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Congressional Committee Schedules Hearing On Small Marijuana Business Issues

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A congressional committee will hold a hearing next week to discuss opportunities for small businesses and entrepreneurs from disadvantaged communities in the burgeoning marijuana industry and the challenges the state-legal market faces.

The announcement from the House Small Business Committee was posted on Wednesday. The hearing, titled “Unlocked Potential? Small Businesses in the Cannabis Industry,” will take place on June 19, according to the notice.

Though cannabis remains illegal at the federal level, the committee underscored the enormous economic potential of the market as more states opt to legalize marijuana and regulate its sale.

“The hearing will focus on the opportunities the legitimate cannabis industry presents for small businesses in states with legal cannabis, as well as entrepreneurs from traditionally underserved communities,” the notice states.

Members will also get the chance to learn about how the unique challenges that small cannabis businesses—as well as ancillary businesses that aren’t directly involved in marijuana production or distribution—face under the current regulatory model.

There’s a growing interest among lawmakers in providing basic financial resources to cannabis businesses that are operating in compliance with state law.

Leadership on the Small Business Committee sent a letter to the head of the federal Small Business Administration (SBA) on Wednesday, outlining their concerns about existing policies that bar marijuana businesses as well as those that are indirectly involved in the industry from accessing capital and other resources that the administration offers.

The exclusion of “Indirect Marijuana Businesses” from these services “carries with it potentially severe unintended consequences for America’s small business sector,” they wrote.

“As increasingly more states legalize marijuana and Congress, states, and regulators continue recognizing the legitimacy of the industry, it will be important for Congress and the agencies it oversees to work cooperatively to further ease policies on Direct and Indirect Marijuana Businesses where appropriate. We therefore look forward to working with you to find solutions that will minimize burdens and maximize access to capital for small businesses looking to engage in this emerging industry.”

Last month, Sen. Jacky Rosen (D-NV) also questioned a member of the SBA during a committee hearing about whether existing federal laws are inhibiting the growth of the marijuana industry and whether small cannabis businesses and entrepreneurs stand to benefit from gaining access to SBA resources.

Those resources include everything from financing programs that give businesses access to capital to low-cost training for individuals interested in starting a business.

The SBA official said at the time that the administration hadn’t studied the matter due to federal prohibition.

But the Small Business Committee apparently isn’t letting the issue fall to the wayside. Members will hear testimony from stakeholders including the Minority Cannabis Business Association’s Shanita Penny, Eric Goepel of the Veterans Cannabis Coalition and Dana Chaves, who is an executive at First Federal Bank and also chairs the National Cannabis Industry Association’s (NCIA) Banking Access Committee.

“Access to SBA funds would be a lifeline for small businesses and startups in the cannabis industry, particularly those in marginalized communities that have been most impacted by prohibition,” Morgan Fox, media relations director for NCIA, told Marijuana Moment.

“It is a great sign of where federal policy is heading that the Committee on Small Business is exploring these issues and is concerned with the viability of smaller operators in the cannabis space, as well as ensuring equitable access to the industry,” he said.

Read the full letter the the Small Business Committee sent to SBA below:

Lawmakers Press SBA On Cannabis Businesses by Marijuana Moment on Scribd

Anti-Marijuana Lawmakers Shut Down By Congressional Committee

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.

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

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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.

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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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