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Marijuana In Casinos? Not Until Federal Law Changes, Vegas Congresswoman Says

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Congresswoman Dina Titus voted for the marijuana legalization measure on Nevada’s ballot a year ago. Since then, she has been fighting on Capitol Hill to get the federal government to respect the decision she and a majority of her constituents made to end prohibition.

The Las Vegas Democrat has sponsored or signed onto bills and amendments that would protect state laws from Justice Department interference, allow marijuana businesses to use banks and let military veterans access medical cannabis recommendations through government doctors, among others.

Those measures haven’t advanced, however, because of roadblocks thrown up by Congressional Republican leadership.

But even though the GOP-controlled House Rules Committee won’t allow floor votes on marijuana amendments, and Speaker Paul Ryan hasn’t done anything to help, Titus said in an interview that cannabis isn’t just an issue for Democrats.

“This was not partisan,” she says of the measures she has supported. “It was heavily Democratic but we had Republicans supporting these amendments. I think if they came to the floor they would pass.”

Indeed, large bipartisan majorities approved floor amendments to protect state medical cannabis laws from federal interference in 2014 and 2015, but since then House leadership has consistently prevented votes.

Titus says that “Republicans aren’t going to buck their leadership and sign a discharge petition” to circumvent committees and force measures to the floor, but she is hopeful that shifting poll results on legalization and the growing number of changing state laws will make Congress come around soon.

“We’re going to keep on beating the drum, and I think you reach a tipping point because every cycle there are more initiatives and more efforts by state legislatures to legalize marijuana in some fashion. It’s over half of the states that have it now,” she says. “So when public opinion shifts…and more states make it legal, then the Republicans are going to have to respond.”

Titus believes it is important that she tailor her pitch when trying to convince fellow members of Congress to support cannabis legislation.

“You make the argument based on who you’re talking to,” she says. “Some believe it’s a criminal justice issue. Others believe it’s a states’ rights issue. Others see it as a medical opportunity issue. You’ve got a few who are just old stoned hippies who want to do it.”

For her part, Titus says that in addition to representing the views of her constituents, she has focused so much of her time on cannabis law reform because of people she knows who are impacted by current policy.

“I have many, many veterans in southern Nevada, and I have seen the problem of opioid addiction and I think that medical marijuana is a viable option,” she says. “And I’ve heard the stories of families of children with epilepsy who say this is the only way their children can get relief from having episodes. You hear stories like that, you think, ‘We’re missing the boat if we’re not looking at all the possibilities.'”

The congresswoman has also built relationships with marijuana business operators that she represents in her district.

“A lot of people in Las Vegas who are my constituents are in this business, and I have visited a number of the dispensaries,” she says. “There are not little head shops on the corner with black lights and pictures of Che Guevara. There are very professional operations. They’ve got agronomists, they’ve got scientists. They are respectable places with high security. They improve the neighborhood. They don’t bring it down.”

Titus thinks Nevada officials have done a good job implementing what voters approved, partially because the state has previously been a pioneer in regulating formerly prohibited activity, namely gambling.

“I think that’s pretty well shaken out,” she says. “This is a whole new area for us, but we have experience regulating something that’s kind of unusual because of our gaming and I think we were able to adjust to it pretty well.”

But for now, there’s no overlap between the state’s cannabis and gaming industries, largely because regulators for the latter have prohibited casinos from entering the marijuana trade.

“It won’t happen until federal legislation happens, because gaming is so tightly regulated and they’re not going to take any chances of losing a license or having the feds step into the gaming world because of marijuana,” Titus says. “It’s kind of like the banks that don’t want to do business with marijuana companies because of federal regulation. So it’s going to take not just becoming mainstream or not just becoming legalized at the state level, but federal action before that happens.”

One area where Titus does see opportunity for advancement without Congressional action is improving military veterans’ access to medical cannabis. Under current Department of Veterans Affairs policy, government doctors are not allowed to fill out medical marijuana recommendation forms, even in states where it is legal.

It’s “a crying shame,” she says.

Despite some victories on the House floor and in a Senate committee, efforts to force a change at the VA haven’t been enacted into law. But VA Sec. David Shulkin could change the policy himself, if he wanted to.

“I’m very disappointed in the VA not moving this forward,” she says. “I think they should do it without legislation.”

The issue is particularly important in light of increased attention being paid to opioid addiction and overdoses. “The veterans who want to try [marijuana] have to use it on their own, pay for it out of their own pockets and who knows how it interacts with other things that are being prescribed,” Titus says. “The opioid crisis, I think, has been perpetuated by the VA because it’s so much easier to give somebody a pill than it is just to deal with some of the demons that they may face or some of the real physical problems. Veterans come back now not with just one injury but maybe 10, 12 injuries because of the new science on the battlefield.”

