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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 20-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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Louisiana Marijuana Decriminalization Officially Takes Effect As Lawmaker Launches Awareness Campaign

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Marijuana decriminalization took effect in Louisiana on Sunday—and advocates and lawmakers are working to ensure that residents know what they can and cannot do without going to jail under the new law.

Gov. John Bell Edwards (D) signed the legislation in June, and he emphasized that it was “not a decision I took lightly,” but he recognized that criminalization has had significant consequences for families and taxpayers.

Under the law, possession of up to 14 grams of cannabis is now punishable by a $100 fine, without the threat of jail time. The governor has pushed back against the definition of the policy as “decriminalization,” but that’s exactly how advocates define policies that remove the threat of incarceration for low-level possession.

Now, the sponsor of the decriminalization bill, Rep. Cedric Glover (D), is partnering with the advocacy group Louisiana Progress on an awareness campaign to educate people about the new reform.

They’ve already put out a FAQ on the law and will be using social media and other informational materials to inform the public while also engaging in outreach to law enforcement and legislators.

“When I saw two city council members in my hometown of Shreveport—one conservative and one progressive—come together to decriminalize personal-use marijuana possession there, I knew it was time to take this reform to the state level,” Glover said. “Criminalizing marijuana possession is harmful to the people of Louisiana in so many ways, but it’s been particularly harmful for Black and Brown communities, lower-income folks, and young people. My fervent hope is that this new law will finally bring some relief and a feeling of freedom to those communities.”

Louisiana Progress says lawmakers shouldn’t stop at simple decriminalization and should enact broader cannabis legalization in an upcoming session.

“Marijuana decriminalization is an important victory for criminal justice reform in Louisiana, especially for the traditionally marginalized communities that have been disproportionately criminalized under prohibition,” the group’s new FAQ says. “But we need to keep fighting to end marijuana prohibition altogether. Doing so could be hugely beneficial, including bringing dozens of new small businesses and hundreds or even thousands of new jobs to Louisiana.”

Meanwhile, national advocates are cheering the new law’s taking effect.

“This is a much-needed policy change for Louisiana,” NORML State Policies Manager Carly Wolf said in a press release. “The enactment of this legislation is great progress toward ending the racially discriminatory policy of branding otherwise law-abiding Louisianans as criminals for minor marijuana possession offenses when law enforcement should instead be focusing on fighting legitimate crime.”

Separately, the governor also signed a bill in June to let patients in the state’s medical cannabis program legally smoke whole-plant marijuana flower.


Marijuana Moment is already tracking more than 1,200 cannabis, psychedelics and drug policy bills in state legislatures and Congress this year. Patreon supporters pledging at least $25/month get access to our interactive maps, charts and hearing calendar so they don’t miss any developments.

Learn more about our marijuana bill tracker and become a supporter on Patreon to get access.

The legislation marks a notable expansion of the state’s limited medical marijuana program. As it stands, patients are able to vaporize cannabis preparations via a “metered-dose inhaler,” but they cannot access whole-plant flower and smoking is not allowed.

While the governor has made clear his willingness to approve more modest reforms, he predicted that he would not be the one to sign adult-use legalization into law before he leaves office in early 2024—even though he does expect the policy change to happen in his state at some point.

An effort in the legislature to pass a bill to legalize recreational cannabis stalled in the House this session after the chamber failed to pass a complementary measure on taxing adult-use marijuana. Edwards also said in May that he believes the reform “is going to happen in Louisiana eventually.”

“It’s on the march, and that certainly might happen here in Louisiana,” he said last week. However “I would be surprised if there’s a consensus in the legislature to do that while I’m governor.” (Edwards is term-limited and cannot run again in 2023’s upcoming gubernatorial election.)

In April, the governor also said that he had “great interest” in the legalization proposal, and he pledged to take a serious look at its various provisions.

Last year, the Louisiana legislature significantly expanded the state’s medical marijuana program by passing a bill that allows physicians to recommend cannabis to patients for any debilitating condition that they deem fit instead of from the limited list of maladies that’s used under current law.

Edwards signed the measure in June 2020 and it took effect weeks later.

