Will 2019 be the year that Congress blocks the federal government from enforcing prohibition in legal marijuana states? A bipartisan team of lawmakers in the House and Senate are optimistic that it will, and they introduced legislation on Thursday to accomplish that goal.
Reps. Earl Blumenauer (D-OR) and David Joyce (R-OH) filed the Strengthening the Tenth Amendment Through Entrusting States (STATES) Act, appearing alongside cosponsors Reps. Barbara Lee (D-CA) and Joe Neguse (D-CO) at a press conference. Sen. Cory Gardner (R-CO) and Elizabeth Warren (D-MA) filed the Senate version of the bill.
Watch the press conference below:
STATES Act Introduction https://t.co/vQMd6appgZ
— Earl Blumenauer (@repblumenauer) April 4, 2019
The legislation would amend the Controlled Substances Act to protect people complying with state legal cannabis laws from federal intervention, and the sponsors are hoping that the bipartisan and bicameral nature of the bill will advance it through the 116th Congress.
President Trump voiced support for a previous version of the legislation last year.
“I’ve been working on this for four decades. I could not be more excited,” Blumenauer told Marijuana Moment in a phone interview.
While other legislation under consideration such as bills to secure banking access for cannabis businesses or study the benefits of marijuana for veterans are “incremental steps that are going to make a huge difference,” the STATES Act is “a landmark,” he said.
46 states have some legalized some form of cannabis. Yet far too many people still face federal prosecution and roadblocks in their daily lives — especially people of color. I’m proud to support the #STATESAct to stop federal interference in legal cannabis enterprises. pic.twitter.com/lhjTHB1Sft
— Rep. Barbara Lee (@RepBarbaraLee) April 4, 2019
The congressman said it will take some time before the bill gets a full House vote, however. Rep. Jim McGovern (D-MA) recently suggested that the legislation would advance within “weeks,” but Blumenauer said it will “be a battle to get floor time” and he stressed the importance of ensuring that legislators get the chance to voice their concerns and get the answers they need before putting it before the full chamber.
“We want to raise the comfort level that people have. We want to do it right,” he said. “There’s no reason that we have to make people feel like they’re crowded or rushed.”
Today, I introduced the STATES Act w/ @RepDaveJoyce @SenCoryGardner @SenWarren. Our outdated cannabis laws have ruined lives, devastated communities and wasted resources. This is the next logical step for Congress to catch up w/ the rest of America & fix a badly broken system. pic.twitter.com/YUW3iqwu25
— Earl Blumenauer (@repblumenauer) April 4, 2019
Asked whether he’d had conversations with House Speaker Nancy Pelosi (D-CA) about moving cannabis bills forward this Congress, Blumenauer said there’s been consistent communication between their offices and that the speaker is “very sympathetic” to the issue and “understands the necessity of reform.”
There are 26 initial cosponsors—half Democrats and half Republicans—on the House version. Reps. Ro Khanna (D-CA), Lou Correa (D-CA), Ed Perlmutter (D-CO), Matt Gaetz (R-FL) and Don Young (R-AK) are among those supporters. The previous version ended the 115th Congress with 45 cosponsors.
Today, I joined my colleagues to introduce bipartisan legislation that will ensure the cannabis industry in Colorado is not held back by the federal governments delay in legalization, by ensuring they can access banks & loans & that the threat of federal prosecution is removed. pic.twitter.com/yQlBjtQN3b
— Rep. Joe Neguse (@RepJoeNeguse) April 4, 2019
On the Senate side, there are 10 lawmakers initially signed on: Warren and Gardner, along with Sens. Catherine Cortez Masto (D-NV), Michael Bennet (D-CO), Amy Klobuchar (D-MN), Ron Wyden (D-OR), Dan Sullivan (R-AK), Kevin Cramer (R-ND), Lisa Murkowski (R-AK) and Rand Paul (R-KY).
People of good faith – both in the industry and outside of it – are at risk of being a federal felon despite complying with state law. And the cash on the streets is a big public safety and law enforcement concern.