On broader marijuana enforcement issues, despite concerning comments from U.S. Attorney General Jeff Sessions and other Trump administration officials, there have been no formal policy changes announced this year.

“We’re just in limbo,” Titus says. “That can be as bad as knowing what you have to face even if it’s something you don’t like.”

The congresswoman remains optimistic about shifting tides on marijuana issues, however, and in particular is impressed by how the legalization movement and the industry it has created have stepped up their game.

“The groups that represent different aspects of the medical marijuana and recreational marijuana industry are getting much more energized, much more mobilized, much more professional in their lobbying efforts,” she says. “I think you’re going to see that start to increase.”

This piece was first published by Forbes.

Photo courtesy of National Nuclear Security Administration.

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.

Tom Angell is the editor of Marijuana Moment. A 15-year veteran in the cannabis law reform movement, he covers the policy and politics of marijuana. Separately, he founded the nonprofit Marijuana Majority. Previously he reported for Marijuana.com and MassRoots, and handled media relations and campaigns for Law Enforcement Against Prohibition and Students for Sensible Drug Policy. (Organization citations are for identification only and do not constitute an endorsement or partnership.)

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Marijuana Banking Bill Will Get A Full House Floor Vote This Month

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A bipartisan bill to protect banks that service marijuana businesses will get a House floor vote by the end of the month, the office of Majority Leader Steny Hoyer (D-MD) confirmed to Marijuana Moment on Friday.

House leadership announced the decision to Democratic lawmakers at a closed-door meeting on Thursday.

“Mr. Hoyer said at the Whip meeting yesterday that he intends to move it this month,” a Hoyer staffer said in an email. “We’re discussing it with Members, but it hasn’t been scheduled just yet.”

Prior to confirmation from Hoyer’s office, four sources initially described the development to Marijuana Moment, with some saying the vote would be made under suspension of the rules—a procedure that is generally reserved for non-controversial legislation.

Voting on suspension would require two-thirds of the chamber (290 members) to vote in favor of the Secure and Fair Enforcement (SAFE) Banking Act in order for it to pass. The bill, which cleared the House Financial Services Committee in March, currently has 206 cosponsors, including 26 Republicans.

No amendments would be allowed to be added on the floor under the suspension process.

Problems could arise if lawmakers aren’t able to rally additional votes from conservative members or if there’s pushback over the strategy from progressive lawmakers, though it is unlikely Democratic leadership would advance the bill if they didn’t believe they have the votes for passage.

While interest in resolving the banking issue is generally bipartisan, it’s within reason to assume that lawmakers on both sides of the aisle might have wanted the opportunity to offer provisions such as extending protections to hemp businesses or adding language promoting social equity policies. That said, it is possible that leadership could file an entirely new piece of legislation that is similar to the SAFE Banking Act but contains modified provisions negotiated with key members and use that as the vehicle for floor action.

Many expected cannabis banking legislation to receive a floor vote before the August recess, but that did not come to fruition.

In any case, the development comes as the Senate Banking Committee is also preparing to hold a vote on marijuana banking legislation, with Chairman Mike Crapo (R-ID) announcing on Thursday that his panel is “working to try to get a bill ready.” He didn’t offer a timeline, however, other than saying he hoped to advance the legislation by the end of the year.

While sources told Marijuana Moment that Hoyer made his decision to allow cannabis banking vote following an earlier Wednesday meeting on the issue, it is likely that building momentum in the GOP-controlled Senate added to pressure on the House to act so that Democrats wouldn’t be seen as lagging behind Republicans on cannabis reform, an issue the party has sought to take political ownership of.

Following Crapo’s statement on advancing the banking legislation, Rep. Ed Perlmutter (D-CO), chief sponsor of the SAFE Banking Act, told Marijuana Moment that he welcomes the senator’s “commitment to resolve the banking conflicts that have been created by the misalignment in state and federal law on the issue of cannabis.”

“I remain focused on passing the SAFE Banking Act out of the House and look forward to working with my colleagues in the Senate as they take up the SAFE Banking Act or work to develop and pass similar legislation,” he said.

Banking access is largely seen as one of the most achievable pieces of cannabis legislation that stands to pass this Congress. Advocates and reform-minded lawmakers view it as one of the first steps on the path toward ending federal marijuana prohibition.

