President Joe Biden’s leading candidate to be White House drug czar has played a critical role in overseeing the implementation and expansion of a state medical marijuana program and has publicly recognized both the therapeutic and economic potential of cannabis reform.
Rahul Gupta, the former chair of the West Virginia Medical Cannabis Advisory Board who also served as the lead on drug policy in Biden’s presidential transition team, is reportedly the top pick to head the federal Office of National Drug Control Policy (ONDCP), according to Filter—though no formal announcement has yet been made.
The ONDCP director, commonly known as “drug czar,” is explicitly required under statute to oppose efforts to legalize currently controlled substances.
As such, it would be a significant departure from the norm to have someone fill that role who has repeatedly touted the medical value of marijuana—saying, for example, that it can “help citizens suffering from debilitating diseases like cancer”—and who has worked to institute a state-legal cannabis program that authorizes people to carry out activities that are in contravention of federal law.
That said, harm reduction advocates have been quick to criticize Gupta’s record, pointing out that, during his time as commissioner for the West Virginia Department of Health and Human Resources (DHHR) Bureau for Public Health, he oversaw the decertification of a syringe access program that was designed to mitigate the spread of diseases like HIV and offer resources to people with substance misuse disorders.
Prohibitionists, for their part, have also been closely following ONDCP appointment developments. They’ve held out hope that the president would select someone whose views more closely align with their own, such as former Rep. Patrick Kennedy (D-RI), a cofounder of anti-legalization organization Smart Approaches To Marijuana, who has been personally lobbying for the nomination. Whether Gupta gets the pick, or if the slot goes to another leading contender such as Acting ONDCP Director Regina LaBelle, legalization advocates would be relieved if Kennedy is not chosen.
Gupta’s views on adult-use legalization are not clear, but he was proactive in promoting patient access to medical cannabis before leaving the state government to join the nonprofit March of Dimes, which is focused on public health issues related to mothers and children.
Marijuana Moment reached out to the White House and March of Dimes for comment about the potential ONDCP job for Gupta, but representatives did not immediately respond.
Rusty Williams, who served as a patient advocate on the West Virginia medical marijuana board alongside Gupta, told Marijuana Moment that he once had a personal conversation with the official about the origins of marijuana prohibition. He said that the then-chair broached the topic of why marijuana was criminalized in the first place, and then agreed that federal officials intended to use prohibition as a tool to oppress communities of color.
“Having served with him on on the advisory board, and especially given the climate surrounding the issue here in West Virginia—it’s a very hostile place to try to push cannabis reform, it has been for years—I’m very, very encouraged” by Gupta’s appointment, Williams said.
“He was willing to make things happen a year early,” he said, referring to the issuance of the board’s report on medical cannabis policy. “I was encouraged with the conversation that he and I had about the roots of prohibition.”
In 2018, the West Virginia medical marijuana board released a report that included series of recommendations on the state’s cannabis program. Led by Gupta, the body advised that patients should have access to marijuana in flower form for “administration by vaporization or nebulization”—something that was not initially allowed in the program as approved by lawmakers.
When it comes to smoking that raw plant material, Gupta noted, that patients “can combust themselves if they want, but that’s not what we’re advocating or recommending.”
The report also called for the removal of “limitations on the number of permits the Bureau for Public Health may issue for growers, processors, and dispensaries,” as well as the removal of “the limitation that a grower or processor may not also be a dispensary to permit the vertical integration of growers, processors and dispensaries.”
“To be honest with you, when he took the position with the March of Dimes, I was sad to see him go,” Williams said. “I think that, had he remained in the position here with DHHR, our medical cannabis program would be much further along than it is right now. Just for my personal opinion, I think he will be an ally to medical cannabis patients.”
When medical marijuana legalization was approved by the West Virginia legislature in 2017, Gupta said that, like most people, he was “surprised.”
“It’s an understatement,” he said at the time. “However, what we have in front of us today is a law as it stands in an attempt to compassionately address a number of disorders with chronic pain at the heart of it.”
