Rep. Earl Blumenauer (D-OR) and a collection of bipartisan cosponsors filed a bill on Thursday that would provide small marijuana businesses with access to federal coronavirus relief funds that are available to companies in any other industry.
The bill—titled the Emergency Cannabis Small Business Health and Safety Act—would make marijuana firms eligible for three Small Business Administration (SBA) services: the Paycheck Protection Program, Economic Injury Disaster Loans program and Economic Injury Disaster Loans Emergency Grants program.
Currently, SBA specifically prevents marijuana businesses from receiving COVID-related relief due to federal prohibition. That also includes companies that work indirectly with the industry, such as accounting and legal firms.
To address the problem, the bill would enact provisions stipulating that a business can’t be excluded from SBA programs simply because it is a state-legal cannabis company.
“Notwithstanding any other provision of law, a business shall not be ineligible for assistance,” the legislation reads, “on the basis that the business is a cannabis-related legitimate business or a service provider.”
That text would be added to three sections related to each SBA program the congressman wants the marijuana industry to be able to access.
It also includes language protecting SBA officials from being punished for providing these services to the industry, specifying that they “may not be held liable pursuant to any Federal law or regulation solely for providing a loan or a loan guarantee to a cannabis-related legitimate business or a service provider in carrying out” the relief legislation.”
“As Congress seeks to provide relief to small businesses across America, chief among those being left out are state-legal cannabis businesses that are essential to communities and have met the demands of this crisis,” Blumenauer said in a press release. “We should include state-legal cannabis in federal COVID-19 response efforts. Without providing these businesses the relief needed to carry out the recommended public health and worker-focused measures, we are putting these hard-working people—and ourselves—at risk.”
The language of the new standalone proposal is intended to show there is a legislative pathway for including similar cannabis business provisions in future coronavirus relief bills, Blumenauer’s office told Marijuana Moment.
Rep. Ed Perlmutter (D-CO), an initial cosponsor of the bill, said that marijuana businesses “are major employers and significant contributors to local economies in Colorado and across the country” and so they “should receive the same level of support as other legal, legitimate businesses and be eligible for SBA relief funds during this COVID-19 crisis.”
Perlmutter has also been advocating for the cannabis industry behind the scenes as it concerns coronavirus relief. And he said earlier this month that he’s working to allow marijuana businesses to access banking services amid the pandemic—a proposal that he said House Speaker Nancy Pelosi (D-CA) supports.
Other initial cosponsors of the new legislation include Reps. Jason Crow (D-CO), Barbara Lee (D-CA), Peter DeFazio (D-OR), Jan Schakowsky (D-IL), Rashida Tlaib (D-MI), Don Young (R-AK), Eleanor Holmes Norton (D-DC), Joe Neguse (D-CO), Debra Haaland (D-NM), Diana DeGette (D-CO), Jared Huffman (D-CA), Suzan DelBene (D-WA), Katie Porter (D-CA), Pramila Jayapal (D-WA) and Tulsi Gabbard (D-HI).
Brandon Banks, a cannabis business owner and chair of the Minority Cannabis Business Association, told Marijuana Moment that “we are an essential service discriminated against in accessing small business administration relief.”
“This has severely impacted our ability to keep providing jobs and safe and affordable medicine to an at-risk population,” he said. “By allowing small cannabis businesses to access the same resources as other industries, we can participate in helping our nation recover from COVID both physically and economically.”
The introduction of the new bill comes one week after Blumenauer led a letter of 34 bipartisan members of the House urging leadership to include this kind of language as they craft future coronavirus-related bills.
Sens. Jacky Rosen (D-NV) and Ron Wyden (D-OR) similarly implored action to that end in a letter released on Wednesday.
“The cannabis industry employs nearly a quarter of a million Americans and has been deemed essential in state after state, yet many businesses will not survive the pandemic without help,” Aaron Smith, executive director of the National Cannabis Industry Association, said in a press release. “They already face disproportionate financial burdens during normal conditions, and the strains created by the coronavirus response are putting them at an even greater disadvantage and jeopardizing their ability to provide vital healthcare services.”