“We are seeing the blueprint in action and moving forward on critical legislation to protect state legal cannabis banking,” Rep. Earl Blumenauer (D-OR) told Marijuana Moment, referring to a memo he sent to House leadership last year outlining a committee-by-committee process for passing incremental cannabis bills leading up to major legislation to end federal prohibition. “Earlier this summer, the House passed protections for state and tribal cannabis laws. In the most cannabis friendly Congress in history, we need to keep up this momentum. There is still much to be done.”

There has been some disagreement within advocacy circles about whether it’s prudent to pass legislation viewed as primarily favorable to the industry before advancing comprehensive legislation that deschedules cannabis and takes steps to repair the harms of prohibition enforcement.

“It is our hope that after the successful passage of the SAFE Banking Act in the House, we will be able to advance legislation that ends the federal criminalization of cannabis once and for all,” Justin Strekal, political director of NORML, told Marijuana Moment. “Now is our time to demonstrate that marijuana law reform is both good policy and good politics.”

“We will not stop until otherwise law-abiding Americans are no longer discriminated against or criminalized due to the past or future choice to consume cannabis,” he said.

Neal Levine, CEO of the Cannabis Trade Federation, told Marijuana Moment that the group is “delighted that the U.S. House of Representatives is on the brink of passing a landmark piece of cannabis policy legislation that modernizes our antiquated banking laws to reflect the will of the people.”

“This is welcomed and long overdue news for the over 200,000 employees that work in the industry, cannabis businesses, and for public safety in the communities in which we operate,” he said. “Once the SAFE Banking Act passes the U.S. House, we call on the U.S. Senate to move quickly to protect our businesses and our workers.”

Pressure has been building all year from stakeholders and policymakers alike to get the legislation passed. Endorsements aren’t just coming from reform groups, either; 50 state banking associations, the National Association of State Treasurers, the top financial regulators of 25 states, a majority of state attorneys general and bipartisan governors of 20 states have also voiced support for the SAFE Banking Act.

Earlier this month, the head of the American Bankers Association predicted that the bill would be passed in the House “as early as September.”

GOP Senate Chair Says He Plans Marijuana Banking Vote

This story was updated to add comment from Perlmutter and Hoyer’s office.

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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New ‘Marijuana 1-to-3 Act’ Would Reclassify Cannabis Under Federal Law

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Another bill to reschedule marijuana was filed in Congress on Thursday.

Rep. Greg Steube (R-FL) introduced the legislation, which is titled the “Marijuana 1-to-3 Act.” True to its name, the bill would simply require the attorney general to move cannabis from Schedule I to Schedule III under the Controlled Substances Act, with the aim of increasing research on the drug’s effects.

“As marijuana is legalized for medical and recreational use across the United States, it is important that we study the effects of the substance and the potential impacts it can have on various populations,” Steube said in a press release. “By rescheduling marijuana from a schedule I controlled substance to a schedule III controlled substance, the opportunities for research and study are drastically expanded.

“With this rescheduling, researchers can now access federal funds to research this substance and determine its medical value,” he said.

The press release came hours after a bipartisan pair of lawmakers introduced separate legislation to reschedule marijuana, also to Schedule III.

That bill contained additional provisions that would require federal agencies to develop research agendas for marijuana within one year of its enactment and also establish a system whereby universities could be designated as “Centers of Excellence in Cannabis Research” if they conducted comprehensive studies on issues related to marijuana.

Rep. Matt Gaetz (R-FL), who is a sponsor of the broader research bill, is also cosponsoring Steube’s more focused rescheduling proposal.

It’s not clear why Steube chose to file his own reclassification bill or whether the other legislation’s additional provisions were a factor.

The congressman’s two-page bill states that “the Attorney General of the United States shall, by order not later than 60 days after the date of enactment of this section, transfer marijuana…from schedule I of such Act to schedule III of such Act.”

“We hear every day about the positive health benefits of marijuana,” Steube said. “Whether it’s young children with seizure disorders, or veterans suffering from chronic pain, it is clear that there are medical benefits to marijuana and I think it’s time we remove the bureaucratic red tape that prevents us from thoroughly studying this substance.”

While he emphasized that the intent of his legislation is to encourage research into marijuana, placing cannabis in Schedule III would also have implications for marijuana businesses, who are currently ineligible for federal tax deductions under an Internal Revenue Code section that applies to anyone “trafficking in controlled substances” in Schedule I or II.

Read the full text of the bill below: 

Marijuana 1-to-3[1] by Marijuana Moment on Scribd

Former Anti-Legalization Clinton Cabinet Official Files Marijuana Reclassification Bill In Congress

Photo by Ndispensable.

