Rep. Maxine Waters (D-CA) said marijuana banking legislation will advance to the House floor despite the fact that some major advocacy groups are calling for a delay until more comprehensive cannabis reform is first passed.
The congresswoman, who chairs the House Financial Services Committee, told Marijuana Moment in an interview on Wednesday that she appreciates the concerns outlined by groups including the ACLU and Center for American Progress, which released a letter on Tuesday stating that they were worried that passing the banking bill would undermine broader reform efforts.
The problem, she said, is that Judiciary Committee Chairman Jerrold Nadler (D-NY) hasn’t yet advanced the more wide-ranging legalization legislation those groups favor, leaving House leadership in a bind as they plan out the floor calendar.
“I know that leadership is in support of the Judiciary moving as fast as they possibly can with the bill that would deal with those civil rights issues,” she said. “We just can’t get from Judiciary exactly when they are going to do that.”
“And so what’s going to happen is Mr. Perlmutter’s bill that gives safe harbor to the banks is going to move, and whenever Judiciary gets that bill done, then it’s going to move too with the same kind of support that Mr. Perlmutter’s bill is going to get,” she said, referring to the Secure and Fair Enforcement (SAFE) Banking Act sponsored by Rep. Ed Perlmutter (D-CO).
“We’ve been working on it for six years—the banks are reticent to deal with the cannabis industry. The states are moving forward very quickly to authorize and support cannabis. All this cash is piling up. And so something has to be done to give safe harbor to the banks.”
Perlmutter’s bill was approved by Waters’s House Financial Services Committee with a strong bipartisan vote in March, and certain advocates expected the full chamber to take it up before the summer recess. While that didn’t pan out, Majority Leader Steny Hoyer (D-MD) informed the Democratic Caucus last week that he intends to hold a floor vote by the end of the month, his staff confirmed to Marijuana Moment. A vote has not yet been scheduled, however.
That announcement came one day after Senate Banking Chairman Mike Crapo (R-ID) said his panel would vote on cannabis banking reform, though he declined to provide a timeline beyond saying that he wants to get it done by the end of the year.
Hoyer’s announcement took some advocates by unpleasant surprise, as they were under the impression that something like Nadler’s Marijuana Opportunity, Reinvestment and Expungement (MORE) Act—which addresses social equity and restorative justice—would get a vote before the House worked to pass what’s viewed as a largely industry-friendly banking bill.
“I just think it’s a matter of timing. I think the Judiciary bill, whenever it’s ready, it’s going to move as quickly as they get it ready, and it will be supported,” Waters said.
Perlmutter echoed that point in an interview with Marijuana Moment on Wednesday.
“We’ve had this passed [out of committee] for six months and certainly support all of what they’re trying to do,” he said, referring to his banking bill and the groups’ call for comprehensive reform. “But we’ve got to get these things moving.”
“That’s what I’m trying to do, and I think we’re going to be successful.”
The congressman also said he agreed with Waters about the need for Judiciary to act.
“I think they’re prepared to set a markup and move it, and I’m a cosponsor of that bill. But I want to get this one going,” he said. “This sort of breaks the ice for everything else. That’s been what we’ve talked about for a long time, and this one we’ve been working on a long time.”
Rep. Matt Gaetz (R-FL), a close ally of the Trump administration, had sharp words for groups urging a delay on a marijuana banking vote, stating that it’s “deeply disappointing that instead of adding to the coalition of the marijuana reform movement, we continue to find new and destructive ways to divide the coalition.”
“It is unfortunate that some of the most left-wing elements of our pro-marijuana reform coalition are now making demands beyond freedom,” he said. “The way we attract folks on the libertarian and right to our movement is to embrace freedom and to show it’s both popular and helpful to people in their lives.”
But while the congressman went on to say that calls for social equity and reparations “fatally divide the movement,” he’s also a cosponsor of Nadler’s MORE Act that includes such provisions.
Rep. Eric Swalwell (D-CA) told Marijuana Moment that while he shares the groups’ frustration over inaction on broader reform, he’s going to support the banking bill when it comes to the floor because he has “a lot of constituents who would benefit greatly if we made reform in banking.”
