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House Approves Marijuana Banking Bill In Historic Vote

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The House of Representatives passed a standalone marijuana reform bill for the first time in history on Wednesday.

The chamber advanced the legislation—which would protect banks that service the cannabis industry from being penalized by federal regulators—in a vote of 321-103.

All but one Democrat voted in favor of the bill. Republicans were virtually split, with 91 voting for the legislation and 102 opposing it.

For six years, lawmakers have been pushing for the modest reform, which is seen as necessary to increase financial transparency and mitigate risks associated with operating on a largely cash-only basis—something many marijuana businesses must do because banks currently fear federal reprisal for taking them on as clients.

Watch the House debate and vote on marijuana banking below:

The Secure and Fair Enforcement (SAFE) Banking Act is sponsored by Rep. Ed Perlmutter (D-CO). It cleared the House Financial Services Committee in March and was officially scheduled for a floor vote last week. The vote was held through a process known as suspension of the rules, meaning it required two-thirds of the chamber (290 members if all were present) to approve it for passage.

While the House has approved historic cannabis amendments in the past, including one this summer that would protect all state marijuana programs from federal intervention, those have had to be renewed annually. This is the first time a standalone reform bill was approved in the chamber, and the policy will be permanently codified into law if the Senate follows suit and the president signs it.

“If someone wants to oppose the legalization of marijuana, that’s their prerogative, but American voters have spoken and continue to speak and the fact is you can’t put the genie back in the bottle. Prohibition is over,” Perlmutter said on the floor. “Our bill is focused solely on taking cash off the streets and making our communities safe and only congress can take these steps to provide this certainty for businesses, employees and financial institutions across the country.”

 

Rep. Denny Heck (D-WA) made an impassioned case for the bill, sharing an anecdote about a security guard who worked for a cannabis shop who was killed on the job and emphasizing that the legislation would mitigate the risks of violent crime at these businesses.

“You can be agnostic on the underlying policy of whether or not cannabis should be legal for either adult recreational use or to treat seizures, but you cannot be agnostic on the need to improve safety in this area,” he said.

“This bill is not only timely, but extremely necessary,” Rep. Barbara Lee (D-CA) said. “Right now the cannabis industry needs access to safe and effective banking immediately.”

Rep. Patrick McHenry (R-NC), ranking member of the House Financial Services Committee, raised concerns about the legislation and suggested that the bill would provide drug cartels with access to financial services. He was one of just three lawmakers who rose in opposition to the bill, with the remaining time on the opposition end having been yielded to supporters.

The legislation hasn’t been without controversy, even among pro-reform advocates. After Majority Leader Steny Hoyer (D-MD) announced his intent to put the bill on the floor by the end of the month, several leading advocacy groups including the ACLU, Drug Policy Alliance (DPA) and Center for American Progress wrote a letter asking leadership to delay the vote until comprehensive legalization legislation passed.

The groups has expressed concerns to Financial Services Chairwoman Maxine Waters (D-CA) that approving the banking bill first could jeopardize the chances of achieving more wide-ranging reform that addressed social equity issues such as legislation introduced by Judiciary Chairman Jerrold Nadler (D-NY). They said they were caught off guard when Hoyer announced the vote.

But as the vote approached, advocates and lawmakers wasted no time emphasizing the need to go further than the banking bill.

“I have long fought for criminal justice reform and deeply understand the need to fully address the historical racial and social inequities related to the criminalization of marijuana,” Waters said in a press release on Tuesday. “I support legislation that deschedules marijuana federally, requires courts to expunge convictions for marijuana-related offenses, and provides assistance such as job training and reentry services for those who have been disproportionately affected by the war on drugs.”

She reiterated that point during debate on the floor, stating that the banking legislation “is but one important piece of what should be a comprehensive series of cannabis reform bills.”

Nadler also released a statement stating that while he would vote yes on the SAFE Banking Act, he is “committed to marking up [his legalization bill] and look[s] forward to working with reform advocates and my colleagues in this important effort going forward.”

