Marijuana reform advocates experienced a setback on Monday after bill to legalize cannabis in New Jersey was pulled from the agenda due to a lack of votes to pass the legislation in the Senate.
The proposal would have allowed adults 21 and older to possess, consume and purchase marijuana from licensed retailers. It included a number of social equity provisions meant to encourage participation in the industry by individuals from communities most harmed by the war on drugs, and it also would’ve created a pathway for expedited expungements for prior cannabis convictions.
Two committees—the Assembly Appropriations Committee and Senate Judiciary Committee—approved companion cannabis legalization bills last week.
But while Gov. Phil Murphy (D) and leading lawmakers reached a compromise on certain details on how to carry out legalization earlier this month, the legislation faced resistance and was taken off the table hours before scheduled votes in the Senate and Assembly.
“History is rarely made on the first try,” Murphy said in a press conference. “Certainly I’m disappointed but we are not defeated… We all remain committed to passing this bill and making our state a national model for justice and opportunity because ultimately this is the right thing to do for New Jersey, and we know the people of New Jersey are on our side.”
History is rarely made on the very first try. But, eventually, barriers do fall to those who are committed to breaking them down.
Join me live in Trenton as we recommit to passing adult-use marijuana legalization and expungement legislation. https://t.co/Ebts137XJ6
— Governor Phil Murphy (@GovMurphy) March 25, 2019
“While we are all disappointed that we did not secure enough votes to ensure legislative approval of the adult use cannabis bill today, we made substantial progress on a plan that would make significant changes in social policy,” Senate President Stephen Sweeney (D) said in a statement. “This fight is not over. We need to learn from this experience and continue to move forward. While this legislation is not advancing today, I remain committed to its passage.”
I proudly stand with @GovMurphy, @SpeakerCoughlin, @SandraBCunningh & @SenatorScutari. We didn’t have the votes today, but we will continue to work together in order to bring adult use marijuana and criminal justice reform to New Jersey pic.twitter.com/BWxDchfiQ4
— Steve Sweeney (@NJSenatePres) March 25, 2019
“The legalization of adult-use marijuana will get passed in the state of New Jersey, one way or another,” he added at a press conference. “Anybody who thinks this is dead, they’re wrong.”
Assembly Speaker Craig Coughlin (D) echoed those sentiments.
"We all remain committed to enacting fair and responsible legislation that will be groundbreaking and a national model," says @SpeakerCoughlin on cannabis legalization, medical Marijuana, & expungement bill package pic.twitter.com/CwT6C5WlsX
— NJAssemblyDemocrats (@njassemblydems) March 25, 2019
“Today we may not be able to get a bill over the finish line but I’m proud of the effort we made and the discussions we had. It’s a big and complicated issue,” he said in a press conference. “We all remain committed to enacting fair and responsible legislation that will be groundbreaking and a national model.”
— NJAssemblyDemocrats (@njassemblydems) March 25, 2019
According to a whip count tracking tool for the legislation that was created by NJ.com, a majority of senators (23) planned to vote “no” as of Monday morning, compared to just eight who said they’d vote in favor of the bill, with nine others undetermined. Other sources indicated that 18 senators planned to vote “yes.”
In the days leading up to the Monday session, the legislation received a number of high-profile endorsements, including from 2020 Democratic presidential candidate Sen. Cory Booker (D-NJ), Rev. Al Sharpton and CNN host Van Jones. The governor’s office also released a list of quotes supporting the bill from lawmakers, activists and spiritual leaders.
“With this bill, New Jersey legislators can send a strong message to the country that marijuana legalization and social justice must be inextricably linked,” Booker said last week. “I’m hopeful our state will succeed in setting this example.”
Those endorsements were ultimately not enough to convince a sufficient number of on-the-fence state senators, some of whom raised concerns about the potential public health and safety impacts of legalization.
“This is a tragedy for social and racial justice in New Jersey. This legislation was supported by a broad coalition of civil rights, advocacy and faith organizations across the state and the majority of New Jersey voters,” Roseanne Scotti, New Jersey state director for the Drug Policy Alliance, said. “But, we will not give up. We will continue to fight for marijuana legalization legislation centered on racial and social justice. It is only a matter of time before this legislation is enacted and all New Jerseyans can share in the benefits it will create.”
Our commitment to adult-use marijuana legalization and expungement has not wavered. We know the people of New Jersey are on our side.
Change is never easy, but we will keep fighting. pic.twitter.com/xMeay0MlTx
— Governor Phil Murphy (@GovMurphy) March 25, 2019
Prohibitionist organization Smart Approaches to Marijuana described the news as a “huge victory for us.”
“They told us legalization was inevitable, and this action proves them wrong, Kevin Sabet, the group’s president, said in a press release.
With the cancellation of the vote, it may be months before lawmakers take up the idea again.
“Voters and lawmakers both agree that the practice of treating marijuana consumers as second-class citizens must end. Unfortunately, legislative intransigence regarding how best to create a regulatory framework has resulted in, at least for now, a continuation of the failed policy of marijuana criminalization in the Garden State,” NORML Political Associate Tyler McFadden said in a press release.