— Cory Gardner (@SenCoryGardner) April 4, 2019
“Our federal marijuana laws are outdated and pose a threat to our public health and safety. Marijuana should be legalized, and we must reverse the harm of these failed policies by wiping clean the records of those unjustly jailed for minor marijuana crimes,” Warren said in a press release, although the STATES Act does not contain provisions addressing past cannabis convictions.
“Congress should take immediate action on these important issues by passing the bipartisan STATES Act and protecting states, territories, and tribal nations as they implement their own marijuana laws without federal interference,” she added.
“In 2012, Coloradans legalized marijuana at the ballot box and the state created an apparatus to regulate the legal marijuana industry. But because of the one-size-fits-all federal prohibition, state decisions like this put Colorado and other states at odds with the federal government,” Gardner said. “The federal government is closing its eyes and plugging its ears while 47 states have acted. The bipartisan STATES Act fixes this problem once and for all by taking a states’ rights approach to the legal marijuana question. The bipartisan, commonsense bill ensures the federal government will respect the will of the voters – whether that is legalization or prohibition – and not interfere in any states’ legal marijuana industry.”
The federal government is closing its eyes and plugging its ears while 47 states have acted and it's time the federal government respects the will of Colorado voters. https://t.co/w33JVo1Y7s
— Cory Gardner (@SenCoryGardner) April 4, 2019
For the most part, the latest versions of the legislation are identical to the previous Congress’s bills, though there are two exceptions. Previously, there was a provision exempting hemp from the definition of marijuana, but that was removed—presumably because it is no longer needed in light of the passage of the 2018 Farm Bill, which federally legalized the crop.
The bigger change is that the new version contains a section that requires the Government Accountability Office to conduct a study on the “effects of marihuana legalization on traffic safety.”
Among other data points, the office would be directed to collect info on “traffic crashes, fatalities, and injuries in States that have legalized marihuana use, including whether States are able to accurately evaluate marihuana impairment in those incidents.” A report on those effects would be due one year after the law is enacted.
“This bipartisan legislation signals the eventual end of marijuana prohibition at the federal level,” Steve Hawkins, executive director of the Marijuana Policy Project, said in a press release. “It reflects the position held by a strong majority of Americans that states should be able to develop their own cannabis policies without interference from the federal government.”
“It also reflects the position President Trump took on marijuana policy throughout his campaign, and we are hopeful that he will have the opportunity to sign it into law,” Hawkins said. “While we look forward to the day when Congress is ready to enact more comprehensive reform, we fully embrace the states’ rights approach proposed by this bill.”
The National Cannabis Industry Association, which represents marijuana businesses, also backs the legislation.
“The STATES Act is being reintroduced at a key moment when bipartisan support for cannabis policy reform is at historic levels in both chambers of Congress and among the general public,” said Aaron Smith, the group’s executive director. “Regulating cannabis is working well in the states that have enacted more sensible policies, and legitimate businesses are creating jobs and generating revenue while helping to replace the illicit market. Those businesses shouldn’t have to worry about being treated like criminals by the federal government and deserve clarity that is set in law as opposed to the whims of federal prosecutors.”
According to a press release circulated by Warren’s office, the bill is also supported by ACLU, American Bankers Association, Americans for Prosperity, Americans for Tax Reform, Competitive Enterprise Institute, Cooperative Credit Union Association, Credit Union National Association and National Conference of State Legislatures, as well as a number of Indian tribes.
Read the text of the newly filed STATES Act below:
States Act by on Scribd
Photo courtesy of Don Murphy.
Banks Accepted Significantly More Marijuana Businesses In 2019, Federal Data Shows
Banks and credit unions have been accepting significantly more marijuana businesses in 2019, according to new federal data.
At the end of the last quarter of 2018, there were 438 banks and 113 credit unions actively servicing cannabis businesses. By March 2019, those numbers grew to 493 and 140, respectively.
