A bipartisan bill designed to protect banks that service the marijuana industry from being penalized by federal regulators will get a vote in a key congressional committee next week.
The legislation, which was discussed during the first cannabis-related hearing of the 116th Congress last month, will go before the House Financial Services Committee on Tuesday.
Reps. Ed Perlmutter (D-CO) Denny Heck (D-WA), Steve Stivers (R-OH) and Warren Davidson (R-OH) are the chief sponsors of the Secure and Fair Enforcement (SAFE) Banking Act. It was formally filed earlier this month, and currently has 138 cosponsors—more than a quarter of the House.
After no action for 6 years, #SAFEBanking has received its first hearing and will see its first vote next week. Glad to have the support of 138+ cosponsors as we work to address the #cannabis banking issue and get cash off our streets. https://t.co/jylk1udqVQ
— Rep. Ed Perlmutter (@RepPerlmutter) March 19, 2019
“For six years, Congress has failed to act on the issue of cannabis banking, putting thousands of employees, businesses and communities at risk,” Perlmutter said in a statement emailed to Marijuana Moment. “However, the issue is finally receiving the attention it deserves with the first-ever congressional hearing and now a scheduled committee vote.”
‘Among the cosponsors is the chair of the committee herself, Rep. Maxine Waters (D-CA), who spoke about addressing banking issues in the cannabis industry shortly before assuming the position. Judiciary Committee Chairman Jerrold Nadler (D-NY) and Rules Committee Chairman Jim McGovern (D-MA), have also signed onto the legislation—demonstrating its support among powerful Democratic leaders of the House.
All of this sets the stage for a potentially game-changing vote, as Republican leadership during the last Congress consistently blocked marijuana-related bills from even being considered. With Democrats in control and leading lawmakers embracing the legislation, it stands a good chance of heading to the full House and then on to the Senate.
Resolving banking problems for marijuana companies was one of several legislative goals that Rep. Earl Blumenauer (D-OR) outlined in a blueprint to end federal marijuana prohibition he sent to his party’s leaders last year.
Marijuana banking is the clearest example of the most out of touch & destructive federal cannabis policies.
47 states have taken steps toward legalization & this committee action on the SAFE Banking Act is an important first step in our blueprint to end prohibition nationwide. https://t.co/SnwPKDXS21
— Earl Blumenauer (@repblumenauer) March 20, 2019
“The banking issue is just one aspect of the failed policy of federal marijuana criminalization. In order to truly bring the marijuana industry out of the shadows, actions need to be taken by Congress to amend this, and many others, outdated and discriminatory practices,” Justin Strekal, political director for NORML, said in a statement. “This will certainly not be the last hearing of this Congress to discuss marijuana prohibition and we expect a full hearing on prohibition to be scheduled in the months to come.”
There were several changes made to the banking bill since it was last introduced in the 115th Congress. For example, the legislation clarifies that protections are extended to financial institutions that work with ancillary cannabis business—not just those that directly sell marijuana or marijuana products.
“[P]roceeds from a transaction conducted by a cannabis-related legitimate business shall not be considered as proceeds from an unlawful activity solely because the transaction was conducted by a cannabis-related legitimate business,” the bill states.
It also calls on the Federal Financial Institutions Examination Council to implement “uniform guidance and examination procedures for depository institutions that provide financial services to cannabis-related legitimate businesses.”
There have been widespread calls to tackle the banking problem, including from members of Congress and representatives of cannabis businesses. With this vote, it seems those calls are at least starting to be answered.
Meanwhile, Nadler has signaled that his Judiciary Committee may also take up broader marijuana legislation soon.
“With 97.7 percent of the U.S. population living in a state where voters have legalized some form of adult recreational, medical or limited-medical use of marijuana, congressional inaction is no longer an option,” Perlmutter said. “And with broad, bipartisan support in the House, I look forward to the SAFE Banking Act continuing to move forward in the Financial Services Committee and on the floor of the House.”
This story has been updated to include statements from Perlmutter and NORML.
Photo courtesy of Brian Shamblen.
GOP Congressman Falsely Claims Marijuana Can Be Legally Consumed In Public In ‘Many States’
A Republican congressman wrongly claimed that marijuana can be legally consumed in public in “many states” in a Twitter post on Friday.