“[I]t should be acknowledged that, to date, no state has taken legislative action to regulate the adult use marijuana market,” she said. “In every jurisdiction where regulations exist, they were enacted by a direct vote of the citizenry. Based on current polling in New Jersey, we have little doubt that, if provided the opportunity, Garden State voters would take similar action.”
A poll last month found that New Jersey adults support legalizing marijuana, 62 percent to 32 percent.
This story was updated to add comment from Sweeney, DPA, NORML and SAM.
Photo courtesy of WeedPornDaily.
After New Mexico Lawmakers Fail To Pass Marijuana Legalization, Governor Says Voters Could Decide
Marijuana legalization failed to happen legislatively in New Mexico this year, but now Gov. Michelle Lujan Grisham (D) says she’s open to letting voters decide on the policy change.
A bill to legalize cannabis in the state advanced through one Senate committee last month, but it was rejected by another with just days left in the legislative session, which ended on Thursday. When lawmakers reconvene in 2021, the governor said it’s possible the legislature will pursue the reform move through a constitutional amendment that would be referred to voters at the ballot box.
Lawmakers would still have to vote in favor of advancing such a proposal to get it on the ballot, but it may be more palatable to some to let voters make the ultimate decision on whether to legalize marijuana in the state.
“We could,” Grisham said on Thursday in response to a question about whether the state could pursue a constitutional amendment to legalize. “I mean, I’m open to any number of pathways.”
She added that brining advocates and experts to the table while crafting a “regulatory design” for a cannabis market is an “incredibly transparent” process, but it also means “you get a lot of questions about how it works.”
“Overwhelmingly in every county, New Mexicans believe that that’s a productive economic path forward,” the governor said. “My job is to keep with them, making the case and trying to the best of our ability to answer any question, deal with any conflicts and to make sure that when we do anything, our expectation is that New Mexico does it the best and that we set aside and move aside by addressing them, any unintended consequences or potential risks.”
Listen to the governor’s remarks on a potential marijuana legalization constitutional amendment below:
“I’ll probably do a little of both, and I have no doubt that the legislators will do that as well,” she said.
A constitutional amendment to legalize marijuana was approved by a Senate committee in 2015, but it did not advance further. It was reintroduced the next year, but it didn’t get a committee vote.
Grisham, who was elected in 2018, has made clear that cannabis reform is a legislative priority, including legalization in her 2020 agenda. She also discussed the need to establish a well-regulated and equitable marijuana market during her State of the State address last month.
The House of Representatives passed a bill in 2019 to legalize marijuana and let state-run stores control most sales. The proposal later advanced through one Senate committee but did not receive a floor vote. Lujan Grisham did sign a more limited bill to simply decriminalize marijuana possession that lawmakers approved during that session, however.
After legalization failed to advance last year, the governor established a working group to study the issue and make recommendations.
Following a series of hearings, the panel released a report in October that said any legalization bill should include automatic expungements of past records and provisions to ensure equity in the industry for communities most impacted by the war on drugs. It also said that home cultivation of marijuana by consumers should either be prohibited or licensed by the state.
In December, the governor’s working group released a poll showing overwhelming public support for cannabis legalization.
Photo courtesy of Mike Latimer.
House Candidate Gives Marijuana To Voters At ‘First-Ever Congressional Weed Party’
“Get your blunt!” Illinois Democratic congressional candidate Anthony Clark tells a voter in a newly released campaign video. “We’re having a pretty dope day party.”
Ahead of the state’s March 21 primary election, Clark, an Air Force veteran and special education teacher in Chicago, has made marijuana a key campaign priority. On Thursday, he released a video shot at what he’s calling the “first ever congressional weed party in Chicago.”
“We just wanted to do something different,” Clark explains in the video. “I feel like we’re all out here in the struggle, we’re all out here living, we’re all out here grinding on a daily fucking basis.”
Clark has said that he first experimented with marijuana in high school but rediscovered it as an adult after being injured in a Seattle shooting. “Weed has literally saved my life. I’m a veteran with PTSD,” Clark says in the video. “It’s time we changed this narrative that exists, eliminate the stigma.”
— Anthony Clark for Congress (@anthonyvclark20) February 20, 2020
Adult-use cannabis sales have been legal in Illinois since January 1.
“We’re gonna celebrate that, but there’s still a ways to go,” Clark tells party attendees, a blunt in one hand and a shot glass in the other. In Illinois, he adds, public funds are still be spent on “jailing street dealers…who are predominantly black and brown in the poor communities.”
Clark’s candor around his own cannabis use appears to have helped his campaign against incumbent Rep. Danny Davis (D), who’s held the seat for the predominantly black district since 1997. Earlier this month, the Chicago Sun-Times endorsed Clark over Davis, saying the district “deserves a representative who is impatient to change the world, which might be Clark’s best trait.”
In a separate campaign video released in November, Clark smoked marijuana on camera and said he’s transparent about his cannabis consumption because “if we really want to make change and we have a platform, you just have to be courageous with your platform.”