“We are incredibly grateful for the dozens of lawmakers who are urging their colleagues to give cannabis businesses fair access to federal relief funds in these difficult times,” he said.
In a letter to state treasurers that was delivered earlier this month, a coalition of marijuana industry associations urged the officials to pressure their congressional delegations to include SBA access for cannabis firms in future coronavirus legislation. They also want the states to explore providing separate loan and lending programs for the market.
Reps. Joyce Beatty (D-OH) and Joe Kennedy III (D-MA) also asked leadership last week to make it so that business owners with prior convictions, including for simple marijuana possession, aren’t disqualified from SBA’s Paycheck Protection Program.
Colorado Gov. Jared Polis (D) recently sent a letter asking a congressman from his state to take up the issue with his colleagues and ensure SBA access for the cannabis industry.
These requests demonstrate a growing desire to normalize the marijuana industry at the federal level. At the state level, cannabis businesses are already an established part of society, widely deemed essential services that can continue to operate during the pandemic.
Lawmakers are also making a different kind of COVID-related cannabis push concerning veterans access to marijuana. In a letter led by Sen. Elizabeth Warren (D-MA) last week, members of the Massachusetts congressional delegation urged the head of the U.S. Department of Veterans Affairs to allow its doctors to issue verbal recommendations for medical cannabis amid the pandemic.
Read the Emergency Cannabis Small Business Health and Safety Act below:
This piece has been updated to include a broader list of initial cosponsors.
Senator Files New Bill To Federally Legalize Marijuana And Regulate It Like Tobacco
A Democratic senator filed a new bill to federally legalize marijuana on Thursday, creating yet another potential avenue through which Congress could enact the policy change.
This piece of legislation, sponsored by Sen. Tina Smith (D-MN), would remove cannabis from the Controlled Substances Act and direct several federal agencies to develop regulations for the plant.
Titled the “Substance Regulation and Safety Act,” the bill would deschedule cannabis, require the U.S. Department of Health and Human Services (HHS) to develop rules that treat marijuana the same as tobacco, create a national research institute to evaluate the risks and benefits of cannabis, require the U.S. Department of Agriculture to impose quality control standards and mandate that the Department of Transportation study methods for detecting THC-impaired driving.
The descheduling provisions “are retroactive and shall apply to any offense committed, case pending, or conviction entered, and, in the case of a juvenile, any offense committed, case pending, or adjudication of juvenile delinquency entered, before, on, or after the date of the enactment of this Act,” the text of the bill states.
HHS would have to come up with a “national strategy to prevent youth use and abuse of cannabis, with specific attention to youth vaping of cannabis products.” Further, text of the legislation states that the department would be required to “regulate cannabis products in the same manner, and to the same extent,” as it does with tobacco.
That includes “applying all labeling and advertising requirements that apply to tobacco products under such Act to cannabis products.”
U.S. Customs and Border Protection would be tasked with working with other agencies to develop policies on allowing marijuana imports and exports.
The legislation further contains racial justice provisions. For example, HHS would have to consult with “consult with civil rights stakeholders” to determine “whether cannabis abuse prevention strategies and policies are likely to have racially disparate impacts” within 100 days of the bill’s enactment.
The Department of Transportation would similarly have to determine whether its impaired driving prevention policy “is likely to contribute to racially disparate impacts in the enforcement of traffic safety laws.”
Agencies charged with establishing these regulations would have one year following the bill’s enactment to finalize those rules.
A federal age requirement for marijuana sales would be set at 21 under the measure.
The short title of the bill as published on Congress’s website states that it would “decriminalize and reschedule cannabis.” However, the text of the legislation as introduced that was shared with Marijuana Moment says it would go beyond rescheduling by removing marijuana from the CSA entirely, a process known as descheduling. Representatives from Smith’s office did not immediately respond to a request for clarification.
This is the latest legalization bill to be introduced this Congress. In some ways, it appears to be a more modest reform compared to other pieces of legislation that reform advocates are backing such as the Marijuana Opportunity, Reinvestment, and Expungement (MORE) Act, which includes provisions beyond rescheduling to reinvest in communities most impacted by the war on drugs.
