Connect with us

Politics

Lawmakers And Advocates React To Bipartisan Trump-Supported Marijuana Bill

Published

on

On Thursday, U.S. Sens. Elizabeth Warren (D-MA) and Cory Gardner (R-CO) announced plans to introduce legislation to let states enact their own marijuana laws without federal interference, a proposal that President Trump told Gardner he supports.

Senators File Marijuana Bill Following Trump Pledge To Respect State Legalization

House members are filing a companion bill.

Here’s what other lawmakers and advocates are saying about the bill…

U.S. Sen. Michael Bennet (D-CO):

U.S. Sen. Catherine Cortez Masto (D-NV):

Congresswoman Barbara Lee (D-CA):

Congresswoman Diana DeGette (D-CO):

Officials with Competitive Enterprise Institute, Americans for Tax Reform, Taxpayers Protection Alliance and other groups:

“Though we vary in our opinions on marijuana legalization, the signatories to this letter are in strong accord when it comes to the matter of the level of government to which this question should be left. We believe the STATES Act appropriately addresses the conflict between state and federal marijuana laws without asking Congress to take a stance on whether marijuana should be legalized—Congress need only get out of the way of state legislatures and their voters, who are best positioned to decide questions about marijuana legalization. As noted, the undersigned groups believe this right must be restored to the states.”

NORML Political Director Justin Strekal:

“With the introduction of The STATES Act by Senators Warren and Gardner, the movement to end the federal government’s failed policy of cannabis criminalization has truly become a bipartisan effort. The majority of states now regulate marijuana use and more than six out of ten voters endorse legalizing the plant’s use by adults, making it time for the federal government to no longer stand in the way of this progress at the state level. President Trump made a commitment to Senator Gardner that he would support a federalist approach to state marijuana laws. Now Congress must do its part and swiftly move forward on this bipartisan legislation that explicitly provides states with the authority and autonomy to set their own marijuana policies absent the fear of federal incursion from a Justice Department led by militant cannabis prohibitionist Attorney General Jeff Sessions.”

Don Murphy, conservative outreach director for the Marijuana Policy Project:

“The STATES Act is the most significant piece of marijuana-related legislation ever introduced in Congress. With its bipartisan backing in the Senate, it symbolically signals the eventual end of marijuana prohibition at the federal level. This legislation reflects the position President Trump took on marijuana policy during his campaign, and it comes shortly on the heels of the positive comments he made to Sen. Gardner. The president has a unique opportunity to get behind historic legislation that enjoys solid support on both sides of the political spectrum. While we look forward to the day when there is full acceptance of cannabis at the federal level, we heartily embrace the states’ rights approach proposed by this bill. As an organization, we have been at the forefront of changing state marijuana laws for more than 20 years. It is time for those laws to be respected by and protected from the federal government.”

Jolene Forman, staff attorney at the Drug Policy Alliance:

“The STATES Act represents a landmark moment in the movement to end the decades-long war on marijuana,” said. It creates a workable framework for approaching the future of marijuana policy. “The STATES Act is a first step toward ending the harms of marijuana prohibition. This bipartisan proposal clears the way for states to develop their own marijuana policies without fear of federal intervention. This will give states more opportunity to restore communities that have borne the brunt of the drug war and mass criminalization.

Inimai Chettiar, director of the Brennan Center’s Justice program:

“This new bill introduced by Senators Warren and Gardner safeguards states’ ability to set their own reasonable policies about marijuana against the punitive and ineffective approaches preferred by Attorney General Jeff Sessions. In the face of outdated federal policy, this bill defends the ability and responsibility of states to create and test the best marijuana policies for the American people, and will decrease the number of people in our country who are unnecessarily incarcerated.”

Veterans Cannabis Project Founder and Executive Director Nick Etten:

“This bill is an important sign of bipartisan respect for the will of voters across the country, but it does nothing to help the millions of veterans who rely on a federal VA health system that bans veterans from access to state-legal medical cannabis. Millions of veterans want legal access to medical cannabis as a treatment option and that won’t be possible until Congress and President Trump change federal law to remove cannabis from its current Schedule 1 classification.”

