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Major Financial Associations Call For Passage Of Marijuana Banking Bill

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Four major national financial associations sent a letter to House leadership on Thursday, expressing support for bipartisan marijuana banking legislation that’s expected to receive a floor vote next week. Meanwhile, 50 state banking associations sent a similar letter urging Congress to pass the bill.

The American Bankers Association (ABA), Credit Union National Association (CUNA), Independent Community Bankers of America (ICBA) and National Bankers Association (NBA) wrote that while they do not have a position on cannabis legalization, “our members are committed to serving the financial needs of their communities—including those that have voted to legalize cannabis.”

“The current threat of criminal and civil liability under federal law is suppressing the provision of vital financial services in the thirty-three states that have legalized cannabis in some form,” the groups wrote.

The Secure And Fair Enforcement (SAFE) Banking Act, which cleared the House Financial Services Committee in March, has been a hot topic on Capitol Hill since Majority Leader Steny Hoyer (D-MD) told the Democratic Caucus last week that he intends to hold a vote on the bill by the end of the month.

Advocacy groups including the ACLU, Human Rights Watch and Drug Policy Alliance responded to the development with a letter urging a delay on the vote until more comprehensive legalization legislation that addresses social equity is passed.

Rep. Alexandria Ocasio-Cortez (D-NY) agrees with that sentiment, a staffer in her office told Marijuana Moment.

“She feels strongly that addressing racial justice should be the first priority,” Dan Riffle, senior counsel and policy advisor to the congresswoman, said.

This latest letter from the banking associations highlights the contention over the issue, with lawmakers facing pressure to act on marijuana reform without alienating groups that are primarily concerned with addressing the social injustices of prohibition.

Several House members, including Financial Services Committee Chairwoman Maxine Waters (D-CA) and Rep. Ed Perlmutter (D-CO), lead sponsor of the SAFE Banking Act, told Marijuana Moment on Wednesday that they appreciate what organizations like the ACLU are fighting for, but said it is incumbent on Judiciary Chairman Jerrold Nadler (D-NY) to advance his separate wide-ranging legalization bill that civil rights groups want prioritized. In the meantime, they will be supporting the banking legislation.

Because House leaders plan to bring the cannabis banking legislation forward under an expedited procedure that requires a two-thirds majority for approval, potential opposition from Ocasio-Cortez and other progressive lawmakers who believe social equity proposals should advance first could jeopardize passage.

“The SAFE Banking Act of 2019 provides a mechanism for the cannabis industry and its service providers to deposit their cash in regulated financial institutions, which allows our members to meet the needs of their communities and helps those communities reduce cash-motivated crimes, increase the efficiency of tax collections, and improve the financial transparency of the cannabis industry,” the financial services groups wrote.

“Without congressional action, a significant portion of economic activity, including those businesses with only indirect connections to the cannabis industry, such as vendors, suppliers, and utility companies, risk being marginalized from the financial system in states with legal cannabis industries. H.R. 1595 provides needed legal protection and clarity for financial institutions to accept deposits, extend credit, and provide other financial services to individuals and businesses that derive some portion of their income from legal state cannabis related activity.”

The second letter, from ABA and the 50 state banking associations, said the SAFE Banking Act is “fair and balanced legislation that will permit depository institutions to serve the needs of their customers in states where cannabis is legal.”

“The bill provides a mechanism for the cannabis industry and its service providers to deposit their cash in regulated financial institutions, which allows banks to meet the needs of their communities and helps those communities reduce cash-motivated crimes, increase the efficiency of tax collections, and improve the financial transparency of the cannabis industry,” they wrote.

Over in the Senate, Banking Chair Mike Crapo (R-ID) said that his panel will also be holding a vote on legislation to give cannabis businesses access to financial services before the end of the year.

Read the full letter on marijuana banking below from the four national groups: 

Joint Trade Support Safe Ba… by Marijuana Moment on Scribd

This story was updated to include the letter from the 50 state banking associations.

