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.
Connecticut Governor Says He’s Open To Smoking Marijuana After He Signs Legalization Bill
The governor of Connecticut said on Friday that he isn’t ruling out smoking marijuana after he formally signs a legalization bill into law next week.
While most top politicians might still demure when asked if they’d partake in cannabis given ongoing stigma and federal prohibition, Gov. Ned Lamont (D) said matter-of-factly that “time will tell” when asked by a reporter if people can “expect to see the governor smoking a joint” after legalization goes into effect in the state.
News 12’s John Craven replied incredulously, “Really? You’re open to it?”
LIGHT IT UP?: Will we see @GovNedLamont partake in newly legal marijuana?
Check out his answer: pic.twitter.com/XVP3d5fDNi
— John Craven (@johncraven1) June 18, 2021
The governor first shrugged, then nodded his head yes.
“Not right now, but we’ll see” Lamont said.
Other governors in legal states have been playful about cannabis culture and their own relationship to the plant. But while a growing number of lawmakers are comfortable discussing their past marijuana use, this is a fairly remarkable exchange for the sitting top executive officer of a state.
It’s also a sign of the times, as congressional lawmakers step up the push to end federal prohibition and legalization bills move through numerous state legislatures.
Connecticut lawmakers sent Lamont an adult-use legalization bill on Thursday, and he’s confirmed his intent to sign it into law. It would make the state the 19th to have enacted the policy change and the fourth this year alone.
And while the governor has consistently emphasized the important of social equity in legalization legislation—at one point threatening to veto the bill because of a provision he felt could undermine its intent to effectively stand up disparately impacted communities—he also seems to see the personal benefits of the reform.
Similar to Lamont’s new comments, Washington Gov. Jay Inslee (D) raised some eyebrows in 2018 when he said in an interview that he grows cannabis himself. But then a spokesperson for his office denied that he actually personally cultivates marijuana.
Minnesota Marijuana Reform Could ‘Move Forward’ In Special Session That Just Launched, Top Lawmaker Says
Even though a Minnesota House-passed marijuana legalization bill died in the Senate without action by the end of this year’s regular session, a top lawmaker says there’s still a “possibility to move forward” on cannabis reform as part of a special session that began this week.
“Nobody really expected the medical program to be so successfully changed this year,” House Majority Leader Ryan Winkler (D) said at a rally with cannabis reform advocates on Wednesday, referencing a separate measure Gov. Tim Walz (D) signed last month that will allow patients to access smokable cannabis products.
According to The Star Tribune, Winkler added that “surprising things can happen” during a special session. “When you see Republican support and Democratic support in the House and Senate, there is a possibility to move forward.”
Photos from today’s emergency rally at the Capitol 📸
Thank you to House Majority Leader @_RyanWinkler, Sen. @ScottDibble, Rep. @jeremymunson, and Sen. @jimabeler for speaking and advocating for the decriminalization of cannabis in Minnesota. #mnisready for change! pic.twitter.com/c5T1ffqSuy
— Minnesotans for Responsible Marijuana Regulation (@mnisready) June 16, 2021
Advocates with Minnesota NORML are pushing for several specific policies to be incorporated into legislation that is set to be taken up by the legislature during the special session. The first is to expand the state’s decriminalization policy, and the second is to have the state petition for a federal exemption for Minnesota’s medical cannabis program.
Part of the motivation behind that latter proposal is to ensure that registered patients are able to lawfully purchase and possess firearms in spite of federal restrictions.
At the rally, which was organized by NORML, Republicans Against Marijuana Prohibition (RAMP) and other groups, Winkler and several other lawmakers spoke in favor of modest policy changes such as decriminalizing cannabis.
“Decriminalizing small amounts is important,” Rep. Jeremy Munson (R), one of only a handful of Republicans who voted for Winkler’s broad adult-use legalization bill, said at the rally. “If someone in Minnesota gets caught with two gummy bears, it’s a felony and they’ll lose their gun rights forever.”
The coalition proposed several key reforms that they say should be integrated into public safety and health legislation that’s currently moving through committee during the special session:
-Further reduce penalties for simple possession of marijuana.
-Allow people convicted of possession up to eight grams of cannabis to petition the courts for expungement.
-Require the Minnesota health commissioner to petition the Drug Enforcement Administration (DEA) for an exemption for its medical marijuana program.
”Reducing or eliminating the criminal penalties we’re seeing around marijuana is where we have consensus,” Thomas Gallagher of RAMP said in a press release. “Let’s focus on the people who have small quantities. There is injustice in a trivial amount of marijuana resulting in life-changing punishments like imprisonment, criminal records, and lost jobs and kids.”
Rally for Our Special Session Agenda:
1. Decrim law reform: reduce penalties for concentrates & ensure a petty is not a crime in fed court.
2. Medical reform: Require Minn to petition for a fed exemption fr Schedule 1 for Minn's Med Cannabis patients.https://t.co/9S8Vwz4yoB
— Minnesota NORML (@MNNORML) June 15, 2021
Similar to the Minnesota activists’ call, Iowa officials have requested that federal agencies guarantee some level of protection for people participating in the state’s medical marijuana program.
The Hawaii legislature adopted a resolution in April seeking an exemption from DEA stipulating that the state is permitted to run its medical cannabis program without federal interference.
Back in Minnesota, the House approved a bill last month to legalize marijuana for recreational use following 12 committee assignments. That legislation stalled in the GOP-controlled Senate, however.
