The chairman of a key congressional committee responsible for crime policy is teaming up with a senator running for president to file legislation on Tuesday that would federally legalize marijuana and seek to repair some of the harms of a war on drugs that has been waged primarily against people of color.
The move by Rep. Jerrold Nadler (D-NY), who leads the Judiciary Committee, and 2020 Democratic contender Sen. Kamala Harris (D-CA) signals that, at least on the House side of Capitol Hill, a floor vote to end federal cannabis prohibition could come before the end of the year.
If enacted, the Marijuana Opportunity Reinvestment and Expungement (MORE) Act would remove marijuana and THC from the Controlled Substances Act, provide for expungement and resentencing of prior convictions and prevent federal agencies from using cannabis as a reason to deny access to benefits or citizenship status for immigrants.
It would also impose a five percent federal tax on the sales of marijuana products. Some of that revenue would be directed toward a new Opportunity Trust Fund aimed at supporting grant programs to provide job training and legal aid for people impacted by prohibition enforcement, loans for small marijuana businesses owned and controlled by socially and economically disadvantaged individuals and efforts to minimize barriers to licensing and employment in the legal industry. Some of these efforts would be run through a new Cannabis Justice Office in the Department of Justice.
The far-reaching legislation was filed on the same day that a Senate committee is scheduled to hold a highly anticipated hearing on banking access by marijuana businesses, indicating that federal cannabis reform has increased momentum on both sides of Capitol Hill.
It also comes as Nadler prepares for an unrelated high-stakes Judiciary Committee hearing on Wednesday with Robert Mueller, the former special counsel, about his investigation into Russia’s interference with the 2016 election and President Donald Trump’s conduct.
“Despite the legalization of marijuana in states across the country, those with criminal convictions for marijuana still face second class citizenship. Their vote, access to education, employment and housing are all negatively impacted,” Nadler said. “Racially motivated enforcement of marijuana laws has disproportionally impacted communities of color. It’s past time to right this wrong nationwide and work to view marijuana use as an issue of personal choice and public health, not criminal behavior.”
Proud to introduce the Marijuana Opportunity Reinvestment and Expungement Act w/ @SenKamalaHarris to decriminalize marijuana at the federal level and bring justice to communities that have been disproportionately harmed by the war on drugs. https://t.co/VoGuDxlbKc
— (((Rep. Nadler))) (@RepJerryNadler) July 23, 2019
The panel’s Crime, Terrorism and Homeland Security Subcommittee held a hearing earlier this month focused on the issue of ending cannabis prohibition. While lawmakers from both parties voiced broad support for some measure of marijuana reform, there was disagreement on specific components of would-be legalization plans—with significant contention over whether restorative justice and equity measures must be included. A look at the new bill’s provisions indicates that Democratic leadership believes simply legalizing marijuana is not enough.
The legislation from Nadler and Harris includes language making provisions that deschedule marijuana retroactive and also specifies that federal agencies “may not use past or present cannabis or marijuana use as criteria for granting, denying, or rescinding a security clearance.”
The bill would require that any uses of the words “marijuana” or “marihuana” in U.S. Code or regulations be replaced with the term “cannabis”—despite the fact that the legislation has “marijuana” in its own title.
Original cosponsors of Harris’s Senate bill include Sens. Cory Booker (D-NJ) and Elizabeth Warren (D-MA)—two of her rivals for the Democratic presidential nomination—as well as Sens. Jeff Merkley (D-OR) and Ron Wyden (D-OR).
Signing onto the House version are Rules Committee Chair James McGovern (D-MA) and Small Business Committee Chair Nydia Velazquez (D-NY).