When members of the state medical cannabis advisory board were appointed, the official said the panel will help facilitate “a transparent and accountable process critical to ensuring a comprehensive system that will help citizens suffering from debilitating diseases like cancer.”
“I am fully committed to making this particular piece of legislation successful,” he said of the medical marijuana legalization bill. “This bill was put together very quickly and, obviously, no bill is perfect. We certainly discussed the shortcomings, but that doesn’t mean the program won’t be successful and be on track.”
“We want to do it because lives are at stake. They are depending on the program to be successful,” he added. “Many people are in chronic pain. We want to take on that challenge.”
Gupta said that the board had received feedback from a range of stakeholders interested in the implementation of the cannabis program, but they’d also “received calls from people who are suffering who want to have some sort of relief. They are asking when they can get their patient ID card and go to their doctors to get certification.”
“The human side of it—you can’t ignore that piece,” he also said. “Science explains some of it, but not all of it.” He went on to say that there is a potential economic benefit to legalize for medical use, noting that “rarely are there policies enacted that are win-win,” and if done right, “you can actually get a true win-win on this.”
But Gupta isn’t necessarily a fan of marijuana use for everyone. In 2019, he teamed up with then-Surgeon General Jerome Adams on a public education campaign meant to warn against the use of cannabis during pregnancy and adolescence.
No amount of #marijuana is safe in pregnancy. This is not about shaming but about collaboration and a shared responsibility to ensure that all of us supporting healthy moms and strong babies hear that message
— Rahul Gupta, MD, MPH, MBA (@DrGuptaMD) August 29, 2019
“March of Dimes applauds today’s release of the US Surgeon General’s Advisory on the dangers of marijuana use during pregnancy for both mom and baby,” he said. “The evidence clearly shows that no amount of marijuana has been proven safe to use during pregnancy or while breastfeeding. Unfortunately, this message is not resonating with all expecting women and maternity care providers, and marijuana use among pregnant women has doubled between 2002 and 2017.”
Gupta has also periodically posted on social media about marijuana policy developments, such as the enactment of regulations for Colorado’s marijuana program and a 2010 report that more teens were smoking cannabis than tobacco.
— Rahul Gupta, MD, MPH, MBA (@DrGuptaMD) May 29, 2013
More teens smoke marijuana than cigarettes http://usat.ly/frkZ7N
— Rahul Gupta, MD, MPH, MBA (@DrGuptaMD) December 15, 2010
Despite Biden playing a leading role in passing legislation to create the drug czar role during his time in the Senate, The Washington Post reported on Wednesday that the ONDCP director role will not be reinstated to a cabinet-level position in his administration.
Part of the reason that advocates are monitoring each of Biden’s nominations is because skepticism prevails about how his administration will approach cannabis policy considering that the president remains opposed to legalization, and so each development sheds light on what to expect in the coming years.
Attorney General Merrick Garland made clear during his oral and written testimony, for example, that he does not feel the Justice Department should use its resources to go after people acting in compliance with state marijuana laws.
But advocates have had a different reaction to Vanita Gupta—the nominee for assistant attorney general who worked in the Justice Department during the Obama administration in addition to serving in top positions at the ACLU, NAACP and the Leadership Conference on Civil and Human Rights.
While activists were encouraged by her nomination given her history of supporting policies like marijuana legalization and broad decriminalization of other substances, they were sorely disappointed earlier this month when she backpedaled on the broader drug issue—saying she’s “not too proud to admit” the policy shift—when questioned by GOP senators at her confirmation hearing.
Photo courtesy of Evan Johnson.
Top IRS Official Says Marijuana Banking Reform Would Help Feds ‘Get Paid’
The Internal Revenue Service (IRS) would like to get paid—and it’d help if the marijuana industry had access to banks like companies in other legal markets, an official with the federal department said. She also talked about unique issues related to federal tax deductions for cannabis businesses.