Following a House vote in favor of anti-vaping legislation that also included a ban on menthol cigarettes, Rep. Andy Barr (R-KY) argued that the bill is an example of government overreach and that it would not prevent youth from using vaping products.
“Now, Democrats propose making possession of a menthol cigarette a violation of federal law when smoking a marijuana joint in public is legal in many states,” he wrote in his tweet. “Instead, we need to focus on real healthcare issues like surprise billing, the opioid epidemic and curbing coronavirus.”
Now, Democrats propose making possession of a menthol cigarette a violation of federal law when smoking a marijuana joint in public is legal in many states. Instead, we need to focus on real healthcare issues like surprise billing, the opioid epidemic and curbing coronavirus.
— Rep. Andy Barr (@RepAndyBarr) February 28, 2020
The claim about laws governing public cannabis consumption is likely to raise eyebrows among reform advocates familiar with state-legal marijuana programs.
It’s not the case that “many states” allow individuals to smoke in public areas. In fact, it’s one of the most commonly prohibited activities in legalization measures.
“Rep. Barr is anti-freedom and pro-false hysteria when it comes to cannabis,” Justin Strekal, political director of NORML, told Marijuana Moment. “Sadly, his desire to continue to see hundreds of thousands of Americans be arrested and incarcerated due to minor marijuana charges is held far too many of his colleagues in Congress.”
Karen O’Keefe, director of state policies at the Marijuana Policy Project, told Marijuana Moment that Barr’s “facts and priorities are wrong.”
“No legalization state allows public smoking of cannabis (other than in adult-only locations in some cases), and almost all medical cannabis states forbid it,” she said. “Marijuana isn’t associated with increased mortality, while cigarettes are associated with more than 480,000 deaths a year in the U.S. alone. Why is Rep. Barr maligning and voting against the safer substance, and working to keep it illegal?”
Here are some examples of public consumption policies in legal cannabis states.
Alaska: For adults over 21 years of age, the law permits “consumption of marijuana, except that nothing in this chapter shall permit the consumption of marijuana in public.”
California: “You can consume cannabis on private property but you cannot consume, smoke, eat, or vape cannabis in public places.”
Colorado: “Using marijuana in any way—smoking, eating or vaping—isn’t allowed in public places.”
Illinois: “There is no public consumption allowed for cannabis. Smoking or consuming weed is illegal in motor vehicles and public spaces, including your front porch.”
Massachusetts: “You can’t use marijuana in any form (smoking, vaping, edibles, etc.) in public or on federal land.”
Nevada: “Adults 21 years and older can legally consume marijuana, but with restrictions on where it can be consumed: You cannot use marijuana in any public place.”
Oregon: “Recreational marijuana cannot be sold or smoked in public.”
Put simply, the notion that public consumption of marijuana is widespread is a false narrative. A standout exception is Oklahoma, where medical cannabis patients are able to consume wherever tobacco is permitted. That said, Barr’s assertion that public marijuana smoking is legal in “many states” is patently false.
That the congressman is perpetuating that narrative isn’t especially surprising, however. Barr is no fan on cannabis, voting against spending bill amendments preventing the Justice Department from using its fund to interfere in state-legal medical marijuana programs as well as a separate measure last year that would’ve extended protections to all state cannabis programs.
That said, Barr isn’t alone in his opposition to the menthol cigarette ban that cleared the House on Friday. Several Democrats joined Republicans in voting against the measure in committee and on the floor. But their reasoning was generally that the targeted ban would lead to overpolicing of minority communities.
Photo courtesy of WeedPornDaily.
VA Notice About Researching Medical Marijuana For Military Veterans Deleted Shortly After Posting
The U.S. Department of Veterans Affairs (VA) will soon release a notice announcing that it is seeking information about the potential of marijuana and its components to treat medical conditions that commonly afflict military veterans.
A post describing the request was briefly uploaded to a government website this week, though it’s since been deleted—but not before Marijuana Moment downloaded a copy. A representative said in response to an e-mailed query that the document was “rescinded for edits” and a revised version will be published “at a future date.”