“I think I have to be just as open about my cannabis use because lying to individuals, I think, plays a direct role in enabling status quo, in enabling the oppressors, the top one percent, to remain,” he added.
Support candidate with a donation today fighting for:
✅ Auto vacate & expungements
✅ jobs & economic growth
✅ Expand medical & hemp
✅ End work discrimination
✅ Black, Brown, women, 🏳️🌈 owners/investors
— Anthony Clark for Congress (@anthonyvclark20) November 22, 2019
Some supporters say it was Clark’s bold stance on cannabis that first got them involved in the campaign. “I first heard about Anthony Clark on Facebook,” one supporter, identified as Miriam, says in the new video, “and I seen him and a group of three people smoking a blunt.”
“It’s ending the stigma,” she says. “It’s ending the harsh stigma.”
Clark ran for the same congressional seat two years ago. He earned 26% of the primary vote but lost to incumbent Davis, who has generally supported cannabis amendments in Congress but hasn’t made the issue a key focus for his office. This year observers expect the challenger to do even better on primary day.
Much has changed in the state since 2018, after all, especially around cannabis. Last year Illinois became the first U.S. state to legalize adult-use sales through its legislature, and state officials so far have been broadly supportive. A day before marijuana became legal, Gov. J.B. Pritzker (D), who made legalization a part of his own election campaign, pardoned more than 11,000 people with low-level cannabis convictions. When stores opened, Lt. Gov. Juliana Stratton (D) was one of the first in line to buy edibles.
At his State of the State address last month, the governor said legalization “gives us a chance to collect tax revenue from the residents of Wisconsin, Missouri, Iowa and Indiana” and provides “a second chance to hundreds of thousands of people who had a low level cannabis conviction or arrest on their record.”
Licensed marijuana stores in Illinois sold $40 million worth of recreational marijuana products during the first month of legal sales. State officials say $8.6 million of that came from out-of-state cannabis tourists.
Photo courtesy of Facebook/Anthony Clark
Federal Reserve Sends Reminder That Hemp Businesses Can Get Bank Accounts
A Federal Reserve Bank district is making clear that financial institutions no longer have to automatically treat hemp businesses as suspicious under reporting rules.
In a post on the St. Louis Federal Reserve Bank website, the institution clarified that since hemp was federally legalized under the 2018 Farm Bill, banks no longer have to file suspicious activity reports just because a business transaction involves the crop.
“Properly licensed industrial hemp producers can now be treated the same as other bank commercial customers for anti-money-laundering regulatory purposes,” the notice published this month states.
However, it reiterated that marijuana transactions will continue to be flagged, as the intoxicating variety of the cannabis plant remains federally prohibited.
“Unlike marijuana, hemp contains very low levels of tetrahydrocannabinol (THC), the chemical that causes an altered state when ingested or smoked. Hemp that contains less than 0.3 percent THC is considered legal,” Carl White, the senior vice president of the Supervision, Credit, Community Development and Learning Innovation Division at the Fed district, wrote. “The legal marijuana business is not affected by the change in status for hemp production, because marijuana is still considered a controlled substance under federal law.”
Despite the change in the legal treatment of hemp, many bankers have been reluctant to work with the industry because of regulatory concerns https://t.co/MqCkZ4PL1c
— St. Louis Fed (@stlouisfed) February 14, 2020
But as others have recognized, the central bank district said that despite “the change in the legal treatment of hemp, many bankers have been reluctant to work with the industry because of regulatory concerns.”
To that end, the the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency and the Financial Crimes Enforcement Network (FinCEN) issued guidance last year clarifying that “banks are not required to file a Suspicious Activity Report (SAR) on customers solely because they are engaged in the growth or cultivation of hemp in accordance with applicable laws and regulations.”
Even so, it is apparent that some financial institutions remain reluctant to bank hemp businesses, and so the Fed is seeking to put them at ease with the new explanatory post.
“The main takeaway from the regulators’ statement is that banks no longer need to automatically fill out Suspicious Activity Reports (SARs) when working with a hemp producer customer because hemp production has been legalized,” the St. Louis-based bank said in the new post. “They can follow standard procedure and file a SAR if suspicious activity warrants.”
“Bankers with questions about the 2018 farm bill and hemp can contact the USDA, state agriculture departments or tribal governments. Because the U.S. Food and Drug Administration retains some regulatory authority over hemp products, banks can contact that agency with questions about hemp-related food, drugs or cosmetics.”
The post notes that “banks should be looking out for additional guidance” on federal hemp rules from financial regulators. It’s not clear when that will be issued, however.
While marijuana policies remain complicated given federal prohibition, there is significant interest among Federal Reserve Bank districts in ensuring that those rules are clarified as well. The presidents of three such institutions called for guidance on marijuana banking last year.
The Federal Reserve Bank Of Kansas City also recently issued a report on Colorado’s cannabis market and determined that it would continue to grow as support for legalization rises, though it may not grow as fast as it initially did immediately following legalization.
Photo courtesy of Pixabay.