At an event hosted by UCLA’s Annual Tax Controversy Institute on Thursday, IRS’s Cassidy Collins talked about the “special type of collection challenge” that the agency faces when it comes to working with cannabis businesses while the product remains federally illegal.
While IRS isn’t taking a stand on federal marijuana policy, Collins said that the status quo leaves many cannabis businesses operating on a cash-only basis, creating complications for the agency, in part by making it harder for banks to “pay us.”
“The reason why [the marijuana industry is] cash intensive is twofold,” she said. “Number one, a lot of customers don’t want a paper trail showing that they’re buying marijuana, and number two, the hesitancy of banks to allow marijuana businesses to even bank with them.”
Of course, the reason why many financial institutions remain hesitant to take on cannabis companies as clients is because the plant is a strictly controlled substance under federal law.
“There’s been a number of legislative bills that have been introduced—and I am definitely not expressing any opinion personally or on behalf of the IRS about any pending or proposed legislation,” Collins, who is a senior counsel in the IRS Office of Chief Counsel, said. “But it is interesting to note that, if the law changed so that the marijuana businesses could have banks, that would make the IRS’s job to collect [taxes] a lot easier. As part of collection, we want the money. That’s our end goal there.”
A major part of what makes cannabis businesses unique is that they don’t qualify for traditional tax credits under an IRS code known as 280E. That policy “prohibits them from claiming deductions for business expenses because they’re technically being involved in drug trafficking,” Collins explained at the event, from which small excerpts of her comments were reported by Bloomberg.
There are some options available to lessen the burden on marijuana firms, however. At the end of the day, “IRS will work with marijuana companies because, again, we want to get paid,” Collins said.
One of the ways the agency works with marijuana business operators is to have them visit designated IRS “tax assistance centers” that accept cash payments in excess of $50,000. But the official warned businesses to “be prepared to be there for a little while” as the center checks—and double checks—the amount of cash being submitted.
“Revenue officers will assist the marijuana companies in paying us,” she said.
IRS officials could also help cannabis firms by having officials accompany them “to the bank in order to try to help the taxpayer secure a cashier’s payment to pay the IRS, as well as using money orders,” she said, adding that “our revenue officers are are wanting to work with the marijuana companies to help assist them to pay us.”
“When the revenue officers are there in person with the taxpayer, that could potentially help increase the likelihood that the bank will cooperate and help the taxpayer transition into a cashier’s check,” she continued. “And that has been a trend since this first became legal [at the state level], that more and more banks are allowing cannabis companies to bank with them.”
In a report published earlier this year, congressional researchers examined tax policies and restrictions for the marijuana industry—and how those could change if any number of federal reform bills are enacted.
IRS, for its part, said last month that it expects the cannabis market to continue to grow, and it offered some tips to businesses on staying compliant with taxes while the plant remains federally prohibited.
As it stands, banks and credit unions are operating under 2014 guidance from the Financial Crimes Enforcement Network (FinCEN) that lays out reporting requirements for those that choose to service the marijuana industry.
Leaders in both chambers of Congress are working on legalization bills to end federal marijuana prohibition. But stakeholders are hopeful that, in the interim, legislators will enact modest marijuana banking reform. Legislation to protect financial institutions from being penalized for working with cannabis businesses passed the House for the fifth time last month.
Rodney Hood, a board member of the National Credit Union Administration, wrote in a Marijuana Moment op-ed this month that legalization is an inevitability—and it makes the most sense for government agencies to get ahead of the policy change to resolve banking complications.
IRS separately hosted a forum in August dedicated to tax policy for marijuana businesses and cryptocurrency.
Earlier this year, IRS Commissioner Charles Rettig told Congress that the agency would “prefer” for state-legal marijuana businesses to be able to pay taxes electronically, as the current largely cash-based system under federal cannabis prohibition is onerous and presents risks to workers.
Former Treasury Secretary Steven Mnuchin said in 2019 that he’d like to see Congress approve legislation resolving the cannabis banking issue and he pointed to the fact that IRS has had to build “cash rooms” to deposit taxes from those businesses as an example of the problem.