Rep. Matt Gaetz (R-FL) is the sole Republican cosponsor, and is joined by Reps. Barbara Lee (D-CA), Earl Blumenauer (D-OR), Hakeem Jeffries (D-NY), David Cicilline (D-RI), Steve Cohen (D-TN), Lou Correa (D-CA), Madeleine Dean (D-PA), Ted Deutch (D-FL), Veronica Escobar (D-TX), Sheila Jackson Lee (D-TX), Pramila Jayapal (D-WA), Hank Johnson (D-GA), Ted Lieu (D-CA), Zoe Lofgren (D-CA), Jamie Raskin (D-MA), Eric Swalwell (D-CA), Dwight Evans (D-PA), Tulsi Gabbard (D-HI), Debra A. Haaland (D-NM), Ro Khanna (D-CA), Eleanor Holmes Norton (D-DC), Ayanna Pressley (D-MA), Maxine Waters (D-CA) and Bonnie Watson Coleman (D-NJ).
✅Expunge marijuana convictions
✅Create economic opportunities for communities
This is the most comprehensive cannabis reform bill to ever come before Congress!
— Rep. Lou Correa (@RepLouCorrea) July 23, 2019
The #MOREAct would legalize #marijuana, require resentencing and expungement of old marijuana convictions, and invest money in communities most affected by the failed War on Drugs. This is real reform. I’m proud to be an original cosponsor of the bill. #LegalizeIt #Cannabis https://t.co/luzZUCzLXg
— Steve Cohen (@RepCohen) July 23, 2019
Numerous alternate proposals to overhaul federal cannabis laws have already been filed during the 116th Congress, but that the new bill displays the House Judiciary Committee chairman’s name as its chief sponsor suggests it will likely be the vehicle through which the chamber considers ending prohibition in any votes over the coming months.
That said, the legislation as introduced may well see large and small revisions during an as yet unscheduled committee markup session, or later on the floor. And it is possible that provisions from other existing proposals could be merged in to achieve greater support for the bill when it comes time for a vote.
The new measure and others that have previously been filed with social equity components are largely cosponsored by Democrats—in most cases with zero Republicans on board.
A different approach, the Strengthening the Tenth Amendment Through Entrusting States (STATES) Act, has achieved bipartisan support by maintaining a narrower focus on respecting the implementation of local marijuana laws without including justice-focused provisions.
Some advocates believe that the simpler bill stands a better chance of moving through the GOP-controlled Senate, though its even being brought up for consideration there before the end of this Congress is far from certain. It is possible that the Democratic House will pass something closer to Nadler’s justice-inclusive approach with the Senate potentially opting for a states’ rights-focused effort, after which the two chambers could negotiate some form of compromise to send to President Trump for signing into law.
Meanwhile, the House Financial Services Committee has already approved even narrower cannabis banking legislation, with its Senate counterpart set to consider the issue on Tuesday. While a House floor vote had been long anticipated prior to the August recess, expectations have recently shifted toward potential fall action.
Proud to support the Marijuana Opportunity Reinvestment and Expungement Act here in the House of Representatives. This bill is one of the most comprehensive marijuana reform bills ever introduced in Congress & aims to correct the historical injustices of failed drug policies. https://t.co/tBXQeAKYQp
— Rep. Ted Lieu (@RepTedLieu) July 23, 2019
Nadler has consistently voted in favor of marijuana amendments on the House floor since at least 2003, and he has cosponsored numerous reform bills, dating back to a 1997 proposal to protect state medical cannabis laws from federal interference as well as descheduling legislation beginning in 2011. He’s since signed onto measures concerning marijuana business banking and taxes.
“An examination of our marijuana laws and potential reforms is long overdue,” he said at the start of the Judiciary subcommittee hearing on cannabis this month. “I should add that one of my first votes that I cast as a freshman member of the state Assembly in New York in 1977 was to decriminalize marijuana in New York.”
For Harris, her sponsorship of the new comprehensive legislation is the latest step in an ongoing evolution on cannabis policy as she seeks the presidency.
Today I introduced a comprehensive marijuana reform bill that is the first step towards legalization. My bill will:⁰
✅Decriminalize marijuana at the federal level
⁰✅Expunge prior marijuana convictions⁰
✅Use tax revenue from marijuana sales to help those w/ prior convictions
— Kamala Harris (@KamalaHarris) July 23, 2019
In 2010, as San Francisco’s district attorney, she coauthored an official California voter guide argument against a proposed marijuana legalization measure that appeared on the state’s ballot that year, saying it was “flawed public policy and would compromise the safety of our roadways, workplaces and communities.”