New Federalism Fund:

“We applaud Senator Gardner, Senator Warren, Congressman Joyce, Congressman Blumenauer, and the rest of the cosponsors for their bipartisan leadership on the STATES Act. Conflicts between federal and state law are creating untenable issues for the state-licensed and regulated cannabis industry. The STATES ACT amends the Controlled Substances Act to bring federal drug policy back into alignment with the 10th Amendment, allowing each state to determine the best cannabis policy for their citizens. This is as the Founders would have intended, making the STATES Act an important step towards a humane and constitutional federal cannabis policy.”

National Sheriffs’ Association, Major County Sheriffs’ Association, Major Cities Chiefs Association, National Narcotics Officers’ Associations’ Coalition and other law enforcement groups:

“The fact is, gangs and cartels have been making liberal use of legalization to provide cover for their illegal activities. These gangs have ties to Mexican, Cuban, Vietnamese, and Russian cartels. The gangs often purchase homes in residential neighborhoods, wire in extra electricity and water capacity, and convert them into multi-million dollar grow houses in suburban neighborhoods. These gangs are also trafficking in other illegal drugs, organized crime, and prostitution. Crime has been steadily increasing in Colorado in all categories since legalization, including violent crimes.”

Smart Approaches to Marijuana’s Kevin Sabet:

“Four years ago, as a member of the House, Cory Gardner voted against these very same provisions. Now that the pot industry has expanded in Colorado, normalizing use and advertising THC-laced candies to youth, he is singing a different tune. If enacted, this bill would pave the way for the commercialization of the marijuana industry and the creation of the next Big Tobacco. It is a shame that Senator Gardner has chosen to put political donations and expediency ahead of public health and safety. We are seeing communities across the country fight back and SAM applauds New Hampshire, Connecticut, Vermont, and other states who have recently rejected Big Marijuana. We won’t stop amplifying the voices of families and individuals affected by these lax policies.”

Photo courtesy of Chris Wallis // Side Pocket Images.

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 15-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.)

Politics

Marijuana Banking Bill Would Save Federal Money, Congressional Budget Office Says

Published

on

The federal government would save money if a bipartisan bill to give marijuana businesses access to banks is approved, according to a report released by the Congressional Budget Office (CBO) on Friday.

The legislation, which cleared the House Financial Services Committee in a bipartisan vote of 45 to 15 in March, would change federal law to protect financial institutions that service the cannabis industry from being penalized by regulators. That reform would set off a chain of events, beginning with a likely increase in the number of banks accepting deposits from those businesses, CBO reasoned.

Assuming the bill takes effect near the end of the 2019 fiscal year, the office estimates that starting in 2022, banks would see a $1.2 billion increase in deposits, and credit union deposits would grow by $200 million. By 2029, the amounts “would rise to $2.1 billion and $350 million, respectively.”

Because those deposits would have to be insured through the Federal Deposit Insurance Corporation (FDIC) and the National Credit Union Administration (NCUA), the CBO took into account the possibility that individual financial institutions will fail, and the estimated cost of resolving those failures is $5 million.

That said, those direct spending costs would be “offset by assessments levied on insured financial institutions,” which would amount to about $9 million.

“As a result, CBO estimates, H.R. 1595 would decrease net direct spending by $4 million over the 2019-2029 period,” the office reported.

Rep. Ed Perlmutter (D-CO), the bill’s chief sponsor, told Marijuana Moment that its enactment would have benefits beyond fiscal savings.

“Getting cash off our streets and making our communities safer will come at no cost to the federal government and actually save money while providing a much-needed long-term banking solution for legitimate marijuana businesses across the country,” he said.

Via CBO.

“This CBO score should only increase the significant momentum in Congress behind passing the SAFE Banking Act,” Neal Levine, CEO of the Cannabis Trade Federation, told Marijuana Moment. “It is now apparent that we can help diminish a serious threat to public safety at no net cost to the federal government. We look forward to the bill passing through the House and hope the Senate will follow suit.”

There are some implementation costs to take into account, CBO says. The administrative costs are estimated to be $3 million. But the FDIC and NCUA are able to charge premiums on the financial institutions they regulate to cover much of those costs. The total net administrative costs would, therefore, be about $1 million.

The Federal Reserve would also have to spend funds to implement the bill, and that would reduce remittances to the Treasury Department. Those remittances are considered revenue, which is expected to decrease by about $1 million if the legislation is implemented.

Then there are costs related to other provisions of the bill. Financial regulators would have to update and issue new guidance, which would “cost less than $500,000 over the 2019-2024 period.”