The developments on various cannabis-related legislation come after recent polling showed that constituents in some of the most firmly Republican districts in the state support legalizing marijuana.

Two other recent polls—including one personally commissioned by a top Republican lawmaker—have found that a majority of voters are in favor of legalizing cannabis for adult use.

Senate’s Bipartisan Infrastructure Deal Aims To Let Researchers Study Marijuana From Dispensaries

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Senate’s Bipartisan Infrastructure Deal Aims To Let Researchers Study Marijuana From Dispensaries

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Senate leaders released a massive and long-anticipated infrastructure bill late on Sunday—and after weeks of bipartisan negotiations, the legislation includes provisions that aim to allow researchers to study the actual marijuana that consumers are purchasing from state-legal dispensaries instead of having to use only government-grown cannabis.

The bill also encourages states that have enacted legalization laws to educate people about impaired driving.

The language on scientists’ access to retail cannabis products was attached to an earlier version of infrastructure legislation in a Senate committee, and it’s substantively the same as a provision included in a House-passed infrastructure bill.

The measure makes it so the transportation secretary would need to work with the attorney general and secretary of health and human services to develop a public report within two years of the bill’s enactment that includes recommendations on allowing scientists to access retail-level marijuana to study impaired driving.

The cannabis provision stipulates that the report must contain a recommendation on establishing a national clearinghouse to “collect and distribute samples and strains of marijuana for scientific research that includes marijuana and products containing marijuana lawfully available to patients or consumers in a state on a retail basis.”

It specifies that scientists from states that have not yet enacted legalization should also be able to access to dispensary products that are being sold in jurisdictions that have ended prohibition.

Sen. John Hickenlooper (D-CO) sponsored the committee amendment that contains these reforms, and he argued that the changes are necessary in order to promote research into impaired driving and create a national standard for addressing such activity.

Advocates have been waiting to see whether the committee-approved language would make it into the bipartisan negotiated bill. And the fact that it did stay intact following extensive negotiations between Democrats and Republicans who worked to craft the deal is significant. The Senate is expected to take up the bill on the floor this week.

If it passes, the amended legislation would then need to go back to the House for consideration before heading to President Joe Biden’s desk.

The bill says the cannabis research report must also broadly examine “federal statutory and regulatory barriers” to studies on marijuana-impaired driving.

The transportation legislation also contains a separate section that would require legal marijuana states—and only those states—to consider methods of educating people about and discouraging impaired driving from cannabis. Advocates take issue with that language simply because it targets legalized jurisdictions while ignoring the fact that marijuana-impaired driving takes place regardless of its legal status.

An earlier version of the transportation bill cleared the House last Congress with identical marijuana provisions but did not advance in the GOP-controlled Senate.

Since its initial introduction last year, some steps have been taken to resolve that issue. Most notably, the Drug Enforcement Administration (DEA) recently notified several companies that it is moving toward approving their applications to become federally authorized marijuana manufacturers for research purposes.

That marks a significant development—and one of the first cannabis-related moves to come out of the Biden administration. There is currently a monopoly on federal cannabis cultivation, with the University of Mississippi having operated the only approved facility for the past half-century.

But that move from DEA would still not free up researchers to access marijuana products from state-legal retailers in the way the transportation legislation would encourage if enacted.

While advocates are supportive of measures to reduce impaired driving, some have raised issues with the implication that legalizing cannabis increases the risk of people driving while under the influence. Research isn’t settled on that subject.

A federally funded study recently promoted by the National Institute of Justice also found that the amount of THC in a person’s system after consuming marijuana is not an accurate predictor of impairment.

Colorado Could Vote On Marijuana Tax Hike To Fund Education Programs After Campaign Submits Signatures

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Colorado Could Vote On Marijuana Tax Hike To Fund Education Programs After Campaign Submits Signatures

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A Colorado campaign appears to have submitted enough signatures to place a ballot initiative before voters in November that would raise marijuana taxes to fund programs that are designed to reduce the education gap for low-income students.

The Colorado Learning Enrichment and Academic Progress (LEAP) measure would give low- and middle-income families a $1,500 stipend to have school-aged children participate in after-school programs, tutoring and summer learning activities.

