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Key GOP Senate Chairman Says It’s Time To Fix Marijuana Industry Banking Issues

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The Republican chair of the Senate Banking Committee said this week that he’s on board with resolving financial services issues in the marijuana industry—though he suggested it may be accomplished through different vehicles than what advocates have been pushing for.

Sen. Mike Crapo (R-ID) told Wikileaf he agrees the federal government must find a way to enable banks to service cannabis businesses in legal states without being penalized by federal regulators.

But while a bipartisan proposal that would accomplish that is already on the table—with a Senate version of the Secure and Fair Enforcement (SAFE) Banking Act being cosponsored by nearly a third of the body—Crapo floated the idea that his chamber might instead pursue separate legislation or even seek an administrative fix for the issue rather than pass a bill.

“I think all the issues got well vetted” at a hearing his panel held last month, the chairman told reporter Matt Laslo. “We now need to, I think, move forward and see if there’s some way we can draft legislation that will deal with the issue.”

“There are other ways it could be solved,” he added. “For example regulatory—they could deal with the issue at the Department of Justice, but I don’t know.”

While Crapo represents one of the only states in the U.S. that has not implemented even modest cannabis reforms, he has appeared increasingly interested in finding a solution to the banking problem. Because marijuana remains federally illegal, financial institutions are wary of taking on state-legal cannabis companies as clients, which has forced many to operate on a largely cash-only basis.

That the chair even decided to hold a committee hearing on cannabis industry banking access took reform advocates by surprise, given that he previously declined to commit to hosting such a forum while marijuana remains federally illegal.

“I appreciate Senator Crapo’s support for taking action and am pleased to see bipartisan and bicameral support for the SAFE Banking Act continue to grow,” Rep. Ed Perlmutter (D-CO), sponsor of the House version of the bill, told Marijuana Moment. “I look forward to swift passage of the SAFE Banking Act through the House and working with Senator Crapo and others to ensure the Senate also takes action on this important issue.”

According to a source familiar with legislative talks around the banking issue, lawmakers are considering a number of potential amendments to the SAFE Banking Act that could bolster its support in a chamber controlled by Majority Leader Mitch McConnell (R-KY)—a champion of legalizing hemp but not its “illicit cousin” marijuana.

That includes possible provisions to address how to navigate banking transactions between states that have and haven’t legalized cannabis and developing Financial Crimes Enforcement Network guidance. Also on the table are issues related to cannabis edibles and marijuana’s appeal to children, the source said.

A separate source challenged Crapo’s proposal to pursue reform through administrative channels, arguing that such a process wouldn’t be feasible because a true marijuana banking fix would require a statutory change.

Nonetheless, advocates welcomed the chairman’s comments as a signal that it is possible to move cannabis-related legislation in the 116th Congress.

“Senator Crapo’s willingness to hold a hearing recently on the SAFE Banking Act was very encouraging,” Michael Correia, director of government relations for the National Cannabis Industry Association, told Marijuana Moment. “We’re thrilled to learn that he is open to solving this important issue and we are looking forward to working with the senator and finding a policy solution.”

Justin Strekal, political director of NORML, told Marijuana Moment that the chairman’s “acknowledgement of, and now apparent support for, reform in regards to state-legal enterprises could be a watershed moment for this Congress.”

“If [the SAFE Banking Act] passes the Senate, it will become law and disproportionally benefit small businesses who are currently unable to navigate the dysfunctional status-quo without basic financial services,” Strekal said. “This will be good for the nascent cannabis industry and much more importantly, the consumers that they serve.”

Senate Hearing Represents A Step Toward Providing Marijuana Banking Access

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

Andrew Yang Peddles Marijuana-Themed Presidential Campaign Merchandise

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2020 candidate Andrew Yang announced on Saturday that his campaign for the Democratic Party’s presidential nomination is rolling out a line of marijuana-themed merch.

The limited edition products blend Yang’s love of mathematics with his support for cannabis reform. A t-shirt being offered for $30 simply says, “Math. Money. Marijuana.” And a now-sold-out baseball cap says “Math” on the front and displays a cannabis leaf on back. There’s also a bumper sticker that says, “Legalize Marijuana.”

