A coalition of advocacy groups and marijuana businesses have unveiled a unique plan to legalize interstate cannabis commerce regardless of ongoing federal prohibition.
The Alliance for Sensible Markets campaign will be pushing governors from legal and likely soon-to-be legal marijuana states to enter into an interstate compact—a constitutionally recognized agreement between two or more states—establishing a framework for cannabis to be transported and marketed across state lines.
Such an arrangement hasn’t been tried before for marijuana, but if the new effort succeeds in getting at least two states to sign on, the compact would then be transmitted to Congress, where lawmakers would have the choice to codify the agreement. It could be passed as standalone legislation or attached as an amendment or rider to a broader bill.
#StatesCantWait Commerce in cannabis between consenting legal markets in 2021 will bring investment, expansion, business formation, and tens of thousands of JOBS in the midst of an historic recession. Visit https://t.co/cgru4aWwQr to endorse the campaign.
— @StatesCantWait (@statescantwait) September 17, 2020
Perhaps the best example of an interstate compact is the Port Authority, which was created in 1921 to regulate regional transportation and infrastructure in New York and New Jersey. Those two states are actually being targeted by the Alliance for Sensible Markets, despite not having legalization on the books just yet. California and Oregon are the two other states the campaign hopes to bring on board.
Part of the logic in choosing these states is that California and Oregon are considered producer states with high volumes of marijuana whereas New York and New Jersey are more traditionally consumer states, where the climate is less friendly to large-scale, outdoor cultivation.
By opening a market that would allow for interstate commerce, it would “immediately increase valuations significantly for thousands of farms and businesses on the West Coast, which will spur investment expansion and jobs,” Adam Smith, founder and president of the Alliance for Sensible Markets, told Marijuana Moment. “And in consumer states—states that don’t traditionally grow their own cannabis—we have seen the length of time it takes to get state-siloed production industries up and running and supply chains stable.”
“Let’s set up the industry in the newly legalizing states in a way that reflects reality and reflects what the future of this industry is so we can actually grow the industry without wiping a whole bunch of people out,” he said.
Oregon’s governor has already given a signal that she’d be on board, signing a bill last year that would allow marijuana to be imported and exported from other states if federal law or policy provides for it. Activists had hoped to get similar legislation enacted in California this year, but the coronavirus pandemic derailed that.
Smith says the group’s pitch to governors is simple: “We’re in the midst of a historic recession and jobs crisis, right? I believe that there is no other industry in the U.S. private sector that is as poised to help the recovery.”
“With this policy change, immediately across producer states, you will see valuations for thousands of farms and businesses increased by multiples, which will spur an immediate wave of investment expansion and job creation. On the east coast in the consumer states, legalizing cannabis with interstate commerce, will mean that they can get industries up and running and stable in six-to-18 months, rather than three years or five years or seven years, spurring an immediate wave of investment, business formation and tens of thousands of jobs just when the states need them. We are looking to partner with the governors and be their partners in economic recovery.”
Groups involved in the campaign include the Minority Cannabis Business Association (MCBA), New York City Cannabis Industry Association, Craft Cannabis Alliance, Global Alliance for Cannabis Commerce and approximately 50 others organizations and companies.
“State siloed cannabis industries concentrate power in the hands of a relatively few large players,” MCBA President Jason Ortiz told Marijuana Moment. “Interstate commerce opens pathways to success and economic opportunity for thousands of smaller businesses, setting the framework for a more diverse and equitable industry.”
Genine Coleman, executive director of the Origins Council, said interstate commerce “will help thousands of farms and businesses, but it will be a real game changer for legacy growing regions in California and Oregon where most of America’s cannabis has always been grown.”
The group’s goal is to draft a proposed agreement by December and get at least two governors to sign on by March 2021.
As it stands, transporting cannabis across state lines is strictly prohibited under current federal law. The Justice Department described such activity as an enforcement priority even under a now-rescinded Obama-era memo intended to generally respect state marijuana policies. Nonetheless, Smith is confident that the economic benefits of the reform will have bipartisan appeal in Congress.