In 2014, during her reelection bid as state attorney general, she laughed at a reporter rather than supply a substantive response when asked about her Republican opponent’s support for legalizing cannabis.
She later declined to endorse the 2016 legalization measure that her state’s voters went on to approve, and first publicly backed ending prohibition last year when cosponsoring a separate cannabis reform bill filed by presidential rival Booker.
“Times have changed—marijuana should not be a crime,” Harris said in a press release about the new bill. “We need to start regulating marijuana, and expunge marijuana convictions from the records of millions of Americans so they can get on with their lives. As marijuana becomes legal across the country, we must make sure everyone—especially communities of color that have been disproportionately impacted by the War on Drugs—has a real opportunity to participate in this growing industry.”
The War on Drugs was an abject failure that disproportionately criminalized people of color—it's time we take steps to fix that.
Today I’m introducing a bill to decriminalize marijuana and bring justice to communities of color harmed by failed drug policies.
— Kamala Harris (@SenKamalaHarris) July 23, 2019
Other provisions of the new legislation would allow cannabis firms to take advantage of Small Business Administration programs and would mandate that the Bureau of Labor Statistics collect data on the demographic makeup of the marijuana industry. It would also require cannabis product manufacturers to register with the Treasury Department and would treat cannabis products in the same manner as tobacco products under the Internal Revenue Code.
Leading pro-legalization organizations praised the MORE Act’s focus on restorative justice.
“The disproportionate rates of marijuana arrests and incarceration faced by low-income communities and communities of color only scratch the surface of the devastation that prohibition has caused,” said Queen Adesuyi, policy coordinator for the Drug Policy Alliance. “Marijuana convictions have disrupted people’s lives—from one’s ability to secure or maintain employment, housing, funds for education, a valid driver’s license to the ability to keep one’s kids or remain in this country for noncitizens. The Marijuana Opportunity Reinvestment and Expungement Act ends prohibition in a way that centers communities most impacted by criminalization with reform that is as comprehensive as the decades of harm inflicted.”
— David Cicilline (@davidcicilline) July 23, 2019
NORML Political Director Justin Strekal said the bill “embodies the need to legalize cannabis and restore the rights of those who have suffered under the cruel and failed policy of criminalization.”
“At a point in time when simultaneously one person could have their life ruined in New York for the exact same action that makes someone in California a millionaire, now more than ever we must end the federal prohibition of marijuana,” he said.
It absolutely is! Proud to be an original co-sponsor of this gamechanging legislation & grateful to you & my colleagues for their leadership #cannabis #equity #restorativejustice #wealthgap https://t.co/rck9NnCW8e
— Ayanna Pressley (@AyannaPressley) July 23, 2019
Neal Levine, CEO of the Cannabis Trade Federation, which has focused much of its efforts around the more limited STATES Act this year, said that it represents “a momentous amount of progress” to have the chairman of a major House panel file legislation to end marijuana prohibition.
“With both the chair and the ranking member of the Judiciary Committee supporting major cannabis policy reform, the end of federal cannabis prohibition is undoubtedly near,” he said, referring to cosponsorship of the STATES Act from Rep. Doug Collins (R-GA), the panel’s top GOP member.
For too long, our federal cannabis policies have been rooted in the past. Congress has a responsibility to ensure that our laws are fair, equitable, and inclusive. As Cannabis Caucus Co-Chair, I’m proud to work with @RepJerryNadler on the MORE Act. https://t.co/JpMEUHb08I
— Rep. Barbara Lee (@RepBarbaraLee) July 23, 2019
In other congressional cannabis news, the Senate Agriculture Committee is scheduled to hold a Thursday hearing on the implementation of hemp legalization featuring testimony from U.S. Department of Agriculture, Food and Drug Administration and Environmental Protection Agency officials.