Hoyer also weighed in on the need for broader reform in a statement on Wednesday.

“I am proud to bring this legislation to the Floor, but I believe it does not go far enough,” he said. “This must be a first step toward the decriminalization and de-scheduling of marijuana, which has led to the prosecution and incarceration of far too many of our fellow Americans for possession.”

Rep. Steve Cohen (D-TN) applauded the Judiciary Committee chairman for announcing he will hold a markup of comprehensive cannabis legalization following this vote.

“Today’s vote is a significant first step, but it must not be the last. Much more action will still need to be taken by lawmakers,” NORML Political Director Justin Strekal told Marijuana Moment. “In the Senate, we demand that lawmakers in the Senate Banking Committee hold true to their commitment to move expeditiously in support of similar federal reforms. And in the House, we anticipate additional efforts to move forward and pass comprehensive reform legislation like The MORE Act—which is sponsored by the Chairman of the House Judiciary Committee—in order to ultimately comport federal law with the new political and cultural realities surrounding marijuana.”

Steve Hawkins, executive director of the Marijuana Policy Project, said the “cannabis industry can no longer proceed without the same access to financial services that other legal companies are granted.”

“This decision is an indication that Congress is more willing than ever to support and take action on sensible cannabis policies. The passage of the SAFE Banking Act improves the likelihood that other cannabis legislation will advance at the federal level. It is important to recognize that the SAFE Banking Act, if passed by the Senate and signed into law by the president, would strengthen efforts to increase the diversity of the cannabis industry.”

“We applaud the House for approving this bipartisan solution to the cannabis banking problem, and we hope the Senate will move quickly to do the same,” Neal Levine, CEO of the Cannabis Trade Federation, said. “This vital legislation will have an immediate and positive impact, not only on the state-legal cannabis industry, but also on the many communities across the nation that have opted to embrace the regulation of cannabis.”

“Allowing lawful cannabis companies to access commercial banking services and end their reliance on cash will greatly improve public safety, increase transparency, and promote regulatory compliance,” he said.

DPA noted that it had “no objections to the substance of the SAFE Banking bill,” but that the organization and its allies However, DPA and allies “sent a letter of concern because we believe it is a mistake for the House to pass an incremental industry bill before passing a comprehensive bill that prioritizes equity and justice for the communities who have suffered the most under prohibition.”

“We are encouraged by the announcement from House Judiciary Chairman Jerry Nadler that he intends to hold a vote on MORE and will push him in the coming weeks to commit to a date,” DPA Policy Coordinator Queen Adesuyi said. “We also thank Majority Leader Hoyer for his commitment to work with Mr. Nadler and others to advance broader marijuana reform in this Congress.”

“The marijuana banking bill cannot be the end of the road for marijuana reform this Congress,” she said.

Ahead of the vote, Rep. Joe Neguse (D-CO) said “Only Congress can provide the certainty financial institutions need to start banking cannabis-related legitimate businesses” and that he’s “proud to support the SAFE Banking Act today to support hard-working Coloradans and their families.”

Rep. Kendra Horn (D-OK), said in a floor speech earlier on Wednesday morning that current law is “endangering communities as well as inhibiting small businesses from growing.”

“This industry is bringing revenue to our state, creating small businesses and helping those suffer with physical illness to relieve their ailments,” she said. “The SAFE Banking Act supports this growing Oklahoma industry, our banks and works to keep Oklahomans that work in and around this industry safe.”

“Access to safe banking is a big deal for the businesses and employees in New Mexico who work in the cannabis industry. It’s why I’m a cosponsor of the SAFE Banking Act & will be voting for it today,” Rep. Deb Haaland (D-NM) said.

 

Many have viewed the banking proposal as the first step on the pathway to ending federal cannabis prohibition, and it’s consistent with an agenda outlined by Rep. Earl Blumenauer (D-OR) last year through which he suggested that committees advance incremental marijuana reforms under their respective jurisdictions, leading up to the eventual passage of a full legalization bill.

