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No Marijuana Banking Without Justice Reform, Three Presidential Candidates Say

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Three Democratic presidential candidates and the party’s top Senate leader are taking the stand that Congress should not pass marijuana banking legislation without also moving to end federal cannabis prohibition and repair the harms of the war on drugs.

All four lawmakers—Sens. Cory Booker (D-NJ), Kamala Harris (D-CA), Bernie Sanders (I-VT) and Chuck Schumer (D-NY)—tweeted links to Marijuana Moment coverage of a growing dispute between legalization supporters who say the banking bill is a first step that will bolster broader cannabis reform and those who are concerned that passing the limited proposal will undermine efforts to advance more far-reaching legislation.

House leadership announced on Friday that the first full floor vote on a standalone piece of cannabis reform legislation—a bill to protect banks that service cannabis businesses from being penalized by federal regulators—will be held on Wednesday.

The scheduling of the vote came over the objections of several advocacy groups—including ACLU, Human Rights Watch and Drug Policy Alliance—that wrote a letter asking that the vote be postponed until more wide-ranging reform legislation is passed.

“I am proud to stand with these civil rights organizations,” Sanders said in his tweet on Saturday. “In the fight for marijuana legalization, we must prioritize racial and economic justice—that means revenues from this industry must be invested in the communities that have been devastated by the so-called ‘war on drugs.'”

“We shouldn’t do this without addressing the reality that people of color are being shut out of the legal marijuana industry,” Harris wrote in her Saturday Twitter post. “That means not only legalizing marijuana but also expunging criminal records and providing a path for people of color to enter the industry.”

On Friday, Booker tweeted that “marijuana legislation moving through Congress must include restorative justice for those most harmed by the War on Drugs” in order to get his vote.

Although the senator didn’t directly reference the banking bill in his post, his press secretary confirmed to Marijuana Moment in an email that the tweet was sent directly in reaction to the House banking vote news.

On Thursday, Senate Minority Leader Chuck Schumer (D-NY), the top Democrat in the body, tweeted that “we need decriminalization at the federal level, criminal justice reform, and investment in opportunity for minority & women-owned small businesses,” adding that groups who say there can be no movement on banking without broader justice reform are “right.”

Though it isn’t exactly clear that all four Democrats would vote against a marijuana banking bill should it come to the Senate floor prior to more far-reaching cannabis reform—and Harris and Sanders are cosponsors of the financial services legislation—their tweets come at a crucial time in the debate about the issue, and could be interpreted by House Democrats who share their concerns as a signal that it would be OK for them to oppose the limited reform when it comes up for floor consideration this week.

To that end, Schumer’s tweet mentioned Rep. Alexandria Ocasio-Cortez (D-NY), who earlier on Thursday indicated she agrees with the groups’ concerns and may vote against the banking bill if the chamber doesn’t first tackle social equity issues.

“She feels strongly that addressing racial justice should be the first priority,” a staffer for the congresswoman told Marijuana Moment.

The House plans to advance the proposal under an expedited procedure known as suspension of the rules, through which a two-thirds majority—or 290 votes—is needed to pass. While the bill currently has 206 cosponsors and has been expected to bring in the super majority of votes needed to advance, opposition from progressive lawmakers like Ocasio-Cortez could potentially jeopardize passage.

Groups signing the letter of concern to House leadership told Marijuana Moment they aren’t sure whether they will ask lawmakers to vote against the banking legislation now that their concerns on timing have been rejected, but some said they are still pushing to convince the body to delay consideration.

Perhaps anticipating some liberal defections, Rep. Ed Perlmutter (D-CO), the chief sponsor of the Secure and Fair Enforcement (SAFE) Banking Act moved last week to amend the legislation in an attempt to bring in even more GOP votes—including clarifying that banking protections would apply to hemp and CBD companies and also adding language preventing financial regulators from targeting certain industries such as firearms dealers and payday lenders as being at a higher risk for fraud.

Even before Senate Democrats began publicly expressing their concerns about the limited reform, the banking bill was believed to face a tougher road in the chamber, where Schumer’s counterpart, Majority Leader Mitch McConnell (R-KY), shepherded hemp legalization to enactment last year but often says he doesn’t support the crop’s “illicit cousin” marijuana.

But Senate Banking Committee Chairman Mike Crapo (R-ID) surprised observers when he said this month that he planned a vote on cannabis banking legislation in his panel by the end of the year.

The Leadership Conference on Civil and Human Rights, one of the groups that signed the letter calling on House leaders to pull the planned banking vote, thanked Schumer and Sanders for their tweets.