VA’s Clinical Science Research and Development Service wrote in the filing that it is interested in establishing a research program designed to “examine the potential for medical marijuana and cannabinoids to treat disorders and diseases prevalent in our Veteran population.”
In a request for white papers on the topic, the department said it’s especially interested in identifying potential medical uses for cannabis to treat neuropathic pain and symptoms of post-traumatic stress disorder (PTSD).
“Unrelieved neuropathic pain experienced by Veterans after spinal cord or peripheral nerve injury contributes to depression, anxiety, disrupted sleep, and overall decreased quality of life,” VA said. “PTSD, also highly prevalent in Veterans, is a mental health problem often co-morbid with chronic pain.”
“A large percentage of Veterans who seek relief from these conditions, resort to smoking marijuana or use unregulated dietary cannabis supplements, etc,” it continued. “It is therefore imperative to determine which cannabinoid compounds are truly effective, for which symptoms, in which populations, as well as the associated risks.”
VA said it is committed to researching and developing evidence-based treatment options for veterans, and that’s what the program is meant to address.
“Without the needed evidence base for medical marijuana, this will not be a treatment choice within VA,” the department wrote. “We hope to support a series of clinical trials, which in case of positive outcomes, will generate robust data to support the use of cannabinoid(s) for pain and/or PTSD (or one or more of its symptoms).”
The department plans to conduct clinical trials if the evidence indicates that medical cannabis can be useful. It touted the “cadre of experienced clinical investigators, a highly participatory research population, and mechanisms in place to support every aspect of clinical research.”
White papers submitted to VA under the now-deleted solicitation must contain four components: 1) the “formulation and route of administration of the cannabinoid preparation,” 2) their ability to manufacture and supply those preparations, 3) the investigational new drug registration for compounds that aren’t already approved by the Food and Drug Administration (FDA) and 4) evidence about the product’s efficacy in treating pain, PTSD and other conditions.
As drafted, the notice gives a deadline of March 15 to submit the requested one-page white papers, though it’s not clear if that will change when the updated notice is released.
Additionally, VA said it plans to collaborate with industry partners for “further understanding and development of evidence-based treatments such as medical marijuana and cannabinoids” and on April 27, will hold an “Industry Day” to discuss the “goals of the program.”
The department is “particularly interested in obtaining information about cannabinoid drugs availability, likelihood of their approval by the FDA (if not yet approved), and the data supporting their use for pain and PTSD treatment in Veterans,” the notice says.
Members of Congress and veterans advocates discussed the need for alternative treatment options, including medical cannabis, during a joint committee hearing earlier this week.
At the same time, bipartisan legislators are asking their colleagues to cosponsor a bill that would require VA to conduct research into the therapeutic potential of marijuana for veterans. That legislation already has 104 House cosponsors.
Read VA’s since-rescinded notice on medical marijuana research below:
Photo courtesy of Mike Latimer.
House Democrats Block Amendment To Restrict Marijuana Products In Anti-Vaping Bill
House Democrats pushed back against a Republican attempt to include a flavored marijuana vaping ban in a broader anti-vaping bill that passed the chamber on Friday, arguing that it doesn’t make sense to prohibit products that are already illegal under federal law.
Instead, several lawmakers argued that Congress should enact separate cannabis reform legislation that could include provisions designed to protect public health and reduce the appeal of marijuana to youth.
The issue first came up during a House Rules Committee hearing on Wednesday, with Rep. Morgan Griffith (R-VA) introducing an amendment to “include a prohibition against flavored marijuana products” such that they would be “treated in the same manner as flavored tobacco products” under the bill.
While the congressman argued that language of the legislation implicitly already provides for such a ban, he said it was important to clarify to send a message to young people that they can’t vape products containing nicotine or THC.
“Let it not be said in 2029 that we had a chance and we felt maybe we were getting to it in 2020,” he said. “Let’s just go ahead and do it. Let’s say you can’t sell flavored marijuana THC vaping products. My amendment makes that clear.”
Watch the conversation below:
Democratic members said they shared Griffith’s concern about underage use of flavored cannabis vaping products. However, Rep. Ed Perlmutter (D-CO) pushed back and said the proposal is not germane because marijuana remains illegal under federal law and so regulating these products requires separate congressional action.