IRS released updated guidance on tax policy for the marijuana industry last year, including instructions on how cannabis businesses that don’t have access to bank accounts can pay their tax bills using large amounts of cash.
The update appears to be responsive to a Treasury Department internal watchdog report that was released earlier in the year. The department’s inspector general for tax administration had criticized IRS for failing to adequately advise taxpayers in the marijuana industry about compliance with federal tax laws. And it directed the agency to “develop and publicize guidance specific to the marijuana industry.”
Luxembourg Set To Become First European Country To Legalize Marijuana Following Government Recommendation
Luxembourg is poised to become the first European country to legalize marijuana, with key government agencies putting forward a plan to allow the possession and cultivation of cannabis for personal use.
The ministers of justice and homeland security on Friday unveiled the proposal, which will still require a vote in the Parliament but is expected to pass. It’s part of a broader package of reform measures the agencies are recommending.
Under the marijuana measure, adults 18 and older could grow up to four plants. However, under the non-commercial model that is being proposed, possessing more than three grams in public would still be a civil offense, carrying a fine of €25-500 ($29-581). Currently, the maximum fine for possession is €2,500 ($2,908).
In terms of access, adults would be able to buy and trade cannabis seeds for their home garden.
Justice Minister Sam Tamson said the government felt it “had to act” and characterized the home cultivation policy change as a first step, The Guardian reported.
👉🏻élaboration du projet de loi usage privé du #cannabis : jusqu’à 4 plantes à domicile & décorrectionnalisation <3g
👉🏻renforcement de la prévention & de l’accompagnement
👉🏻⬆️des moyens de la police
👉🏻élaboration d’un projet de production/vente #Luxembourg pic.twitter.com/8yre0Udt8J
— Sam Tanson (@SamTanson) October 22, 2021
“The idea is that a consumer is not in an illegal situation if he consumes cannabis and that we don’t support the whole illegal chain from production to transportation to selling where there is a lot of misery attached,” he said. “We want to do everything we can to get more and more away from the illegal black market.”
While limited in scope, the reform would make Luxembourg the first country in Europe to legalize the production and possession of marijuana for recreational use. Cannabis has been widely decriminalized in certain countries in the continent, but it has remained criminalized by statute.
Government sources in Luxembourg told The Guardian that plans are in the works to develop a program where the state regulates the production and distribution of marijuana. Tamson said they are working to resolve “international constraints” before taking that step, however, referring to United Nations treaty obligations that multiple U.S. states and other countries like Canada and Uruguay have openly flouted.
The measures include:
🟢 Regulation of cannabis use and cultivation: adults will be able to legally cultivate up to four cannabis plants for their own use, provided the cultivation is happening at their place of residence.
— European Greens (@europeangreens) October 22, 2021
For now, the country is focusing on legalization within a home setting. Parliament is expected to vote on the proposal in early 2022, and the ruling parties are friendly to the reform.
This has been a long time coming, as a coalition of major parties of Luxembourg agreed in 2018 to enact legislation allowing “the exemption from punishment or even legalization” of cannabis.
Meanwhile in the U.S., congressional lawmakers are working to advance legalization legislation. A key House committee recently approved a bill to end marijuana prohibition, and Senate leadership is finalizing a separate reform proposal.
In Mexico, a top Senator said this week that lawmakers could advance legislation to regulate marijuana in the coming weeks. The Supreme Court has already ruled that adults cannot be criminalized over possession or cultivation, but there’s currently no program in place to provide access.
Photo courtesy of Mike Latimer.
New Bipartisan Marijuana Research Bill In Congress Would Let Scientists Study Dispensary Products
A bipartisan group of federal lawmakers introduced a bill on Thursday to remove barriers to conducting research on marijuana, including by allowing scientists to access cannabis from state-legal dispensaries.