“It’s just hard to look them in the eye and say I’m not going to support legislation that would help you immediately so you can help patients, help people who need it,” he said. “I’m inclined this one to support if it came up for a vote, but I understand the sentiment. I’m frustrated too.”
Jason Ortiz, vice president of the Minority Cannabis Business Association, told Marijuana Moment that while he similarly understands where groups like ACLU are coming from, the banking bill isn’t entirely about bolstering the industry and would also serve disadvantaged communities.
“SAFE banking would open bank financing sources to cannabis companies allowing approved social equity applicants to enter the market without accepting predatory terms from private investors just to open their doors,” he said. “Many entrepreneurs of color are looking to start their businesses immediately and become the success stories that will spur further support and investment in our communities.”
“While I understand and respect the position of our allies in advocacy, current social equity applicants should not be held hostage until we can enact legislation unlikely to pass under the current administration,” he said. “Doing so would give the multi-state operators even more of a head start which will widen the ownership gap in the cannabis industry.”
But Jasmine Tyler, advocacy director of the U.S. Program for Human Rights Watch, which also signed the Tuesday letter to House leaders, took a different view.
“Civil and human rights groups, criminal justice and drug policy advocates, faith leaders, and doctors have all called for the repeal of the US’s racialized marijuana enforcement and start repairing harms done to communities for decades,” she told Marijuana Moment. “For House Leadership to prioritize a bill that would advance banking rights over human rights is a travesty.”
Asked whether she had a message for the groups requesting a delay on the banking legislation, Waters said, “I don’t, except to say that the Democratic Caucus supports ensuring that minorities and others who have been disadvantaged, who’ve been unfairly incarcerated by those marijuana laws, must be supported in ways that will help them to benefit from this new industry.”
“We’re all waiting for the bill. We’re desperately waiting for that bill,” she said. “As soon as this gets ready, we’re all going to get forcefully behind it.”
Justin Strekal, political director of NORML, told Marijuana Moment that Waters is “one of the most effective champions of cannabis reform, from successfully moving the SAFE Banking Act swiftly out of committee earlier this year to being one of the original lead sponsors of the MORE Act.”
“After a successful vote on the banking bill, it will be time for cannabis advocates and the industry to unite behind the MORE Act to ensure passage this Congress,” he said.
“We are encouraged by the comments from Chairwoman Waters,” Neal Levine, CEO of the Cannabis Trade Federation, said. “While both industry and advocacy groups are seeking more substantial reforms, the banking issue is something that can be addressed immediately on a bipartisan basis. This is a move that should be cheered, as it will greatly enhance public safety and protect workers in states that have made the rational choice to end prohibition and regulate the sale of cannabis.”
Aaron Houston contributed reporting from Capitol Hill for this story.
This story has been updated to include comments from Perlmutter, Gaetz, Swalwell, Cannabis Trade Federation and Human Rights Watch.
Photo courtesy of Brian Shamblen.
California Governor Says Marijuana Legalization Is A ‘Civil Rights’ Matter Amid Mass Protests Over Racial Injustice
The governor of California discussed systemic racism and injustice that is inspiring mass protests across the country in a Friday speech, and he touted the state’s legalization of marijuana as an example of how it has addressed racial disparities in the criminal justice system.
Gov. Gavin Newsom (D) said at a press conference that he’s “very proud of this state” for going beyond issues such as implicit bias in policing and the “deadly use of force.” California’s leadership helped advance “a conversation about broader criminal justice reform to address the issues of the war on drugs” and “race-based sentencing,” he said.
“That’s why the state was one of the early adopters of a new approach as it relates to cannabis reform. Legalization around adult-use of marijuana,” he said. “It was a civil rights call from our perspective.”
“I was proud to be out in front in those efforts,” he added. “It was about addressing the disparities. It was about addressing incarceration. It was about addressing the ills of this war on drugs.”
Newsom also discussed the racially discriminatory sentencing of crack versus powder cocaine and other mandatory minimum sentencing policies. While the federal disparity was reduced over time since Congress passed the sentencing provision—a policy presumptive Democratic presidential nominee Joe Biden helped enacted during his time in the Senate and later sought to undo—California eliminated the distinction in terms of state sentencing in 2014.
Even so, the governor recognized that the reforms the state has enacted to date are “not enough” and more work needs to be done. He’s also not alone in drawing a connection between drug policy reform and racial justice.