The state excise tax on sales adult-use cannabis products would increased from 15 percent to 20 percent to fund the effort.

Supporters say this policy is especially needed as a response to the coronavirus pandemic, which has exacerbated income-related learning gaps for students. But some marijuana industry stakeholders—and even the state’s largest teachers union—have expressed concern about the proposal.

In any case, the LEAP campaign turned in about 200,000 signatures for the measure to the secretary of state’s office on Friday. It only needs 124,632 valid signatures to qualify.

Monica Colbert Burton, a LEAP campaign representative, told Colorado Public Radio that the sizable signature turn-in “really demonstrates the broad support around the state for this issue.”

“The learning loss that we’ve seen during the pandemic is so much higher than we’ve ever seen before particularly for our low-income families and our students that don’t have access to the same resources,” Colbert Burton said.

Beyond imposing the extra five percent tax on cannabis, the initiative also calls for a repurposing of state revenue that it generates from leases and rents for operations held on state land. Advocates estimate that the measure would translate into $150 million in additional funding annually.

But according to an analysis from Westword, adding the tax to the existing 15 percent special tax would’ve only created $80 million in added revenue based on 2020 sales figures.

Some stakeholders and cannabis advocates have come out strongly against the proposal.

“That this initiative is being pushed at a moment in Colorado when the cannabis industry is trying to create more equity and bring economic growth to marginalized communities harmed by the racist Drug War is especially tone deaf,” Hashim Coates, executive director of the trade group Black Brown and Red Badged, said in a press release. “But that is to be expected when the backers of this measure are affluent white men.”

“Let’s just be perfectly clear: this is a regressive tax—which always harms Black and Brown consumers the most. This is going to a voucher program—which always harms Black and Brown communities the most,” Coates said. “And it’s targeting the marijuana industry as a magical bottomless piggy bank—which will devastate the Black and Brown owned cannabis businesses the most. Can we just let the black community breathe for a moment after this pandemic before we start taxing them to death?”

The measure is being endorsed by a two former governors, about 20 sitting state lawmakers, several former legislative leaders and several other educational organizations.

But in June, the Colorado Education Association withdrew its support for the proposal over concerns about how it would be implemented.

The next step for the initiative is for the secretary of state’s office to verify that there are enough valid signature in the batch LEAP supporters turned in.

This development comes days after Colorado officials announced the launch of a new office to provide economic support for the state’s marijuana industry.


Marijuana Moment is already tracking more than 1,200 cannabis, psychedelics and drug policy bills in state legislatures and Congress this year. Patreon supporters pledging at least $25/month get access to our interactive maps, charts and hearing calendar so they don’t miss any developments.

Learn more about our marijuana bill tracker and become a supporter on Patreon to get access.

The division, which was created as part of a bill signed into law in March, is being funded by cannabis tax revenue. It will focus on creating “new economic development opportunities, local job creation, and community growth for the diverse population across Colorado.”

Gov. Jared Polis (D) had initially asked lawmakers back in January to create a new a new cannabis advancement program as part of his budget proposal.

Beyond this program, the state has worked to achieve equity and repair the harms of prohibition in other ways.

For example, Polis signed a bill in May to double the marijuana possession limit for adults in the state—and he directed state law enforcement to identify people with prior convictions for the new limit who he may be able to pardon.

The governor signed an executive order last year that granted clemency to almost 3,000 people convicted of possessing one ounce or less of marijuana.

Funding for the new office is made possible by tax revenue from a booming cannabis market in the state. In the first three months of 2021 alone, the state saw more than half a billion dollars in marijuana sales.

The lack of access to federal financial support for marijuana businesses became a pronounced issue amid the coronavirus pandemic, with the Small Business Administration saying it’s unable to offer those companies its services, as well as those that provide ancillary services such as accounting and law firms.

Polis wrote a letter to a member of the Colorado congressional delegation last year seeking a policy change to give the industry the same resources that were made available to other legal markets.

California Senator Seeks Federal Clarification On Medical Marijuana Use In Hospitals

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