A bill prohibiting most employers in New York City from requiring drug tests for marijuana as a condition of employment was enacted last week—and it became law without the signature of Mayor Bill de Blasio (D), despite the fact that he previously pledged to put his name on the legislation.
The new law, sponsored by the city’s public advocate, Jumaane Williams (D), was approved by the City Council in a 40 to 4 vote last month. It was one of several cannabis-related reform bills on the table before the body.
De Blasio came out in support of marijuana legalization in December, just two days after Gov. Andrew Cuomo (D) announced that his position on the issue had also shifted to endorsing an end to cannabis prohibition. In a letter outlining his new stance, the mayor emphasized that equity in the marijuana industry should be an essential component of a legal market.
But while Williams’s bill is expected to contribute to that equity by ensuring that cannabis consumers face less discrimination in the workplace, de Blasio allowed the legislation to be enacted without signing it himself. His decision not to sign doesn’t necessarily mean he opposes the bill—indeed, he didn’t veto it—but it at least raises questions about how closely he’s following the reform movement happening in his own city at a time when he is reportedly seriously considering running for president.
When asked about the legislation in a radio interview last month, de Blasio said, “I will sign that bill.”
“I think that bill was absolutely right, because they made the right exceptions too,” he said. “And I think it’s part of how we change our culture to be less punitive and exclusionary. I think it’s a healthy step.”
His office also issued a supportive tweet at the time.
Marijuana laws have been used to keep people of color in prisons and out of the job market. New York City can become the Fairest Big City in America, but first we need to right the wrongs of the past War on Drugs.https://t.co/ADKzzr7LTH
— NYC Mayor's Office (@NYCMayorsOffice) April 13, 2019
It is unclear what changed in the intervening weeks.
Marijuana Moment reached out to de Blasio’s office for comment, but a representative was not immediately available.
Text of the legislation states that “[e]xcept as otherwise provided by law, it shall be an unlawful discriminatory practice for an employer, labor organization, employment agency, or agent thereof to require a prospective employee to submit to testing for the presence of any tetrahydrocannabinols or marijuana in such prospective employee’s system as a condition of employment.”
There are exceptions to the rule for “safety and security sensitive jobs” such as police officers, as well as “those tied to a federal or state contract or grant.” The new law will take effect in May 2020.
“It’s clear that we cannot wait until legalization on the state level before moving to reduce the impact that marijuana prohibition has had on individuals and communities,” Williams said in a press release. “Testing isn’t a deterrent to using marijuana, it’s an impediment to opportunity that dates back to the Reagan era—a war on drugs measure that’s now a war on workers. We need to be creating more access points for employment, not less—and if prospective employers aren’t testing for past alcohol usage, marijuana should be no different.”
We can’t wait until legalization in Albany before moving to reduce the impact marijuana prohibition has on individuals & communities.
NYC’s ban on pre-employment THC testing is now enacted. I’m proud to be taking down this barrier to employment:
— Jumaane Williams (@JumaaneWilliams) May 13, 2019
“While New York State deliberates and the federal government continues to prop up stigma and harmful policies, New York City must lead the way on this issue,” he said.
As de Blasio considers a run for the 2020 Democratic presidential nomination, which he said he’ll make a decision on this week, his record on cannabis policy will be scrutinized by drug reform advocates, some of whom suspect that his evolution on legalization was politically motivated after years of opposition. Inaction on certain reform legislation such as Williams’s bill will likely raise eyebrows.
Virtually every Democrat now in the race—with a major exception in former Vice President Joe Biden—now supports legalizing cannabis.
Meanwhile, statewide marijuana legalization legislation remains in flux in New York, with Cuomo expressing doubts that a bill will be passed this year following an unsuccessful attempt to include it in the budget. That said, a spokesperson for Assembly Speaker Carl Heastie (D) told the New York Post this week that the chamber is still “having thorough discussions of the proposal and are not aware of what the governor is talking about.”
Photo courtesy of Philip Steffan.
Marijuana Banking Bill Will Get A Full House Floor Vote This Month
A bipartisan bill to protect banks that service marijuana businesses will get a House floor vote by the end of the month, the office of Majority Leader Steny Hoyer (D-MD) confirmed to Marijuana Moment on Friday.
