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Senate Committee Blocks DC Marijuana Legalization While Advancing Hemp Regulations

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The Senate Appropriations Committee has again advanced a spending bill that includes a provision blocking Washington, D.C. from using its own local tax dollars to implement a legal marijuana sales program.

The panel voted in favor of the Financial Services and General Government (FSGG) funding legislation for Fiscal Year 2020 during a hearing on Thursday, with two senators voicing opposition to the D.C. rider. Earlier in the meeting, the committee approved a separate spending bill that provides funding to the U.S. Department of Agriculture (USDA) and Food and Drug Administration (FDA) for hemp and CBD programs.

Sen. Chris Van Hollen (D-MD) spoke out against the Senate’s continued efforts to dictate how D.C. spends its own money, emphasizing that voters in the district overwhelmingly approved adult-use cannabis legalization in 2014 through a ballot measure, yet the local government is unable to create a commercial marijuana market for consumers.

“You may like [cannabis legalization] or not like that, but the reality is it’s legal in the District of Columbia so what the mayor and the county council want to do is regulate it,” he said. “Right now it’s legal but it’s lawless. There are no regulations.”

Van Hollen said it’s the “bad guys” who benefit from the lack of a regulated marijuana program by being able to sell product on the illegal market, adding that it’s “the people who want to take advantage of people who have free rein.” He added that D.C. Mayor Muriel Bowser (D) sent him a letter expressing frustration over the restriction.

“Mr. Chairman, I know there’s a further discussion going on,” he said. “I’m not going to support this bill at the end of the day if we end up usurping the powers of the people of the District of Columbia to do what they want with their own money. We have got to stop acting like we run the business of the city and I hope this is the last time we will see provisions that usurp the powers of the people of the District of Columbia.”

Sen. Patrick Leahy (D-VT), ranking member on the committee, similarly complained about the provision.

“I think every single Democrat and Republican on this committee would oppose a provision in these bills or any other bills that told their specific state—tell Louisiana what they must do, just Louisiana, or just New Hampshire or any other state,” he said. “I have railed against this idea of this Congress trying to micromanage the District of Columbia.”

Leahy added that while he’s disagreed with certain decisions made by the district’s government unrelated to cannabis, it’s important that they’re able to make their own choices.

The House-passed version of this spending bill that was approved earlier this year omitted the D.C. rider without objection from its traditional sponsor, Rep. Andy Harris (R-MD), who said he didn’t attempt to push it as an amendment because his party is “not in charge anymore” in the chamber. That legislation also included a provision protecting banks that service marijuana businesses from being penalized by federal financial regulators.

Bowser, the D.C. mayor, filed a marijuana legalization bill with the District Council earlier this year in anticipation of the rider’s removal under the Democratic-controlled House. If the Senate approves its version of the spending legislation containing the D.C. block, it will be up to a bicameral conference committee to decide what is included in the final package sent to President Trump’s desk.

Prior to the FSGG Appropriations vote, members passed agriculture spending legislation and adopted a related report that sets aside funding for hemp-specific programs within USDA and FDA. Senate Majority Leader Mitch McConnell (R-KY), who championed a provision of the 2018 Farm Bill federally legalizing hemp and its derivatives, detailed the hemp provisions in a press release shortly after the vote.

The measures include providing $16.5 million for USDA to implement hemp legalization, $2.5 million for hemp research through the Agriculture Research Service, a provision urging FDA to issue enforcement discretion guidelines for CBD, another encouraging the Farm Credit Administration to provide services to hemp businesses and one supporting “competitive USDA grants for hemp projects.” The bill also contains a prohibition on “banning the transfer, production or sale of hemp” under research-focused provisions of the earlier 2014 Farm Bill.

“Hemp farmers, processors and manufacturers are exploring the crop’s great potential, and I’m proud to work with them every step of the way,” McConnell said. “With the passage of the 2018 Farm Bill and my hemp legalization provision, it’s important to provide the U.S. Department of Agriculture with the resources necessary to get the hemp program up and running. Once enacted, this federal funding will benefit this exciting new industry.”

“As Senate Majority Leader, I’m constantly looking for ways to secure federal resources for Kentucky’s priorities, and I look forward to continuing to work with my colleagues in Congress to send these Kentucky accomplishments to the president’s desk,” he said.

Mitch McConnell Tells FDA To Clear A Path For CBD Products Though Spending Bill Directive

Photo courtesy of WeedPornDaily.

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.

Kyle Jaeger is Marijuana Moment's Los Angeles-based associate editor. His work has also appeared in High Times, VICE and attn.

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Trade Associations And Civil Rights Groups Send Mixed Messages On Marijuana Banking To Senate

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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.”

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:

Industry SAFE Senate Bankin… by Marijuana Moment on Scribd

Senate Leadership Letter Re… by Marijuana Moment on Scribd

Senators Demand Update From DEA On Marijuana Growing Applications

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GOP Congressman Knocks His Party For Failing To Pass Marijuana Reform

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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).

Senators Demand Update From DEA On Marijuana Growing Applications

Photo courtesy of YouTube/Rep. Massie.

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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State Department Warns Travelers About Flying With Cannabis Oil Internationally

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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.”

Please visit Forbes to read the rest of this piece.

(Marijuana Moment’s editor provides some content to Forbes via a temporary exclusive publishing license arrangement.)

MLB Officially Removes Marijuana From Banned Substances List For Baseball Players

Photo courtesy of Flickr/DHS.

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