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Former GOP Congressman Explains Why Broad Marijuana Reform Is Achievable In 2020

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Former Rep. Dana Rohrabacher (R-CA) is taking his involuntary retirement from Congress in stride, moving his family from Orange County up to the woodlands of Maine as he settles into a new role as an advisory board member for a marijuana company.

The congressman, who was one of many House Republicans to lose their reelection bids during the 2018 midterms, is a longstanding advocate for cannabis reform, and he hopes to leverage his experience and connections in Washington, D.C. to bring about change from the outside as an advisor to BudTrader, an online advertising platform for marijuana businesses.

In a phone interview with Marijuana Moment last month, Rohrabacher talked about his transition into the cannabis industry, the role the issue played in his contentious reelection campaign, the trend of former marijuana foes now turning a profit on marijuana and why he believes President Donald Trump will take a leading role in passing reform legislation in 2020.

This interview has been lightly edited for length and clarity. 

Marijuana Moment: When you look at politicians like former Republican House Speaker John Boenher, who never helped to advance marijuana legislation you were advocating for when he was in power and is now profiting off the legal industry, how does that make you feel?

Dana Rohrabacher: This is one of maladies of humankind. The sad parts of human beings. The guys aren’t going to be on your side until you’re on the winning side. I’m not shocked by it anymore. I’ve seen it in a number of areas, and cannabis is just one of them.

You have people now who are now being hired by the industry—well, I will have to say that very few of them did very much to help in this light. But that doesn’t mean [they] owe it to me or anyone else. I’m doing a good job, I think, helping BudTrader and others and the industry to actually mold itself and to grow up into maturity so it’s a service to our people. We need the Johnny-come-latelies to continue moving in the right direction, and that’s as simple as that.

MM: Where did the cannabis industry fit within your reelection campaign?

DR: I will have to say this that one thing that’s going to really help the cannabis industry. I just lost my last election, but I was outspent by 10 to 1.

I got some very powerful forces in the world mad at me to the point that these very—I call them the Bolshevik billionaires—came into my district and a lot of the people [abandoned me] because it looked like I was in trouble, I was under attack, all this negative advertising.

I was working on a major piece of legislation on the commercial space industry and, without it, there would not have been SpaceX. I’ll never forget, everybody was advising me not to do this because I was going to lose. I said, who cares if I lose or not, this is the right way we should go. With cannabis, that’s how it was for decades. What a waste of our money trying to prevent adults from smoking weed. Give me a break.

People who I helped like the commercial space industry, I got almost no help from them. But the only people who really stood up with me—the only people—were the cannabis people. The fact that the cannabis industry was so loyal to me when I was under attack in a brutal way, as compared to all of the other issues that I’ve been involved in, that’s going to get around to the people on Capitol Hill, and I think that’s going to serve the cause very well.

MM: To what do you attribute that loyalty?

DR: I think it’s because there’s still genuine fear in the past of consuming a product, meaning cannabis. When you have fear that someone is going to destroy your life by putting you in a cage or giving you a criminal record, and then someone is going to come along and eliminate that fear for your life, I think that is the main thing. They can sense that, they feel that and they understand that. They see that right now we’ve got some opportunities that I probably would have been well serving the industry while still in Congress.

I’ve done some things that I’m very proud of, but that never would have happened had I, for example, been arrested for smoking marijuana when I was 21 years old. What a waste for our country that would have been. I think the people in the cannabis industry recognize what a horrible waste this is and that I actually understand that from the inside out.

I think about a third of the money I had in my campaign could be traced to either people in the cannabis industry or just people who were very proud that I was willing to stand up for an issue that they would attack me on. I’m proud of the cannabis advocates. Look, it was time to go anyway, so now I can try to do good things from the outside.

MM: Do you think the loss of several marijuana-friendly GOP House members last year will hurt the chances of passing cannabis legislation in a bipartisan manner?

DR: Let me tell you what I actually think is going to happen there, on why that won’t happen. We’re going to do this and we’re going to make even further progress because President Trump is with us. President Trump made it very clear when he ran for election, he on a number of occasions—and I had private meetings with him and was reiterated this—where he said that medical marijuana should be totally legal and the recreational use for adults of cannabis should be left up to the states. That’s what he said on a number of occasions.

I think that because we have a president now—by the way, the last president didn’t do anything for us, although we thought [the administration would] but they didn’t do anything for us. They had some sort of an unofficial understanding that certain things wouldn’t be enforced and things like that, but we didn’t need an artificial understanding, we needed to change the freaking law.