Advocates are hopeful about the possibility that further cannabis reforms could be accomplished in the special session, but they see an obstacle in Senate Majority Leader Paul Gazelka (R), who has been relatively silent on the issue since the end of the regular session.
He did previously say, however, that “we’re always said we were open to lowering the criminal penalties [for marijuana].”
The decriminalization legislation that advocates are rallying behind would make possession of up to eight grams of cannabis a petty misdemeanor. It would also make people with prior convictions for that level of possession eligible for expungements.
Under the separate medical cannabis expansion bill that the governor has signed, adults 21 and older will be able to access smokable marijuana products. That policy must take effect by March 1, 2022, or earlier if rules are developed and the state’s cannabis commissioner authorizes it.
Dispensaries could also provide a curbside pickup option for patients under the new law. It further removes restrictions for designated caregivers and allows them to tend to six registered patients at once, rather than just one.
Walz, who hadn’t been especially vocal about legalization as the broader legislation advanced during the regulator session, said, “I’ve thought for a long time about that,” adding that “we know that adults can make their own decisions on things, we know that criminalization and prohibition has not worked.”
“I’ve always thought that it makes sense to control how you’re doing this and to make sure that adults know what they’re getting into, and use it wisely,” he said. “I also think there’s a lot of inequity about how folks have spent time in jail or been arrested around this, especially in communities of color.”
The majority leader’s legalization legislation as introduced was identical to a proposal he filed last year, with some minor technical changes. Winkler, who led a statewide listening to gather public input ahead of the measure’s introduction, called it the “best legalization bill in the country” at the time. It did not advance in that session, however.
Under the measure, social equity would be prioritized, in part by ensuring diverse licensing and preventing the market from being monopolized by corporate players. Prior marijuana records would also be automatically expunged.
Walz in January he called on lawmakers to pursue the reform as a means to boost the economy and promote racial justice. He did not include a request to legalize through his budget proposal, however.
The governor did say in 2019 that he was directing state agencies to prepare to implement reform in anticipation of legalization passing.
Winkler, meanwhile, said in December that if Senate Republicans don’t go along with the policy change legislatively, he said he hopes they will at least let voters decide on cannabis as a 2022 ballot measure.
Heading into the 2020 election, Democrats believed they had a shot of taking control of the Senate, but that didn’t happen. The result appears to be partly due to the fact that candidates from marijuana-focused parties in the state earned a sizable share of votes that may have otherwise gone to Democrats, perhaps inadvertently hurting the chances of reform passing.
In December, the Minnesota House Select Committee On Racial Justice adopted a report that broadly details race-based disparities in criminal enforcement and recommends a series of policy changes, including marijuana decriminalization and expungements.
Photo courtesy of Mike Latimer.
Maine Lawmakers Approve Bill To Decriminalize All Drugs On 50th Anniversary Of Nixon’s ‘War On Drugs’
The Maine House of Representatives on Thursday approved a bill to decriminalize possession of all currently illicit drugs, delivering a victory to reform advocates on the 50th anniversary of President Richard Nixon’s declaration of the war on drugs.
The Senate also began consideration of the legislation on Thursday, but has not yet taken a vote.
The proposal, LD 967, was approved in 77-62 vote in the House. It would make possession of controlled substances for personal use punishable by a $100 fine, without the threat of incarceration. That fine could also be waived if a person completes a substance misuse assessment within 45 days of being cited.
“We are continually trying to criminalize a symptom of a disease. It hasn’t worked. It won’t work,” Rep. Charlotte Warren (D), who serves as the House chair of the legislature’s Criminal Justice and Public Safety Committee, said before the vote. “We have tried criminalizing this disease for decades, and 11 Mainers a week are dying.”
Rep. Anne Perry (D), sponsor of the bill, said that incarcerating people who are suffering from addiction “only proves to them that they are as bad as they think they are” and perpetuates the cycle of substance misuse. “Law enforcement is not the gateway to treatment and recovery. It’s a gateway to isolation and suicide.”
The measure’s passage flies in the face of Gov. Janet Mills (D), whose administration opposes the reform, as does the state attorney general. Coupled with opposition from Republican legislators, the bill faces an uphill battle to final passage.
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The Senate also began consideration of the legislation on Thursday night, adopting a different committee report than the House approved, but setting it aside as unfinished business before taking a final vote on the bill. The version moving forward in that chamber would similarly impose a $100 fine for possession, but only for the first two offenses. Subsequent offenses would be considered Class E crimes that could carry jail time.
These actions come one month after a joint House and Senate committee advanced the decriminalization bill with several conflicting recommendations, as well as another measure to reform the state’s drug trafficking laws.
Supporters of the legislation include the American Academy of Pediatrics’s Maine Chapter, Maine Medical Association, Alliance for Addiction and Mental Health Services in Maine and Maine Council of Churches.
Thursday’s decriminalization vote represents a continuation of a national conversation about the need to reform laws criminalizing people over drugs and treat substance misuse as a public health issue, rather than a criminal justice matter.
For the first time ever, a congressional bill to federally decriminalize possession of controlled substances—and incentivize states to do the same—was formally introduced on Thursday.
Last year, Oregon voters elected to end criminalization of low-level drug possession at the ballot.
Vermont lawmakers also introduced a bill in March that would end criminal penalties for possessing small amounts of drugs in the state.
Also that month, a Rhode Island Senate committee held a hearing on decriminalization legislation to replace criminal penalties for possessing small amounts of drugs with a $100 fine.
Back in Maine, a bill was recently introduced that would legalize psilocybin mushrooms for therapeutic purposes.