The groups want Congress to first move legislation such as the Marijuana Opportunity Reinvestment and Expungement Act, which Harris and House Judiciary Committee Chairman Jerrold Nadler (D-NY) introduced in July. That bill would remove cannabis from the Controlled Substances Act and fund programs aimed at undoing the past damage of the drug war.

Bernie Sanders Talks Marijuana With Killer Mike, Danny Glover And Ben & Jerry’s Founder

Photo courtesy of Jurassic Blueberries.

Marijuana Moment is made possible with support from readers. If you rely on our cannabis advocacy journalism to stay informed, please consider a monthly Patreon pledge.

Tom Angell is the editor of Marijuana Moment. A 15-year veteran in the cannabis law reform movement, he covers the policy and politics of marijuana. Separately, he founded the nonprofit Marijuana Majority. Previously he reported for Marijuana.com and MassRoots, and handled media relations and campaigns for Law Enforcement Against Prohibition and Students for Sensible Drug Policy. (Organization citations are for identification only and do not constitute an endorsement or partnership.)

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Bernie Sanders Congratulates Canada On One-Year Marijuana Legalization Anniversary

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Sen. Bernie Sanders (I-VT) offered his congratulations to Canada on Thursday, marking the one-year anniversary of the country’s implementation of a legal marijuana market.

“Congratulations to our neighbors to the north on completing their first year of marijuana legalization!” the 2020 Democratic presidential candidate said on Twitter. “Vermont shares a border with Canada, and as far as I can tell, the sky has not fallen and the cities have not plunged into anarchy on the other side.”

Canadian Prime Minister Justin Trudeau made cannabis legalization a key campaign promise, and while it took longer than some had anticipated, lawmakers approved a historic reform bill in June 2018. It went into effect on October 17 last year.

He also acknowledged the anniversary on Thursday, stating at a press conference that the decision “to keep our communities safer and remove profits of the pockets of organized crime was the right one.”

It’s not clear how much of a boost that achievement will give Trudeau when voters head to the polls on Monday for a national election that could see the Liberal Party removed from the majority as the prime minister faces backlash over controversies such as revelations he on several occasions wore blackface and brownface.

But regardless of the election outcome, leaders from all parties—including the Conservatives, all of whom voted against the legalization bill in the Senate except one—have said they would not reverse the law. Instead, one of the main drug policy issues that have separated the leaders is their respective positions on decriminalizing possession of substances beyond marijuana.

Trudeau and Sanders share a personal opposition to the reform move, with the senator stating on two occasions recently that he’s “not there yet” on the issue. The prime minister has similarly stated that decriminalization is not on his agenda and that he remains focus on cannabis.

The New Democratic Party and its leader, Jagmeet Singh, are in favor of broad drug decriminalization, as are the Green Party and its leader Elizabeth May.

The issue also came up during a Democratic presidential debate in the U.S. on Tuesday. Entrepreneur Andrew Yang and former Rep. Beto O’Rourke (D-TX) both expressed support for decriminalizing possession of opioids.

South Bend, Indiana Mayor Pete Buttigieg (D) and Rep. Tulsi Gabbard (D-HI) have endorsed decriminalizing possession of all drugs.

Sanders didn’t weigh in on the issue at that debate, but when asked to address his recent health episode, Sen. Cory Booker (D-NJ) chimed in to joke that “Sanders is in favor of medical marijuana, I want to make sure that’s clear as well.”

“I do,” Sanders said, adding that “I’m not on it tonight.”

Where Canada’s Political Parties Stand On Marijuana And Drugs Ahead Of The Election

Photo courtesy of Phil Roeder.

Marijuana Moment is made possible with support from readers. If you rely on our cannabis advocacy journalism to stay informed, please consider a monthly Patreon pledge.
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Key GOP Senate Chairman Outlines Changes He Wants For Marijuana Banking Bill

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The head of the Senate Banking Committee is clarifying which aspects of a House-passed marijuana banking bill he would like to change as his panel moves toward taking up the legislation.

In a Thursday interview with Marijuana Moment on Capitol Hill, Chairman Mike Crapo (R-ID) described modifications he is working on to the Secure and Fair Enforcement (SAFE) Banking Act, which cleared the House along bipartisan lines in a 321-103 vote last month.

“The things we’re looking at are, first of all, to make sure we improve and clarify the interstate banking application of all of this,” Crapo said. “Secondly, money laundering issues with regard to legacy cash to make sure how that is managed properly. [Financial Crimes Enforcement Network] issues and other related issues. And then finally the health and safety issues about what is going to be banked.”