Two lawmakers who’ve already set the groundwork for the policy change are Rep. Earl Blumenauer (D-OR) and Sen. Ron Wyden (D-OR). Shortly after Oregon Gov. Kate Brown (D) signed the interstate commerce bill, the legislators filed a bill that would similarly allow for such activity, preventing the Justice Department from interfering in states that have affirmative agreements to sell marijuana across state lines.
And, for what it’s worth, governors in the Northeast have discussed at length the necessity of developing coordinated legalization plans, though it’s not clear whether they had any explicit talk of state-to-state commerce. The broader talks could indicate that they’d be amenable to entering into an interstate compact, however.
Photo courtesy of Philip Steffan.
State And Local Marijuana Regulators Demand Congress Prioritize Federal Legalization Bill
A coalition of state and local marijuana regulators sent a letter to House leadership on Wednesday, demanding that they prioritize a marijuana legalization bill that’s expected to get a floor vote following the election.
The letter, which is being supported by the Drug Policy Alliance (DPA), says that regulators “need comprehensive support in their individual and collective efforts to more responsibly and equitably manage challenges and develop solutions associated with cannabis and cannabis policy.”
They said the Marijuana Opportunity, Reinvestment and Expungement (MORE) Act represents a solution, and they urged legislators to vote in favor of it when it comes up for a vote.
Enacting the reform “would ensure that the federal government is a partner to state and municipal regulators both in our collective responsibility to serve our community through the reform of failed cannabis policies and in our collective responsibility to recognize and correct injustices,” they wrote, adding that criminalization has created “widespread” harms that disproportionately impact communities of color.
🚨BREAKING🚨 @DrugPolicyOrg Joins State & Municipal Cannabis Regulators in Calling on Congress to Prioritize Federal Marijuana Reform by Passing #MOREAct 📢 FULL QUOTE from @DPA_ONA Dir. @MaritzaCPerez IN THREAD 👇 https://t.co/NPXrZ6LLK6
— Matt Sutton (@MattSuttonEP) October 21, 2020
“As such, our attempts to eliminate these harms must be systemic and comprehensive and will require collective leadership at every level of government and collaboration amongst both the public and private sectors in order to achieve outcomes by centering equity in cannabis policy development, reform and implementation,” they wrote.
Nine regulators from Los Angeles, Oakland, Portland, Sacramento, San Francisco, Massachusetts and Illinois signed the letter.
“For those of us who manage state and municipal cannabis policies, and for those individuals who have been and continue to be impacted by cannabis policy, the need for comprehensive federal reform is clear and urgent,” the letter states. “Existing federal prohibition policies are antithetical to our collective responsibility to promote policies that are based in science, compassion and harm reduction.”
Leadership initially signaled that a floor vote on the MORE Act would happen in September, but following pushback from certain centrist Democrats who worried about the optics of advancing marijuana reform before another coronavirus relief package, it was postponed until after the election.
Majority Leader Steny Hoyer (D-MD) subsequently made a commitment that the body would bring up the bill sometime “later this autumn.” While advocates were disappointed by the delay, they’re confident the MORE Act will clear the chamber with some bipartisan support when it’s ultimately scheduled for action.
Rep. Don Young (R-AK) said last month that he was “confident” it would pass the House.
Rep. Matt Gaetz (R-FL), the sole GOP cosponsor on the bill, also said that he would be voting “yes” on the MORE Act, though he expressed criticism about a provision that would impose a federal excise tax on marijuana sales to be reinvested in communities most impacted by the drug war, calling them “reparations.”
Rep. Tom McClintock (R-CA) said “I intend to vote yes on the bill” in an interview with Politico.
McClintock, along with Gaetz, voted for the MORE Act when it was marked up by the Judiciary Committee last year.