[Next year,] all of these ideas will coalesce and there will be a bill that takes us another major step in the right direction. It won’t solve everything, but it’ll take us a major step in the right direction. It will be based on Democrats working with those Republicans who are still there, who were part of my team, and also the leadership of the White House will add a tremendous amount.

MM: Could you expand on your meetings with the president and what specifically he said about his position on cannabis reform?

DR: I really can’t. I think I would be betraying a trust there. But I can let you just know that the president had committed and I trust that he was sincere when he did. That’s what he committed to do. But I don’t want to go into too much detail on it because that, you know, when someone meets with you in the White House, I’m not one of these guys who just runs outside and spins it whatever they want. But the president was very clear and he has never backed down on this, and I am confident that in the second half of this term, you’ll see him providing leadership the same way we just saw him providing leadership on sentencing reform.

MM: Attorney General William Barr recently said that he’s prefer Congress to pass legislation allowing states to enact their own marijuana policies rather than maintain the status quo of having conflicting state and federal laws. What do you make of that?

DR: I have known [former Attorney General] Jeff Sessions and I thought he would be susceptible—because both of us have conservative backgrounds—that he would be susceptible to the states’ right argument because the 10th Amendment of the Constitution is something he and other conservatives always quote. Leave it up to the states. I was so bitterly disappointed in Sessions, what he did when he was in.

I expect that this attorney general is going to be 100 times better than Jeff Sessions on this issue, but it will be based, I believe, just from what you have said and what I’ve read about him, it will focused on trying to move out any restrictions on the federal level and leave those decisions up to the local people.

MM: Shifting gears a bit, Denver and Oakland recently moved to decriminalize psilocybin mushrooms and other psychedelics. Activists are working to get statewide decriminalization on the 2020 ballot in California. Do you have a stance on psychedelics reform?

DR: I’m going to have to see if we can find in Maine, where we have all these trees, how many mushrooms are out there.

I think that in terms of myself, whatever anybody else wants to do. But for me to be the most effective, I should be concentrating on cannabis. Obviously I believe in the freedom of people to consume what they want to who are adults. But in terms of advocating any particular changes being proposed, I’m going to limit myself until I get done with the cannabis issue to the point that we actually feel comfortable and I don’t need to use my work and prestige on that anymore, then I’ll move to something else.

Top Congressional Republican Notes ‘A Lot Of Bipartisanship’ On Marijuana Banking Bill

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 Sacramento-based senior editor. His work has also appeared in High Times, VICE and attn.

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Top IRS Official Says Marijuana Banking Reform Would Help Feds ‘Get Paid’

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The Internal Revenue Service (IRS) would like to get paid—and it’d help if the marijuana industry had access to banks like companies in other legal markets, an official with the federal department said. She also talked about unique issues related to federal tax deductions for cannabis businesses.

At an event hosted by UCLA’s Annual Tax Controversy Institute on Thursday, IRS’s Cassidy Collins talked about the “special type of collection challenge” that the agency faces when it comes to working with cannabis businesses while the product remains federally illegal.

While IRS isn’t taking a stand on federal marijuana policy, Collins said that the status quo leaves many cannabis businesses operating on a cash-only basis, creating complications for the agency, in part by making it harder for banks to “pay us.”

“The reason why [the marijuana industry is] cash intensive is twofold,” she said. “Number one, a lot of customers don’t want a paper trail showing that they’re buying marijuana, and number two, the hesitancy of banks to allow marijuana businesses to even bank with them.”

Of course, the reason why many financial institutions remain hesitant to take on cannabis companies as clients is because the plant is a strictly controlled substance under federal law.

“There’s been a number of legislative bills that have been introduced—and I am definitely not expressing any opinion personally or on behalf of the IRS about any pending or proposed legislation,” Collins, who is a senior counsel in the IRS Office of Chief Counsel, said. “But it is interesting to note that, if the law changed so that the marijuana businesses could have banks, that would make the IRS’s job to collect [taxes] a lot easier. As part of collection, we want the money. That’s our end goal there.”

A major part of what makes cannabis businesses unique is that they don’t qualify for traditional tax credits under an IRS code known as 280E. That policy “prohibits them from claiming deductions for business expenses because they’re technically being involved in drug trafficking,” Collins explained at the event, from which small excerpts of her comments were reported by Bloomberg.

There are some options available to lessen the burden on marijuana firms, however. At the end of the day, “IRS will work with marijuana companies because, again, we want to get paid,” Collins said.

One of the ways the agency works with marijuana business operators is to have them visit designated IRS “tax assistance centers” that accept cash payments in excess of $50,000. But the official warned businesses to “be prepared to be there for a little while” as the center checks—and double checks—the amount of cash being submitted.

