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Key Congressional Chair Says Marijuana Banking Vote Will Happen Over Groups’ Objections

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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.

Civil Rights Groups Urge Congress To Delay Marijuana Banking Vote

Photo courtesy of Brian Shamblen.

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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Congressional Bill Filed To Protect Marijuana Consumers From Losing Public Housing

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A congresswoman on Thursday reintroduced a bill that would allow people living in federally assisted housing to use marijuana in compliance with state law without fear of losing their homes.

As it stands, people living in public housing are prohibited from using controlled substances in those facilities regardless of state law, and landlords are able to evict such individuals. But the bill from Rep. Eleanor Holmes Norton (D-DC) would change that.

It would provide protections for people living in public housing or Section 8 housing from being displaced simply for using cannabis in states that have legalized it for medical or recreational purposes.

“Individuals living in federally assisted housing should not be denied admission, or fear eviction, for using a legal product,” Norton said on Thursday. “Adult use and/or medical marijuana is currently legal in 36 states and the District of Columbia, and over 90 percent of Americans support legalized medical marijuana.”

The legislation would also require the head of the Department of Housing and Urban Development (HUD) to enact regulations that restrict smoking marijuana at these properties in the same way that tobacco is handled.

“HUD, like DOJ, should not be allowed to enforce federal marijuana laws where states have taken action to legalize marijuana,” the congresswoman said, referring to a congressionally approved rider that prevents the Department of Justice from interfering with state medical cannabis laws.

Norton filed earlier versions of the Marijuana in Federally Assisted Housing Parity Act in 2018 and 2019, but they did not receive hearings or votes.

In 2018, a Trump administration official said that she was working to resolve conflicting federal and state marijuana laws as it applies to residency in federally-subsidized housing, but it’s not clear what came of that effort.

Rep. Alexandria Ocasio-Cortez (D-NY) also raised the issue during a committee hearing in 2019, pressing former HUD Secretary Ben Carson on policies that cause public housing residents and their families to be evicted for committing low-level offenses such as marijuana possession.

She pointed to two specific HUD policies: the “one strike” rule, which allows property managers to evict people living in federally assisted housing if they engage in illicit drug use or other crimes, and the “no fault” rule, which stipulates that public housing residents can be evicted due to illicit drug use by other members of their household or guests—even if the resident was unaware of the activity.

Ocasio-Cortez and then-Sen. Kamala Harris (D-CA) also filed legislation that year that would protect people with low-level drug convictions from being denied access to or being evicted from public housing.

Sen. Jeff Merkley (D-OR) also introduced an affordable housing bill last year that included a provision to prevent landlords from evicting people over manufacturing marijuana extracts if they have a license to do so.

Read the text of the marijuana housing legislation below: 

Norton cannabis housing bill by Marijuana Moment

Drug Possession Is Officially A Crime Again In Washington, But As A Misdemeanor Instead Of Felony

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FDA Clears Researchers To Study MDMA Use By Therapists Being Trained In Psychedelic Medicine

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The Food and Drug Administration (FDA) has already authorized clinical trials into the therapeutic potential of MDMA for patients with post-traumatic stress disorders—but now it’s given the green light to a psychedelics research institute to expand its studies by administering the substance to certain therapists.

Volunteer therapists who are being trained to treat people with PTSD will be able to participate in the Phase 1 trials to gain personal experience with the treatment option. This is a complementary research project that comes as the Multidisciplinary Association for Psychedelic Studies (MAPS) is in the process of conducting Phase 3 trials involving people with the disorder.

The development comes months after Canadian regulators announced that certain therapists would be allowed to take psilocybin in order to gain a better understanding of the psychedelic when treating patients.

MAPS sought permission to proceed with the therapist-specific trials in 2019, but FDA placed them on a 20-month hold because of concerns about the merits, risks and credentials of investigators. MAPS appealed that hold, providing evidence about the study’s scientific value and ability of its staff, and FDA cleared them on Tuesday.

The organization “chose to dispute” FDA’s hold not just because of the impact it had on the planned studies, “but in an attempt to resolve an ongoing issue with the FDA regarding investigator qualifications across studies,” it said in a press release on Wednesday.

“While the term ‘dispute’ may seem adversarial, this process can actually strengthen the relationship and trust between us and our review Division and ensures the Division has support on this project from the [FDA] Office of Neuroscience,” MAPS Public Benefit Corporation (PBC) CEO Amy Emerson said. “This decision demonstrates how our strategic, data-driven strategy in challenging the FDA rulings can be successful.”

Now MAPS is able to launch the Phase 1 clinical trials into MDMA-assisted therapy for therapists.

It will be designed to “measure development of self-compassion, professional quality of life, and professional burnout among clinicians delivering the treatment to patients,” the association said.

Getting personal experience with the substance “is widely considered to be an important element in preparation and training to deliver psychedelic-assisted therapies.”

This will “support the goals of the MDMA Therapy Training Program to provide comprehensive training to future providers,” and it “builds capacity to deliver quality, accessible care to patients, pending approval of MDMA-assisted therapy as a legal prescription treatment,” MAPS PBC Director and Head of Training and Supervision Shannon Carlin said.

FDA first granted MAPS’s request for an emergency use authorization for MDMA in PTSD in 2017. The organization expects to complete its Phase 3 trails in 2022.

The scientific expansion move also comes as the psychedelics decriminalization movement continues to build in the U.S.

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Missouri Regulators Derail Medical Marijuana Business Ownership Disclosure Effort With Veto Threat

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Missouri regulators say they feel requiring medical marijuana business license ownership disclosures under a House-approved amendment could be unconstitutional, and they may urge the governor to veto the legislation. 

By Jason Hancock, Missouri Independent

An effort by lawmakers to require disclosure of ownership information for businesses granted medical marijuana licenses was derailed on Thursday, when state regulators suggested a possible gubernatorial veto.

On Tuesday, the Missouri House voted to require the Department of Health and Senior Services provide legislative oversight committees with records regarding who owns the businesses licensed to grow, transport and sell medical marijuana.

The provision was added as an amendment to another bill pertaining to nonprofit organizations.

Its sponsor, Rep. Peter Merideth, D-St. Louis, said DHSS’s decision to deem ownership records confidential has caused problems in providing oversight of the program. He pointed to recent analysis by The Independent and The Missourian of the 192 dispensary licenses issued by the state that found several instances where a single entity was connected to more than five dispensary licenses.

The state constitution prohibits the state from issuing more than five dispensary licenses to any entity under substantially common control, ownership or management.

On Thursday, a conference committee met to work out differences in the underlying bill between the House and Senate.

Sen. Eric Burlison, a Republican from Battlefield and the bill’s sponsor, called the medical marijuana amendment an “awesome idea. I think it’s awesome.”

However, he said opposition from the department puts the entire bill in jeopardy.

“The department came to me,” he said, “and said they felt that this was unconstitutional.”

DHSS has justified withholding information from public disclosure by pointing to a portion of the medical marijuana constitutional amendment adopted by voters in 2018 that says the department shall “maintain the confidentiality of reports or other information obtained from an applicant or licensee containing any individualized data, information, or records related to the licensee or its operation… .”

Alex Tuttle, a lobbyist for DHSS, said if the bill were to pass with the medical marijuana amendment still attached, the department may recommend Gov. Mike Parson veto it.

The threat of a veto proved persuasive, as several members of the conference committee expressed apprehension about the idea of the amendment sinking the entire bill.

Merideth said the department’s conclusion is incorrect. And besides, he said, the amendment is narrowly tailored so that the information wouldn’t be made public. It would only be turned over to legislative oversight committees.

Rep. Jered Taylor, R-Republic, chairman of the special committee on government oversight, said the amendment is essential to ensure state regulators “are following the constitution, that they’re doing what they’re supposed to be doing.”

The medical marijuana program has faced intense scrutiny in the two years since it was created by voters.

A House committee spent months looking into widespread reports of irregularities in how license applications were scored and allegations of conflicts of interest within DHSS and a private company hired to score applications.

In November 2019, DHSS received a grand jury subpoena, which was issued by the United States District Court for the Western District. It demanded the agency turn over all records pertaining to four medical marijuana license applications.

The copy of the subpoena that was made public redacted the identity of the four applicants at the request of the FBI. Lyndall Fraker, director of medical marijuana regulation, later said during a deposition that the subpoena wasn’t directed at the department but rather was connected to an FBI investigation center in Independence.

More recently, Parson faced criticism for a fundraiser with medical marijuana business owners for his political action committee, Uniting Missouri.

The group reported raising $45,000 in large donations from the fundraiser. More than half of that money came from a PAC connected to Steve Tilley, a lobbyist with numerous medical marijuana clients who has been under FBI scrutiny for more than a year.

This story was first published by Missouri Independent.

GOP Senator Who Trashed Marijuana Banking Amendment Years Ago Is Now Cosponsoring Reform Bill

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