Senate Majority Leader Mitch McConnell (R-KY) toured a Kentucky hemp company on Tuesday—the latest victory lap for the senator, who is hoping his role in federally legalizing the crop through last year’s Farm Bill will turn out voters to support his 2020 reelection bid.
Kentucky Agriculture Commissioner Ryan Quarles joined McConnell on the visit to GenCanna’s Hemp Research Campus, which is one of the state’s first facilities to participate in an industrial hemp pilot program that the senator helped launch as part of an earlier 2014 Farm Bill.
.@senatemajldr Mitch McConnell & @KYAgCommish Ryan Quarles celebrate #hemp in central #Kentucky during tour of @GenCanna's Hemp Research Campus https://t.co/6nuUImaPKP #HempFarmingAct #KyAg365 #KentuckyProud pic.twitter.com/ucResRS34B
— Senator McConnell Press (@McConnellPress) April 23, 2019
“Touring GenCanna’s cutting-edge hemp facility, Commissioner Quarles and I had the chance to see firsthand the innovation happening here in the Bluegrass State,” McConnell said in a press release. “When President Trump signed my legislation to fully legalize hemp and take it off the federal list of controlled substances last December, I knew Kentucky would be at the forefront of hemp production. It didn’t take long for GenCanna to prove me right.”
“The pioneering work done here is advancing hemp’s remarkable potential to grow our economy and create good jobs,” he said.
I was glad to join @senatemajldr for a tour of @GenCanna, one of the many hemp processors in our commonwealth. With more than $57 mil. reported in gross product sales in 2018, I'm confident we are on our way to making KY the place to grow and process hemp. #KyAg365 pic.twitter.com/zYWS3Ip4Cp
— Commissioner Quarles (@KYAgCommish) April 23, 2019
In the last week, McConnell has gone to great lengths to tout the hemp legalization provision of the 2018 Farm Bill. The accomplishment was featured prominently in a reelection launch video that his team released, and he also said in a speech that it was at “the top of the list” of reasons voters should reelect him in 2020.
“Kentucky is making a hemp comeback thanks to the tireless work of Senator McConnell,” Matty Mangone-Miranda, CEO of GenCanna, said. “His work to make hemp legal has opened up an entire new industry in the United States and Kentucky is poised to lead the way.”
— Annie Andersen (@Annie_Andersen) April 23, 2019
To some hemp producers, the implementation of the hemp legalization provision has been too slow-moving. While they can still cultivate and market hemp and its derivatives under the 2014 pilot program, the U.S. Department of Agriculture (USDA) must develop its own regulatory framework before the crop’s full potential can be realized.
States can submit their own regulatory plans in the meantime, but USDA must develop its regulations before approving those plans.
To that end, McConnell is putting pressure on federal regulators to ensure a smooth rollout. He said it was possible he’d introduce standalone legislation to resolve any “glitches” that emerge in the regulatory process, and he also urged Agriculture Secretary Sonny Perdue to implement the legalization provision “expeditiously” and “as Congress intended.”
Perdue has repeatedly acknowledged those requests, but said that the department does not plan to rush the development of federal regulations. USDA is “taking this slow,” he said earlier this month, but the plans should be in place in time for the 2020 planting season.
Photo courtesy of Senate Majority Leader.
Trade Associations And Civil Rights Groups Send Mixed Messages On Marijuana Banking To Senate
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.”
12 groups including ABA just wrote @MikeCrapo @SenSherrodBrown @senatemajldr @SenSchumer urging a vote on the #SAFEBanking Act. It's time to end the legal limbo over banking cannabis in the growing number of states where it's legal. Read the letter: https://t.co/1529vIHawq
— American Bankers Association (@ABABankers) December 12, 2019
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:
GOP Congressman Knocks His Party For Failing To Pass Marijuana Reform
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).
Photo courtesy of YouTube/Rep. Massie.
State Department Warns Travelers About Flying With Cannabis Oil Internationally
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.”
(Marijuana Moment’s editor provides some content to Forbes via a temporary exclusive publishing license arrangement.)
Photo courtesy of Flickr/DHS.