Please visit Forbes to read the rest of this piece.

(Marijuana Moment’s editor provides some content to Forbes via a temporary exclusive publishing license arrangement.)

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Buttigieg Pledges To Decriminalize Possession Of All Drugs In First Term As President

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South Bend, Indiana Mayor Pete Buttigieg released a comprehensive plan on Friday that calls for “decriminalizing all drug possession” in his first presidential term as a means to combat the opioid epidemic and treat addiction as a public health, rather than criminal justice, issue.

Decriminalization is just one action the 2020 Democratic presidential candidate said he’d pursue in order to reform the country’s mental health care system and bolster substance abuse treatment. His plan also includes proposals to reduce sentences for drug offenses other than possession, increase access to the opioid overdose reversal drug naloxone and make it easier to implement syringe exchange programs.

Buttigieg’s “Healing and Belonging in America” plan emphasizes the need to divert people suffering from addiction away from prisons and into treatment. He said he’d accomplish that by expanding diversionary programs and evidence-based training “for drug courts, mental health courts, and other alternatives to incarceration for justice-involved persons.”

The goal of decriminalization and diversion is to reduce “the number of people incarcerated due to mental illness or substance use by 75 percent in the first term.”

Under his plan, sentencing reform for drug offenses other than possession would be applied retroactively and coupled with expungements for past convictions. Buttigieg pointed to research demonstrating that “incarceration for drug offenses has no effect on drug misuse, drug arrests, or overdose deaths” and instead “actually increases the rate of overdose deaths.”

“We cannot incarcerate ourselves out of this public health problem.”

“To ensure that people with a mental illness or substance use disorder can heal, we will decriminalize these conditions,” the proposal states. “When someone is undergoing a crisis or is caught using a drug, they should be treated by a health professional rather than punished in a jail cell.”

“All presidential candidates should join Pete Buttigieg in recognizing that the criminalization of people for their drug use is wrong and simply bad policy,” Maria McFarland Sánchez-Moreno, executive director of the Drug Policy Action, said in a press release. “Possession of drugs for personal use is the single most arrested offense in the United States, eclipsing arrest rates for any other offense. With overdose numbers skyrocketing and entire communities, disproportionately black or brown, suffering from criminalization, it’s time for policymakers to shift gears. Taking an evidence-based, health-centered approach to address this crisis is not only true leadership – it’s common sense.”

The mayor also made harm reduction policies a key component of his strategy. He said take-home naloxone programs would be expanded to all 50 states by 2024 and that harm reduction services would be expanded “to reduce overdose deaths and the spread of infectious diseases related to needle sharing.”

The plan would make naloxone “broadly available in order to reverse overdoses” and remove “legislative and regulatory restrictions on the use of federal funds for syringe service programs.”

Buttigieg said the federal government should provide funding for state and local health departments to purchase the medication, make sure that it’s “available in public spaces and workplaces” similar to first aid kids and encourage “co-prescribing of naloxone with opioids, either by individual physicians or direct dispensing by pharmacists.”

Existing federal law makes it difficult to establish syringe exchange programs, in part because federal funds can’t be used to buy needles. The restrictions “hamper state and local responses, both because they limit resources and because they convey a negative message about the value of these programs, despite overwhelming scientific evidence that they can prevent transmission of HIV and hepatitis.”

In addition to lifting those barriers, the candidate said the Centers for Disease Control and Prevention “would also work with states to remove any criminal liability for those participating in” syringe exchange programs.

“Harm reduction programs are a critical part of any effective response to the opioid and injection drug use crisis. They minimize the negative impact of drug use without encouraging it, while reducing other side effects of drug use. In particular, this means access to syringe service programs for people who inject drugs, that link them to treatment, and provides access to sterile syringes. These programs help prevent transmission of HIV, viral hepatitis, and other infectious diseases associated with needle sharing, and reduce overdoses by deploying medication such as naloxone that help reverse the effects of opioids.”

One harm reduction policy that didn’t make the cut in Buttigieg’s plan is safe injection sites, where people could use illicit drugs under the supervision of medical professionals who could reverse overdoses and recommend treatment options. Sens. Bernie Sanders (I-VT) and Elizabeth Warren (D-MA), who are also running for the Democratic nomination, both proposed legalizing such facilities as part of criminal justice reform plans they released this month.

“Decades of failed mental health and addiction policy, coupled with mass incarceration that criminalized mental illness and drug use, have left us with a mental health and addiction care system so broken that today there are more people with serious mental illness in prisons than in treatment facilities,” Buttigieg said.

The candidate also made ending incarceration for drug possession—as well as legalizing marijuana—central principles of his previously released criminal justice reform plan, which he released last month.

But while the prior plan did not explicitly describe the move as “decriminalizing” drugs, even though advocates commonly use that word to refer to policies that remove the threat of being imprisoned for possession, the new document does use that terminology—signaling a shift in clarity as Buttigieg continues to develop his campaign messaging.

In other instances, he borrowed language from his criminal justice reform plan, specifically as it concerns how criminalizing drug use can increase rates of overdose, for his mental health proposal.

“Despite equal rates of use, Black Americans are nearly four times as likely to be arrested for using marijuana,” the criminal justice plan states. “Research shows that incarceration for drug offenses has no effect on drug misuse, drug arrests, or overdose deaths. In fact, some studies show that incarceration actually increases the rate of overdose deaths.”

Buttigieg mentioned that, as with drug offenses, black people are also more likely to die from overdoses. And that’s due to “the current broken system that criminalizes mental illness and addiction” that was “built during the crack epidemic of the 1980s.”

Elizabeth Warren’s Criminal Justice Plan Involves Legalizing Marijuana And Safe Injection Sites

This story was updated to include comment from the Drug Policy Action.

Photo courtesy of Flickr/Gage Skidmore.

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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White House Drug Officials Say Legal Marijuana Is Up To States

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Two top federal drug officials, including the White House drug czar, recently said that marijuana legalization should be left up to states.

The comments stand out coming from the Office of National Drug Control Policy (ONDCP), which has historically played a central role in defending blanket federal prohibition.

Jim Carroll, the Trump-appointed drug czar who directs the administration’s drug policies, told Fox 59 reporter Kayla Sullivan that he considers legalization a states’ right issue. He added that he’d like to see targeted education campaigns concerning cannabis use during pregnancy and underage usage as well as research into impaired driving.

It’s a particularly notable position given that federal law stipulates that the drug czar is required to “take such actions as necessary to oppose any attempt to legalize the use of a substance” listed as Schedule I under the Controlled Substances Act, including marijuana.

Even if Carroll’s remarks arguably don’t directly violate that statute, they are significant in that he doesn’t seem to have taken the opportunity to proactively oppose state legalization efforts when asked by a reporter.

Anne Hazlett, senior advisor at ONDCP, also weighed in on cannabis legalization on Wednesday, telling CentralIllinoisProud.com that marijuana legalization is “a state decision.”

“Marijuana is an ongoing challenge that is being addressed in many of our states,” she said. “This is a state decision, and we would like to see additional research done so that these decisions being made at a state level are being made in a manor that is fully informed.”

Though the comments from Carroll and Hazlett seem to reflect an evolving understanding of the federal government’s role in imposing prohibition on the states, the ONDCP director has previously made clear he’s not enthusiastic about the burgeoning legal market.

During a House Committee on Oversight and Reform hearing in May, Carroll raised concerns about THC potency in marijuana products, saying “the marijuana we have today is nothing like what it was when I was a kid, when I was in high school.”

“Back then the THC, the ingredient in marijuana that makes you high, was in the teens in terms of the percentage,” he said. “Now what we’re seeing is twice that, three times that, in the plant.”

He also said that more research is needed and that the Drug Enforcement Administration as well as the Department of Health and Human Services are “working hard to make sure that we understand the impact of legalization of marijuana on the body.”

Federally Funded Journal Exposes How Marijuana Prohibition Puts Consumers At Risk

Photo courtesy of Philip Steffan.

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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