“Take tobacco for example, every state I think has some kind of regulatory parameters around the utilization of tobacco, even if it’s just an age limit on who can purchase it or what have you and the types of products that are going to be allowed,” he continued. “That gets into a legal issue that I think the states need to be more engaged in, but it also impacts the question on what would be banked. Those kinds of issues—health and safety, interstate commerce and money laundering.”

While it’s not exactly clear which language changes Crapo has in mind for the House-passed legislation, his reference to “health and safety issues about what is going to be banked” could refer to certain restrictions on cannabis businesses that want to store their profits in financial institutions, or even requirements that states enact certain policies in order for operators within their jurisdictions to qualify.

In response to another reporter’s question about the spike in vaping-related injuries, the chairman said that’s “a good example of one of the big concerns that I have that we need to address in the bill, which is the health and safety aspects of the use.”

“We are working to revise the bill and develop the support for the bill to move forward,” he said.

Crapo first announced last month that he’d like to take up legislation addressing the issue in his panel before the end of the year and that the reform measure will likely enjoy bipartisan support in the full Senate. However, he’s held off on endorsing the SAFE Banking Act as currently written. His committee held a hearing on banking concerns in the cannabis industry in July.

“We’re working to try to get a bill ready,” the senator perviously told Politico. “I’m looking to see whether we can thread the needle.”

If the Banking Committee does pass legislation protecting banks that service state-legal cannabis businesses from being penalized by federal regulators, it may encounter resistance in the full Senate from some pro-legalization lawmakers such as Senate Minority Leader Chuck Schumer (D-NY) and Sens. Bernie Sanders (I-VT), Cory Booker (D-NJ) and Kamala Harris (D-CA), each of whom have said comprehensive marijuana reform that addresses social equity should be prioritized over legislation that’s viewed as primarily friendly to industry stakeholders.

Crapo also told Marijuana Moment on Thursday that he has not spoken to Majority Leader Mitch McConnell (R-KY) about a low-key trip the top GOP senator took to California last week, during which he met marijuana industry representatives and reportedly toured a cannabis-related business.

McConnell’s buy-in will be key to advancing the cannabis banking legislation to President Trump’s desk if it moves through Crapo’s committee.

Aaron Houston contributed reporting for this story from Washington, D.C.

Presidential Candidate Wants To Let Americans Legalize Marijuana Through National Referendum

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Governors Of Northeastern States Adopt Coordinated Marijuana Legalization Plan

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A group of governors representing states across the Northeast convened on Thursday for a marijuana summit at which they agreed to basic principles for legal cannabis programs they plan to pursue in 2020.

New York Gov. Andrew Cuomo (D) and Connecticut Gov. Ned Lamont (D) organized the meeting. They were joined by New Jersey Gov. Phil Murphy (D) and Pennsylvania Gov. Tom Wolf (D), who came out in favor of legalization last month. Representatives from Massachusetts, Rhode Island and Colorado also attended.

“This is a very important topic,” Cuomo said in his opening statement. “It is probably one of the most challenging issues that I know I’ve had to address in the state of New York. It is complicated, it is controversial and it is consequential. That is a very difficult and challenging combination.”

“It’s consequential because if you do not do it right, you can do harm, and the whole purpose here is to do good,” he said.

The summit is being broken up into five sessions: on vaping and related issues, market regulation and social justice issues, public health consequences of cannabis, public safety issues and a “best practices” panel led by Colorado representatives.

“The point is, this is a challenge for all of us,” Cuomo said. “There is a desire to do this. I believe the people of this state and our surrounding states have a desire to do it. But the old expression the devil is in the details, how you do this makes all the difference. And as I said it can be a positive if done right, it can be a negative if it is not done correctly.”

Lamont, who also talked cannabis with Cuomo during a fishing trip in August and again during a meeting last month, said the current “patchwork quilt” approach that states have taken to marijuana regulations is “unconscionable” and emphasized the need for regional coordination.

“This makes sense: sitting down, working together, working together with New Jersey, working with Pennsylvania and our other neighbors to make sure that what we do, we do it on a standardized basis, we do it on a well-regulated basis with health and safety paramount,” the governor said. “I think we’re much stronger when we work together and that’s what this meeting is all about.”

The governors agreed to determine an ideal tax scheme for marijuana and impose certain limitations on licensing to “ensure a fair and competitive market.” The taxes will also be designed to prevent an increase in consumption.

Importantly, the officials said their systems will include “social equity initiatives to ensure industry access to those who have been disproportionately impacted by the prohibition of cannabis” and to prioritize “small and diverse businesses’ participation in the cannabis industry.”