Sources recently told Marijuana Moment there are plans in motion to get a House floor vote on that bill in September, though it’s prospects in the Republican-controlled Senate are more dubious. It’s possible that this bill from Smith would be more palatable to GOP members given its more narrow focus.
“It’s terrific to see Senator Smith engage so substantively in the cannabis policy reform debate,” Justin Strekal, political director of NORML, told Marijuana Moment. “We at NORML look forward to propelling many aspects of the new legislation into the broader conversation on the future of federal regulations in regards to a post-prohibition America.”
The introduction of this legislation comes one day after the House approved a spending bill amendment that would protect all state, territory and tribal cannabis programs from federal intervention.
While Smith has only been in Congress since 2018, after she replaced Sen. Al Franken (D-MN) following his resignation, she has signed onto various pieces of cannabis reform legislation as a cosponsor, and she’s made several comments in favor of reform.
For example, the senator attached her name to bills to protect banks that service state-legal marijuana businesses from being penalized from federal regulators and to legalize industrial hemp. She also cosponsored a resolution condemning “state-sanctioned extrajudicial killings” over drug crimes in the Philippines.
Smith also recently remarked racial disparities in drug enforcement in a Senate floor speech.
This bill is being introduced as Minnesota lawmakers push for state-level legalization, with a top legislator unveiling a comprehensive plan for legalizing cannabis for all adults 21 and older in May.
It also comes shortly after the Democratic National Committee rejected an amendment to adopt legalization as a 2020 party plank, with members opting instead to embrace more modest reforms. Advocates suspend that there may have been pressure for the panel not to formally embrace a policy change that is opposed to by presumptive Democratic presidential nominee Joe Biden.
Read the new Senate marijuana legalization below:
Photo courtesy of WeedPornDaily.
Louisiana Law Allowing Medical Marijuana For Any Debilitating Condition To Take Effect
A new Louisiana law significantly expanding the state’s medical marijuana program officially takes effect on Saturday.
This comes two months after the legislature approved the bill and Gov. John Bel Edwards (D) signed it. The legislation will allow physicians to recommend medical cannabis to patients for any debilitating condition that they deem fit instead of from the limited list of maladies that’s used under current law.
Other new laws coming into force this weekend include ones to set hemp and CBD regulations, shield financial institutions that service marijuana businesses from being penalized by state regulators and provide legal protections for doctors who recommend medical cannabis and medical facilities that have marijuana patients in their care.
The medical marijuana expansion bill as introduced by its sponsor, Rep. Larry Bagley (R), initially only would have added traumatic brain injuries and concussions but was amended in committee to include several other conditions as well as language stipulating that cannabis can be recommended for any malady that a physician “considers debilitating to an individual patient.”
“I’m excited. I’m expecting it to be a pretty big day,” Bagley told Marijuana Moment in a phone interview on Thursday. “All the people out here tell me all the wonderful stories about how they were in terrible pain and then they took it and then they’ve gotten away from the pain.”
The lawmaker is particularly hopeful that providing this expanded access will help curb the opioid epidemic by providing patients with a safer alternative to prescription painkillers.
“The medical marijuana is not [like opioids] because not not addictive. No one’s ever died from it,” he said.
“I’m hopeful I think this is gonna be a big day. I’m really expecting this to be a game changer for Louisiana, for the state, for the pharmacies that are doing this,” he said. “I think it’s going to be a big moneymaker for state. At least I hope it is. And I think that everybody’s going to be really happy about it, but time will tell.”
Bagley had also introduced a House-passed bill to allow delivery services, but he voluntarily withdrew it from Senate committee consideration, telling Marijuana Moment at the time that he felt the debilitating condition bill would already allow cannabis products to be delivered to patients like other traditional pharmaceuticals.
The delivery bill would have required a government regulatory body to develop “procedures and regulations relative to delivery of dispensed marijuana to patients by designated employees or agents of the pharmacy.”
