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This Is The Marijuana Banking Bill Democrats Plan To Pass In 2019: Draft Text Released

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Congressional Democratic leaders are circulating the text of a bill allowing marijuana businesses to store their profits in banks that they are considering passing this year.

The document was released by the House Financial Services Committee ahead of a scheduled Wednesday hearing on the cannabis industry’s lack of access to banks.

Authored by Reps. Ed Perlmutter (D-CO), Denny Heck (D-WA), Steve Stivers (R-OH) and Warren Davidson (R-OH), the draft bipartisan legislation contains several new provisions that didn’t appear in past bills on marijuana businesses’ access to depository institutions.

For example it specifies for the first time that ancillary businesses providing products or services to the cannabis industry should be allowed to bank, and adds protections for marijuana-related “retirement plans or exchange traded funds” as well as “the sale or lease of real or any other property [and] legal or other licensed services…relating to cannabis.” The “distributing or deriving any proceeds, directly or indirectly, from cannabis or cannabis products” is also covered under the bill.

“Maintaining a checking account or utiliz[ing] payment processors can prove challenging” even for businesses that don’t directly handle cannabis, a related memo prepared by the committee says, citing electricians, plumbers and landlords. “For example, in early 2017, dozens of companies selling ancillary products and services to cannabis-related businesses were unexpectedly purged and lost access to major payment processors, like PayPal and Square.”

Another new catch-all provision in the proposal makes clear that “proceeds from a transaction conducted by a cannabis-related legitimate business shall not be considered as proceeds from an unlawful activity solely because the transaction was conducted by a cannabis-related legitimate business.”

The draft also proposes adding explicit protections for banking services offered to marijuana businesses that are regulated by Indian tribes, in addition to those operating under state or local laws.

An additional change from previous bills adds language directing the Federal Financial Institutions Examination Council to develop “uniform guidance and examination procedures for depository institutions that provide financial services to cannabis-related legitimate businesses.”

And a related directive requires regulatory agencies like the Board of Governors of the Federal Reserve System, the Bureau of Consumer Financial Protection, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency and the National Credit Union Administration to each issue guidelines to banks for working with cannabis businesses.

A prior version of the bill in the last Congress garnered 95 House cosponsors, with a fifth of the Senate signing on to companion legislation. Neither were given a hearing or a vote.

The memo about the new draft legislation says that the proposed bill “would would harmonize federal and state law by prohibiting federal banking regulators from engaging in certain actions against financial institutions, such as discouraging, prohibiting, or penalizing depository institutions that serve cannabis-related legitimate businesses.”

The committee’s majority staff, which prepared the document, notes the growing gap between state and federal marijuana laws.

“An increasing number of financial institutions have expressed interest in providing banking services to state authorized cannabis-related businesses as nearly all states have authorized various degrees of cannabis use, such as for medical use,” they wrote. “Most states have deviated from an across-the-board prohibition of marijuana, and it is now more so the rule than the exception that states have laws and policies allowing for some cultivation, sale, distribution, and possession of marijuana—all of which are contrary to the federal Controlled Substances Act.”

After laying out a series of reports that banks must file about their marijuana-related customers under 2014 Obama-era guidance, the memo says that “many financial institutions remain reluctant to serve cannabis-related businesses, and many of those businesses continue to have little to no access to traditional banking services.”

“As such, cannabis-related businesses have been described as a ‘soft target’ for being robbed and assaulted, having their stores broken into, and their plants stolen,” the staffers wrote. “Despite the public safety and other risks, many of these businesses have to operate as purely cash businesses, unable to accept credit cards, deposit their profits or write checks to pay employees or taxes.”

The memo also makes clear that the legislation covers employees of banks. “This safe harbor is intended to provide certainty for financial institutions to offer their products and services to well-regulated cannabis-related businesses,” it says.

Rep. Maxine Waters (D-CA), the committee’s new chairwoman, said late last year that “it’s inevitable we are going to have to talk about” cannabis businesses’ access to banks. Now she’s making good on that statement by scheduling the hearing in her panel’s Subcommittee on Consumer Protection and Financial Institutions.

Banking is just one marijuana issue that Democrats are considering advancing legislation on in 2019 under a plan proposed by Rep. Earl Blumenauer (D-OR).

Other issues on the table include tax fairness for marijuana businesses, medical access for military veterans and removing barriers to scientific research—all potentially leading up to the passage of a broader bill to end federal cannabis prohibition by the end of the year.

For now, the focus is on banking, with the House subcommittee set to hear from the California state treasurer, a marijuana business owner, bankers and a law enforcement group working to end the war on drugs at the Wednesday hearing.

Read the draft marijuana banking bill below:

Draft Congressional Marijua… by on Scribd

Read the cannabis banking memo that the Financial Services Committee wrote below:

Congressional Marijuana Ban… by on Scribd

Here’s Who Will Testify About Marijuana On Capitol Hill Next Week

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.)