Another policy calls for the implementation of “meaningful social justice reform with regard to cannabis policy, including expediting expungements or pardons, waiving fees associated with expungements or pardons and securing legislation to support these reforms.”

In terms of public health, the governors were in consensus about imposing restrictions on modes of cannabis consumption and advertising. They said they will prohibit advertising that targets youth and create “strict penalties” for selling marijuana to those under 21. Public education campaigns will also be utilized “ to inform youth and the general public about the health and safety consequences of cannabis use.”

To ensure public safety, the governors said they agreed to have uniform standards for law enforcement trained as drug recognition experts to identify impaired driving. Methods will be developed to target the illicit market and identify “bad actors” in the industry.

Congress should pass a bill allowing banks to service marijuana businesses, they said.

“So long as it remains difficult to open and maintain bank accounts, the state-legal marijuana industry will largely rely on cash to conduct business and operate, which results in public safety issues and creates unique burdens for legal marijuana businesses,” the core principles document says.

The officials also agreed to a set of regulations for vaping products, including a ban or strict regulations on flavored cartridges, preventing the use of adulterants, imposing labeling requirements and increasing enforcement against retailers that sell vaping products to those under 21.

All told, the agreed-upon policies are likely to appeal to reform advocates, as nothing especially controversial made it into the list of principles. There were some concerns that a ban on home cultivation or smokable marijuana products would be included, as Cuomo recently hinted he might push for the latter policy.

“Cooperating as a coalition of states on these issues is the best path forward—as we not only share borders, but we share economic interests, public health priorities, and a joint understanding that the more states that work together on these kinds of issues, the better the policy results will be for our residents,” Lamont said.

Wolf noted that his administration had recently concluded a statewide listening tour to hear from residents about proposals to legalize cannabis and said that based on that input, “we need to bring this into the open.”

“We need regulation, we need to make sure we’re protecting public health, public safety. But that’s regulation, not prohibition,” he said. “It’s also really important that we work together as a region to make sure that we’re on the same page.”

Pennsylvania Lt. Gov. John Fetterman (D), who led the statewide cannabis tour, was also present at the summit.

Murphy emphasized that “doing things in an intelligent, coordinated, harmonious way is good for the entirety of not just our states but our residents.” He added that there are two main issues the leaders must tackle: combating the spike in vaping-related injuries and promoting social justice.

“We’ve got a shocking gap between persons incarcerated in our system along racial lines, and it’s almost entirely due to low-end marijuana offenses,” he said. “Putting aside all of the other factors that come into the cannabis discussion, the social justice, at least in New Jersey, screams out at us and it’s why we’ve come to the table with such passion.”

New Jersey Senate President Steve Sweeney (D) also participated.

“In the absence of federal leadership, Governors are coming together and taking a regional approach to vaping and cannabis regulations,” Rhode Island Gov. Gina Raimondo (D), who did not attend the summit herself, said in a press release. “The principles we’ve agreed to today will allow us to better coordinate our efforts as we address some of the most challenging issues facing our states. Through this partnership, we will work together to protect families from the dangers posed by the illicit cannabis market and vaping.”

Following the opening statements, panels led by experts were invited to testify about their respective cannabis and vaping-related topics for five minutes and then answer questions. While the governors’ opening statements were livestreamed online, the discussion sessions were closed to press.

The list of principles that came out of the summit was released Thursday afternoon.

The governors each represent states where lawmakers have unsuccessfully attempted to legalize marijuana. Efforts stalled in New York following months of negotiation between Cuomo and the legislature, with disagreements centering on issues such as tax rates and how revenue would be earmarked.

Despite several successful committee votes and hearings on legalization legislation in Connecticut, legalization legislation didn’t reach the floor of either chamber.

In New Jersey, bids to legalize cannabis for adult use failed, with lawmakers suggesting they might advance the issue through a referendum for voters to decide on next year.

Pennsylvania lawmakers discussed a legalization bill during a joint Senate and House Democratic Policy Committee in April, but that did not materialize either. However, following the listening tour and with the backing of Wolf, a comprehensive piece of legalization legislation that was introduced on Tuesday is believed to stand a better chance.

This story has been updated to include additional comments and information about legalization principles the governors agreed to.

Pennsylvania Senators File Comprehensive Marijuana Legalization Bill

Photo courtesy of Gov. Andrew Cuomo.

Marijuana Moment is made possible with support from readers. If you rely on our cannabis advocacy journalism to stay informed, please consider a monthly Patreon pledge.
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