The legislation also requires the Government Accountability Office to study barriers to entry in the marijuana industry and to financial services for minority- and women-owned cannabis businesses. The costs are estimated to be less than $500,000 annually from 2020 to 2024.

The CBO also estimated that enacting the legislation “would not increase on-budget deficits by more than $5 billion in any of the four consecutive 10-year periods beginning in 2030.”

The CBO outlined “several noteworthy areas of uncertainty” that could change the calculus.

1. New guidance from federal financial regulators could be more or less stringent than existing guidance implemented under the Obama administration, which could impact the amount of deposits banks and credit unions will receive.

2. Data on cannabis-related deposits is currently “limited,” as federal restrictions have forced marijuana businesses to operate on a largely cash basis. That means CBO’s estimates on the amount of deposits financial institutions will see could end up being “greater or smaller.”

3. If those estimates do end up being different, costs associated with the bank and credit union insurance funds “could be higher or lower depending on the amount of premium collections and capital deposits and on changes in the resolution costs for financial institutions.”

Sahar Ayinehsazian, an associate attorney at Vicente Sederberg LLP who specializes in cannabis banking, told Marijuana Moment that most of the figures lined up with her expectations. However, given that many marijuana businesses have gravitated toward credit unions rather than banks, she said the estimate increase in deposits to those financial institutions may well end up being larger.

“Looking at the chances of this legislation passing from an economic standpoint, I think [the CBO score is] good news,” she said.

Other advocates agreed that the CBO estimate should help efforts to advance the bill.

“For years, cannabis advocates have been preaching the net benefits SAFE Banking would have on consumers, patients, financial institutions, regulators and taxpayers. This CBO cost estimate confirms that,” Michael Correia, director of government relations for the National Cannabis Industry Association, told Marijuana Moment. “The increase of insured deposits, coming from the added certainty this legislation brings, far outweighs the minor administrative costs to implement this bill.”

The House marijuana banking bill currently has 184 cosponsors, and a companion Senate version has 30 lawmakers signed on. The committee of jurisdiction in the upper chamber has not yet set a hearing or a vote, but pressure is increasing.

Banking associations from all 50 states urged the Senate to take up the legislation earlier this week. Other organizations that have called for a resolution to the cannabis banking dilemma include the National Association of Attorneys General, which has endorsed the bill, and the National Association of State Treasurers, representing state treasurers and finance officials, which adopted a resolution last week in favor of the legislation’s passage.

The new analysis is just the third time that the CBO, which is mandated to score bills that pass full committees, has issued a report on the economic impact of standalone cannabis legislation. The agency scored two marijuana research bills that cleared committees last year.

Federal Small Business Administration Pressed On Supporting Marijuana Industry

This story was updated to include comment from Perlmutter and Correia.

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.
Continue Reading

Politics

Federal Small Business Administration Pressed On Supporting Marijuana Industry

Published

on

Sen. Jacky Rosen (D-NV) pressed a federal official responsible for advocating for small businesses on Wednesday about whether existing laws and regulations are preventing the growth of state-legal marijuana markets.

The line of questioning comes as members of Congress are preparing legislation aimed at removing barriers to small business assistance for cannabis industry participants.

The senator said at a hearing of the Senate Small Business and Entrepreneurship Committee that her state’s legal industry is attracting small businesses and entrepreneurs who are selling millions of dollars of product each month. She asked Major Clark, acting chief counsel of the office of advocacy at the Small Business Administration (SBA), about the unique barriers these companies face under federal prohibition.

“Senator, that’s a difficult question,” Clark replied. “We have not actually studied the issue of marijuana in that regard, and we have not because the federal government has not yet legalized it.”

“We do, in conversations with a lot of businesses, get inquires as to what they can do and how they can do it. But to actually do an analysis of it, we have not yet done that,” he said. “I’m sure that as soon as the federal government decides to legalize this substance, we will begin to study its impact and the ability to use it in a more economical context within the state.”

Watch the conversation about small business assistance for cannabis operators at 35:50 in the video below:

Rosen followed up to get Clark’s opinion about whether marijuana companies would benefit from some of the guidelines and resources the SBA offers to small businesses in other industries.

“These types of businesses can benefit from some of these types of things, but again, because this issue is an issue that has not reached the surface of being legalized, we have actually stayed away from trying to advise these businesses on these particular aspects,” he said.