House leadership announced the decision to Democratic lawmakers at a closed-door meeting on Thursday.
“Mr. Hoyer said at the Whip meeting yesterday that he intends to move it this month,” a Hoyer staffer said in an email. “We’re discussing it with Members, but it hasn’t been scheduled just yet.”
Prior to confirmation from Hoyer’s office, four sources initially described the development to Marijuana Moment, with some saying the vote would be made under suspension of the rules—a procedure that is generally reserved for non-controversial legislation.
Voting on suspension would require two-thirds of the chamber (290 members) to vote in favor of the Secure and Fair Enforcement (SAFE) Banking Act in order for it to pass. The bill, which cleared the House Financial Services Committee in March, currently has 206 cosponsors, including 26 Republicans.
No amendments would be allowed to be added on the floor under the suspension process.
Problems could arise if lawmakers aren’t able to rally additional votes from conservative members or if there’s pushback over the strategy from progressive lawmakers, though it is unlikely Democratic leadership would advance the bill if they didn’t believe they have the votes for passage.
While interest in resolving the banking issue is generally bipartisan, it’s within reason to assume that lawmakers on both sides of the aisle might have wanted the opportunity to offer provisions such as extending protections to hemp businesses or adding language promoting social equity policies. That said, it is possible that leadership could file an entirely new piece of legislation that is similar to the SAFE Banking Act but contains modified provisions negotiated with key members and use that as the vehicle for floor action.
Many expected cannabis banking legislation to receive a floor vote before the August recess, but that did not come to fruition.
In any case, the development comes as the Senate Banking Committee is also preparing to hold a vote on marijuana banking legislation, with Chairman Mike Crapo (R-ID) announcing on Thursday that his panel is “working to try to get a bill ready.” He didn’t offer a timeline, however, other than saying he hoped to advance the legislation by the end of the year.
While sources told Marijuana Moment that Hoyer made his decision to allow cannabis banking vote following an earlier Wednesday meeting on the issue, it is likely that building momentum in the GOP-controlled Senate added to pressure on the House to act so that Democrats wouldn’t be seen as lagging behind Republicans on cannabis reform, an issue the party has sought to take political ownership of.
Following Crapo’s statement on advancing the banking legislation, Rep. Ed Perlmutter (D-CO), chief sponsor of the SAFE Banking Act, told Marijuana Moment that he welcomes the senator’s “commitment to resolve the banking conflicts that have been created by the misalignment in state and federal law on the issue of cannabis.”
“I remain focused on passing the SAFE Banking Act out of the House and look forward to working with my colleagues in the Senate as they take up the SAFE Banking Act or work to develop and pass similar legislation,” he said.
Banking access is largely seen as one of the most achievable pieces of cannabis legislation that stands to pass this Congress. Advocates and reform-minded lawmakers view it as one of the first steps on the path toward ending federal marijuana prohibition.
“We are seeing the blueprint in action and moving forward on critical legislation to protect state legal cannabis banking,” Rep. Earl Blumenauer (D-OR) told Marijuana Moment, referring to a memo he sent to House leadership last year outlining a committee-by-committee process for passing incremental cannabis bills leading up to major legislation to end federal prohibition. “Earlier this summer, the House passed protections for state and tribal cannabis laws. In the most cannabis friendly Congress in history, we need to keep up this momentum. There is still much to be done.”
There has been some disagreement within advocacy circles about whether it’s prudent to pass legislation viewed as primarily favorable to the industry before advancing comprehensive legislation that deschedules cannabis and takes steps to repair the harms of prohibition enforcement.
“It is our hope that after the successful passage of the SAFE Banking Act in the House, we will be able to advance legislation that ends the federal criminalization of cannabis once and for all,” Justin Strekal, political director of NORML, told Marijuana Moment. “Now is our time to demonstrate that marijuana law reform is both good policy and good politics.”
“We will not stop until otherwise law-abiding Americans are no longer discriminated against or criminalized due to the past or future choice to consume cannabis,” he said.
Neal Levine, CEO of the Cannabis Trade Federation, told Marijuana Moment that the group is “delighted that the U.S. House of Representatives is on the brink of passing a landmark piece of cannabis policy legislation that modernizes our antiquated banking laws to reflect the will of the people.”