Senate Committee Blocks DC Marijuana Legalization While Advancing Hemp Regulations

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.

Politics

Massachusetts Governor Defends Closing Recreational Marijuana Shops To Prevent Out-Of-State Shoppers

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The governor of Massachusetts doubled down on the state’s temporary closure of recreational marijuana shops during the coronavirus outbreak on Tuesday, telling reporters that allowing them to reopen could exacerbate the health crisis by attracting visitors from states where cannabis remains illegal.

During a press conference, Gov. Charlie Baker (R) was asked about the state’s decision to exclude adult-use stores from the list of “essential businesses” that can continue to operate during the pandemic. He stressed that medical cannabis dispensaries can continue to serve patients but seemed to argue that the lack of regulated marijuana markets in surrounding states is forcing the state’s hand on recreational retailers.

“We are doing a lot of things to try to get people to stay at home,” he said, adding that travel advisories currently instruct out-of-state visitors to self-quarantine for 14 days.

“There is tons of evidence that because Massachusetts is one of the few states in the Northeast that has legalized recreational marijuana, that if we make recreational marijuana available as an essential business—remember, medical marijuana is available as an essential business—if we make recreational marijuana available, we are going to have to deal with the fact that people are going to come here from all over the place across the Northeast and create issues for us with respect to the fundamental issue we are trying to solve for here, which is to stop the spread,” Baker said. “For that reason and that reason alone, I think this is just a non-starter with us.”

Asked whether the state could make it so only Massachusetts residents could access adult-use shops, the governor said “I don’t know if you can do that legally,” though it’s “certainly something that some folks have talked about.”

Baker is facing pressure from regulators and industry stakeholders to allow recreational stores to stay open. Layoffs and furloughs have already started occurring in the market in response to his order.

In a letter to the governor on Monday, dozens of marijuana operators in the state argued that while they appreciate the need to protect public health during this pandemic, shuttering their businesses means people will turn to the illicit, unregulated market for cannabis, and that poses its own set of risks.

Shaleen Title, who serves as a commissioner on the Massachusetts Cannabis Control Commission, told Marijuana Moment that public safety “must remain our top priority as Massachusetts confronts the coronavirus pandemic” and she appreciates the governor “for recognizing that even as we strive to minimize unnecessary interactions, access to medical cannabis is essential to the health of tens of thousands of patients in Massachusetts.”

“And I welcome and share his confidence in the ability of the Commission and its medical licensees to operate safely amid the unprecedented challenges posed by COVID-19, including by enhancing sanitation procedures, limiting the number of patrons, and allowing curbside pickup,” she said.

But she parted with the governor when it comes to recreational businesses.

“I believe those same measures, potentially along with a restriction on out-of-state customers, could be applied to adult-use facilities to allow for resumed operations,” she said. “Reopening these businesses would provide access to the many adult-use consumers who rely on cannabis for medical purposes.”

As the U.S. grapples with the COVID-19 outbreak, numerous states are having to decide where to draw the line for cannabis businesses. Many allow both adult-use and medical cannabis dispensaries to operate, with some recommending social distancing measures such as curbside pickup for marijuana products to mitigate the spread of the virus.

According to a recent poll, a majority of Americans agree that medical cannabis dispensaries are “essential services” that should remain open.

Marijuana Legalization ‘Not Likely’ In New York Budget, Governor Says On Eve Of Deadline

Photo courtesy of WeedPornDaily.

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Marijuana Legalization ‘Not Likely’ In New York Budget, Governor Says On Eve Of Deadline

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Marijuana legalization is “not likely” to be included in the final budget in New York, Gov. Andrew Cuomo (D) said on Tuesday, explaining that the issue proved too complicated as the state grapples with the coronavirus.

Another sign that the policy change isn’t happening as Cuomo and advocates had planned comes from a pair of newly revised budget bills that exclude the proposal, making it all but certain that legalization won’t make the final cut.

“Too much, too little time,” the governor said of the proposal during a press conference.

Wednesday is the deadline to deliver a budget, and so the identical Senate and Assembly spending bills that were freshly amended on Tuesday are unlikely to substantially change before they get a vote and sent to the governor’s desk. A provision in Cuomo’s original proposal that would implement an adult-use cannabis market was “intentionally omitted,” text of the legislation states. That phrase is used repeatedly throughout the legislation for policies that missed the cut.

That’s not to say that there’s no appetite for the reform move within the legislature. It was expected to make it into the budget, but the coronavirus outbreak shifted legislative priorities and legalization evidently proved too complicated an issue to work out ahead of the deadline. Top lawmakers have said there’s no reason that they can’t develop a comprehensive reform plan outside of the budget.

However, Cuomo said earlier this month that his preference would be to address legalization through the budget because, outside of that process, “the easiest thing for a legislative body to do is to do nothing.”

The release of the budget bills seems to confirm details included on a draft budget report that was shared with Marijuana Moment on Monday. It similarly said that the “Adopted Budget omits the Executive proposal to legalize adult use cannabis.”

A revised standalone legalization bill was recently introduced in the Senate, and advocates hoped the language would be inserted into the budget, but that didn’t pan out. However, it’s possible that legislators could still take it up separately after the budget is handled. That said, it remains to be seen when the legislature, which has scaled down other activity amidst the COVID-19 pandemic, will be able to tackle the issue.

A spokesperson for the bill’s sponsor, Sen. Liz Krueger (D), told Marijuana Moment on Monday that “nothing is done until it is done, but the Senator has said previously that the Governor’s staff essentially took marijuana off the table weeks ago” in budget talks.

The senator still believes that “if it can’t get done the right way in the budget right in the middle of overlapping public health and fiscal crises, that there is no reason it can’t get done right later.”

Assembly Majority Leader Crystal Peoples-Stokes (D), who has also sponsored a legalization bill, told Politico that “I wish that it was [included in the budget], but I don’t believe that it is.”

Marijuana Moment reached out to Senate and Assembly leadership for comment about the budget bills, but representatives were not immediately available.

“While legalizing cannabis is necessary to reduce the decades of unjust, racist targeting of communities of color in New York, our state faces a public health crisis right now and efforts to contain COVID-19 demand legislators’ full attention,” Kassandra Frederique or the Drug Policy Alliance said. “We remain committed to seeing legalization passed in New York at a time when critical components of equity and community reinvestment can be thoroughly addressed.”

“The regulation of marijuana in our state must be centered in economic and racial justice now more than ever, because we know the same communities targeted by drug enforcement are the ones with the least access to healthcare right now, the ones grappling with decades of the economic toll from criminalization, with low wages, unstable housing, and the ones losing jobs and loved ones at the same time,” she added. “The creation of a diversified and equitable industry that supports New York-based small businesses and farmers will be imperative coming out of this crisis. When the dust settles and New York has survived this pandemic, these communities that are on the frontlines of this crisis—in addition to the legacy of harmful enforcement—must be the center of our rebuilding effort.”

Prohibitionist group Smart Approaches To Marijuana celebrated reports that legalization would not be included in the budget, stating that “the consideration of marijuana legalization and commercialization during this outbreak is unconscionable and extremely shortsighted.”

Cuomo also originally planned to tour legal cannabis states to learn from their experiences and take lessons back home, but that plan was also derailed due to the coronavirus.

The governor pitched legalization in his budget proposal last year as well. But following months of negotiation, the legislature 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.

Cuomo seemed optimistic that 2020 would be the year for legal cannabis in New York, and he touted the proposal in his State of the State address in January. Just 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.

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.

Coronavirus Upends Marijuana, Psychedelics And Drug Reform Ballot Measures

This story was updated to include comment from Drug Policy Alliance.

Photo courtesy of Chris Wallis // Side Pocket Images.

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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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.

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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