And last month, the House of Representatives approved an amendment to a spending bill that would prevent the Department of Justice from intervening in state and territory marijuana laws, though the Senate has not yet taken up its version of the appropriations legislation.
Read the full text of the new Marijuana Opportunity Reinvestment and Expungement below:
Top IRS Official Says Marijuana Banking Reform Would Help Feds ‘Get Paid’
The Internal Revenue Service (IRS) would like to get paid—and it’d help if the marijuana industry had access to banks like companies in other legal markets, an official with the federal department said. She also talked about unique issues related to federal tax deductions for cannabis businesses.
At an event hosted by UCLA’s Annual Tax Controversy Institute on Thursday, IRS’s Cassidy Collins talked about the “special type of collection challenge” that the agency faces when it comes to working with cannabis businesses while the product remains federally illegal.
While IRS isn’t taking a stand on federal marijuana policy, Collins said that the status quo leaves many cannabis businesses operating on a cash-only basis, creating complications for the agency, in part by making it harder for banks to “pay us.”
“The reason why [the marijuana industry is] cash intensive is twofold,” she said. “Number one, a lot of customers don’t want a paper trail showing that they’re buying marijuana, and number two, the hesitancy of banks to allow marijuana businesses to even bank with them.”
Of course, the reason why many financial institutions remain hesitant to take on cannabis companies as clients is because the plant is a strictly controlled substance under federal law.
“There’s been a number of legislative bills that have been introduced—and I am definitely not expressing any opinion personally or on behalf of the IRS about any pending or proposed legislation,” Collins, who is a senior counsel in the IRS Office of Chief Counsel, said. “But it is interesting to note that, if the law changed so that the marijuana businesses could have banks, that would make the IRS’s job to collect [taxes] a lot easier. As part of collection, we want the money. That’s our end goal there.”
A major part of what makes cannabis businesses unique is that they don’t qualify for traditional tax credits under an IRS code known as 280E. That policy “prohibits them from claiming deductions for business expenses because they’re technically being involved in drug trafficking,” Collins explained at the event, from which small excerpts of her comments were reported by Bloomberg.
There are some options available to lessen the burden on marijuana firms, however. At the end of the day, “IRS will work with marijuana companies because, again, we want to get paid,” Collins said.
One of the ways the agency works with marijuana business operators is to have them visit designated IRS “tax assistance centers” that accept cash payments in excess of $50,000. But the official warned businesses to “be prepared to be there for a little while” as the center checks—and double checks—the amount of cash being submitted.
“Revenue officers will assist the marijuana companies in paying us,” she said.
IRS officials could also help cannabis firms by having officials accompany them “to the bank in order to try to help the taxpayer secure a cashier’s payment to pay the IRS, as well as using money orders,” she said, adding that “our revenue officers are are wanting to work with the marijuana companies to help assist them to pay us.”
“When the revenue officers are there in person with the taxpayer, that could potentially help increase the likelihood that the bank will cooperate and help the taxpayer transition into a cashier’s check,” she continued. “And that has been a trend since this first became legal [at the state level], that more and more banks are allowing cannabis companies to bank with them.”
In a report published earlier this year, congressional researchers examined tax policies and restrictions for the marijuana industry—and how those could change if any number of federal reform bills are enacted.
IRS, for its part, said last month that it expects the cannabis market to continue to grow, and it offered some tips to businesses on staying compliant with taxes while the plant remains federally prohibited.
As it stands, banks and credit unions are operating under 2014 guidance from the Financial Crimes Enforcement Network (FinCEN) that lays out reporting requirements for those that choose to service the marijuana industry.
Leaders in both chambers of Congress are working on legalization bills to end federal marijuana prohibition. But stakeholders are hopeful that, in the interim, legislators will enact modest marijuana banking reform. Legislation to protect financial institutions from being penalized for working with cannabis businesses passed the House for the fifth time last month.
Rodney Hood, a board member of the National Credit Union Administration, wrote in a Marijuana Moment op-ed this month that legalization is an inevitability—and it makes the most sense for government agencies to get ahead of the policy change to resolve banking complications.
