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Republicans Block Marijuana Banking Measure

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Republican congressional leadership is blocking consideration of a measure to allow marijuana businesses to deposit their profits in banks.

Many financial institutions are currently afraid to serve cannabis businesses that are legal in a growing number of states because of ongoing federal prohibition and the associated risk of running afoul of money laundering and drug laws.

As a result, many marijuana growing, processing and retail operations carry out business on a cash-only basis, making them targets for robberies.

Congressman Ed Perlmutter (D-CO) wants to solve this problem. Last Wednesday, at a meeting of the House Financial Services Committee, he offered an amendment that would have prevented federal authorities for punishing banks just for working with legal marijuana businesses.

“The regulatory confusion around marijuana and banking needs to be resolved,” Perlmutter said during the markup. “Prohibition is over. This committee has a responsibility to align the laws of the United States with those of the states so that there isn’t confusion. Public safety is at risk.”

Perlmutter referred to the case of an Iraq War veteran who was killed during a robbery while working as a security guard at a marijuana retail operation in Colorado.

“This is a real issue that this committee must deal with and confront and cannot overlook any more,” he said.

“I don’t think there’s a single person on this committee that is in a state that doesn’t allow some level of marijuana use,” Perlmutter noted, referring to the 46 states that either have comprehensive medical cannabis laws or allow limited uses of low-THC marijuana extracts.

Nonetheless, Republicans on the committee used procedural moves to block the banking measure from even being voted on.

Congressman Blaine Luetkemeyer (R-MO) reserved a point of order against the measure, claiming it was not germane to the overall bill on stress testing for financial institutions. (As an aside, the GOP lawmaker did mention that his daughter resides in Colorado and that they talk about marijuana issues “a lot”).

Committee Chairman Jeb Hensarling (R-TX) ruled to uphold Luetkemeyer’s point or order. Perlmutter then made a motion to appeal the ruling of the chair, but Luetkemeyer motioned to table consideration of Perlmutter’s move.

Congresswoman Maxine Waters (D-CA) spoke in support of Perlmutter’s amendment.

“Someday we will realize that this is a federal issue that must be dealt with,” she said.

Congressman David Scott (D-GA) also argued that the panel needs to address the cannabis banking issue at some point.

“If…his amendment is not germane, I still believe that this whole burgeoning issue certainly falls in the bosom of the Financial Services Committee as we move forward,” he said.

But the vote on Luetkemeyer’s motion was approved on a strictly party-line vote of 28 to 14, effectively blocking the cannabis banking measure from being considered.

The text of Perlmutter’s amendment is similar to a standalone bill he is sponsoring in the House, which currently has 51 cosponsors. A Senate companion version has 12 cosponsors.

In 2014, the Obama administration released guidance intended to give banks some comfort in working with the marijuana industry. But, because the memos provided no permanent or assured protection from continuing federal prohibition laws that remain on the books, many financial services providers have remained wary.

Also in 2014, the U.S. House voted 231 to 192 in favor of an amendment to prevent federal authorities from punishing banks for working with the legal marijuana industry. But the language was not included in the final version of annual appropriations legislation that year and was not enacted into law. GOP leaders have since blocked similar measures from even being considered for attachment to subsequent spending bills.

The new banking measure’s fate marks the second time in recent days that House Republican leaders have prevented cannabis-related financial measures from even being voted on.

Also last week, GOP leaders blocked consideration of amendments concerning taxation of marijuana businesses that supporters wanted to attached a broader GOP tax reform plan moving through Congress.

Marijuana Businesses Don’t See 280E Reform Success, But There’s Still Hope

Over the course of the past year, congressional leaders have consistently prevented marijuana measures from coming to the House floor. Aside from banking and tax amendments, proposals to protect state laws from federal interference, allow industrial hemp and increase military veterans’ access to medical cannabis have all been shut down by the House Rules Committee.

Also last week, that panel blocked a measure from Congressman Matt Gaetz (R-FL) aimed at  increasing military veterans’ participation in medical cannabis research.

If you value staying updated on cannabis news, please start a monthly Patreon pledge to support Marijuana Moment!

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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Google Execs Told Marijuana Jokes To Lighten The Mood After Trump’s Election, Leaked Video Shows

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Shortly after the 2016 presidential election, Google executives spoke at an all-hands meeting about the political ramifications of Donald Trump’s victory and fielded questions from employees about the path moving forward.

And to lighten the mood, they also cracked a few jokes about marijuana, which had just been fully legalized in California, the home of Google’s headquarters.

“Let’s face it, most people here are pretty upset and pretty sad because of the election,” Google co-founder Sergey Brin said at the beginning of the meeting. “But there’s another group—a small group—that we should also think about who are very excited about the legalization of pot.” 

Employees are heard applauding and laughing in the video, which was leaked to Breitbart by an anonymous source. (The video cannot currently be embedded, but it appears at the top of the page linked above).

“I was asking if we could serve joints outside on the patio, but apparently these things take a little while to take effect,” Brin continued. “It was a huge, huge disappointment.”

“I’ve been bemoaning that all week, I’ll be honest with you.” 

Of course, the meeting took on a more serious tone as executives discussed the policy implications of the incoming Trump administration and the role of Google in the modern political landscape. But the meeting didn’t wrap without one final nod to the passage of Proposition 64 in California.

Asked to weigh in on speculation that economist Jefferey Eisenach would be named as the chairman of the Federal Communications Commission, Google’s chief legal officer Kent Walker brushed it off with his own marijuana joke. 

“Anybody who thinks they know of the likely members of the Trump administration is taking premature advantage of Sergey’s favorite California proposition,” Walker said. “Nobody knows.”

Just as a matter of housekeeping, California’s adult-use marijuana law went into effect immediately after the proposition’s passage. So technically speaking, anyone 21 or older who would have consumed cannabis after the election wouldn’t be taking “premature advantage” of the law.

Perhaps to that end, Brin closed the post-election event by telling Googlers that “there’s food and drink on the patio,” but warned them to “be careful of the cookies.”

New Book: Obama Considered Decriminalizing Marijuana, But Then Trump Won

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Workers In These Industries Are Most Likely To Consume Marijuana

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It’s become increasingly clear that there’s no single “type” of marijuana consumer. But research has identified certain cultural trends, including a new study that examines the prevalence of cannabis consumption among workers in different industries.

The study, published this month in the International Review of Psychiatry, demonstrates that cannabis use is represented in a wide range of employment backgrounds—and some of the industries where using cannabis is most common might come as a surprise.

Let’s start with the numbers. Here’s a list of industries where workers use the most and least cannabis, which the researchers compiled based on 2013 and 2014 National Survey on Drug Use and Health data. The survey asks respondents whether they’ve used marijuana at least once in the past year.

Industry % marijuana use
Food Services 50.55
Education/Health 46.55
Construction/Mining 41.70
Retail 39.15
Professional 38.76
Manufacturing 21.68
Finance 15.70
Transportation 8.23
Wholesale 7.31
Public Administration 3.86
Agriculture 2.93

Note: Not all industries are represented in this list, which is limited by the data submitted by NSDUH respondents. Also, the study does distinguish different “job categories,” but not within each specific industry.

The point of the study wasn’t simply to show what kind of workers are using marijuana, but also for what purposes. If a survey respondent reported using cannabis in the past year, their use was then categorized as either medical, recreational or mixed (i.e. some of their cannabis consumption was recommended by a doctor, but not all of it).

You can see that breakdown in the table below, but in general, the study reveals a diversity of use types among different industries. People in construction tend to be mixed-use consumers, for instance, and people in food services tend to skew recreational. It’s difficult to explain these sub-trends without more data, however.

Via International Review of Psychiatry.

That said, the researchers were especially interested in cannabis use among construction and mining employees.

“One key difference between the user groups is the higher percentage of medical cannabis users in the construction and mining industries,” they wrote. “This is likely due to the higher injury rates in these industries: construction and mining work require physical stamina, often involve irregular schedules, and expose workers to weather, dangerous tools, and equipment.”

The study notes that there’s conflicting research about marijuana use in these industries, with some arguing that frequent use can result in increased workplace injuries and others contending that the therapeutic use of cannabis “addresses pain and other health problems… that often result from work-related injuries.”

That latter point is also consistent with a study released last month showing “evidence that legalizing medical marijuana improved workplace safety.”

Workplace Deaths Drop After States Legalize Medical Marijuana

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Federal Court Rules In Favor Of Worker Rejected For Medical Marijuana Use

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A Connecticut woman’s rights under that state’s medical marijuana law were violated when a company refused to hire her on the basis of her legal cannabis use, and a lawsuit seeking damages against her would-be employer may proceed, a federal judge ruled.

In 2016, Katelin Noffsinger filed suit against Bride Brook Health and Rehabilitation Center, a federal contractor, after a job offer was rescinded following a positive test for cannabis on a pre-employment drug test.

Noffsinger had accepted a management-level position with the firm, which then scheduled a drug test. Prior to the test, Noffsinger informed Bride Brook that she was a qualified cannabis patient under Connecticut’s Palliative Use of Marijuana Act, and used the drug—namely, synthetic marijuana pills, consumed in the evening—to treat post-traumatic stress disorder following a 2012 car crash.

After learning of Noffsinger’s patient status, Bride Brook officials debated over email the best way to inform her that she could not be hired because of her marijuana use.

After the positive drug test and the subsequent rejection, Noffsinger filed an employment-discrimination lawsuit in state court. The case was elevated to federal court after Bride Brook used federal drug laws—including federal cannabis prohibition—to justify their actions.

Unlike some other states including California, Connecticut’s medical-marijuana law, passed in 2012, offers specific employment protections for cannabis patients.

Employers don’t have to accommodate cannabis use during work hours or employees who are intoxicated in the workplace, but any off-hours marijuana use by a certified patient following state law is protected.

In court filings, Bride Brook argued that the federal Drug-Free Workplace Act preempted such protections.

Because Bride Brook was a federal contractor, it was required to perform such drug tests—and had the firm still hired Noffsinger after the positive drug test, it would have been “defrauding” the federal government, the firm argued.

In a ruling issued last week, U.S. District Court Judge Jeffrey Alker Meyer disagreed.

While Meyer rejected Noffsinger’s requests for summary judgment and attorney’s fees, his ruling means that Noffsinger can now seek monetary damages in a jury trial.

The federal Drug Free Workplace Act requires only that employers make a “good faith effort” to maintain a drug-free workplace, Meyer ruled.

Such efforts include posting warnings about drug use and setting an office policy.

A “zero-tolerance” policy that includes actively testing and then rejecting protected applicants on the basis of a test go above and beyond that threshold, Meyer wrote.

A previous ruling in Noffsinger’s case, also by Meyer, was the first instance in which a federal judge ruled that the federal Controlled Substances Act does not preempt state medical-marijuana laws that provide employment protections.

Other classes of workers, including workers in “safety-sensitive” positions and employees of the federal government, may have to wait for similar protections.

Employers In Medical Marijuana States Can Still Drug Test Employees, Federal Judge Rules

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