The Medical Marijuana Research Act, filed by the unlikely duo of pro-legalization Rep. Earl Blumenauer (D-OR) and prohibitionist Rep. Andy Harris (R-MD), would streamline the process for researchers to apply and get approved to study cannabis and set clear deadlines on federal agencies to act on their applications.
“Congress is hopelessly behind the American people on cannabis, and the quality of our research shows why that is an urgent problem,” Blumenauer told Marijuana Moment. “Despite the fact that 99 percent of Americans live in a state that has legalized some form of cannabis, federal law is still hamstringing researchers’ ability to study the full range of health benefits offered by cannabis, and to learn more about the products readily available to consumers.”
“It’s outrageous that we are outsourcing leadership in that research to Israel, the United Kingdom, Canada, and others. It’s time to change the system,” he said.
Late last year, the House approved an identical version of the cannabis science legislation. Days later, the Senate passed a similar bill but nothing ended up getting to the president’s desk by the end of the last Congress. Earlier this year, a bipartisan group of senators refiled their marijuana research measure for the current 117th Congress.
Meanwhile, lawmakers are also advancing a separate strategy to open up dispensary cannabis to researchers. Large-scale infrastructure legislation that has passed both chambers in differing forms and which is pending final action contains provisions aimed at allowing researchers to study the actual marijuana that consumers are purchasing from state-legal businesses instead of having to use only government-grown cannabis.
The new bill filed this week by Blumenauer and Harris, along with six other original cosponsors, would also make it easier for scientists to modify their research protocols without having to seek federal approval.
Marijuana Moment is already tracking more than 1,200 cannabis, psychedelics and drug policy bills in state legislatures and Congress this year. Patreon supporters pledging at least $25/month get access to our interactive maps, charts and hearing calendar so they don’t miss any developments.
Learn more about our marijuana bill tracker and become a supporter on Patreon to get access.
It would additionally mandate that the Drug Enforcement Administration (DEA) license more growers and make it so there would be no limit on the number of additional entities that can be registered to cultivate marijuana for research purposes. It would also require the U.S. Department of Health and Human Services (HHS) to submit a report to Congress within five years after enactment to overview the results of federal cannabis studies and recommend whether they warrant marijuana’s rescheduling under federal law.
“The cannabis laws in this country are broken, including our laws that govern cannabis research,” Blumenauer said in remarks in the Congressional Record. “Because cannabis is a Schedule I substance, researchers must jump through hoops and comply with onerous requirements just to do basic research on the medical potential of the plant.”
The new legislation will “both streamline the often-duplicative licensure process for researchers seeking to conduct cannabis research and facilitate access to an increased supply of higher quality medical grade cannabis for research purposes,” he said, adding that expanded studies will help make sure “Americans have adequate access to potentially transformative medicines and treatments.”
For half a century, researchers have only been able to study marijuana grown at a single federally approved facility at the University of Mississippi, but they have complained that it is difficult to obtain the product and that it is of low quality. Indeed, one study showed that the government cannabis is more similar to hemp than to the marijuana that consumers actually use in the real world.
There’s been bipartisan agreement that DEA has inhibited cannabis research by being slow to follow through on approving additional marijuana manufacturers beyond the Mississippi operation, despite earlier pledges to do so.
In May, the agency finally said it was ready to begin licensing new cannabis cultivators. Last week, DEA proposed a large increase in the amount of marijuana—and psychedelics such as psilocybin, LSD, MDMA and mescaline—that it wants produced in the U.S. for research purposes next year.
Under the new House bill, the agency would be forced to start approving additional cultivation applications for study purposes within one year of the legislation’s enactment.
HHS and the attorney general would be required under the bill to create a process for marijuana manufacturers and distributors to supply researchers with cannabis from dispensaries. They would have one year after enactment to develop that procedure, and would have to start meeting to work on it within 60 days of the bill’s passage.
In general, the legislation would also establish a simplified registration process for researchers interested in studying cannabis, in part by reducing approval wait times, minimizing costly security requirements and eliminating additional layers of protocol review.
Read the full text of the new marijuana research bill below: