabis. They could also grow up to six plants, only three of which could be mature, for personal use.

Gifting up to 25 grams of marijuana between adult consumers without remuneration would also be permitted.

Adult-use cannabis products would be taxed at 10 percent. After covering administrative costs, tax revenue would be distributed as follows: 50 percent to the state general fund, 25 percent to combat illicit drug trafficking and 25 percent for substance misuse treatment programs.

The state Department of Commerce would be responsible for regulating the new adult-use marijuana and existing medical cannabis program and issuing business licenses through a new Division of Marijuana Control.

Regulators would be limited to approving one retail cannabis dispensary license per 60,000 residents in the state up until January 1, 2027. After that point, the department would would be required to review the program on “at least a biennial basis” to see if more licensees are needed.

The legislation does not contain specific provisions to promote social equity by expunging prior cannabis convictions or prioritizing licensing for communities most impacted under prohibition. That’s despite Callender saying in October that there would be a pathway for expungements “for folks that have prior convictions that would be not illegal after the passage of this bill.”

A spokesperson in the lawmaker’s office told Marijuana Moment that while those components weren’t included in this introduced version, “it is still the plan to add any needed language on the subject once we get it to committee.”

“Conversations on modifications are continuing but with Thanksgiving here and the end of the year approaching, we wanted to get the ball rolling with introduction,” he said.


Marijuana Moment is already tracking more than 1,200 cannabis, psychedelics and drug policy bills in state legislatures and Congress this year. Patreon supporters pledging at least $25/month get access to our interactive maps, charts and hearing calendar so they don’t miss any developments.

Learn more about our marijuana bill tracker and become a supporter on Patreon to get access.

There is at least one equity-related provision to require regulators to conduct a study prior to issuing adult-use licenses “to determine whether there has been prior discrimination in the issuance of marijuana-related licenses in this state, including whether the effects of marijuana prohibition have contributed to a lack of participation by racial or ethnic minorities in the medical marijuana industry in this state.”

If the study does find evidence of discrimination, the department “shall take necessary and appropriate actions to address and remedy any identified discrimination when issuing licenses.”

Under the bill, employers would still be able to enforce anti-drug policies without accommodating workers who use cannabis in compliance with the state law.

The measure would also expand the amount of acreage that licensed cultivators could use to grow cannabis from what is allowed now under the medical marijuana program.

Further, the legislation includes a section that would have the state formally endorse a congressional bill to deschedule marijuana that’s sponsored by Rep. Dave Joyce (R-OH).

A separate state legalization bill that was the first of its kind to be introduced in the Ohio legislature earlier this year would similarly legalize the possession, sale and cultivation of cannabis by adults. It’s being championed by Reps. Casey Weinstein (D) and Terrence Upchurch (D), and it does include expungement provisions.

A recent legislative survey found that Republican lawmakers in the state are more supportive of legalizing marijuana than their Democratic colleagues are.

But leadership in the legislature, as well as Gov. Mike DeWine (R), will likely present obstacles for any recreational legalization bill that advances.

House Speaker Robert Cupp (R) laughed when he was asked about Callender’s legislation after its initial announcement, though he added, “Let’s just see where it goes. I haven’t read it yet.”

Callender said that although Republican legislative leaders and the governor are not yet on board, “there is more bipartisan support than most people would think.”

Meanwhile, Ohio activists recently said that they would have enough signatures to force the legislature to consider legalizing marijuana by the end of November. And Weinstein said he feels the citizen-led effort could help build momentum for a legislative approach to ending prohibition.

While it’s only been a few months since Ohio officials cleared the campaign to collect signatures for its measure, Coalition to Regulate Marijuana Like Alcohol spokesperson Tom Haren said that the initial wave of signature gathering “will be completed probably about the end of November.” There’s yet to be an announcement as to whether they succeeded in that timeline.

The measure that legislators would then be required to consider would legalize possession of up to 2.5 ounces of cannabis for adults 21 and older, and they could also have up to 15 grams of marijuana concentrates. Individuals could grow up to six plants for personal use, with a maximum 12 plants per household.

Activists must collect 132,887 valid signatures from registered voters for the statutory initiative during this first phase of the effort. If they succeed, the legislature will then have four months to adopt the measure, reject it or adopt an amended version. If lawmakers do not pass the proposal, organizers will then need to collect an additional 132,887 signatures to place the proposal before voters on the ballot in November 2022.

Further demonstrating the appetite for reform in Ohio, voters in seven cities approved ballot measures to decriminalize marijuana possession during last month’s election.

Ohio marijuana activists have also successfully proved that they turned in enough valid signatures to put a local decriminalization initiative before Kent voters after having missed the 2021 ballot due to a verification error on the part of county officials.

Separately, Ohio senators recently filed a bill to expand the state’s medical cannabis program, in party by allowing physicians to recommend marijuana if they “reasonably” believe it could benefit the patient.

Missouri GOP Lawmaker Files Joint Resolution To Put Marijuana Legalization On Ballot As Activists Launch Separate Campaign

Photo courtesy of WeedPornDaily.

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