Earlier in the hearing, he suggested that his House-passed cannabis banking bill—the Secure and Fair Enforcement (SAFE) Banking Act—could serve as a vehicle to address the body’s concerns.
“We have to start addressing it because we have 47 states that now are allowing some level of marijuana use when the statute under the Controlled Substance Act clearly makes it illegal,” the congressman said. “There’s a bill sitting in the Senate called the SAFE Banking Act that may get back here at some point, and we could put some testing and regulatory components on it.”
Watch this exchange below:
Is a flavored marijuana vaping ban even necessary?
Also during the hearing, Rep. Rob Woodall (R-GA) pressed Rep. Frank Pallone (D-NJ) about the lack of specificity in the bill as it concerns marijuana vaping products. Woodall said he wanted that aspect addressed before he leaves office in nine months.
“It strikes me…more than strange that banana crush [nicotine vaping products] will no longer be available to adults in my district. But banana strawberry cream, which is an illegal [marijuana] product today, will continue to be available at 180 retailers near you,” Woodall said. “I don’t know how I take that message into my high schools and say that we’re going to reduce drug dependency in the months and years ahead.”
Watch the conversation below:
Pallone said he appreciates Woodall’s concern that flavored vaping products can mislead consumers about what they’re actually putting into their bodies and that he “would tend to think that the same problem would exist” for flavored marijuana products. However, he said there’s a distinction to be made.
“Most people tell me that nicotine is much more toxic and much more dangerous to your health than marijuana so maybe we shouldn’t have restrictions on marijuana at all and maybe we shouldn’t have any restrictions on flavored marijuana because the marijuana doesn’t have the same health problems that nicotine has,” he said. “Maybe I should say, assuming that marijuana is dangerous then maybe the flavored should be. But it’s not as dangerous.”
“The reality is that we know that nicotine is much more dangerous than marijuana so maybe the flavors masking it is not as serious a problem as it would be for nicotine,” he said.
Griffith’s amendment was blocked from floor consideration in a party-line vote of 3-6 by the panel, but the conversation around flavored marijuana products continued on Friday on the House floor.
Rep. Greg Walden (R-OR) brought a poster board showing pictures of flavored cannabis vaping products and lamented that they are not explicitly included in the anti-vaping bill.
“If you want to do something about kids—if you want to do something about lung disease—then we need to do something about marijuana and the oils it gets mixed with that this bill does not address,” he said.
But Rep. Earl Blumenauer (D-OR) pointed out that if Republicans are interested in ensuring that such marijuana products are properly regulated, the substance needs to be removed from the Controlled Substances Act to provide Congress with the means to enact regulations.
Rep. Earl Blumenauer counters by pointing to marijuana's schedule I status, saying federal regulation of flavored cannabis would be like trying to regulate "flavored heroin." Plugs the MORE Act to deschedule marijuana. https://t.co/w4Jpudt137
— Emily Kopp (@emilyakopp) February 28, 2020
Imposing regulations on marijuana while it’s still federally prohibited is “like regulating flavored heroin,” he said. The congressman added that a bill to deschedule marijuana called the Marijuana Opportunity Reinvestment and Expungement (MORE) Act would give lawmakers the tools to protect public health.
“The challenge that we have now is to be able to move forward—to be able to protect young people and the public,” Blumenauer said. “Cannabis is a red herring. If we tax and regulate it, then we can deal with the products they’re talking about. But unless and until we bring it—as two-thirds of the states have done—to actually tax and regulate it, we can’t deal with that. It doesn’t matter.”
We have a crisis of youth vaping. And we’ve seen a disturbing number of lung injuries & deaths tied to the oil used in marijuana vaping. Unfortunately #HR2339 before us today does nothing to impact either. Instead, it's a partisan publicity stunt by big government liberal elites. pic.twitter.com/AUx8ZMar0L
— Richard Hudson (@RepRichHudson) February 28, 2020
Not all Democrats were on board with the anti-vaping bill.
It was a tight 213-195 vote in the House on Friday. Top Democratic leaders are faced challenges as they worked to get the broader legislation approved. Some members of the party have expressed opposition over policies to ban flavored tobacco, including menthol, which they argue would lead to overpolicing of minority communities.
Image by Lindsay Fox from Pixabay.