Culture

Lots Of Politicians And Companies Are Tweeting About Marijuana On 4/20

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It’s 4/20 again, and that means another slew of tweets from politicians and mainstream brands looking to use the marijuana holiday as a hook to get their message out.

Here’s a roundup of some of the best, funniest, most important or otherwise notable cannabis-related tweets of the day…

Sen. Cory Booker (D-NJ), a presidential candidate:

Sen. Bernie Sanders (I-VT), a presidential candidate:

Sen. Kamala Harris (D-CA), a presidential candidate:

Sen. Kirsten Gillibrand (D-NY), a presidential candidate:

Rep. Tulsi Gabbard (D-HI), a presidential candidate:

Rep. Eric Swalwell (D-CA), a presidential candidate:

Former Rep. Beto O’Rourke (D-TX), a presidential candidate:

Former Sen. Mike Gravel (D-AK), a presidential candidate:

Washington State Gov. Jay Inslee (D), a presidential candidate:

Former San Antonio, Texas Mayor Julián Castro (D), a presidential candidate:

Democratic presidential candidate Andrew Yang:

Senate Minority Leader Chuck Schumer (D-NY):

House Committee on Small Business:

Congressional Black Caucus:

Sen. Jacky Rosen (D-NV):

Rep. Earl Blumenauer (D-OR):

Rep. Ilhan Omar (D-MN):

Rep. Barbara Lee (D-CA):

Rep. Ro Khanna (D-CA):

Rep. Charlie Crist (D-FL):

Rep. Steve Cohen (D-TN):

Rep. Deb Haaland (D-NM):

Pennsylvania Lt. Gov. John Fetterman (D):

Los Angeles, California City Council President Herb Wesson (D):

Cook County, Illinois State’s Attorney Kim Foxx (D):

The American Civil Liberties Union:

Ben & Jerry’s:

Denny’s:

Hidden Valley Ranch:

Carl’s Jr.:

Boston Market:

George Washington’s Mount Vernon:

Bill Maher:

Miley Cyrus:

311:

The Onion:

Ben & Jerry’s Stands Out From Companies Just Trying To Make Money From 4/20

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State-Legal Marijuana Use Makes Immigrants Morally Unfit for Citizenship, Trump Administration Warns

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A federal immigration agency clarified on Friday that using marijuana or engaging in cannabis-related “activities” such as working for a dispensary—even in states where it’s legal—is an immoral offense that makes immigrants ineligible for citizenship.

When applying for naturalization, the process of gaining citizenship, individuals must have established “good moral character” in the five years preceding the application. Good moral character is a vague requirement that has been criticized by scholars and civil rights advocates, as assessing morality is arguably subjective.

According to the U.S. Citizenship and Immigration Services (USCIS), state-legal marijuana consumption renders individuals morally unfit for citizenship. The new policy clarification reflects a sentiment once expressed by former Attorney General Jeff Sessions, who said that “good people don’t smoke marijuana.”

The USCIS memo says that “violation of federal controlled substance law, including for marijuana, established by a conviction or admission, is generally a bar to establishing [good moral character] for naturalization even where the conduct would not be a violation of state law.”

Further, an applicant “who is involved in certain marijuana related activities may lack GMC if found to have violated federal law, even if such activity is not unlawful under applicable state or foreign laws,” the document says. The policy also applies to individuals who worked in the state-legal cannabis industry.

There have already been reports of people being denied citizenship due to their proximity to state-legal marijuana businesses. Earlier this month, Denver Mayor Michael Hancock hosted a group of immigrants who said their work in the state’s cannabis industry was being used as justification by federal officials to deny them citizenship.

“In Colorado, cannabis has been legal for 5 years. For work in a legal industry to be used against an individual trying to gain citizenship is a prime example of why we need to harmonize our state and federal laws to ensure that states like Colorado that have moved to legalize cannabis can act in our own authority to expand and regulate our cannabis industry,” Rep. Joe Neguse (D-CO), told Marijuana Moment in reaction to the Trump administration memo.

Legalization activists also criticized the move.

“The cruel treatment of immigrants for offenses related to something as minor as marijuana is illustrative of the way this administration has used the war on drugs to pursue communities of color,” Michael Collins, director of national affairs at the Drug Policy Alliance, told Marijuana Moment. “It also shows that pursuing a state by state approach to federal policy doesn’t work for these communities. Federal descheduling is essential.”

While the federal policy deeming marijuana use a violation of “good moral character” standards for immigration purposes was already on the books, it seems the spread of state-level cannabis legalization has prompted the agency, which is part of the Department of Homeland Security, to issue the clarification.

“A number of states and the District of Columbia (D.C.) have enacted laws permitting ‘medical’ or ‘recreational’ use of marijuana. Marijuana, however, remains classified as a ‘Schedule I’ controlled substance under the federal CSA,” the updated USCIS policy manual now reads. “Schedule I substances have no accepted medical use pursuant to the CSA. Classification of marijuana as a Schedule I controlled substance under federal law means that certain conduct involving marijuana, which is in violation of the CSA, continues to constitute a conditional bar to GMC for naturalization eligibility, even where such activity is not a criminal offense under state law.”