“This is welcomed and long overdue news for the over 200,000 employees that work in the industry, cannabis businesses, and for public safety in the communities in which we operate,” he said. “Once the SAFE Banking Act passes the U.S. House, we call on the U.S. Senate to move quickly to protect our businesses and our workers.”
Pressure has been building all year from stakeholders and policymakers alike to get the legislation passed. Endorsements aren’t just coming from reform groups, either; 50 state banking associations, the National Association of State Treasurers, the top financial regulators of 25 states, a majority of state attorneys general and bipartisan governors of 20 states have also voiced support for the SAFE Banking Act.
Earlier this month, the head of the American Bankers Association predicted that the bill would be passed in the House “as early as September.”
This story was updated to add comment from Perlmutter and Hoyer’s office.
New ‘Marijuana 1-to-3 Act’ Would Reclassify Cannabis Under Federal Law
Another bill to reschedule marijuana was filed in Congress on Thursday.
Rep. Greg Steube (R-FL) introduced the legislation, which is titled the “Marijuana 1-to-3 Act.” True to its name, the bill would simply require the attorney general to move cannabis from Schedule I to Schedule III under the Controlled Substances Act, with the aim of increasing research on the drug’s effects.
“As marijuana is legalized for medical and recreational use across the United States, it is important that we study the effects of the substance and the potential impacts it can have on various populations,” Steube said in a press release. “By rescheduling marijuana from a schedule I controlled substance to a schedule III controlled substance, the opportunities for research and study are drastically expanded.
Today, I introduced a bill to reschedule marijuana from a schedule I to a schedule III controlled substance. The Marijuana 1-to-3 Act will allow additional research to be done on the benefits of marijuana by removing bureaucratic red tape. https://t.co/w45WAKHBr9
— Congressman Greg Steube (@RepGregSteube) September 12, 2019
“With this rescheduling, researchers can now access federal funds to research this substance and determine its medical value,” he said.
The press release came hours after a bipartisan pair of lawmakers introduced separate legislation to reschedule marijuana, also to Schedule III.
That bill contained additional provisions that would require federal agencies to develop research agendas for marijuana within one year of its enactment and also establish a system whereby universities could be designated as “Centers of Excellence in Cannabis Research” if they conducted comprehensive studies on issues related to marijuana.
Rep. Matt Gaetz (R-FL), who is a sponsor of the broader research bill, is also cosponsoring Steube’s more focused rescheduling proposal.
It’s not clear why Steube chose to file his own reclassification bill or whether the other legislation’s additional provisions were a factor.
The congressman’s two-page bill states that “the Attorney General of the United States shall, by order not later than 60 days after the date of enactment of this section, transfer marijuana…from schedule I of such Act to schedule III of such Act.”
“We hear every day about the positive health benefits of marijuana,” Steube said. “Whether it’s young children with seizure disorders, or veterans suffering from chronic pain, it is clear that there are medical benefits to marijuana and I think it’s time we remove the bureaucratic red tape that prevents us from thoroughly studying this substance.”
While he emphasized that the intent of his legislation is to encourage research into marijuana, placing cannabis in Schedule III would also have implications for marijuana businesses, who are currently ineligible for federal tax deductions under an Internal Revenue Code section that applies to anyone “trafficking in controlled substances” in Schedule I or II.
Read the full text of the bill below:
Photo by Ndispensable.
GOP Senate Chair Says He Plans Marijuana Banking Vote
The Republican chair of the Senate Banking Committee said on Thursday that his panel will hold a vote on legislation allowing banks to service state-legal marijuana businesses this year.
Chairman Mike Crapo (R-ID) told Politico that while he doesn’t support ending federal cannabis prohibition, his committee will take up the industry’s banking issues, which was the subject of a hearing the panel held in July. Because marijuana remains federally illegal, many financial institutions remain wary of taking on cannabis business clients—forcing them to operate on a cash-only basis—and there’s a growing bipartisan call to resolve the problem.