That data comes from the Treasury Department’s Financial Crimes Enforcement Network (FinCEN), which tracks financial services for the marijuana industry by analyzing suspicious activity reports, or SARs, that institutions file in accordance with cannabis banking guidance issued by the Obama administration in 2014.
While banks run the risk of being penalized by financial regulators by accepting cannabis business accounts because their products are still federally controlled substances, an increasing number of them are willing to take that chance. The latest update of quarterly numbers, posted late last month, comes as bipartisan legislation that would protect banks that service state-legal markets advances toward the House floor for a vote.
“As of 31 March 2019, FinCEN has received a total of 81,725 SARs using the key phrases associated with [marijuana related businesses],” the federal agency wrote.
FinCEN also breaks down the types of SARs the banks and credit unions reported for marijuana businesses.
The vast majority (61,036) were considered “marijuana limited,” a term that refers to cannabis businesses that appear to be operating in compliance with state law and meet the agency’s standard for being serviceable under existing federal guidelines.
About 6,000 were defined as “marijuana priority,” which means they “may raise one or more of the red flags” under federal guidelines or they “may not be fully compliant with the appropriate state’s regulations” and are thus under investigation while the banks continue to service the businesses.
Finally, about 20,000 were marked as “marijuana termination.” That means has the cannabis business has violated at least one federal enforcement priority or state regulation and so “the financial institution has decided to terminate its relationship with” the business.
The Secure and Fair Enforcement (SAFE) Banking Act would do a lot to resolve uncertainty in the banking sector as it concerns marijuana. The bill cleared the House Financial Services Committee in March and is expected to get a full House floor vote next month.
Advocates argue that providing for the lawful banking of cannabis businesses would increase financial transparency, mitigate public safety risks associated with operating on a largely cash basis and simplify the tax process.
The legislation enjoys broad support outside of Congress as well. Twenty U.S. governors recently signed a letter encouraging its passage, as did banking associations representing all 50 states, a coalition of state attorneys general and another comprised of state treasurers.
Meanwhile, an annual spending bill that covers the Treasury Department and includes temporary language protecting banks from being punished for working with cannabis businesses is on the House floor this week.
Analysis: Breaking Down Congress’s Vote To Protect Legal Marijuana States From Federal Enforcement
In one of the most significant legislative victories in the history of the marijuana reform movement, an amendment blocking the Department of Justice from interfering in state-legal cannabis programs was approved for the first time in the U.S. House of Representatives last week.
In a 267-165 vote, the measure passed handily, drawing support from all but eight Democrats and nearly a quarter of the Republican caucus. The amendment’s passage seems to affirm what advocates have suspected—that broad reform is within arm’s reach in the 116th Congress.
But a closer look at the vote tally reveals subtle trends, dissents, individual vote flips and developments that paint a fuller picture of the state of marijuana politics in the Democratic-controlled chamber.
First, a top-level look: the last time this amendment was up for consideration in 2015, it came nine flipped votes short of passing, with a final tally of 206-222. It gained 61 “yes” votes in that time, which is a reflection of evolving public opinion on the issue and was also likely influenced by the fact that several sizable states such as California, Michigan and Illinois have since opted to legalize cannabis, putting pressure on lawmakers to embrace a policy that protects their constituents from federal harassment.
State Action Makes A Difference
Geographic changes in the vote tally can be seen in the images below, courtesy of GovTrack.us. Blue represents Democrats and red represents Republicans, with dark shading indicating “yes” votes and lighter shading standing for “no” votes.
Among states that legalized adult-use marijuana subsequent to the prior amendment’s consideration, here’s how the the number of “yes” votes for the measure grew:
- California: 40 vs. 46
- Illinois: 10 vs. 14
- Massachusetts: 6 vs. 9
- Maine: 1 vs. 2
- Michigan: 6 vs. 10
- Nevada: 2 vs. 3
- Vermont: 1 vs. 1
But not all of the growth came from states that have recently enacted legalization. All told, 20 individual members who were present for the prior amendment’s consideration switched their vote from “nay” to “aye” since 2015.