“Such an offense under federal law may include, but is not limited to, possession, manufacture or production, or distribution or dispensing of marijuana. For example, possession of marijuana for recreational or medical purposes or employment in the marijuana industry may constitute conduct that violates federal controlled substance laws. Depending on the specific facts of the case, these activities, whether established by a conviction or an admission by the applicant, may preclude a finding of GMC for the applicant during the statutory period. An admission must meet the long held requirements for a valid ‘admission’ of an offense. Note that even if an applicant does not have a conviction or make a valid admission to a marijuana-related offense, he or she may be unable to meet the burden of proof to show that he or she has not committed such an offense.”

The underlying policy does provide an exception for “a single offense of simple possession of 30 grams or less of marijuana.”

An additional update to the policy manual stipulates that the exception “is also applicable to paraphernalia offenses involving controlled substances as long as the paraphernalia offense is ‘related to’ simple possession of 30 grams or less of marijuana.”

That detail wasn’t included in an earlier 2014 version of the USCIS policy manual.

The policy alert is similar to an update the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) issued in 2017 when the federal gun purchase application form was revised to include a warning that the “use or possession of marijuana remains unlawful under Federal law regardless of whether it has been legalized or decriminalized for medicinal or recreational purposes in the state where you reside” and therefore disqualifies applicants.

But the USCIS clarification also reflects a recent ratcheting up of anti-immigration policy moves under the Trump administration.

Jason Ortiz, vice president of the Minority Cannabis Business Association, told Marijuana Moment that the new memo reflects a “callous and irrational decision” by the administration and “is a reminder that without comprehensive cannabis reform our communities of color will continue to be prosecuted and subject to deportation for activity that is legal for affluent communities around the country.”

“Proposals such as the STATES act which seek to simply ease the risk on business do not address these deeper issues related to federal prohibition,” he said. “Considering the devastating effects our war on drugs had on Latin America, immigration reform must be a necessary component of any comprehensive cannabis legalization policy.”

People Could Use Marijuana In Public Housing Under New Congressional Bill

This story has been updated to include comment from Neguse.

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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USDA Clarifies That Farmers Can Import Hemp Seeds From Other Countries

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The U.S. Department of Agriculture (USDA) clarified on Friday that hemp seeds can be imported into the U.S., and that the Justice Department no longer has a role in that process.

While USDA is still developing regulations for hemp cultivation under the 2018 Farm Bill, which federally legalized the crop and its derivatives, farmers can still obtain seeds in the meantime.

The agriculture legislation “removed hemp and hemp seeds from DEA authority for products containing THC levels not greater than 0.3 percent” and “DEA no longer has authority to require hemp seed permits for import purposes.”

“U.S. producers and hemp seed exporters have requested assistance from USDA to provide an avenue for hemp seed exports to the United States,” the department wrote in a bulletin. “The U.S. Department of Agriculture regulates the importation of all seeds for planting to ensure safe agricultural trade. Under this authority, USDA is providing an alternative way for the safe importation of hemp seeds into the United States.”

Sen. Jon Tester (D-MT) is among those who’ve requested assistance related to hemp importations. Earlier this month, he told Agriculture Secretary Sonny Perdue that the DEA was blocking Montana farmers from importing hemp seeds.

Perdue said during the hearing that the matter was “news to me” and explained that farmers can import and cultivate hemp under the research-focused provisions in the prior 2014 version of the legislation while the USDA worked to enact new regulations.

In a letter sent to the acting administrator of Customs and Border Protect (CBP) on Tuesday, Tester and Sen. Patrick Leahy (D-VT) raised the concern again, imploring CBP to update its policy to reflect that hemp seeds can be lawfully imported. The letter was obtained by the industry advocacy group Vote Hemp.

The USDA bulletin specified how the process works for imports from Canada and other countries.

Importation of Hemp Seed from Canada

“Hemp seeds can be imported into the United States from Canada if accompanied by either: 1) a phytosanitary certification from Canada’s national plant protection organization to verify the origin of the seed and confirm that no plant pests are detected; or 2) a Federal Seed Analysis Certificate (SAC, PPQ Form 925) for hemp seeds grown in Canada.”

Importation of Hemp Seed from Countries other than Canada

“Hemp seeds may be imported into the United States from countries other than Canada if accompanied by a phytosanitary certificate from the exporting country’s national plant protection organization to verify the origin of the seed and confirm that no plant pests are detected.

Hemp seed shipments may be inspected upon arrival at the first port of entry by Customs and Border Protection (CBP) to ensure USDA regulations are met, including certification and freedom from plant pests.”

The rulemaking process for hemp may take some time, as Perdue said the department would not expedite the regulations and will be “taking this slow.” Once the USDA has a regulatory framework in place, it will begin approving state plans, and those states will be the primary regulators.

For the time being, however, there’s nothing stopping farmers from collecting certified hemp seeds. Not even the DEA.

Trump Agriculture Secretary Accepts Invitation To Tour Hemp Farms

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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