“We’re in this fix today because Congress has refused to provide the partnership and the leadership that the states demand,” Blumenauer said on the floor. ”The states aren’t waiting for us.”

“This is an important foundation, but it’s not the last step,” he said. We have important legislation that’s keyed up and ready to go. This approval today will provide momentum that we need for further reform that we all want and will make America safer and stronger.”

That said, while the vote signals that the House has a clear appetite for reform, it remains to be seen if the Republican-controlled Senate will approve the banking bill. Apparently anticipating that conservative lawmakers might not support the legislation as it passed out of committee, Perlmutter moved to add amendments last week that were designed to broaden its GOP appeal.

Those provisions include clarifying that hemp and CBD businesses would also be protected and stipulating that federal regulators couldn’t target certain industries such as firearms dealers as higher risk of fraud without valid reasoning.

That’s likely to endear Senate Banking Committee Chairman Mike Crapo (R-ID) to the SAFE Banking Act. His panel held a hearing on the issue in July, and the senator said he wants to have a vote on cannabis financial services legislation by the end of the year but also suggested at the time that it might not be a copy of Perlmutter’s bill.

The hemp-focused provisions are also intended to appeal to Senate Majority Leader Mitch McConnell (R-KY), who championed the crop’s federal legalization through last year’s Farm Bill but has said he doesn’t support its “illicit cousin” marijuana.

Kevin Sabet, president of the prohibitionist group Smart Approaches to Marijuana, recognized the inevitability of the House passing the legislation hours before the vote and said Perlmutter’s amendments were key to its advancement.

“This is a gift to Big Tobacco, which has already invested billions into pot,” Sabet said in a statement following the vote. “Granting this industry access to banks will bring billions of dollars of institutional investment from the titans of addiction and vastly expand the harms we are already witnessing.”

The legislation might also face pushback from some Senate Democrats who share concerns expressed by advocacy groups that it’s important to move on comprehensive reform before tackling banking. Senate Minority Leader Chuck Schumer (D-NY) and Sens. Cory Booker (D-NJ), Kamala Harris (D-CA) and Bernie Sanders (I-VT) each recently indicated that their votes could possibly be contingent on advancing a justice-focused legalization bill.

Rep. Alexandria Ocasio-Cortez (D-NY) suggested last week that she also might withhold her vote for the same reasons, but she ultimately approved it.

Tough work still lies ahead for lawmakers and advocates if they hope to enact the banking bill into law this Congress but, for the moment, there’s an air of celebration as the House made history by voting to pass a standalone cannabis reform bill for the first time.

“Having worked alongside congressional leaders to resolve the cannabis industry’s banking access issues for over six years, it’s incredibly gratifying to see this strong bipartisan showing of support in today’s House vote,” Aaron Smith, executive director of the National Cannabis Industry Association, said. “Now, it’s time for the Senate to take swift action to approve the SAFE Banking Act so that this commonsense legislation can make its way to the President’s desk.”

“This bipartisan legislation is vital to protecting public safety, fostering transparency, and leveling the playing field for small businesses in the growing number of states with successful cannabis programs,” he said.

Update: This story has been updated to include additional commentary. 

Key Committee Chair Broke Promise On Marijuana Justice Before Banking Vote, Advocates Say

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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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Minnesota Marijuana Legalization Bill Clears 12th And Final House Committee, Advancing To The Floor

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A bill to legalize marijuana in Minnesota has been approved by its final House committee and will now advance to the floor.

The road to get to this position has been long and winding, with 12 panels hearing and voting on the measure since it was introduced in February.

House Majority Leader Ryan Winkler (D), Speaker Melissa Hortman (D) and other lawmakers filed the proposal, which would allow adults 21 and older to purchase and possess up to 1.5 ounces of cannabis and cultivate up to eight plants, four of which could be mature.

Members of the House Ways & Means Committee approved the legislation in a 16-10 vote on Friday.

Winkler previously said that he expects a floor vote this month, though that has yet to be scheduled. The legislature is slated to adjourn on May 17.