“No” to “yes” votes:
- Rep. Karen Bass (D-CA)
- Rep. Joyce Beatty (D-OH)
- Rep. Yvette Clarke (D-NY)
- Rep. Emanuel Cleaver II (D-MO)
- Rep. Jim Cooper (D-TN)
- Rep. Debbie Dingell (D-MI)
- Rep. Bob Gibbs (R-OH)
- Rep. Morgan Griffith (R-VA)
- Rep. William Keating (D-MA)
- Rep. Joseph Kennedy (D-MA)
- Rep. Dan Lipinski (D-IL)
- Rep. Stephen Lynch (D-MD)
- Rep. Tom Reed II (R-NY)
- Rep. Lucille Roybal-Allard (D-CA)
- Rep. Terri Sewell (D-AL)
- Rep. Mike Simpson (R-ID)
- Rep. Paul Tonko (D-NY)
- Rep. Marc Veasey (D-TX)
- Rep. Filemon Vela (D-TX)
- Rep. Greg Walden (R-OR)
Meanwhile, seven members flipped their votes in the opposite direction.
“Yes” to “no” votes:
- Rep. Rob Bishop (R-UT)
- Rep. Mo Brooks (R-AL)
- Rep. Vern Buchanan (R-FL)
- Rep. Jeff Duncan (R-SC)
- Rep. Barry Loudermilk (R-GA)
- Rep. Scott Perry (R-PA)
- Rep. Scott Tipton (R-CO)
Support And Opposition Across Party Lines
The measure enjoyed some bipartisan support, but while a sizable bloc of members joined the “aye” side, there were actually four fewer total Republicans who voted in favor of the amendment this round as compared to 2015. Why? The shift is partially related to loss of marijuana-friendly GOP members in the 2018 midterm election. For example, Reps. Dana Rohrabacher (R-CA), Carlos Curbelo (R-FL) and Mike Coffman (R-CO) each voted in favor of the 2015 amendment and otherwise championed cannabis reform to some extent, but lost reelection bids last year.
Plus there are those noted above who actually supported the measure last time but voted against it this year.
Perhaps some members took issue with the broader language of the new version, which extended protections to Washington, D.C. and U.S. territories, unlike the prior amendment, which lined up more squarely with Republican “states’ rights” views.
Another explanation could come down to partisanship. GOP Congressman Tom McClintock of California was the lead sponsor of the 2015 version, when Republicans controlled the House, whereas Rep. Earl Blumenauer (D-OR) took the helm this year, with McClintock as a cosponsor. With dozens of amendments to consider in a row in floor voting blocks of just two minutes each, it’s within reason to assume that some lawmakers approached some votes along party lines, leading some Republicans to vote for the prior measure led by their caucus-mate in 2015 after a quick glance.
An even simpler answer to the question of why there were fewer Republican “aye” vote this time is that there are just fewer GOP members in the chamber to begin with in light of Democrats’ electoral success in last year’s midterms in which they readily won control of the chamber.
Regardless, the 267-vote win is remarkable. More members voted for this amendment than they did for a narrower measure that simply prevented Justice Department interference in state medical cannabis programs in 2015. That tally was 242-186.
After the amendment was adopted, questions remained about the eight Democratic members who voted against the measure, given that marijuana reform is widely popular, especially among the party’s voters.
The most noteworthy Democratic “nay” vote came from Rep. Debbie Wasserman Schultz, the former chair of the Democratic National Committee, who has historically been opposed to many cannabis reform measures. She was joined by Reps. Henry Cuellar (D-TX), Sharice Davids (D-KS), Josh Gottheimer (D-NJ), Conor Lamb (D-PA), Collin Peterson (D-MN), Tom Suozzi (D-NY) and Jeff Van Drew (D-NJ) in opposing the measure.
But overall, Democratic members sent a forceful message about where the party stands on the issue. Leadership sent a “yes” recommendation in a whip email distributed before the vote, and presidential candidates and even some who’ve historically been reluctant to back cannabis reform joined hands to push the measure forward.
Presidential hopefuls Reps. Tulsi Gabbard (D-HI) and Seth Moulton (D-MA) voted for it. (Other contenders Reps. Eric Swalwell (D-CA) and Tim Ryan (D-OH) were absent for the vote as well as others taking place on Thursday.)
Leadership votes in favor of the amendment include Judiciary Committee Chair Rep. Jerry Nadler (D-NY); Appropriations Committee Chair Rep. Nita Lowey (D-NY); Commerce, Justice and Science Appropriations Subcommittee Chair Rep. Jose Serrano (D-NY); Majority Leader Steny Hoyer (D-MD); Deputy Speaker Ben Ray Luján (D-NJ) and Majority Whip Jim Cylburn (D-SC).
Every Democratic member of the Judiciary Committee voted in favor of the measure—another positive sign as lawmakers continue to pursue various pieces of marijuana legislation that will likely have to pass through the panel.
Curiously, however, Rep. Doug Collins (R-GA), minority ranking member on the Judiciary who’s advocated for a separate bill to let states set their own cannabis policies, voted against the amendment. That said, McClintock and other GOP members of the panel—Reps. Kelly Armstrong (R-ND), Ken Buck (R-CO), Matt Gaetz (R-FL), Guy Reschenthaler (R-PA) and Gregory Steube (R-FL)—voted for the measure, indicating that broad legislation to reform federal cannabis laws could sail through the Judiciary Committee with solid bipartisan support.
On the Democratic side, Reps. Joe Kennedy (D-MA) and Rep. Dan Lipinski (D-IL), who have historically been hostile to cannabis reform, also voted for the measure this time around.
On the flip side, here are all 41 Republicans who bucked party leadership in voting in favor of the amendment:
- Rep. Justin Amash (R-MI)
- Rep. Kelly Armstrong (R-ND)
- Rep. Don Bacon (R-NE)
- Rep. Troy Balderson (R-OH)
- Rep. Ken Buck (R-CO)
- Rep. Chris Collins (R-NY)
- Rep. James Comer (R-KY)
- Rep. Rodney Davis (R-IL)
- Rep. Russ Fulcher (R-ID)
- Rep. Matt Gaetz (R-FL)
- Rep. Greg Gianforte (R-MT)
- Rep. Bob Gibbs (R-OH)
- Rep. Anthony Gonzalez (R-OH)
- Rep. Jenniffer González-Colón (R-PR)
- Rep. Tom Graves (R-GA)
- Rep. Morgan Griffith (R-VA)
- Rep. Kevin Hern (R-OK)
- Rep. Trey Hollingsworth (R-IN)
- Rep. Duncan Hunter (R-CA)
- Rep. Dave Joyce (R-OH)
- Rep. Thomas Massie (R-KY)
- Rep. Brian Mast (R-FL)
- Rep. Tom McClintock (R-CA)
- Rep. Paul Mitchell (R-MI)
- Rep. Dan Newhouse (WA)
- Rep. Amata Radewagen (R)
- Rep. Tom Reed (R-NY)
- Rep. Guy Reschenthaler (R-PA)
- Rep. Tom Rice (R-SC)
- Rep. Denver Riggleman (R-VA)
- Rep. Mike Rogers (R-AL)
- Rep. Chip Roy (R-TX)
- Rep. David Schweikert (R-AZ)
- Rep. Mike Simpson (R-ID)
- Rep. Greg Steube (R-FL)
- Rep. Fred Upton (R-MI)
- Rep. Greg Walden (R-OR)
- Rep. Michael Waltz (R-FL)
- Rep. Steve Watkins (R-KS)
- Rep. Ted Yoho (R-FL)
- Rep. Don Young (R-AK)
Who Voted To Let The Feds Arrest Their Constituents?
While the increased number of votes in favor of the amendment seems to correspond, in part, with the rising number of states with legal marijuana programs, there were 17 members representing legal states who voted against protecting consumers who participate in their state’s cannabis system. Here’s a breakdown:
- Rep. Ken Calvert (R)
- Rep. Paul Cook (R)
- Rep. Doug LaMalfa (R)
- Rep. Devin Nunes (R)
- Minority Leader Kevin McCarthy (R)
- Rep. Doug Lamborn (R)
- Rep. Scott Tipton (R)
- Rep. Mike Bost (R)
- Rep. Adam Kinzinger (R)
- Rep. Darin LaHood (R)
- Rep. John Shimkus (R)
- Rep. Jack Bergman (R)
- Rep. Bill Huizenga (R)
- Rep. John Moolenarr (R)
- Rep. Tim Walberg (R)
- Rep. Mark Amodei (R)
- Rep. Cathy McMorris Rodgers (R)
Advocates walked away with a demonstrable win on Thursday but, as a final note, the roll call tally might well have been even larger if it weren’t for certain absentees. Besides Ryan and Swalwell, those members include Reps. Alcee Hastings (D-FL), Ann Kirkpatrick (D-AZ) and Tom Emmer (R-MN)—all of whom voted in favor of the measure in 2015. There was just one member absent from the latest vote who voted against it last time.
Another indicator bodes well for the future of marijuana reform by demonstrating growing support from political newcomers is that among current members of Congress who weren’t in office during the 2015 vote, 98 voted in favor of the amendment while 50 voted against it.
Though advocates are celebrating the historic victory in the House, it remains to be seen whether the Republican-controlled Senate has an appetite for reform. That chamber’s Appropriations Committee is expected to begin its consideration of appropriations legislation that a similar amendment could potentially be attached to within the next few weeks.
Photo courtesy of Philip Steffan.
Federal Transportation Official Says Marijuana Consumers Think They Drive Better While High
Federal research shows that marijuana consumers believe they drive better when they’re high, a leader of the National Highway Traffic Safety Administration (NHTSA) said during a congressional hearing last week.
Appearing before the Senate Commerce, Science and Transportation Committee, NHTSA Deputy Administrator Heidi King testified that the department is combating impaired driving from cannabis, opioids and other drugs by issuing grants for law enforcement training and expanding public education campaigns on the issue.
Part of the reason public education is particularly necessary, she said, is because “most users of marijuana who have participated in market research we have developed are saying they believe they drive safer when they’re high because they’re very focused and they’re being very cautious.”
“We know from the driver simulator studies it’s not true,” she said. “We are doing everything we can, putting out more grant funds and supporting communities where the rubber hits the road to make sure we get ahead of the problem. And we educate consumers to make better decisions.”
NHTSA’s objective to that end is to debunk five myths: “That it’s safe to drive when under the use of a substance, that they’re not going to get stopped, that they’re not going to be arrested, not going to be prosecuted, not going to be convicted.”
But while King referenced simulator tests showing that people do not drive better under the influence of cannabis—and most advocates and opponents of legalization alike share the opinion that nobody should drive after consuming marijuana—a congressional report released in May found that the science isn’t quite so clear.
“Although laboratory studies have shown that marijuana consumption can affect a person’s response times and motor performance, studies of the impact of marijuana consumption on a driver’s risk of being involved in a crash have produced conflicting results, with some studies finding little or no increased risk of a crash from marijuana usage,” the Congressional Research Service report stated.
And several independent studies have found that legalization isn’t associated with an increase in traffic fatalities.
Later in the hearing, Sen. Dan Sullivan (R-AK) asked whether NHTSA was focusing its research efforts on states that have legalized cannabis, such as his home state of Alaska.
“Yes, we have actually first traveled to Washington we later traveled to Denver in Colorado to have meetings and learn from them and learn best practices,” she said. “One of the things we find is the states that have been early legalizers of marijuana products like Washington and Colorado, they have a great deal to learn. Other states that were early medical marijuana adopters like the state of California also have something to share.”
Photo courtesy of C-SPAN.