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Marijuana Industry Equity Advocates Aim To Shape Northeast Governors’ Legalization Talks

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The Minority Cannabis Business Association (MCBA) announced on Monday that it will hold a tri-state conference in December to highlight the importance of promoting social equity as the governors of Connecticut, New Jersey and New York set out to coordinate regional marijuana legalization plans.

The organization also unveiled four new board members: National Cannabis Industry Association (NCIA) Head of Growth Kaliko Castille, who will serve as MCBA’s vice president; Cresco Labs Senior Vice President of Community Integration Barrington Rutherford; Working Group President Jazmin Aguiar and Arcview Group Vice President of Data and Government Affairs David Abernathy.

MCBA said it decided to hold the regional conference after New York Gov. Andrew Cuomo (D) and Connecticut Gov. Ned Lamont (D) announced last week that they will host a meeting of state officials from throughout the Northeast on October 17 to determine how best to implement legal cannabis markets that are consistent with one another.

The governors stressed that they don’t want variation between marijuana programs to encourage consumers to cross state lines for products.

“I applaud Governors Cuomo and Lamont for being open to discussions of interstate commerce and the need for best practices that effectively address decades of social damage from the war on drugs,” Jason Ortiz, who is the newly elected president of MCBA, told Marijuana Moment. “MCBA has been at the forefront of drafting stakeholder driven model legislation such as our model state cannabis legalization bill and model municipal social equity ordinance, and we look forward to educating both governors and the people of the tri-state area on why social equity programs are the industry standard and must be included for any regulatory framework to be successful.”

With its new board members, representing major individual industry companies as well as NCIA, the organization believes it will be uniquely positioned to advocate for reform with an emphasis on restorative justice.

“The industry is in a position to commit resources toward effectively communicating the importance of well thought out policy to both lawmakers and the public,” Ortiz said. “Our industry can be a force for community empowerment as long as we commit to using our resources in a way that centers the needs of those directly impacted and creates paths to prosperity for everyone who wants to be a part of this growing movement.”

Though it’s yet to be seen what kind of social justice policies governors in the Northeast will include in their legalization proposals, Cuomo and Lamont mentioned at a press conference last week that they discussed expungements of prior cannabis records as one area they’re interested in.

Industry representatives will also likely weigh in on other, more restrictive proposals the New York governor has recently floated. Cuomo suggested this month that his administration may push for a ban on smoking cannabis or selling gummy bear edibles—proposals that could receive pushback from consumers and stakeholders.

MCBA is also involved in reform advocacy at the congressional level, backing a House-passed bill that would protect banks that service state-legal cannabis businesses, for example. While some groups such as the ACLU and Drug Policy Alliance called for a delay on the banking vote until more comprehensive legalization legislation passed, MCBA argued that there was value to the legislation for disadvantaged communities that have faced challenges in accessing capital and supported its immediate passage.

The group has also made clear that it will continue to invest resources into more far-reaching reforms that addresses social equity issues.

“MCBA has moved the conversation around legalization light years ahead of where we were just a few years ago,” NCIA’s Castille, the newly elected MCBA vice president and NCIA staffer, said in a press release. “The conversation has now shifted from ‘if’ we will legalize to ‘how,’ and that is very much a testament to the work that MCBA has been doing by putting out model legislation that will address the fundamental inequities that have resulted from marijuana prohibition.”

Northeast Governors To Coordinate Marijuana Legalization Plans Next Month, Cuomo Announces

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.

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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Trade Associations And Civil Rights Groups Send Mixed Messages On Marijuana Banking To Senate

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A coalition of trade associations sent a letter to Senate Banking Committee leadership on Thursday, urging a vote on legislation to protect financial institutions that service state-legal marijuana businesses.

But those senators are also feeling pressure from leading civil rights groups like the ACLU and Human Rights Watch, which sent an earlier letter insisting that they not allow cannabis banking to detract from more comprehensive reform that addresses social equity.

The organizations involved in the latest letter—including the American Bankers Association and Credit Union National Association—said that advancing the Secure and Fair Enforcement (SAFE) Banking Act or similar legislation is pivotal to ensuring that stakeholders receive needed clarity and are shielded from being penalized by federal regulators.

The letter, addressed to Banking Chair Mike Crapo (R-ID) and Ranking Member Sherrod Brown (D-OH), emphasized the bipartisan nature of the House passage of the bill in September and the growing movement at the state level to legalize cannabis for medical or recreational purposes.

“Our organizations support an initial legislative step that allows the legal cannabis industry into the banking system,” the groups, which also include the Council of Insurance Agents and Brokers, International Council of Shopping Centers and National Association of REALTORS, wrote. “Ultimately, protecting law-abiding financial institutions and ancillary businesses from their currently untenable position and addressing increasing public safety concerns.”

As more states reform their marijuana laws, however, “distribution, sale, possession, research, transaction, housing, employment, and a broader landscape of cannabis is becoming increasingly problematic” for stakeholders under federal prohibition.

“Ultimately, this creates more legal and security concerns that impact the operations and safety of businesses and consumers,” they said. “Finally, the lack of an available safe harbor for cannabis will continue to challenge the full adoption and deployment of the legal hemp and CBD products market in the U.S. due to the inextricable link between hemp and cannabis.”