“These regulators know first-hand the complications of regulating a substance that remains illegal at the federal level and the harms imposed as a result on communities of color and low-income people,” Maritza Perez, director of national affairs at DPA, said in a press release. “They also understand that creating a safe and equitable industry, which the MORE Act does, provides a historic opportunity to begin repairing the extensive damage prohibition has caused over the last 50 years.”
Prior to the vote’s postponement, DPA and more than 120 other civil rights and drug policy reform groups such as the ACLU and NAACP sent a letter to House leadership emphasizing the need to pass the MORE Act to promote social justice.
Read the latest letter from the regulators on cannabis reform below:
Photo courtesy of Brian Shamblen.
Key New Jersey Senate Committee Cancels Marijuana Legalization Hearing On Implementing Referendum
A New Jersey Senate committee announced on Wednesday that it would be taking public testimony on Thursday about how to implement marijuana legalization if voters approve the reform referendum next month—but the panel canceled the event later in the day.
While the legislature decided to leave adult-use legalization up to voters as a ballot measure, legislators must still develop regulations to enact the system—and the temporarily scheduled hearing appeared to be a first step in that process.
The Senate Judiciary Committee was set to “receive public testimony concerning the legislative implementation of Public Question No. 1 on the General Election ballot, which, if approved, would legalize cannabis for personal, non-medical use by adults age 21 years or older,” a notice stated. “Public Question No. 1 would also create a legalized cannabis marketplace overseen by the State’s Cannabis Regulatory Commission.”
Sen. Nicholas Scutari (D), who chairs the committee and previously introduced a legalization bill that did not advance to a floor vote, said earlier this month that he’s been working in recent weeks with the governor’s office and legislative leaders to finalize a detailed enabling bill to implement legal market regulations.
He said the measure, which could be enacted as soon as the first week of November, would look similar to a bill he previously introduced, though he wants to add a retroactive provision to end cannabis-related prosecutions for pending cases.
“This is something about social justice. This is an economic opportunity for New Jersey,” the senator said at the time. “We can be the first state in the Northeast—absent Massachusetts, but in our economic area—to move forward and I want to be a leader in this.”
A staffer with the Office of Legislative Services told Marijuana Moment in an email that “the public hearing scheduled for October, 22, 2020 at 9:30 am has been canceled” and said it was “unknown” if the event will be rescheduled.
In any case, if polling is any indication, it appears that voters are poised to pass the cannabis referendum on their ballots next month.
A survey released on Tuesday found that that 65 percent of New Jersey voters are in favor of the marijuana referendum. Just 29 percent are opposed to the policy change and six percent remain undecided.
The results are statistically consistent with three prior polls from the same firm, as well as one from Fairleigh Dickinson University, which similarly found roughly two to one support for the measure. A separate survey released last week by Stockton University showed three to one support for legalizing cannabis among New Jersey voters.
For his part, Gov. Phil Murphy (D) has been actively campaigning in favor of the referendum, participating in fundraisers and ads to encourage voters to approve it.
For example, the governor recorded a video that was released by NJ CAN 2020 earlier this month, outlining why he’s embraced the policy change. Murphy said that the ongoing criminalization of cannabis in New Jersey wastes taxpayer dollars, and he emphasized that prohibition is enforced in a racially disproportionate manner.
The governor similarly said in a recent interview that the marijuana reform proposal prioritizes social justice.
“I wish we could have gotten it done through a legislative process,” he said at the time, referencing lawmakers’ inability to advance a legalization bill last session. “We just couldn’t find the last few votes, so it’s on the referendum. I’m strongly supporting it—first and foremost for social justice reasons.”
Murphy also recently called on voters to support the proposal in an email blast that was circulated by the New Jersey Democratic State Committee.
He said in July that legalizing cannabis is “an incredibly smart thing to do” both from an economic and social justice perspective.
The governor isn’t alone in his attempts to get out the vote for cannabis reform. Filmmaker Kevin Smith earlier this month urged his Twitter followers to “VOTE YES when you see State Public Question Number 1: Constitutional Amendment to Legalize Marijuana.”