Earlier this week, the governor of Virginia said that the passage of marijuana decriminalization legislation this year represents an example of how his state has addressed racial inequities that are inspiring mass protests over recent police killings of black Americans such as George Floyd and Breonna Taylor.
Sen. Cory Booker (D-NJ) also recently said racial disparities in marijuana criminalization is an example of a systemic injustice that underlies the frustration of minority communities.
Last week, 12 House members introduced a resolution condemning police brutality and specifically noting the racial injustices of the war on drugs. It now has 160 cosponsors.
The measure came one week after 44 members of the House sent a letter to the Justice Department, calling for an independent investigation into a fatal police shooting of Taylor in a botched drug raid.
In New York, there’s a renewed push to pass a package of criminal justice reform legislation that includes a bill to legalize marijuana. Sen. Julia Salazar (D) told Marijuana Moment that “in this particular moment, I think what’s the important factor here is that [criminalization] disproportionately impacts black and brown New Yorkers.”
“Because of the criminalization of the use of marijuana, more black and brown New Yorkers have interactions with police than they need to,” she said. “More people end up in the criminal justice system in the first place than is necessary at all.”
Image element courtesy of Gage Skidmore.
American Bar Association Says Firms Working ‘Indirectly’ With Marijuana Industry Should Get COVID Relief
The American Bar Association (ABA) sent a letter to the heads of the Treasury Department and Small Business Administration (SBA) on Friday, urging them to end a current policy preventing law firms that service state-legal marijuana businesses from receiving federal coronavirus relief.
SBA has made clear that cannabis companies are ineligible for its Paycheck Protection Program (PPP) loans—but its policy also bars those that work with marijuana businesses indirectly from getting the aid. ABA, which has nearly 200,000 dues-paying members, said it wants clarification or a formal policy change to make it so indirect businesses are not impacted.
“The ABA supports amending federal law to ensure that lawyers do not face the threat of criminal charges when they represent clients in states that have legalized marijuana,” the organization said. “Even before those changes are made to federal law, lawyers should also not be penalized for providing legal services to cannabis-related businesses that comply with state laws.”
ABA also argued that the policy is excessively broad in that it stipulates that companies that derive any revenue from servicing a cannabis business cannot receive relief during the pandemic. “Thus, a law firm where a single lawyer provided advice to a single marijuana business client on legal issues for a nominal fee would arguably be ineligible under this language for the SBA PPP loan program,” the organization wrote.
ABA’s letter further notes that 78 percent of firms are located in states where marijuana is legal in some form.
“We urge SBA to provide further guidance that it will not treat otherwise eligible businesses, including law firms, as disqualified from the PPP program based solely on having provided legal, financial/accounting, policy, or regulatory advice to a Direct Marijuana Business,” Judy Perry Martinez, ABA’s president, wrote.
Steve Fox, strategic advisor at the Cannabis Trade Federation, told Marijuana Moment that it’s “wonderful to see an organization with the reputation and stature of the ABA engage on this issue.”
“As they note, the SBA guidance is overly broad and unjustly punishes companies and firms all across the country. In fact, in some states, the cannabis industry is so ingrained in the economy, you have many hundreds of companies providing goods or services to cannabis businesses,” he said. “According to the plain language of the SBA guidance, they are all, with very minor exceptions, ineligible for PPP loans.”
“We stand with the ABA in urging the Treasury and Small Business Administration to issue further guidance, clarifying that ‘indirect marijuana businesses’ are eligible for PPP loans. If they fail to do so, Congress should remedy this situation at the earliest possible opportunity,” he added.
In February, ABA’s House of Delegates voted in favor of proposals endorsing pending federal legislation to protect banks that service cannabis businesses and calling for a clarification of rules to ensure that lawyers will not be penalized for representing clients in cases concerning state-legal marijuana activity.
Rep. Earl Blumenauer (D-OR) introduced a bill last month that would fix the COVID-19 relief access problem, calling for SBA eligibility for cannabis businesses and ancillary companies. That came after he led a letter with 34 bipartisan members of the House urging leadership to include the policy change in future coronavirus-related bills.