“To resolve this, we urge the Committee to vote on the SAFE Banking Act or similar measures. Such measures are meant to create a safe harbor for depository institutions that provide a financial product or service to businesses in a state permitting the use of cannabis. A safe harbor will enable law enforcement and states to effectively monitor and regulate businesses while simultaneously bringing billions into the regulated banking sector.”

The letter, also signed by Americans for Prosperity and R Street, recognizes that creating a federal regulatory scheme for marijuana will take time but says that the SAFE Banking Act represents “a critical first step to ensure that legal cannabis marketplaces are safe, legal, and transparent.”

Crapo has said that he’s interested in holding a vote on resolving the cannabis banking issue in his panel before the year’s end, but so far nothing has been scheduled. The chairman told Marijuana Moment in earlier interviews that there are several changes to the House-passed bill that he’d like to see but that he’s worried impeachment proceedings against the president will interfere with plans to hold a vote.

All that said, pressure from civil rights advocacy groups could complicate congressional efforts to get the banking bill approved. In October, several organizations including the ACLU, Drug Policy Alliance, Human Rights Watch and Center for American Progress sent a letter to Senate leadership, as well as Crapo and Brown, demanding that “marijuana legislation considered in the Senate include provisions that will guarantee equity in the industry.”

The letter, which doesn’t appear to have been previously reported and was obtained by Marijuana Moment, states that while the coalition agrees the SAFE Banking Act “is an incremental step toward rolling back the federal prohibition of marijuana, it fails to help communities that have been historically and disproportionately devastated by United States’ punitive drug laws.”

“As the Senate Committee on Banking, Housing, and Urban Affairs considers similar legislation, we insist that the legislation include provisions that ensure equity in the marijuana industry by creating opportunities for individuals who have been prohibited from this growing business either by legal or financial means,” the letter, which was also signed by the Immigrant Legal Resource Center, Leadership Conference on Civil and Human Rights and National Association of Social Workers, states.

“Indeed, this Congress has shown it understands the economic impact of legalization. But while progress on the business side of legalization is promising, it is not sufficient. Federal marijuana legislation must be comprehensive and lead with equity, addressing past and current harms to communities of color and low-income communities who bore the brunt of the failed war on drugs. We demand that any marijuana reform or legalization bill considered by the Senate] include robust provisions addressing equity. More than simply adding equity provisions to bills that address industry concerns, we need comprehensive reform that deschedules marijuana and addresses the inequities and harms continually inflicted by the failed war on drugs.”

In other words, the groups are insisting on broad reform prior to a vote on a bill viewed as largely beneficial to the cannabis industry—similar to a request they made of House members prior to the legislation’s passage in the chamber.

Read the marijuana banking letters from the trade associations and civil rights groups below:

Industry SAFE Senate Bankin… by Marijuana Moment on Scribd

Senate Leadership Letter Re… by Marijuana Moment on Scribd

Senators Demand Update From DEA On Marijuana Growing Applications

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GOP Congressman Knocks His Party For Failing To Pass Marijuana Reform

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A Republican congressman says that whichever party is responsible for passing federal marijuana reform will “instantly” shoot up in the polls, while lamenting the fact that the GOP failed to do so when they controlled the House.

Rep. Thomas Massie (R-KY), a vocal advocate for hemp, was asked by Fox Business host Kennedy on Wednesday whether cannabis should be rescheduled under federal law.

“Absolutely,” he said. “The first party that does this—and I don’t understand why either party won’t do it—is going instantly gain 10 points in the general poll on which party versus the other.”

“We should have done it when we were in the majority,” he added. “The liberals should be asking Pelosi why she hasn’t put it on the floor yet.”

The House Judiciary Committee approved legislation last month to end federal marijuana prohibition, but it hasn’t yet been scheduled for floor action.

Massie made similar points during an interview with Marijuana Moment earlier this year, stating that if Republicans had advanced states’ rights-focused marijuana legislation, “I think we might still be in the majority.”

Of course, while Massie has supported legislation to allow states to set their own cannabis policies without federal intervention, as well as other more modest reform measures such as protecting banks that service marijuana businesses, he’s so far declined to cosponsor any bills that seek to deschedule cannabis.

The congressman has also expressed interest in changing federal gun control laws to allow cannabis consumers to purchase firearms.

Though it’s not clear exactly how much of a boost either party would get by passing a marijuana reform bill, a Pew poll released last month does show that there’s majority support for legalization among those who lean Republican (55 percent) as well those who lean Democratic (78 percent).

Senators Demand Update From DEA On Marijuana Growing Applications

Photo courtesy of YouTube/Rep. Massie.

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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State Department Warns Travelers About Flying With Cannabis Oil Internationally

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The U.S. State Department is warning international holiday travelers that while hemp-derived CBD might be legal in the U.S., it can land you in trouble if you take it certain places abroad.

“Make sure your gift isn’t a fa la la la la la la la la fail,” the department said in a tweet on Thursday. “Bringing along gifts like drones, CBD oils, and firearms can land you in trouble in foreign countries. Research what is and isn’t allowed before you travel.”

Please visit Forbes to read the rest of this piece.

(Marijuana Moment’s editor provides some content to Forbes via a temporary exclusive publishing license arrangement.)

MLB Officially Removes Marijuana From Banned Substances List For Baseball Players

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