Sen. James Lankford (R-OK), chair of the committee, weighed in on the issue after the Rosen’s time expired, saying that he recognizes the difficulty that federal agencies face when it comes to regulating a controlled substance.

“It is a unique challenge dealing with a Schedule I drug on the federal side and to also know that some states, including my own, have said that they want to allow it,” Lankford said, referring to the medical cannabis law that Oklahoma voters approved in 2018. “And the federal government and the [Food and Drug Administration] continues to study it and say there’s no medicinal gain from this product.”

“It’s a Schedule I drug. I get it,” he said. “The science, and whether it is SBA or whoever it is continues to be able to deal with that.”

While lawmakers push to get marijuana businesses access to federally authorized financial services, industry advocates say that SBA-specific reform legislation may be on the horizon.

The day after Rosen questioned the SBA official about cannabis policy, Khurshid Khoja, a board member for the National Cannabis Industry Association, said at a press conference on Capitol Hill that a bill was being drafted to “essentially get SBA services for cannabis businesses and for cannabis businesses from disproportionately impacted communities.”

Watch the SBA reform discussion at about 32:15 in the video below:

“The House Small Business Committee is looking into the issue and is interested in holding a hearing and drafting legislation this summer that addresses these issues,” a cannabis policy lobbyist who didn’t wish to be named in order to discuss plans that are in development, told Marijuana Moment separately.

GOP Congressman Exposes Flaws In VA Marijuana Research Projects

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.
Continue Reading

Politics

GOP Congressman Exposes Flaws In VA Marijuana Research Projects

Published

on

Rep. Matt Gaetz (R-FL) emphasized the importance conducting clinical trials on medical marijuana at the U.S. Department of Veterans Affairs (VA) on Tuesday, a topic on which he has often focused.

He also criticized the catch-22 of VA cannabis research, arguing that while the department is able to conduct clinical trials on marijuana, it doesn’t effectively publicize those studies, leaving veterans who might be interested in participating in the dark.

The congressman started by asking whether Mike Colston, director of mental health policy and oversight at the Department of Defense, felt that giving veterans access to medical cannabis could reduce suicides.

Colston said “there’s far more research to be done” and that there’s “insufficient evidence for or against that position.”

Gaetz cited research showing reductions in opioid use in states that have loosened cannabis laws, and he questioned whether “the current offramp for opioid addiction,” which typically involves prescribing long-term opioids that are less potent and less prone to abuse, “is a more effective offramp than medical cannabis.”

“I just think those are the three evidence-based therapies right now that meet the medical bar,” Colston said, referring to bupenehprine, methadone and naltrexone. “Obviously more research can change that.”

That prompted Gaetz to expand on VA policy as it pertains to medical cannabis. He asked for confirmation that the department’s doctors cannot currently recommend marijuana to veterans in states where it’s legal.

They can’t do that because “there’s a federal law against it right now,” Keita Franklin, national director of suicide prevention at the VA, claimed. (This has been a point of contention for legalization advocates, who argue that only the VA’s own internal administrative policies, and not an overarching federal law, blocks such recommendations.)

But VA officials can conduct clinical trials on marijuana, Franklin said.

“We have two ongoing research studies going on right now in this space,” she said. “I think we are open to research, yes.”

The congressman wanted to know if the VA publishes information about these studies and where to find it. The VA official wasn’t sure—and that was exactly Gaetz’s point.

“I don’t think anyone is clear, which is the source of my frustration because I think that there are a lot of these clinical trials that are seeking veterans,” he said. “The VA, due to a lack of clarity, won’t publicize that information or make it available, and then we’re unable to do the research that Captain Colston says is necessary to advance additional options for veterans trying to get off opioids and to stop them from killing themselves.”

Lawmakers have introduced legislation this session that would allow VA doctors to issue medical cannabis recommendations and require the department to conduct clinical trials on the plant’s potential therapeutic benefits for veterans, among other cannabis and veterans-related bills.

But if the VA is mandated to research the plant, Gaetz wants the department to better publicize the studies so that would-be participants actually know about them.

Trump Official Would Rather Discuss Marijuana Than President’s Tax Returns, He Says

Photo courtesy of YouTube.

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.
Continue Reading
Advertisement

Stay Up To The Moment

Marijuana News In Your Inbox


Support Marijuana Moment

Marijuana News In Your Inbox