It remains to be seen if regulators will agree with Bagley’s interpretation, as doctors are still prohibited from “prescribing” cannabis, and marijuana products are not dispensed through traditional pharmacies. But regulators did move to temporarily authorize delivery services during the coronavirus pandemic, so it’s possible they will be amenable to extending the allowance on a permanent basis.
State lawmakers also passed a resolution in June to create “a task force to study and make recommendations relative to the cannabis industry projected workforce demands.” Text of the legislation, which does not require gubernatorial action, states that “there is a need to study the workforce demands and the skills necessary to supply the cannabis industry with a capable and compete workforce, including physicians, nurse practitioners, nurses, and other healthcare practitioners.”
Photo courtesy of WeedPornDaily.
Nancy Pelosi Says Marijuana Is A ‘Therapy That Has Proven Successful’ Amid Coronavirus Bill Debate
House Speaker Nancy Pelosi (D-CA) on Friday defended the decision to include marijuana banking protections in Democrats’ latest coronavirus relief bill.
The speaker was asked about various provisions of the legislation that Republicans had criticized as not germane to the health crisis, with a reporter citing the cannabis component in particular. Pelosi took issue with the suggestion and said there is a role for marijuana reform amid the pandemic.
“I don’t agree with you that cannabis is not related to this,” the top House Democrat said. “This is a therapy that has proven successful.”
It’s not clear whether the speaker was suggesting that marijuana has medical value for a coronavirus infection specifically or was more broadly referencing the plant’s therapeutic potential. The Food and Drug Administration has made clear that there’s currently no solid evidence that cannabinoids can treat COVID-19 and it’s warned companies that make that claim.
Several lawmakers have argued that the Secure and Fair Enforcement (SAFE) Banking Act is relevant to the health crisis for a different reason, as protecting financial institutions that service cannabis businesses would mean fewer cash exchanges at dispensaries, thus minimizing the spread of the virus.
Marijuana Moment previously exclusively reported that Pelosi—who said in 2018 that doctors should prescribe medical cannabis and yoga more often instead of prescription opioids—supported attaching the banking language to the House’s coronavirus package prior to the legislation’s introduction.
That said, Senate leadership unveiled their latest round of coronavirus relief legislation on Monday, and it does not include the SAFE Banking Act provisions. It remains to be seen whether bicameral negotiators will be able to get it in the final bill sent to the president’s desk.
Rep. Ed Perlmutter (D-CO) said in May that he felt there was a 50-50 chance the Senate would adopt it as part of their COVID-19 bill.
On Friday, House Minority Leader Kevin McCarthy (R-CA) took to Twitter to slam Pelosi’s latest cannabis comments.
“Hey Nancy, let’s focus on the pandemic. Not pot,” he said.
Incredibly irresponsible—Pelosi just doubled down on her $3 trillion dollar cannabis legislation, falsely claiming that it's a proven therapy for coronavirus.
Hey Nancy, let's focus on the pandemic. Not pot. pic.twitter.com/Eo8pfwwZez
— Kevin McCarthy (@GOPLeader) July 31, 2020
The Senate Republican Communications Center also chimed in.
“House Democrats are continuing to try and push unrelated COVID-19 wish-list items. All of them should be taken out,” the group tweeted.
PELOSI on cannabis provisions in House coronavirus bill:
"I don't agree that cannabis is not related to this.”
House Democrats are continuing to try and push unrelated COVID-19 wish-list items. All of them should be taken out. pic.twitter.com/3yYf8QSv0r
— Senate Republican Communications Center (@SRCC) July 31, 2020
Meanwhile, the standalone SAFE Banking Act has continued to sit in the Senate Banking Committee without action in the months since the House initially approved it.
Earlier this month, a bipartisan coalition of state treasurers sent a letter to congressional leaders, asking that they include marijuana banking protections in the next piece of coronavirus relief legislation.
In May, a bipartisan coalition of 34 state attorneys general similarly wrote to Congress to urge the passage of COVD-19 legislation containing cannabis banking provisions.
Pelosi’s latest comments come one day after the House approved an amendment to protect state, territory and tribal marijuana laws from federal interference.