IRS separately hosted a forum in August dedicated to tax policy for marijuana businesses and cryptocurrency.
Earlier this year, IRS Commissioner Charles Rettig told Congress that the agency would “prefer” for state-legal marijuana businesses to be able to pay taxes electronically, as the current largely cash-based system under federal cannabis prohibition is onerous and presents risks to workers.
Former Treasury Secretary Steven Mnuchin said in 2019 that he’d like to see Congress approve legislation resolving the cannabis banking issue and he pointed to the fact that IRS has had to build “cash rooms” to deposit taxes from those businesses as an example of the problem.
IRS released updated guidance on tax policy for the marijuana industry last year, including instructions on how cannabis businesses that don’t have access to bank accounts can pay their tax bills using large amounts of cash.
The update appears to be responsive to a Treasury Department internal watchdog report that was released earlier in the year. The department’s inspector general for tax administration had criticized IRS for failing to adequately advise taxpayers in the marijuana industry about compliance with federal tax laws. And it directed the agency to “develop and publicize guidance specific to the marijuana industry.”
Luxembourg Set To Become First European Country To Legalize Marijuana Following Government Recommendation
Luxembourg is poised to become the first European country to legalize marijuana, with key government agencies putting forward a plan to allow the possession and cultivation of cannabis for personal use.
The ministers of justice and homeland security on Friday unveiled the proposal, which will still require a vote in the Parliament but is expected to pass. It’s part of a broader package of reform measures the agencies are recommending.
Under the marijuana measure, adults 18 and older could grow up to four plants. However, under the non-commercial model that is being proposed, possessing more than three grams in public would still be a civil offense, carrying a fine of €25-500 ($29-581). Currently, the maximum fine for possession is €2,500 ($2,908).
In terms of access, adults would be able to buy and trade cannabis seeds for their home garden.
Justice Minister Sam Tamson said the government felt it “had to act” and characterized the home cultivation policy change as a first step, The Guardian reported.
👉🏻élaboration du projet de loi usage privé du #cannabis : jusqu’à 4 plantes à domicile & décorrectionnalisation <3g
👉🏻renforcement de la prévention & de l’accompagnement
👉🏻⬆️des moyens de la police
👉🏻élaboration d’un projet de production/vente #Luxembourg pic.twitter.com/8yre0Udt8J
— Sam Tanson (@SamTanson) October 22, 2021
“The idea is that a consumer is not in an illegal situation if he consumes cannabis and that we don’t support the whole illegal chain from production to transportation to selling where there is a lot of misery attached,” he said. “We want to do everything we can to get more and more away from the illegal black market.”
While limited in scope, the reform would make Luxembourg the first country in Europe to legalize the production and possession of marijuana for recreational use. Cannabis has been widely decriminalized in certain countries in the continent, but it has remained criminalized by statute.
Government sources in Luxembourg told The Guardian that plans are in the works to develop a program where the state regulates the production and distribution of marijuana. Tamson said they are working to resolve “international constraints” before taking that step, however, referring to United Nations treaty obligations that multiple U.S. states and other countries like Canada and Uruguay have openly flouted.
The measures include:
🟢 Regulation of cannabis use and cultivation: adults will be able to legally cultivate up to four cannabis plants for their own use, provided the cultivation is happening at their place of residence.
— European Greens (@europeangreens) October 22, 2021
For now, the country is focusing on legalization within a home setting. Parliament is expected to vote on the proposal in early 2022, and the ruling parties are friendly to the reform.
This has been a long time coming, as a coalition of major parties of Luxembourg agreed in 2018 to enact legislation allowing “the exemption from punishment or even legalization” of cannabis.
Meanwhile in the U.S., congressional lawmakers are working to advance legalization legislation. A key House committee recently approved a bill to end marijuana prohibition, and Senate leadership is finalizing a separate reform proposal.
In Mexico, a top Senator said this week that lawmakers could advance legislation to regulate marijuana in the coming weeks. The Supreme Court has already ruled that adults cannot be criminalized over possession or cultivation, but there’s currently no program in place to provide access.