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GOP Senate Chair Says He Plans Marijuana Banking Vote

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The Republican chair of the Senate Banking Committee said on Thursday that his panel will hold a vote on legislation allowing banks to service state-legal marijuana businesses this year.

Chairman Mike Crapo (R-ID) told Politico that while he doesn’t support ending federal cannabis prohibition, his committee will take up the industry’s banking issues, which was the subject of a hearing the panel held in July. Because marijuana remains federally illegal, many financial institutions remain wary of taking on cannabis business clients—forcing them to operate on a cash-only basis—and there’s a growing bipartisan call to resolve the problem.

“We’re working to try to get a bill ready,” the senator said. “I’m looking to see whether we can thread the needle.”

Legislation to provide financial services to marijuana businesses—the Secure and Fair Enforcement (SAFE) Banking Act—already exists and was approved by the House Financial Services Committee in March. That bill has 206 cosponsors, including 26 Republicans. The companion Senate bill has nearly a third of the chamber signed on.

It’s not clear what changes Crapo is hoping for, but there’s been talk of adding hemp-specific banking protections, or including language to prevent activities such as Operation Choke Point, an Obama-era policy that conservatives view as biased against certain industries such as gun manufacturers, in order to bolster the proposal’s GOP appeal.

This development comes as Congress returns from a summer recess. Cannabis reform advocates hoped that the Democratic-controlled House would put the SAFE Act to a vote before August, but that window passed.

There have been renewed rumors that House leadership is planning to schedule a vote on the SAFE Act soon, but some dispute has broken out among cannabis reform supporters about the notion of passing a bill seen as industry-focused prior to moving broader legislation to deschedule marijuana and repair the harms of past prohibition enforcement.

Many supporters of more far-reaching moves have zeroed in on a bill House Judiciary Committee Chairman Jerrold Nadler (D-NY) filed, but it’s unclear when that legislation would be able to see a markup by the panel, which for now is focused on issues such as gun reform and the prospect of impeachment proceedings.

If the Republican-controlled Senate were to pass marijuana banking legislation soon, it could increase political pressure on House majority Democrats to follow suit lest they be seen as lagging on an issue on which their party has increasingly sought to lead.

Don Murphy, federal policies director for the Marijuana Policy Project, told Marijuana Moment that polling in Crapo’s home state of Idaho—one of only three states that currently have no legal cannabis laws on the books—shows that voters in the state support cannabis reform and that “it appears Chairman Crapo is seeing similar results.”

“Apparently MPP hasn’t done the only marijuana poll in Idaho recently,” he said. “Idaho voters support marijuana policy reform and with his support of the SAFE Act the Senator is moving in their direction. What took years to develop could end up in a photo finish as each chamber attempts to beat the other to a floor vote. If true, this is a very good news.”

Idaho activists are working to place a medical cannabis measure on the state’s 2020 ballot.

While it’s not clear Crapo that endorses the SAFE Act as written or that he would use an amended version of the existing bill as the vehicle to advance the issue, he’s made several statements indicating that he’s interested in a legislative fix on cannabis banking.

“We may craft our own bill or we may work with them to craft any amended legislation,” he told Politico.

“It would be terrific for the Senate Banking Committee to hold a markup on The Safe Banking Act, which we believe would result in a favorable bipartisan vote,” NORML Political Director Justin Strekal told Marijuana Moment. “Now more than ever, members of Congress spanning all types of geographic and political diversity recognize the need to amend existing law and move us towards ending federal prohibition.”

Crapo told Politico that he’s particularly interested in passing cannabis banking reform legislation because of the negative impact of the ban on ancillary businesses like plumbing and hardware companies that work with such businesses but don’t deal directly with marijuana.

The head of the American Bankers Association (ABA) predicted last week that the House would vote on the legislation before October.

“THIS is a very important development- thank you [Sen. Crapo] for helping advance this legislation that will allow people and businesses access to the banking sector in states that have legalized cannabis and address the state/federal law inconsistency,” he wrote in response to the senator’s latest comments.

Politically, passing the banking bill in the Senate could give Sen. Cory Gardner (R-CO), its chief GOP cosponsor, a much-needed win heading toward next year’s election. Democratic candidates, including former Colorado Gov. John Hickenlooper (D) are targeting the seat, and Gardner has made much of his work to support the state’s legal cannabis market.

DEA Wants 3.2 Million Grams Of Marijuana Legally Grown In 2020

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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