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Lawmakers Work New Angles To Pass Marijuana Banking Legislation

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Advocates of expanding marijuana businesses’ access to banks are pursuing two new strategies: amending pending standalone legislation to broaden its GOP appeal as well as supporting a separate a rider on the issue that was recently attached to a large-scale appropriations bill.

While lawmakers have primarily focused on the bipartisan standalone bill, which would provide safeguards for banks that service marijuana businesses in states where it’s legal, House Democratic leaders released a new version of an annual spending package on Sunday that includes language providing similar protections.

The section in the appropriations bill states that none of the funds it appropriates “may be used to penalize a financial institution solely because the institution provides financial services to an entity that is a manufacturer, a producer, or a person that participates in any business or organized activity that involves handling marijuana, marijuana products, or marijuana proceeds, and engages in such activity” in compliance with state law.

That’s not to say that momentum behind the more focused Secure And Fair Enforcement (SAFE) Banking Act is waning. The bill cleared the House Financial Services Committee in March, and it currently has 191 cosponsors, including 23 Republicans, with a floor vote expected within the next several weeks.

Despite its sizable bipartisan appeal in the House, however, its fate in the Republican-controlled Senate has been uncertain.

For one, the chair of the Senate Banking Committee, Sen. Mike Crapo (R-ID) has declined to commit to bringing a companion bill that now has 30 lawmakers signed on to a vote, though some of his Republican colleagues recently told Marijuana Moment that the chair could well come around to giving the legislation a fair hearing. And while Senate Majority Leader Mitch McConnell (R-KY) is a strong proponent of hemp, he remains opposed to more broadly reforming federal cannabis laws.

To sweeten the deal, lawmakers are looking at adding at least two provisions: one would expand the banking protections to businesses marketing hemp and hemp-derived CBD products and the other would block regulators from going after certain businesses such as payday lenders and firearm dealers on the alleged basis that they’re common vessels for money laundering.

Politico first reported about the proposals that Rep. Ed Perlmutter (D-CO), the chief sponsor of the marijuana banking bill, is actively discussing with Republicans.

While it’s unclear why the hemp protections would be necessary considering that the crop was federally legalized and descheduled under the 2018 Farm Bill, some lawmakers have indicated that uncertainty persists in the hemp market and have sought out added assurances on top of the agriculture legislation.

McConnell, for example, recently inserted a provision securing access to federal crop insurance for hemp farmers into disaster relief funding legislation even though similar language was already included in the Farm Bill that legalized the plant last year. It’s possible that he’d be more amenable to the banking legislation if it could help ensure access to financial services for the hemp industry, which is particularly important to Kentucky.

“While it is currently legal for banks to provide services to hemp companies as a result of the recent descheduling from the Controlled Substances Act, given the uncertainty of the marketplace and stringent definition of hemp and its derivatives, it’s understandable that increased protections would lead to a more stable economic climate,” Justin Strekal, political director for NORML, told Marijuana Moment. “At the end of the day, transparency and certainty is needed, which can only be achieved through thoughtful and effective regulatory climate for both consumers and companies.”

Rep. Andy Barr (R-KY), who voted against the cannabis banking bill in committee, told Politico that if the legislation did include the hemp provision, “then that helps me get to a yes.”

During a House hearing last month, Barr pressed federal financial officials about hemp businesses’ ongoing lack of access to financial services like credit card processing.

On a similar note, Crapo is strongly supportive of preventing regulators from interfering in businesses under the Obama-era “Choke Point” initiative, which many conservatives regard as a politically motivated means of punishing certain sectors—particularly gun sellers and small-dollar lenders.

Standalone legislation to block future programs along those lines passed in a 395 to 2 House vote in 2017.

“Our goal is for SAFE Banking to be a bipartisan slam dunk in the House and build a case that the Senate can no longer ignore this legislation, or this issue,” Michael Correia, director of government relations for the National Cannabis Industry Association, told Marijuana Moment. “Successful campaigns are built on consensus and compromise, and we welcome Rep. Perlmutter’s efforts to broaden support and find a solution to this critically important safety and accountability issue.”

Another potential incentive for those on the fence about the bill comes from the Congressional Budget Office (CBO). The CBO released its score of the banking legislation last month, finding that if passed, it would end up saving the federal government millions of dollars over time.

What happens in the next few weeks and months is not set in stone. But if both or either of the proposed amendments do make their way into the legislation, it’s reasonable to assume that the numbers will shift in the bill’s favor. And if all else fails, banks could get similar reassurances that they won’t be penalized for working with marijuana businesses, at least by the Treasury Department, if the appropriations legislation is approved.

Marijuana Banking Bill Has A Chance In The Senate, Republican Lawmakers Say

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.

Kyle Jaeger is Marijuana Moment's Los Angeles-based associate editor. His work has also appeared in High Times, VICE and attn.

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Bipartisan Lawmakers Tell DEA To Let Researchers Study Marijuana From Dispensaries

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A bipartisan coalition of lawmakers from the House and Senate sent a letter to the Justice Department on Friday, requesting a policy change allowing researchers to access marijuana from state-legal dispensaries to improve studies on the plant’s benefits and risks.

The letter, led by Rep. Harley Rouda (D-CA) and Sen. Brian Schatz (D-HI), cites feedback from federal health agencies, which have said that existing restrictions on cannabis have inhibited research. One problem in particular is that there’s only one federally authorized manufacturer of research-grade marijuana.

While the Drug Enforcement Administration (DEA) said that it is in the process of approving additional manufacturers, it’s been more than three years since they first announced that applications for more growers would be accepted and, more recently, the agency said it would have to develop alternative rules to approve proposals that have been submitted.

“At the same time, the status quo does not address a barrier to research raised by both [the National Institutes of Health] and [the Food and Drug Administration],” the lawmakers wrote in the new letter. That barrier is a ban on researchers being able to obtain marijuana from dispensaries.

“Both agencies recommended that researchers should be able to obtain cannabis from state-legal sources,” the letter states.

Further, the lawmakers said that there are “problems in industry development of licensed drugs with data from products obtained from third-parties, such as the University of Mississippi.”

“In many states, cannabis law and regulations already provide for licensing of industrial manufacturing activities, and products are available for medical use in those states, but not for research leading to FDA licensure,” they wrote.

“There is a need for a greater diversity of cannabis products so that research on benefits and risks reflects the realities of what consumers and patients are using. NIH and FDA have strongly recommended streamlining the process for conducting research and product development activities with cannabis and other Schedule I substances, and that the DEA take action to assure that interpretations of processes and policies are universally applied in local DEA jurisdictions.”

The lack of chemical diversity in the federal government’s cannabis supply has been repeatedly pointed out. One study found that the research-grade cannabis is more similar to hemp than marijuana in commercial markets.

To resolve the research issues, the coalition made two recommendations: 1) to amend internal policy “so as to allow researchers with Schedule I licenses to obtain cannabis-derived products from state authorized dispensaries for research purposes” and 2) issue guidance clarifying that hemp researchers do not need a DEA license to obtain and study hemp because it was federally legalized under the 2018 Farm Bill.

The letter requests a response from DEA by December 20.

A total of 21 members of Congress signed the letter, including Sens. Kamala Harris (D-CA) and Cory Gardner (R-CO), along with Reps. Earl Blumenauer (D-OR), Barbara Lee (D-CA) Matt Gaetz (R-FL) and Joe Kennedy (D-MA).

“Our nation’s cannabis research laws are archaic,” Rouda said in a press release. “Forty-seven states have legalized some form of cannabis consumption—we must ensure our federal agencies and other licensed institutions can comprehensively study the benefits and risks of cannabis products.”

“I thank Senator Schatz, and my colleagues on both sides of the aisle, for joining me to make this common-sense request,” he said. “It’s time to bring our drug research policies into the 21st century.”

Attorney General William Barr received a similar letter from lawmakers about the need to expand the number of federally authorized marijuana cultivators in April.

Read the lawmakers’ full letter on expanding marijuana research below:

FINAL Letter to DOJ Re. Can… by Marijuana Moment on Scribd

People Are Skipping Sleep Aids In Favor of Marijuana, Study Reports

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Oregon Activists Begin Signature Gathering For 2020 Drug Decriminalization Initiative

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Oregon activists have begun collecting signatures for a statewide initiative to decriminalize possession of all drugs.

Three months after petitioners quietly submitted the proposed ballot measure—titled the “Drug Addiction Treatment and Recovery Act” (DATRA)—the signature gathering process has started, with organizers deployed to Portland to raise support.

A long road lies before the activists, who need to collect 112,020 valid signatures from voters in order to qualify for the 2020 ballot. Funding and polling will decide whether they mount a full push for the decriminalization measure in the months to come.

To that end, their efforts are being helped by David Bronner, CEO of the soap company Dr. Bronner’s, who told Marijuana Moment on Thursday that he will be investing $250,000 in the decriminalization campaign. An additional $500,000 will go to a separate Oregon initiative to legalize psilocybin for therapeutic purposes.

The Drug Policy Alliance (DPA), which backed Oregon’s successful marijuana legalization initiative in 2014, is also supporting this new effort to make low-level drug possession an infraction punishable by a $100 fine with no jail time, rather than a misdemeanor. It remains to be seen how involved in the campaign DPA will be, however.

Peter Zuckerman, a chief petitioner for the decriminalization initiative, told OregonLive on Thursday that it’s not guaranteed that the campaign will proceed and that much rides on how much money the group can raise, whether there’s public support for the reform move and how staff recruitment comes together.

He said the main thrust of the measure is to take a “health-based approach to drug addiction rather than a criminal justice-based approach.”

The proposal caught the attention of Oregon’s teachers’ union, which said that it supports decriminalizing drug possession but wrote in a comment submitted to the secretary of state in October that it was not taking an official position because it’s concerned about another provision that would shift cannabis tax revenue away from schools.

DATRA would make it so most of that revenue would be used to fund addiction treatment programs.

At the same time that activists are collecting signatures and weighing whether to move ahead with the broad decriminalization initiative, another advocacy group is pushing for a measure to legalize psilocybin for therapeutic use, allowing individuals to receive treatment with the psychedelic fungus at licensed health facilities. The group launched its signature drive in September.

Advocates in Portland are also hoping to advance a local measure to decriminalize psilocybin and other psychedelics such as ayahuasca and ibogaine.

Bronner wrote in a blog post that the decriminalization and therapeutic psilocybin legalization campaigns are “already coordinating closely and conserving resources on the statewide signature drive.”

He told Marijuana Moment that “we see this as the perfect one two punch in Oregon, legalizing psilocybin therapy that has so much promise for treating drug addiction, at the same time Oregon shifts to a treatment not jail approach.”

“And 100 percent confident it’s coming together,” he said.

All of this comes amid a national movement to decriminalize psychedelics, with activists in almost 100 cities across the U.S. considering pushing for reduced penalties for substances such as psilocybin and ayahuasca. Decriminalize Nature, which is aiding in and tracking these efforts, is also receiving donations from Bronner, he said.

Decriminalization is also gaining traction on the national stage, with two presidential candidates—South Bend, Indiana Mayor Pete Buttigieg and Rep. Tulsi Gabbard (D-HI)—voicing support for the policy change. Former Housing and Urban Development Secretary Julián Castro, another candidate, recently said that he’s open to broad decriminalization, while entrepreneur Andrew Yang backs decriminalizing opioids.

Scientist Talks Benefits Of Psychedelics At Federal Health Agency Event

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.
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North Dakota Activists Submit Measure To Legalize Marijuana In 2020

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North Dakota activists submitted a measure to legalize marijuana for adult use to state officials on Thursday, an organizer confirmed to Marijuana Moment.

Legalize ND, the group behind the proposed statutory initiative, delivered the measure to the secretary of state’s office. It’s expected to be validated within days, after which point petitions will be distributed to collect signatures in support of qualifying for the 2020 ballot.

It’s been about a year since organizers began working on the measure, which would allow adults 21 and older to possess and purchase cannabis for personal use. The proposal is more narrowly tailored than a legalization initiative from the same organization that voters rejected in 2018, however.

The previous version didn’t include any restrictions on cultivation or possession, and it didn’t involve a licensing scheme. By contrast, the new measure would prohibit home cultivation, limit possession to two ounces, impose a 10 percent excise tax and establish a regulatory body to approve licenses for marijuana businesses.

“One of the largest complaints from last time was the mantra of ‘poorly written,'” Legalize ND’s David Owen told Marijuana Moment in a phone interview. “They targeted the lack of legal experience from our team and they targeted a lack of ‘qualified lawyers’ to be drafting language that would go into the state’s statutory law.”

But he said he’s confident the campaign will be successful this time around, in part because they spent months drafting the language with the North Dakota Legislative Council.

Asked what he’d say to voters still on the fence about legalization, Owen replied that it would depend on what their initial concerns were:

“If it’s a concern over home grow, well it’s simple, we don’t have that anymore. If it’s a concern of people having too much, we have a reasonable possession limit now—in their eyes, I still think possession limits are fundamentally arbitrary, but they wanted a possession limit so we have that now. If people go, ‘well what about the quality of the language?’ I can point to how it’s literally written by Legislative Council, so either every attorney who works for the state of North Dakota is incompetent or this is well written.”

In order to qualify for next year’s ballot, the group must collect 13,452 valid signatures from voters before July 6, 2020.

“I think the most important thing isn’t what it would do, but what it would stop from happening,” Owen told local radio station KFGO on Wednesday. “We currently have a system where people are unable to find a job because of a criminal record, we have a system where people are continuing to get marijuana charges and lose their housing, we have families being separated because of parents losing custody over their children for marijuana charges. That all stops when this is legalized.”

Listen to Owen’s radio interview about the new marijuana ballot measure below:

Internal polling that received outside funding, which Owen said cannot be publicly released because of the wishes of the donor, shows the initiative is “slightly ahead” among voters.

In an earlier interview with Marijuana Moment in February, Owen said that it’s “very probable that we can do it” this time around, but much of that depended on the extent to which opposition campaigns are involved and how much funding outside groups are able to offer.

Currently, North Dakota has a medical cannabis program, and the governor signed legislation in May decriminalizing low-level marijuana possession.

Marijuana Summit Will Give Virginia Governor ‘More Tools’ To Back Legalization, Attorney General Says

Photo courtesy of Philip Steffan.

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.
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