Crapo doesn’t support cannabis legalization. But he says he’s been compelled to act bc cannabis businesses w/o bank access are forced to transact in cash and there are issues surrounding transactions with businesses like plumbers, hardware stores, etc that serve the industry
— Zachary Warmbrodt (@Zachary) September 12, 2019
“We’re working to try to get a bill ready,” the senator said. “I’m looking to see whether we can thread the needle.”
Legislation to provide financial services to marijuana businesses—the Secure and Fair Enforcement (SAFE) Banking Act—already exists and was approved by the House Financial Services Committee in March. That bill has 206 cosponsors, including 26 Republicans. The companion Senate bill has nearly a third of the chamber signed on.
It’s not clear what changes Crapo is hoping for, but there’s been talk of adding hemp-specific banking protections, or including language to prevent activities such as Operation Choke Point, an Obama-era policy that conservatives view as biased against certain industries such as gun manufacturers, in order to bolster the proposal’s GOP appeal.
This development comes as Congress returns from a summer recess. Cannabis reform advocates hoped that the Democratic-controlled House would put the SAFE Act to a vote before August, but that window passed.
There have been renewed rumors that House leadership is planning to schedule a vote on the SAFE Act soon, but some dispute has broken out among cannabis reform supporters about the notion of passing a bill seen as industry-focused prior to moving broader legislation to deschedule marijuana and repair the harms of past prohibition enforcement.
Many supporters of more far-reaching moves have zeroed in on a bill House Judiciary Committee Chairman Jerrold Nadler (D-NY) filed, but it’s unclear when that legislation would be able to see a markup by the panel, which for now is focused on issues such as gun reform and the prospect of impeachment proceedings.
If the Republican-controlled Senate were to pass marijuana banking legislation soon, it could increase political pressure on House majority Democrats to follow suit lest they be seen as lagging on an issue on which their party has increasingly sought to lead.
Don Murphy, federal policies director for the Marijuana Policy Project, told Marijuana Moment that polling in Crapo’s home state of Idaho—one of only three states that currently have no legal cannabis laws on the books—shows that voters in the state support cannabis reform and that “it appears Chairman Crapo is seeing similar results.”
“Apparently MPP hasn’t done the only marijuana poll in Idaho recently,” he said. “Idaho voters support marijuana policy reform and with his support of the SAFE Act the Senator is moving in their direction. What took years to develop could end up in a photo finish as each chamber attempts to beat the other to a floor vote. If true, this is a very good news.”
Idaho activists are working to place a medical cannabis measure on the state’s 2020 ballot.
While it’s not clear Crapo that endorses the SAFE Act as written or that he would use an amended version of the existing bill as the vehicle to advance the issue, he’s made several statements indicating that he’s interested in a legislative fix on cannabis banking.
“We may craft our own bill or we may work with them to craft any amended legislation,” he told Politico.
“It would be terrific for the Senate Banking Committee to hold a markup on The Safe Banking Act, which we believe would result in a favorable bipartisan vote,” NORML Political Director Justin Strekal told Marijuana Moment. “Now more than ever, members of Congress spanning all types of geographic and political diversity recognize the need to amend existing law and move us towards ending federal prohibition.”
Crapo told Politico that he’s particularly interested in passing cannabis banking reform legislation because of the negative impact of the ban on ancillary businesses like plumbing and hardware companies that work with such businesses but don’t deal directly with marijuana.
The head of the American Bankers Association (ABA) predicted last week that the House would vote on the legislation before October.
THIS is a very important development- thank you @MikeCrapo for helping advance this legislation that will allow people and businesses access to the banking sector in states that have legalized cannabis and address the state/federal law inconsistency https://t.co/GzHo5cXuxA
— Rob Nichols (@BankersPrez) September 12, 2019
“THIS is a very important development- thank you [Sen. Crapo] for helping advance this legislation that will allow people and businesses access to the banking sector in states that have legalized cannabis and address the state/federal law inconsistency,” he wrote in response to the senator’s latest comments.
Politically, passing the banking bill in the Senate could give Sen. Cory Gardner (R-CO), its chief GOP cosponsor, a much-needed win heading toward next year’s election. Democratic candidates, including former Colorado Gov. John Hickenlooper (D) are targeting the seat, and Gardner has made much of his work to support the state’s legal cannabis market.