“Revenue officers will assist the marijuana companies in paying us,” she said.

IRS officials could also help cannabis firms by having officials accompany them “to the bank in order to try to help the taxpayer secure a cashier’s payment to pay the IRS, as well as using money orders,” she said, adding that “our revenue officers are are wanting to work with the marijuana companies to help assist them to pay us.”

“When the revenue officers are there in person with the taxpayer, that could potentially help increase the likelihood that the bank will cooperate and help the taxpayer transition into a cashier’s check,” she continued. “And that has been a trend since this first became legal [at the state level], that more and more banks are allowing cannabis companies to bank with them.”

In a report published earlier this year, congressional researchers examined tax policies and restrictions for the marijuana industry—and how those could change if any number of federal reform bills are enacted.

IRS, for its part, said last month that it expects the cannabis market to continue to grow, and it offered some tips to businesses on staying compliant with taxes while the plant remains federally prohibited.

As it stands, banks and credit unions are operating under 2014 guidance from the Financial Crimes Enforcement Network (FinCEN) that lays out reporting requirements for those that choose to service the marijuana industry.

Leaders in both chambers of Congress are working on legalization bills to end federal marijuana prohibition. But stakeholders are hopeful that, in the interim, legislators will enact modest marijuana banking reform. Legislation to protect financial institutions from being penalized for working with cannabis businesses passed the House for the fifth time last month.

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.

IRS separately hosted a forum in August dedicated to tax policy for marijuana businesses and cryptocurrency.

Earlier this year, IRS Commissioner Charles Rettig told Congress that the agency would “prefer” for state-legal marijuana businesses to be able to pay taxes electronically, as the current largely cash-based system under federal cannabis prohibition is onerous and presents risks to workers.

Former Treasury Secretary Steven Mnuchin said in 2019 that he’d like to see Congress approve legislation resolving the cannabis banking issue and he pointed to the fact that IRS has had to build “cash rooms” to deposit taxes from those businesses as an example of the problem.

IRS released updated guidance on tax policy for the marijuana industry last year, including instructions on how cannabis businesses that don’t have access to bank accounts can pay their tax bills using large amounts of cash.

The update appears to be responsive to a Treasury Department internal watchdog report that was released earlier in the year. The department’s inspector general for tax administration had criticized IRS for failing to adequately advise taxpayers in the marijuana industry about compliance with federal tax laws. And it directed the agency to “develop and publicize guidance specific to the marijuana industry.”

Luxembourg Set To Become First European Country To Legalize Marijuana Following Government Recommendation

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Luxembourg Set To Become First European Country To Legalize Marijuana Following Government Recommendation

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Luxembourg is poised to become the first European country to legalize marijuana, with key government agencies putting forward a plan to allow the possession and cultivation of cannabis for personal use.

The ministers of justice and homeland security on Friday unveiled the proposal, which will still require a vote in the Parliament but is expected to pass. It’s part of a broader package of reform measures the agencies are recommending.

Under the marijuana measure, adults 18 and older could grow up to four plants. However, under the non-commercial model that is being proposed, possessing more than three grams in public would still be a civil offense, carrying a fine of €25-500 ($29-581). Currently, the maximum fine for possession is €2,500 ($2,908).

In terms of access, adults would be able to buy and trade cannabis seeds for their home garden.

Justice Minister Sam Tamson said the government felt it “had to act” and characterized the home cultivation policy change as a first step, The Guardian reported.

“The idea is that a consumer is not in an illegal situation if he consumes cannabis and that we don’t support the whole illegal chain from production to transportation to selling where there is a lot of misery attached,” he said. “We want to do everything we can to get more and more away from the illegal black market.”

While limited in scope, the reform would make Luxembourg the first country in Europe to legalize the production and possession of marijuana for recreational use. Cannabis has been widely decriminalized in certain countries in the continent, but it has remained criminalized by statute.

Government sources in Luxembourg told The Guardian that plans are in the works to develop a program where the state regulates the production and distribution of marijuana. Tamson said they are working to resolve “international constraints” before taking that step, however, referring to United Nations treaty obligations that multiple U.S. states and other countries like Canada and Uruguay have openly flouted.

For now, the country is focusing on legalization within a home setting. Parliament is expected to vote on the proposal in early 2022, and the ruling parties are friendly to the reform.

This has been a long time coming, as a coalition of major parties of Luxembourg agreed in 2018 to enact legislation allowing “the exemption from punishment or even legalization” of cannabis.

