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Mexican Senate Committees Approve Marijuana Legalization Bill With Floor Vote Planned Soon

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Several Mexican Senate committees on Friday tentatively approved a revised bill to legalize marijuana during a joint hearing, with a formal in-person vote scheduled next week.

The legislation, which has circulated in draft form this month and further amended ahead of the meeting, would establish a regulated cannabis market in Mexico, allowing adults 18 and older to purchase and possess up to 28 grams of marijuana and cultivate up to four plants for personal use.

Members of the Senate鈥檚 United Commissions of Justice, Health, and Legislative Studies advanced the bill, months after passing an earlier version. The panels first voted to dispense with that previous bill during Friday’s session.

A full Senate vote is expected soon after the committees’ in-person action on Wednesday, though advocates are still hoping for further revisions to promote consumers’ rights and social equity in the legal market.

The legislation as circulated earlier this week would have required individuals to obtain a government permit to cultivate marijuana for personal use, but the technical secretary of the Health Committee said on Friday that the provision was being eliminated.

Lawmakers have been working on the reform legislation for two years since the nation鈥檚 Supreme Court ruled in late 2018 that the prohibition on possessing and growing cannabis is unconstitutional. The court ordered Congress to amend the law accordingly, but the legislature has struggled to reach consensus on the issue and has been granted several deadline extensions to enact the policy change.

The current deadline to legalize marijuana is December 15.

Senate President Eduardo Ram铆rez said on Wednesday that there is a 鈥渃onsensus鈥 to achieve the reform by the court-mandated date.

Advocates have been consistently pushing for legislative action on reform since the court ruling, though they鈥檝e taken issue with certain provisions of lawmakers鈥 various proposals. Namely, they remain concerned about high penalties that can be imposed for violating the cannabis rules and feel the bill should further promote social equity in the industry.

Ricardo Monreal, the ruling MORENA party鈥檚 coordinator in the Senate, said on Friday the proposal is a significant improvement on current laws against possession, which have “only caused the detention centers to be full of people for possession of a few grams of cannabis, which is why they seek to reduce the penalties in carrying of this product.”

Zara Snapp, a legalization activist with the Instituto RIA and the coalition #RegulacionPorLaPaz, told Marijuana Moment that advocates are “hopeful” because the body seems “open to a few changes” they’re pushing for.

Separately, a cannabis advocacy association raised concerns about certain provisions that they consider excessively restrictive such as limitations on ourdoor cultivation.

The Movement for Legalization 4/2020 said that “if this project is approved without modifications, fundamental parts of this thriving industry will be excluded,” according to a translation.

The legislation does make some attempts to mitigate the influence of large marijuana corporations. For example, it states that for the first five years after implementation, at least 40 percent of cannabis business licenses must be granted to those from indigenous, low-income or historically marginalized communities.

The Mexican Institute of Cannabis would be responsible for regulating the market and issuing licenses.

Public consumption of marijuana would be allowed, except in places where tobacco use is prohibited or at mass gatherings where people under 18 could be exposed.

Households where more than one adult lives would be limited to cultivating a maximum of six plants. The legislation also says people 鈥渟hould not鈥 consume cannabis in homes where there are underaged individuals. Possession of more than 28 grams but fewer than 200 grams would be considered an infraction punishable by a fine but no jail time.

Monreal originally said the chamber would vote on the legalization bill by the end of October, that timeline did not work out.

If the Senate passes the legal cannabis bill it will still have to go before the other house of the nation鈥檚 Congress, the Chamber of Deputies.

President Andr茅s Manuel L贸pez Obrador said in August that聽marijuana reform legislation will advance聽in the session that began in September.

Sen. Julio Ram贸n Menchaca Salazar, also of the MORENA party, said in April that legalizing cannabis could聽fill treasury coffers at a time when the economy is recovering from the pandemic.

As lawmakers work to advance the reform legislation, there鈥檚 been a more lighthearted push to focus attention on the issue by certain members and activists. That push has mostly involved planting and gifting marijuana.

In September, a top administration official was聽gifted a cannabis plant by senator聽on the Senate floor, and she said she鈥檇 be making it a part of her personal garden.

A different lawmaker聽gave the same official, Interior Ministry Secretary Olga S谩nchez Cordero, a marijuana joint聽on the floor of the Chamber of Deputies last year.

Cannabis made another appearance in the legislature in August, when Sen. Jesusa Rodr铆guez of the MORENA party聽decorated her desk with a marijuana plant.

Drug policy reform advocates have also been cultivating hundreds of marijuana plants in front of the Senate, putting pressure on legislators to make good on their pledge to advance legalization.

Read the text of the revised marijuana legalization bill discussed by Mexican Senate committees below:聽

Mexico Senate Marijuana Bill by Marijuana Moment

House Republicans Attack Democrats Over Planned Marijuana Legalization Vote

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Top IRS Official Says Marijuana Banking Reform Would Help Feds ‘Get Paid’

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The Internal Revenue Service (IRS) would like to get paid鈥攁nd 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鈥攁nd 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鈥攁nd double checks鈥攖he 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鈥攁nd 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鈥攁nd 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聽and cryptocurrency.

Earlier this year, IRS Commissioner Charles Rettig聽told Congress that the agency would 鈥減refer鈥聽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鈥檇 like to see Congress approve legislation resolving the cannabis banking issue and he pointed to the fact that聽IRS has had to build 鈥渃ash rooms鈥 to deposit taxes聽from those businesses as an example of the problem.

IRS released聽updated guidance on tax policy for the marijuana industry聽last year, including instructions on how cannabis businesses that don鈥檛 have access to bank accounts can pay their tax bills using large amounts of cash.

The update appears to be聽responsive to a Treasury Department internal watchdog report聽that was released earlier in the year. The department鈥檚 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 鈥渄evelop and publicize guidance specific to the marijuana industry.鈥

Luxembourg Set To Become First European Country To Legalize Marijuana Following Government Recommendation

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Luxembourg Set To Become First European Country To Legalize Marijuana Following Government Recommendation

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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 鈧25-500 ($29-581). Currently, the maximum fine for possession is 鈧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.

“The idea is that a consumer is not in an illegal situation if he consumes cannabis and that we don鈥檛 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.

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.

New Bipartisan Marijuana Research Bill In Congress Would Let Scientists Study Dispensary Products

Photo courtesy of Mike Latimer.

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New Bipartisan Marijuana Research Bill In Congress Would Let Scientists Study Dispensary Products

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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.

鈥淐ongress 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鈥 ability to study the full range of health benefits offered by cannabis, and to learn more about the products readily available to consumers.”

“It鈥檚 outrageous that we are outsourcing leadership in that research to Israel, the United Kingdom, Canada, and others. It鈥檚 time to change the system,鈥 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鈥檚 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聽government cannabis is more similar to hemp than to the marijuana聽that consumers actually use in the real world.

There鈥檚 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鈥攁nd psychedelics such as psilocybin, LSD, MDMA and mescaline鈥攖hat 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鈥檚 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鈥檚 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:

Click to access medical-marijuana-research-act-hr-5657-text.pdf

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