Sens. Jacky Rosen (D-NV) and Ron Wyden (D-OR) made a similar request to Senate leaders in a separate letter.
Separately, the ABA-supported Secure and Fair Enforcement (SAFE) Banking Act was included in a House-passed COVID-19 relief package last month.
A bipartisan coalition of 34 state and territory attorneys general asked Congress to pass the bill with that language, which would protect banks that service marijuana businesses from being penalized by federal regulators.
The head of the Federal Deposit Insurance Corporation said this week that marijuana business banking represents one of the most “challenging issues that I have encountered” at the agency.
Read ABA’s letter to the Treasury and SBA below:
Bermuda Government Releases Marijuana Legalization Bill For Public Feedback
The government of Bermuda released a draft bill on Wednesday to establish a legal marijuana market in the self-governing British overseas territory.
“Surprising for some, public attitudes have evolved apace with global legislative reforms and in recognition that opening up pathways for new economic opportunities and activity is needed,” Attorney General Kathy Simmons said in a video on the proposal.
Under the proposed legislation, adults 21 and older would be able to possess and purchase up to seven grams of cannabis from licensed retailers.
A regulatory body called the Cannabis Advisory Authority would be responsible for issuing licenses and regulating the market. There would be seven types of licenses available: cultivation, retail, research, import, export, transportation and manufacturing.
Individuals with prior marijuana convictions would not be barred from participating in the industry.
Fees for the licenses would be set in a way designed to both stimulate the territory’s economy while also ensuring that they are not prohibitively expensive for “underserved and marginalized communities,” a summary of the bill states.
People with convictions for possessing seven grams or less would be eligible for expungement.
The Attorney-General and Minister of Legal Affairs, Senator the Hon. Kathy Lynn Simmons, JP has announced new regulations by the Government of #Bermuda to reform Cannabis laws.
— Bermuda Government (@BdaGovernment) June 4, 2020
Last year, Bermudan lawmakers unveiled draft legislation to create a medical cannabis program. Public feedback signaled that people felt the bill imposed excessive regulations and that the territory should more broadly legalize marijuana altogether for adult use.
Now that this new draft legislation has been released, the government is again asking for public input up until July 3. On its site, individuals are prompted with seven specific questions that feedback is being sought on. That includes queries about licensing requirements and penalties.
Premier David Burt, who pledged last year to introduce marijuana legalization legislation, also encouraged individuals to weigh in on the proposed regulations.
We want to hear from you! Share your thoughts by July 3rd.https://t.co/kkGtsuQ1ES
— Premier David Burt (@BermudaPremier) June 5, 2020
“The Government has made a commitment to progressively liberalize cannabis laws in Bermuda and to create economic opportunities for citizens wishing to participate in a regulated cannabis scheme,” the site states. “The Government again wishes to ‘take it to the people’ by commencing a one month public consultation exercise on the proposed scheme.”
The attorney general said in her video that the government plans to “move ahead with a more simplified, regulated cannabis scheme, which builds on the strength of the original medicinal cannabis policy and which embraces the public feedback.”
“The revised proposal with provide for a regulated cannabis program which has been hybridized to meet Bermuda’s requirements while modeling the best available legal provisions in Canada, both provincial and federal, and to a lesser degree, examples from the Caribbean,” she said.
Several Caribbean nations have started exploring marijuana reform in recent years. Importantly, in 2018, the heads of 19 Caribbean nations agreed to “review marijuana’s current status with a view to reclassification,” emphasizing “human and religious rights” issues stemming from criminalization as well as “the economic benefits to be derived” from legalization.
Since then, lawmakers in the dual-island nation of St. Kitts and Nevis said they would be introducing legalization legislation. The government of Trinidad and Tobago brought two cannabis reform bills before Parliament last year—one to decriminalize low-level possession and another to legalize cannabis for medical and religious purposes.
Meanwhile, the governor of the U.S. Virgin Islands has been stressing the need to legalize marijuana in order to generate tax revenue for the U.S. territory’s fiscal recovery from the coronavirus pandemic.
The Jamaican government also recently announced that it will be allowing medical cannabis patients to make marijuana purchases online for pickup at “herb houses” as a means to combat the coronavirus pandemic.
Read the draft bill to legalize marijuana in Bermuda below: