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Key Senate Chairman Lays Out Possible Marijuana Banking Bill Changes

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A powerful Senate committee chairman said on Wednesday the he opposes House-passed marijuana banking legislation and laid out potential changes he would like to see to the bill before he takes it up in his panel.

Among other amendments being floated for public feedback is a 2 percent THC potency limit on products in order for cannabis businesses to qualify to access financial services as well as blocking banking services for operators that sell high-potency vaping devices or edibles that could appeal to children.

“I remain firmly opposed to efforts to legalize marijuana on the federal level, and I am opposed to legalization in the State of Idaho,” Sen. Mike Crapo (R-ID), who chairs the Senate Banking Committee, said in a press release. “I also do not support the SAFE Banking Act that passed in the House of Representatives. I have significant concerns that the SAFE Banking Act does not address the high level potency of marijuana, marketing tactics to children, lack of research on marijuana’s effects, and the need to prevent bad actors and cartels from using the banks to disguise ill-gotten cash to launder money into the financial system. I welcome input from all interested parties on how to thoughtfully address these concerns.”

The Secure And Fair Enforcement (SAFE) Banking Act, which would shield banks from being punished by federal regulators for working with state-legal marijuana businesses, passed the House in September with strong bipartisan support.

Crapo’s committee held a hearing on cannabis businesses’ access to financial services in July, though he had previously said that he did not support taking up the legislation in his panel while marijuana remains federally illegal. He then said he wanted to bring it up by the end of 2019, though later indicated in an interview with Marijuana Moment last month that impeachment could delay things. Now, he is taking the step of floating amendments to the House-passed proposal before moving forward with a vote.

The new document from the chairman largely tracks with comments he made in another Marijuana Moment interview in October in which he said laid out some areas of concern.

“The things we’re looking at are, first of all, to make sure we improve and clarify the interstate banking application of all of this,” Crapo said at the time. “Secondly, money laundering issues with regard to legacy cash to make sure how that is managed properly. [Financial Crimes Enforcement Network] issues and other related issues. And then finally the health and safety issues about what is going to be banked.”

“Take tobacco for example, every state I think has some kind of regulatory parameters around the utilization of tobacco, even if it’s just an age limit on who can purchase it or what have you and the types of products that are going to be allowed,” he continued. “That gets into a legal issue that I think the states need to be more engaged in, but it also impacts the question on what would be banked. Those kinds of issues—health and safety, interstate commerce and money laundering.”

Crapo is also floating new federal studies on marijuana and its effects, clarifying hemp businesses’ banking access and measures to deal with legacy cash and interstate commerce, among other areas for potential amendments. He also suggested that measures requiring studies on study on diversity and inclusion in the cannabis industry be removed from the legislation.

“I appreciate Chairman Crapo’s concerns and willingness to work on this important issue. However, there is an urgent public safety risk facing the majority of communities and Americans today that needs to be resolved, and I believe our bill, which passed the House with 321 Democratic and Republican votes, responsibly addresses the conflict between state marijuana laws and federal banking laws,” said Rep. Ed Perlmutter (D-CO), who is the lead sponsor of the SAFE Banking Act in the House. “This issue requires a pragmatic approach that takes into the account the will of voters across the country. I look forward to working with Chairman Crapo and my colleagues in the Senate as we work to resolve these differences and enact legislation to protect businesses, residents and communities.”

Legalization advocates were not pleased with the proposals.

“These guidelines are essentially gutting the intention of this bill,” National Cannabis Industry Association Director of Government Relations Michael Correia told Marijuana Moment.

“While the chairman may oppose broader cannabis policy reform, he clearly recognizes the problems created by lack of access to banking services,” he said. “The SAFE Banking Act, which has already been passed by an overwhelming bipartisan majority of the House, addresses many of the chairman’s concerns, particularly public safety and transparency. We’re happy to discuss these items with the Senate Banking Committee in a markup, but every day that goes by without addressing this particular issue results in small businesses suffering and unnecessarily puts people’s lives at risk.”

Financial services industry trade associations also reacted to the news.

“We respect Chairman Crapo’s request for additional public input on the SAFE Banking Act, and we look forward to providing the Senate Banking Committee with the information it needs,” James Ballentine, the executive vice president of congressional relations for the American Bankers Association, said in a statement. “ABA, like many other stakeholders, has already provided the committee relevant information on several of the issues identified by the chairman including legacy cash, interstate commerce and ‘Operation Chokepoint.’ We continue to believe that the SAFE Banking Act responsibly addresses the current legal limbo over cannabis banking, and a strong bipartisan majority in the House shares that view. We urge the committee to gather this information in a timely manner so the Senate can follow the House’s lead and pass legislation that will help protect communities across the country from an increasing public safety threat.”

Ryan Donovan, chief advocacy officer for the Credit Union National Association, said that his group “appreciate[s]” Crapo sharing his concerns.

“America’s credit unions are eager to continue engaging with the chairman as he seeks a solution that enhances community safety through access to mainstream financial services,” he said.

Crapo is asking interested parties to send feedback on the new proposals to [email protected], though his office did not list a date by which responses are requested.

Read Crapo’s full statement on marijuana banking below:

Chairman Crapo Outlines Concerns with Cannabis Banking Legislation

Requests feedback on potential changes to address public health and safety

WASHINGTON – Senate Banking Committee Chairman Mike Crapo (R-Idaho) is inviting public feedback on ways to address public health and money laundering concerns with cannabis banking. Input is also requested on “Operation Choke Point,” an Obama-era initiative in which federal agencies devised and relied upon a list of politically disfavored merchant categories (e.g., firearm manufacturers, payday lenders, etc.) with the intent of “choking-off” these merchants’ access to payment systems and banking services.

“I remain firmly opposed to efforts to legalize marijuana on the federal level, and I am opposed to legalization in the State of Idaho,” said Chairman Crapo. “I also do not support the SAFE Banking Act that passed in the House of Representatives. I have significant concerns that the SAFE Banking Act does not address the high level potency of marijuana, marketing tactics to children, lack of research on marijuana’s effects, and the need to prevent bad actors and cartels from using the banks to disguise ill-gotten cash to launder money into the financial system. I welcome input from all interested parties on how to thoughtfully address these concerns.”

Currently, 33 states have some form of legal marijuana for a variety of uses. This has created challenges for businesses in those states and has resulted in increased pressure for depository and financial institutions to provide financial services to both state-sanctioned businesses and ancillary services providers that may provide services to state-sanctioned businesses. The ancillary service providers offer a variety of services to state-sanctioned businesses, such as legal services, plumbing services, fertilizers and other agricultural supplies, real estate, and leasing, among many others. As a result, Senators Jeff Merkley (D-Oregon) and Cory Gardner (R-Colorado) introduced S. 1200 on April 11, 2019. While marijuana would still be illegal at the federal level, this proposed legislation seeks to provide legal certainty for banks who wish to serve not only marijuana companies, but also the ancillary service providers, meaning that banks can accept cash from legally-operating state cannabis companies and related service providers without the fear of adverse actions being taken against them by federal financial regulators.

On July 23, 2019, the Senate Banking Committee held a hearing titled, “Challenges for Cannabis and Banking: Outside Perspectives.” At the hearing, Senator Crapo discussed his concerns with the public health and safety issues surrounding marijuana; legacy cash and money laundering; FinCEN guidance and rulemaking; interstate commerce and banking; and initiatives similar to “Operation Choke Point.”

Options for addressing these concerns include, but are not limited to, the following:

    1. Add public health and safety solutions as a requirement for banks to do business with legally-operating state cannabis companies. Options to consider include THC potency; clear and conspicuous disclosures on products; marketing; effects on minors, unborn children and pregnant women; and age restrictions, among other considerations.
    2. Prevent bad actors and cartels from using legacy cash and the financial system to disguise ill-gotten cash or launder money.
    3. Update 2014 FinCEN rulemaking and guidance regarding marijuana-related businesses, and ensure FinCEN has all of the necessary tools it needs to prosecute money launderers and promulgate rulemakings.
    4. Respect state rights in interstate commerce and banking for institutions who operate in multiple states with different state rules.
    5. Eliminate “Operation Choke Point” and preventing future “Operation Choke Point” Initiatives. Under fear of retribution, many banks have stopped providing financial services to members of lawful industries for no reason other than political pressure, which takes the guise of regulatory and enforcement scrutiny.

Public feedback is requested on the following issues that include potential options for addressing concerns and questions outlined below. Interested parties may submit proposals to Committee staff at [email protected]

Issue 1: Options for addressing public health and safety concerns.

There is a lack of federal research evaluating marijuana and its effects. The National Institute on Drug Abuse has found that marijuana use significantly impairs a user’s judgment, motor skills and reaction time. Other studies have found a direct relationship between blood THC concentration and impaired driving ability. Additionally, the Surgeon General released an advisory on Marijuana’s Damaging Effects on the Developing Brain, noting that THC binds to receptors in the brain, producing a euphoria and a variety of harmful effects, including intoxication, and memory and motor impairments. The Surgeon General also noted the harmful effects of THC use during pregnancy and on young developing brains. Surgeon General Adams also released an Advisory on e-cigarette use among youth, and the recent surge in the market, which he states is a cause for great concern.

The appropriate federal agencies shall conduct a national study on the effects of marijuana and publicly report on considerations related to public health and safety of cannabis, cannabis products and their delivery mechanisms, including as it pertains to the marketing and varying potency of cannabis and cannabis products, particularly, but not limited to, minors, pregnant women and effects on unborn children. The federal government agencies, within the study, should also make recommendations on the manufacturing and marketing practices of the cannabis industry to minimize their appeal to minors and harm to minors, pregnant women and unborn children.

The studies shall include the following:

a. The types and delivery mechanisms (e.g., smoking, vaping, edibles, drinking, etc.) for all cannabis and cannabis products currently available or under development in the marketplace;

b. The potency of the cannabis and cannabis products, available in their final form, and how the potency has changed over time, including how it impacts addiction;

c. How various potencies and serving sizes may impact individuals’ health and safety, and whether different potencies and serving sizes are harmful to individuals’ health and safety, including how human physiology affects impairment, particularly as it relates to minors and pregnant women;

d. How different types of products and delivery mechanisms have affected minors’ access to cannabis and cannabis products, and how it impacts purchasing decisions over an individual’s lifetime;

e. The degree to which different levels of potency, serving sizes or consumption impair individuals’ judgment or cognitive reasoning, and trends of the prevalence of individuals operating a vehicle or machinery under the influence of cannabis; and

f. The extent to which other jurisdictions with various levels of cannabis legalization have made determinations, as reflected in law or public policy, on the health and safety effects of cannabis or cannabis products, require disclosure of potency or serving sizes, and have restricted or otherwise limited the potency of cannabis cultivated, sold, or purchased in their respective jurisdictions.

Question: Are there any other additional health considerations, other than those explicitly stated in the outline, that should be considered, and which federal agencies are most appropriate to be involved in the aforementioned study?

Considerations for addressing health and safety concerns associated with financial institutions who provide financial services to cannabis-related legitimate businesses:

a. Each state must implement clear and conspicuous disclosure of THC potency of cannabis and cannabis products (on a percentage and milligram basis in final products) through a label on the final packaged products at the point of sale. Among the contents of any state labeling requirements should be proper warnings, contaminants, potency and serving sizes, and ingredients;
b. A potency threshold of 2 percent THC content on a percentage and milligram basis in the final product;
c. The 2 percent threshold will apply until each state legislature affirmatively determines the appropriate level of THC potency for cannabis and cannabis products (on a percentage and milligram basis in final products) that appropriately addresses the health and safety risks to its citizens;
d. Preventing distribution to anyone under the age of 21;
e. Preventing the banking of edibles that are in many kid-friendly forms like candies and gummies; and
f. Preventing the banking of high potency THC vape and e-cigarette products.

Question: Are there any other additional health considerations that should be attached to the safe harbor?

Issues 2, 3: Options for addressing legacy cash and money laundering.

FinCEN Rulemaking and Guidance: Amend the Act to direct FinCEN to promulgate a rulemaking within a specified period of time, after enactment of this Act, to address issues pertaining to the provision of financial services to the marijuana industry and ancillary businesses, including Suspicious Activity Reports (SARs) and dealing with legacy cash.

FinCEN will retain meaningful oversight authority of the activities between cannabis-related legitimate businesses (CRLBs) and their financial institutions. FinCEN will be required to promulgate rulemakings and update their guidance pertaining to Bank Secrecy Act (BSA) expectations for marijuana-related businesses to address the following:

a. Requiring thorough customer due diligence standards;
b. Thorough processes and procedures to ensure funds from cannabis-related businesses and service providers are not associated with illicit activities;
c. Clearly delineating the BSA obligations of financial institutions when engaging in business with cannabis-related businesses or individuals who engage with cannabis-related businesses, including for indirect relationships such as ancillary businesses;
d. Requiring the filing of SARs in a manner that preserves FinCEN’s ability to address illicit activity; and
e. Clarifying the treatment of hemp.

Additionally, Section 7 of S. 1200 should be amended to ensure that the Federal Financial Institutions Examination Council (FFIEC) must consult with FinCEN on its development of uniform guidance and examination procedures for depository institutions as they relate to CRLBs and service providers.

Suspicious Activity Reports: Amend Section 6 of the Act regarding FinCEN’s guidance to ensure the guidance does not impair the ability of FinCEN to deter illicit activity, consistent with the rulemaking described above.

Question: In such a rulemaking, what additional requirements are needed for financial services firms to ensure that bad actors are not accessing the financial system, the sources of cash entering the financial system are fully understood and validated, Suspicious Activity Reports continue to be appropriately filed, and expectations for indirect relationships are clear commensurate with their risk?

Issue 4: Options for addressing interstate commerce and banking.

Interstate Commerce: Amend the Act to clarify that financial institutions must comply with all applicable laws related to cannabis and cannabis products in each respective state in which they operate, and ensure that nothing in the Act would facilitate interstate commerce of cannabis.

Additionally, given the tension between the state legality of cannabis and federal illegality, it should be made clear that the federal banking regulators should consult with state regulators ahead of any implementation, or give some notice.

Question: Does the bill, as drafted, facilitate interstate commerce? Should there be an explicit statement in the bill clarifying that the bill does not permit interstate commerce of marijuana?

Issue 5: Options for addressing hemp provisions and “Operation Choke Point.”

Add the following new provisions:

a. House hemp provision; and
b. The Financial Institution Customer Protection Act language included in the House-passed version of H.R. 1595, but with the following additional amendments: (1) change the term “may” to “shall”; and amend to reflect and add the following:
(1)An appropriate Federal banking agency shall not formally or informally request or order a depository institution to terminate a specific account or group of customer accounts or to otherwise restrict or discourage a depository institution from entering into or maintaining a banking relationship with a specific customer or group of customers unless –
(A) the institution is engaging in unsafe or unsound practices or violating a rule, law, regulation or other condition imposed in writing due to its relationship with the specific customer.
(B) an appropriate Federal banking agency shall not take any action under (A) with respect to a group or category of customers and shall only take action under (A) after it has made a determination in writing with respect to specific customer that the conditions set forth under (A) are satisfied.
(C) for purposes of (A), reputational risk shall constitute neither an unsafe or unsound practice nor a violation of rule, law, regulation or other condition imposed in writing.

Under (b) Notice Requirement, amend (2) to reflect the following: (2) Justification Requirement – A justification described under paragraph 1(A) should only be based on if the institution engaged in an unsafe or unsound practice or violated a rule, law, regulation or other condition imposed in writing.

Under (c) Customer Notice, add the following: (2) In the written notice and determination, the depository institution shall also provide the determination and justification for why the termination is needed, including any specific laws or regulations, or unsafe and unsound practices, the depository institution believes are being violated by the customer or group of customers.

Question: Do the proposed amendments to the Financial Institution Customer Protection Act, as passed in the House, adequately curb potential future choke point scenarios?

Additional amendments for consideration:

Studies: Strike Sections 8, 9 and 10 directing studies. Section 8 of S. 1200 requires the Federal banking regulators to issue an annual report to congress on diversity and inclusion; Section 9 of S. 1200 requires the Government Accountability Office (GAO) to conduct a study on diversity and inclusion; and Section 10 requires the GAO to conduct a study on the effectiveness of reports on suspicious transactions filed.

Preserving Regulatory Actions: Amend the Act to clarify that federal banking regulators can still take certain actions, including enforcement actions, against depository institutions, such as those actions related to poor underwriting and engaging in unsafe or unsound practices.

###

This story was updated to include reaction from advocates.

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.

Tom Angell is the editor of Marijuana Moment. A 20-year veteran in the cannabis law reform movement, he covers the policy and politics of marijuana. Separately, he founded the nonprofit Marijuana Majority. Previously he reported for Marijuana.com and MassRoots, and handled media relations and campaigns for Law Enforcement Against Prohibition and Students for Sensible Drug Policy. (Organization citations are for identification only and do not constitute an endorsement or partnership.)

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Congressman Visits Marijuana Dispensary On Behalf Of Bernie Sanders’s Presidential Campaign

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A congressman and staffers for Sen. Bernie Sanders’s (I-VT) presidential campaign toured a marijuana dispensary in Las Vegas on Monday and discussed the need for federal cannabis reform.

Rep. Mark Pocan (D-WI), who endorsed Sanders’s bid for the White House last week, shared photos on Twitter from the visit to NuWu Cannabis, a tribal-owned shop that features a consumption lounge and a drive-thru where consumers can buy marijuana products.

“After years of an unjust War on Drugs, it’s time we work to ensure all communities can benefit from legalization—[Sanders’s] marijuana legalization plan will do just that,” the congressman tweeted.

While the 2020 Democratic presidential candidate wasn’t scheduled to attend the shop and has since had to drop campaign stops in order to participate in the Senate’s impeachment trial of President Donald Trump, Pocan and Nevada campaign staff were there on his behalf, Tick Segerblom, a Clark County commissioner and former state senator who helped coordinate the event, told Marijuana Moment.

“We showed him around, explained on how it works, explained how it’s organized under state law,” Segerblom said of Pocan. “He said he’d never seen anything like it.”

The congressman also talked with business owners about the importance of social equity within the marijuana industry. He didn’t purchase or sample any cannabis products, however.

Segerblom said that while Sanders wasn’t able to attend this tour, he believes it’s important for the candidate to participate in such events and talk about his reform agenda to distinguish himself in the race.

“There’s a lot of people who will vote on this issue, and since [former Vice President Joe Biden] has come out against legalizing cannabis, I think it’s a very important issue for him to emphasize,” he said.

It’s fitting that Pocan would tour a tribal-owned cannabis business, as he was the chief sponsor of a 2016 bill that would have protected tribes from losing federal funds if they enact a legal marijuana program. Although the congressman represents Wisconsin, which doesn’t even have a comprehensive medical cannabis program let alone full adult-use legalization, he has cosponsored several cannabis reform bills this Congress, including two that would end federal prohibition.

State-legal dispensaries are getting a lot of high-profile attention from politicians lately. For example, former South Bend, Indiana Mayor Pete Buttigieg visited a Las Vegas marijuana shop last year, Rep. Julia Brownley (D-CA) paid a visit to a California dispensary and Sen. Ron Wyden (D-OR) toured a business that makes CBD-infused chocolates.

New Mexico Governor Says It’s ‘High Time’ To Legalize Marijuana

Photo courtesy of Rep. Mark Pocan.

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New Vermont Bill Would Decriminalize Psychedelics And Kratom

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Vermont lawmakers filed a bill on Wednesday that would decriminalize three psychedelic substances as well as kratom.

Rep. Brian Cina (P/D) introduced the legislation, which would amend state law to carve out exemptions to the list of controlled substances. Psilocybin, ayahuasca, peyote and kratom would no longer be regulated under the proposal.

Cina told Marijuana Moment in a phone interview that he decided to pursue the policy change based on a “belief that I share with many people around the world that plants are a gift from nature and they’re a part of the web of life that humans are connected to.”

“Plants, especially plant medicines, should be accessible to people,” he said. “Use of plant medicine should be considered a health care issue, not a criminal issue.”

While it remains to be seen whether the legislature will have the appetite to pursue the policy change, the bill’s introduction represents another sign that the psychedelics reform movement has momentum. Activists in about 100 cities across the U.S. are working to decriminalize a wide range of entheogenic substances, but the Vermont proposal is unique in that it’s being handled legislatively at the state level.

Text of the bill states that the four substances are “commonly used for medicinal, spiritual, religious, or entheogenic purposes.”

Larry Norris, cofounder of the national psychedelics reform group Decriminalize Nature, told Marijuana Moment that he’s especially encouraged by the use of the word “entheogenic,” a term that advocates are hoping to bring into the mainstream to more accurately describe the type of substances they want to decriminalize.

“It is exciting to see emerging interest at the state legislative level to support decriminalizing natural plants and fungi that are ‘commonly used for medicinal, spiritual, religious, or entheogenic purposes,'” he said. “The fact that the word entheogenic is making its way into the legislative lexicon speaks volumes for the shift in perspective that is happening nationwide.”

“While we were not involved in the drafting of this legislation, we look forward to offering any support and guidance to Representative Brian Cina in Vermont or any future state legislators aiming to decriminalize entheogenic plants and fungi,” Norris said.

Denver became the first city in the nation to decriminalize psilocybin mushrooms last year, followed by a unanimous City Council vote in Oakland to make a wide range of psychedelics among the city’s lowest law enforcement priorities. And while lawmakers have been comparatively slow to raise the issue in legislatures, activists in Oregon are working to put a therapeutic psilocybin initiative on the state’s 2020 ballot and, separately, a measure to decriminalize possession of all drugs with a focus on funding substance misuse treatment. In California, meanwhile, advocates are aiming to put psilocybin legalization before voters in November.

Part of the motivation behind the legislation was “recognizing that the decriminalization of mushrooms seems to be a next step in other places, and thinking that it might have greater success if we can make the point that in the path of decriminalization, the next step after cannabis is psilocybin mushrooms,” Cina said. “It was important for me to make a point about the significance of plants.”

“What it goes back to for me ultimately is that any kind of use of substances should be treated as a health care matter, not a criminal issue,” he said. “Whether those substances are used for treating pain or whether they’re used for seeking pleasure, that is a health care choice, and it’s a waste of society’s resources to criminalize a behavior that goes back to the very roots of our humanity.”

The bill currently has three cosponsors and has been referred to the Judiciary Committee. One of the cosponsors, Rep. Zachariah Ralph (P/D) told Marijuana Moment that he supports “the legalization of psychedelics because prohibition, generally, does not to work, and has continued to be enforced disproportionally against low income and minority communities.”

“Research at Johns Hopkins University and other facilities around the country on the medicinal use of psilocybin mushrooms are showing some promising results as a long term treatment of depression, addiction and anxiety,” he said. “This is especially important today as we deal with increased rates of suicides and drug overdoses across the nation and especially in Vermont.”

The bill’s introduction also comes as Vermont lawmakers express optimism about the prospects of expanding the state’s cannabis law to allow commercial sales.

While Gov. Phil Scott (R) has previously voiced opposition to allowing retail marijuana products to be sold, citing concerns about impaired driving, he recently indicated that he may be open to taxing and regulating the market. And according to top lawmakers in the state, the legislature is positioned to advance a cannabis commerce bill this session, with most members in favor of the reform move.

Vermont made history in 2018 by becoming the first state to pass marijuana legalization through the legislature, albeit with a noncommercial grow-and-give model. Now the question is whether lawmakers there will again make history by taking up psychedelics reform and decriminalizing these substances at the state level for the first time.

“We’ve decriminalized and then legalized and now might be regulating and taxing marijuana, which is a plant medicine,” Cina said. “But there are these other plant medicines that have been left behind.”

A Republican lawmaker in Iowa filed a bill to legalize certain psychedelics for medical purposes last year, but it did not advance.

Marijuana Legalization Will Advance In Connecticut This Year, Top Lawmakers Say

Photo courtesy of Wikimedia/Mushroom Observer.

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Mexican Lawmakers Plan To Pass Amended Marijuana Legalization Bill Before End Of April

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An amended bill to legalize and regulate marijuana sales in Mexico is being circulated among lawmakers, setting the stage for a renewed reform push as the legislature goes back into session next month.

The new proposal, which was jointly submitted by the Justice and Health Committees, would allow adults to possess up to 28 grams of cannabis for personal use and cultivate up to six plants. Individuals could apply for a license to possess more than 28 grams but no more than 200 grams.

While Sen. Ricardo Monreal Ávila of the ruling MORENA party said the measure is not final, it’s a next step in the process. He said he’ll be meeting with Interior Secretary Olga Sánchez Cordero and Julio Scherer, legal advisor to the president, next week to discuss cannabis reform legislation.

Under the proposed bill, those who possess an amount of marijuana between 28 and 200 grams would be charged a fine amounting to roughly $560, while stricter penalties would be imposed for possession of more than 200 grams.

The Mexican Cannabis Institute, a new regulatory body, would be responsible for issuing business licenses and developing rules for the market. The bill also contains provisions aimed at promoting social equity, such as prioritizing cultivation licenses for individuals from communities most impacted by the drug war.

The institute would also be able to issue grants for research into the cultivation of cannabis for commercial use, according to Milenio.

The introduction of this revised legislation comes more than a year after the nation’s Supreme Court deemed federal laws prohibiting personal marijuana possession and cultivation unconstitutional—a ruling that was followed by a legislative mandate to end the policy. In the months since, lawmakers have worked to develop a regulatory scheme to legalize the plant for adult use.

But while there was progress—with the Senate holding numerous public educational meetings, including one that featured a former White House drug czar—the legislature was unable to reach a compromise on a passable bill before the court’s October 2019 deadline, prompting leading lawmakers to request an extension.

The Supreme Court agreed to extend the deadline for a policy change to April 30.

The new bill going before the Congress is largely similar to the one that Senate committees unveiled just before the earlier deadline, but there have been some minor changes. For example, it amends the business licensing scheme. There will be five types of licenses that the institute can issue: cultivation, transformation, marketing, exports/imports and research.

Monreal stressed that “there is nothing ensured yet” in terms of the prospects for the new draft legislation being passed as written.

“There are those who are not in favor even of the legislation in this matter, so all that we have to pick it up and translate it into the will expressed on the opinion,” he said, adding that the legislature still hopes to pass legalization before the April deadline.

Read the full draft Mexican marijuana legalization bill below:

Mexican Marijuana Legalizat… by Marijuana Moment on Scribd

U.S. Virgin Islands Governor Pushes For Marijuana Legalization In Annual Speech

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