NJ CAN 2020, one of two campaign committees working to pass the cannabis referendum, released a series of English- and Spanish-language video ads last week, after having published one prior ad. Meanwhile, campaign finance records compiled show that legal marijuana supporters are out-raising opponents by a ratio of nearly 130:1.
In June, the state Assembly passed a cannabis decriminalization bill that would make possession of up to two ounces a civil penalty without the threat of jail time, though it hasn’t advance in the Senate.
This story was updated to reflect the hearing’s cancellation.
Photo courtesy of Mike Latimer.
Virginia Bill To Ban Police Searches Based On Marijuana Smell Gets Governor-Suggested Changes
The governor of Virginia suggested changes on Wednesday to bills that would stop police from searching people or seizing property based solely on the smell of marijuana.
Thankfully for cannabis reform advocates, Gov. Ralph Northam (D) isn’t asking lawmakers to amend the marijuana odor provisions of the broader proposal to reform policies for law enforcement searches. Instead, according to a press release sent by his office, he is suggesting an unrelated change to ensure police “can initiate a traffic stop when an individual is driving at night without the use of both headlights and/or without the use of both break lights.”
The House and Senate will now consider the amendment, thought it’s not clear when they will do so. If the governor’s proposal is adopted by lawmakers without changes, the legislation will be formally enacted without needing his signature. Otherwise, it will come back to his desk for action.
Northam’s move comes one week after he signed separate legislation that will allow people issued summonses for cannabis offenses under the state’s new decriminalization law to prepay their civil penalty rather than having show up in court.
Together, when enacted, the two new reforms will build upon the measure to decriminalize cannabis that the governor signed earlier this year, which makes it so possession of up to one ounce of cannabis is punishable by a $25 fine with no threat of jail time and no criminal record.
Under the new search-focused legislation, if enacted, “no law-enforcement officer may lawfully stop, search, or seize any person, place, or thing solely on the basis of the odor of marijuana, and no evidence discovered or obtained as a result of such unlawful search or seizure shall be admissible in any trial, hearing, or other proceeding,” according to a summary.
“Eliminating non-essential interactions based on marijuana odor between law enforcement and otherwise law-abiding citizens is an important step forward for criminal justice reform in Virginia,”Jenn Michelle Pedini, NORML’s development director and the executive director of Virginia NORML, told Marijuana Moment. “However, it is only by legalizing the responsible use of cannabis by adults that the Commonwealth can end its failed experiment with prohibition and begin repairing the decades of damage done to its communities and citizens.”
The Virginia legislature has been especially active on cannabis reform this year. But that said, lawmakers have not been able to reach an agreement during the special session on legislation to provide expungements for prior marijuana convictions that had appeared destined for Northam’s desk after passing either chamber in differing forms.
Under the House-passed measure, eligible convictions would have been automatically expunged after a period of eight years. The Senate’s version, meanwhile, would have allowed people to petition to have their records cleared after a period of five years. The House bill covered more drug crimes, as well.
A conference committee of lawmakers from both chambers was appointed and tasked with ironing out the differences, but the negotiators couldn’t reach a deal by the time the special session’s agenda wrapped up last week.
During the state’s regular legislative session earlier this year, the governor and legislators also expanded Virginia’s limited medical cannabis program in addition to enacting the decriminalization law.
All of these incremental changes come as legislators continue to pursue a broader adult-use legalization plan in the Commonwealth that would include a system of regulated and taxed sales and production.
The decriminalization bill that passed contains a provision that calls for the establishment of a working group to study and make recommendations about adult-use marijuana legalization. That panel is expected to issue its report to the legislature at the end of November.
Meanwhile, the Joint Legislative Audit and Review Committee is doing its own analysis on ending cannabis prohibition and will similarly report on its findings before the end of the year.
A bill to legalize marijuana possession was filed for the special session by a delegate running to replace the term-limited Northam in 2021, but it did not advance out of the committee to which it was referred.
Photo courtesy of Martin Alonso.