The bill “helps to correct wrongs that have been done for too long in Minnesota to communities who’ve been over-policed who have been targeted for cannabis enforcement to further a prohibition of cannabis that does not work,” the majority leader said in opening remarks.

Winkler said that “legalizing and creating a safe marketplace by taxing cannabis and using the proceeds from those taxes to pay for cannabis regulation to help invest in a cannabis industry” would reflect “the values of Minnesotans and help to address the harm that is caused by cannabis prohibition on our black and brown communities.”

The panel adopted an amendment from Winkler that expands the definition of social equity applicants to include those from communities disproportionately impacted by prohibition and makes changes to how regulators would address rules violations by businesses. It would also revise the amount of funding for various state agencies, including a reduction in appropriations for the Department of Corrections.

A proposal to require that the label on marijuana products include information about the maximum dose that is considered safe within a 24-hour period was also approved.

An additional amendment that would have required marijuana products to be labeled with a warning that cannabis remains illegal under federal law was rejected.

Prior to taking up the legalization bill, members adopted an amendment to separate budget legislation that would provide funding for the implementation of the cannabis program for the first biennium, after which time marijuana tax revenue would more than cover costs.

It the measure does clear the full House chamber, it’s still expected to face a significant challenge in the Republican-controlled Senate, where lawmakers have signaled that they’re more interested in revising the state’s existing medical cannabis program than enacting legalization of adult use.

That said, a GOP member of the Taxes Committee, which approved the legalization bill on Wednesday, indicated that he felt an amendment he introduced and that was adopted could bolster Republican support.

That revision from Rep. Pat Garofolo (R) directs remaining cannabis revenue to a tax relief account after implementation costs are covered and substance misuse treatment and prevention programs are funded.

“The adoption of this amendment is a gamechanger,” Garofalo said in a press release. “The Democrat majority accepting this amendment means that if signed into law, this bill will result in lowering taxes Minnesotans are FORCED to pay, financed with the revenue generated from taxes that people are CHOOSING to pay.”

Before the Taxes Committee, the bill passed the Health Finance and Policy Committee, Public Safety and Criminal Justice Reform Finance and Policy CommitteeEducation Finance CommitteeState Government Finance and Elections CommitteeJudiciary Finance and Civil Law Committee, Environment and Natural Resources Finance and Policy Committee, Agriculture Finance and Policy Committee, Workforce and Business Development Finance and Policy Committee, Labor, Industry, Veterans and Military Affairs Finance and Policy Committee and Commerce Finance and Policy Committee.

“At the beginning of the year, a House committee had never passed a legalization bill. Now, we’re on the verge of passing a bill off the House floor,” Winkler said in an email to supporters on Friday. “We have the ability to change laws in a way that improves people’s lives, whether it’s expunging cannabis-related records, targeting economic opportunity for those impacted most by the war on drugs, providing relief for veterans suffering from PTSD and serious health conditions, and more.”


Marijuana Moment is already tracking more than 1,100 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.

The litany of committees the bill has gone through makes it perhaps the most thoroughly vetted legalization measure to move through a state legislature—and it means that a solid portion of the House has already had the chance to review, propose amendments to and vote on the legislation it as it advances to the floor, presumably increasing its chances of passage in the chamber.

The majority leader’s bill as introduced was identical to a proposal he filed last year, with some minor technical changes. Winkler, who led a statewide listening to gather public input ahead of the measure’s introduction, called it the “best legalization bill in the country” at the time. It did not advance in that session, however.

Under the legislation, social equity would be prioritized, in part by ensuring diverse licensing and preventing the market from being monopolized by corporate players. Prior marijuana records would also be automatically expunged.

On-site consumption and cannabis delivery services would be permitted under the bill. And unlike in many legal states, local municipalities would be banned from prohibiting marijuana businesses from operating in their areas.

Retail cannabis sales would be taxed at 10 percent. Part of that revenue would fund a grant program designed to promote economic development and community stability.

The bill calls for the establishment of a seven-person Cannabis Management Board, which would be responsible for regulating the market and issuing cannabis business licenses. It was amended in committee month to add members to that board who have a social justice background.

People living in low-income neighborhoods and military veterans who lost honorable status due to a cannabis-related offense would be considered social equity applicants eligible for priority licensing.

Cannabis retails sales would launch on December 31, 2022.

Gov. Tim Walz (D) is also in favor of ending marijuana prohibition, and in January he called on lawmakers to pursue the reform as a means to boost the economy and promote racial justice. He did not include a request to legalize through his budget proposal, however.

Walz did say in 2019 that he was directing state agencies to prepare to implement reform in anticipation of legalization passing.

Winkler, meanwhile, said in December that if Senate Republicans don’t go along with the policy change legislatively, he said he hopes they will at least let voters decide on cannabis as a 2022 ballot measure.

Heading into the 2020 election, Democrats believed they had a shot of taking control of the Senate, but that didn’t happen. The result appears to be partly due to the fact that candidates from marijuana-focused parties in the state earned a sizable share of votes that may have otherwise gone to Democrats, perhaps inadvertently hurting the chances of reform passing.

In December, the Minnesota House Select Committee On Racial Justice adopted a report that broadly details race-based disparities in criminal enforcement and recommends a series of policy changes, including marijuana decriminalization and expungements.

Wisconsin Governor’s Marijuana Legalization Proposal Stripped From Budget By GOP-Led Committee

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Feds Announce New Standard THC Dose To Be Used In Marijuana Research, Effective Immediately

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A top federal health agency announced on Friday that it has determined the standard dose of THC that should be used for marijuana studies moving forward.

The National Institute on Drug Abuse (NIDA) said in a notice to researchers that there is a “new requirement to measure and report results using a standard THC unit in all applicable human subjects’ research,” which is effective immediately. That standard unit is five milligrams of THC.

NIDA said that inconsistencies in measuring and reporting THC exposure “has been a major limitation in studies of cannabis use, making it difficult to compare findings among studies.” Therefore, a “standardized measure of THC in cannabis products is necessary to advance research by providing greater comparability across studies of both its adverse effects and potential medical uses.”

The agency recognized, however, that “the same quantity of THC may have different effects based on route of administration, other product constituents, an individual’s genetic make-up and metabolic factors, prior exposure to cannabis, and other factors.”

But by creating a standard THC dose, it will nonetheless be easier to compare studies that involve THC exposure, which is a “high priority” of NIDA and the National Advisory Council on Drug Abuse.

“It is not the intent of this Notice to prescribe the quantity of THC that is permissible for use in research projects. Indeed, investigators are free to use more or less than 5mg of THC as appropriate for their study,” the notice states. “However, for applicable studies, investigators will be required to report the quantity of THC using the standard unit. Investigators may also report the quantity of THC in other units (e.g., milligrams) as appropriate.”

This comes one year after NIDA, which is part of the National Institutes of Health, first solicited feedback on a proposal to standardize THC content in cannabis research.

The agency said that it carried out “extensive stakeholder input,” along with “consultation with experts in the field,” to arrive at the decision to set the standard unit at 5 mg.

“This guidance will apply to applications where THC is a focus of the research,” the new notice continues. “Applicants are responsible for determining whether use of this standard unit is applicable to their research and for determining best approach to applying it in their research applications. A justification should be provided for research that does not propose to use the standard unit.”

NIDA Director Nora Volkow discussed the importance of establishing a standard THC unit in commentary published in the journal Addiction last year.

Citing research that calls for a five milligram THC standard, Volkow said she agreed with the study’s conclusion despite complicating factors. Those factors include potential issues related to the effect of having cannabis products with the same THC level but different concentrations of other cannabinoids such as CBD.

The complexities in research beyond having a standardized measure of THC “hardly negate the value” of setting one, Volkow said in her commentary. “In fact, having and using such a standard is a prerequisite for comparing the effects of various cannabis products on THC bioavailability, pharmacokinetics and pharmacological effects, which is knowledge fundamental to studies pertaining to medical use of cannabis.”