Meanwhile in the U.S., congressional lawmakers are working to advance legalization legislation. A key House committee recently approved a bill to end marijuana prohibition, and Senate leadership is finalizing a separate reform proposal.

In Mexico, a top Senator said this week that lawmakers could advance legislation to regulate marijuana in the coming weeks. The Supreme Court has already ruled that adults cannot be criminalized over possession or cultivation, but there’s currently no program in place to provide access.

New Bipartisan Marijuana Research Bill In Congress Would Let Scientists Study Dispensary Products

Photo courtesy of Mike Latimer.

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New Bipartisan Marijuana Research Bill In Congress Would Let Scientists Study Dispensary Products

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A bipartisan group of federal lawmakers introduced a bill on Thursday to remove barriers to conducting research on marijuana, including by allowing scientists to access cannabis from state-legal dispensaries.

The Medical Marijuana Research Act, filed by the unlikely duo of pro-legalization Rep. Earl Blumenauer (D-OR) and prohibitionist Rep. Andy Harris (R-MD), would streamline the process for researchers to apply and get approved to study cannabis and set clear deadlines on federal agencies to act on their applications.

“Congress is hopelessly behind the American people on cannabis, and the quality of our research shows why that is an urgent problem,” Blumenauer told Marijuana Moment. “Despite the fact that 99 percent of Americans live in a state that has legalized some form of cannabis, federal law is still hamstringing researchers’ ability to study the full range of health benefits offered by cannabis, and to learn more about the products readily available to consumers.”

“It’s outrageous that we are outsourcing leadership in that research to Israel, the United Kingdom, Canada, and others. It’s time to change the system,” he said.

Late last year, the House approved an identical version of the cannabis science legislation. Days later, the Senate passed a similar bill but nothing ended up getting to the president’s desk by the end of the last Congress. Earlier this year, a bipartisan group of senators refiled their marijuana research measure for the current 117th Congress.

Meanwhile, lawmakers are also advancing a separate strategy to open up dispensary cannabis to researchers. Large-scale infrastructure legislation that has passed both chambers in differing forms and which is pending final action contains provisions aimed at allowing researchers to study the actual marijuana that consumers are purchasing from state-legal businesses instead of having to use only government-grown cannabis.

The new bill filed this week by Blumenauer and Harris, along with six other original cosponsors, would also make it easier for scientists to modify their research protocols without having to seek federal approval.


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.

It would additionally mandate that the Drug Enforcement Administration (DEA) license more growers and make it so there would be no limit on the number of additional entities that can be registered to cultivate marijuana for research purposes. It would also require the U.S. Department of Health and Human Services (HHS) to submit a report to Congress within five years after enactment to overview the results of federal cannabis studies and recommend whether they warrant marijuana’s rescheduling under federal law.

“The cannabis laws in this country are broken, including our laws that govern cannabis research,” Blumenauer said in remarks in the Congressional Record. “Because cannabis is a Schedule I substance, researchers must jump through hoops and comply with onerous requirements just to do basic research on the medical potential of the plant.”

The new legislation will “both streamline the often-duplicative licensure process for researchers seeking to conduct cannabis research and facilitate access to an increased supply of higher quality medical grade cannabis for research purposes,” he said, adding that expanded studies will help make sure “Americans have adequate access to potentially transformative medicines and treatments.”

For half a century, researchers have only been able to study marijuana grown at a single federally approved facility at the University of Mississippi, but they have complained that it is difficult to obtain the product and that it is of low quality. Indeed, one study showed that the government cannabis is more similar to hemp than to the marijuana that consumers actually use in the real world.

There’s been bipartisan agreement that DEA has inhibited cannabis research by being slow to follow through on approving additional marijuana manufacturers beyond the Mississippi operation, despite earlier pledges to do so.

In May, the agency finally said it was ready to begin licensing new cannabis cultivators. Last week, DEA proposed a large increase in the amount of marijuana—and psychedelics such as psilocybin, LSD, MDMA and mescaline—that it wants produced in the U.S. for research purposes next year.

Under the new House bill, the agency would be forced to start approving additional cultivation applications for study purposes within one year of the legislation’s enactment.

HHS and the attorney general would be required under the bill to create a process for marijuana manufacturers and distributors to supply researchers with cannabis from dispensaries. They would have one year after enactment to develop that procedure, and would have to start meeting to work on it within 60 days of the bill’s passage.

In general, the legislation would also establish a simplified registration process for researchers interested in studying cannabis, in part by reducing approval wait times, minimizing costly security requirements and eliminating additional layers of protocol review.

Read the full text of the new marijuana research bill below:

Click to access medical-marijuana-research-act-hr-5657-text.pdf

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