“Although cannabis remains an illicit substance in the United States, the expanded legalization by states requires us to develop the knowledge base that can help states develop policies to minimize risk from cannabis exposures, such as limits on the THC content of cannabis products,” she said.

Volkow has been vocal about the importance of streamlining and improving research into cannabis, and she’s laid partial blame for the the lack of studies on marijuana’s restrictive federal classification.

Kansas Senate Running Out Of Time To Pass Medical Marijuana Legalization Bill That Cleared House

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Kansas Senate Running Out Of Time To Pass Medical Marijuana Legalization Bill That Cleared House

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As advocates applaud the passage of a medical marijuana legalization bill in the Kansas House of Representatives, anxieties remain high over its prospects in the GOP-controlled Senate.

The chamber has days left being the end of the legislative veto session, and Senate leadership has signaled that they do not view the reform legislation as a priority.

“The Senate is not real high on the issue at this point” Senate President Ty Masterson (R) told an Associated Press reporter in a pun-filled text message on Thursday, adding that “we may roll it into a joint committee and see if we can weed out the issues.”

Whether he was serious about the joint committee or simply making an attempt at cannabis-related humor is unclear. A spokesperson for his office separately said that the chamber is focused on passing a budget bill and a school funding measure in the final days of the session.

“I can’t imagine we’d take the subject matter up this year,” Masterson said earlier this week ahead of the House vote.

If the Senate doesn’t take up the medical marijuana bill by May 11, it would still be alive for the second half of the legislative biennium that starts early in 2022 and could be acted upon then.

But even if senators do make time to establish a bicameral conference committee to consider the proposal, there are still serious doubts about whether the body would approve the resulting negotiated legislation. And defeat in the Senate this year would mean lawmakers would have to start the process all over again if they wanted to pursue the reform again next year.

Getting the bill to this stage alone has proved challenging.

It moved through the House Federal and State Affairs Committee after a series of hearings and onto the floor in March, but then it was rereferred to the panel for further consideration. Members then adopted several additional amendments before sending it back on the floor.

The legislation would establish a medical marijuana program for qualified patients. It lists about two dozen conditions that make a person eligible for cannabis, including Alzheimer’s disease, cancer, Crohn’s disease, glaucoma, multiple sclerosis, post-traumatic stress disorder and traumatic brain injury.


Marijuana Moment is already tracking more than 1,100 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.

Smoking and vaping products would be prohibited. The bill would also not provide for home growing.

The state would license medical cannabis growers, testing labs, processors distributors and retailers, and counties would be able to opt out of allowing marijuana businesses to operate in their jurisdiction.

Patients would be able to purchase up to a 90 day supply of cannabis from licensed dispensaries, which would be regulated by the state Department of Alcoholic Beverage Control (ABC). That department would also be renamed the Division of Alcohol and Cannabis Control.

The secretary of the Department of Health and Environment would have to develop regulations to administer the medical cannabis program by July 1, 2023.

Gov. Laura Kelly (D), for her part, supports medical cannabis and would be expected to sign a bill if it arrived on her desk.

She pushed a separate proposal that would legalize medical cannabis and use the resulting revenue to support Medicaid expansion, with Rep. Brandon Woodard (D) filing the measure on the governor’s behalf.

Kelly has she said she wants voters to put pressure on their representatives to get the reform passed. And with the small timeline before the session’s end, the time to apply that pressure would be now.

While both pieces of legislation would make it so Kansas would join the vast majority of states that have legal medical marijuana markets, advocates view them as restrictive, particularly as it concerns the limited methods of consumption that would be permitted.

A separate medical cannabis legalization bill was introduced by the Senate Commerce Commerce in February, though it has not seen action beyond being referred to another panel.

Alabama Governor Will Give Medical Marijuana Bill A ‘Thorough’ Review, Spokesperson Says

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