Photo courtesy of Mike Latimer.
New Bipartisan Marijuana Research Bill In Congress Would Let Scientists Study Dispensary Products
A bipartisan group of federal lawmakers introduced a bill on Thursday to remove barriers to conducting research on marijuana, including by allowing scientists to access cannabis from state-legal dispensaries.
The Medical Marijuana Research Act, filed by the unlikely duo of pro-legalization Rep. Earl Blumenauer (D-OR) and prohibitionist Rep. Andy Harris (R-MD), would streamline the process for researchers to apply and get approved to study cannabis and set clear deadlines on federal agencies to act on their applications.
“Congress is hopelessly behind the American people on cannabis, and the quality of our research shows why that is an urgent problem,” Blumenauer told Marijuana Moment. “Despite the fact that 99 percent of Americans live in a state that has legalized some form of cannabis, federal law is still hamstringing researchers’ ability to study the full range of health benefits offered by cannabis, and to learn more about the products readily available to consumers.”
“It’s outrageous that we are outsourcing leadership in that research to Israel, the United Kingdom, Canada, and others. It’s time to change the system,” he said.
Late last year, the House approved an identical version of the cannabis science legislation. Days later, the Senate passed a similar bill but nothing ended up getting to the president’s desk by the end of the last Congress. Earlier this year, a bipartisan group of senators refiled their marijuana research measure for the current 117th Congress.
Meanwhile, lawmakers are also advancing a separate strategy to open up dispensary cannabis to researchers. Large-scale infrastructure legislation that has passed both chambers in differing forms and which is pending final action contains provisions aimed at allowing researchers to study the actual marijuana that consumers are purchasing from state-legal businesses instead of having to use only government-grown cannabis.
The new bill filed this week by Blumenauer and Harris, along with six other original cosponsors, would also make it easier for scientists to modify their research protocols without having to seek federal approval.
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.
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It would additionally mandate that the Drug Enforcement Administration (DEA) license more growers and make it so there would be no limit on the number of additional entities that can be registered to cultivate marijuana for research purposes. It would also require the U.S. Department of Health and Human Services (HHS) to submit a report to Congress within five years after enactment to overview the results of federal cannabis studies and recommend whether they warrant marijuana’s rescheduling under federal law.
“The cannabis laws in this country are broken, including our laws that govern cannabis research,” Blumenauer said in remarks in the Congressional Record. “Because cannabis is a Schedule I substance, researchers must jump through hoops and comply with onerous requirements just to do basic research on the medical potential of the plant.”
The new legislation will “both streamline the often-duplicative licensure process for researchers seeking to conduct cannabis research and facilitate access to an increased supply of higher quality medical grade cannabis for research purposes,” he said, adding that expanded studies will help make sure “Americans have adequate access to potentially transformative medicines and treatments.”
For half a century, researchers have only been able to study marijuana grown at a single federally approved facility at the University of Mississippi, but they have complained that it is difficult to obtain the product and that it is of low quality. Indeed, one study showed that the government cannabis is more similar to hemp than to the marijuana that consumers actually use in the real world.
There’s been bipartisan agreement that DEA has inhibited cannabis research by being slow to follow through on approving additional marijuana manufacturers beyond the Mississippi operation, despite earlier pledges to do so.
In May, the agency finally said it was ready to begin licensing new cannabis cultivators. Last week, DEA proposed a large increase in the amount of marijuana—and psychedelics such as psilocybin, LSD, MDMA and mescaline—that it wants produced in the U.S. for research purposes next year.
Under the new House bill, the agency would be forced to start approving additional cultivation applications for study purposes within one year of the legislation’s enactment.
HHS and the attorney general would be required under the bill to create a process for marijuana manufacturers and distributors to supply researchers with cannabis from dispensaries. They would have one year after enactment to develop that procedure, and would have to start meeting to work on it within 60 days of the bill’s passage.
In general, the legislation would also establish a simplified registration process for researchers interested in studying cannabis, in part by reducing approval wait times, minimizing costly security requirements and eliminating additional layers of protocol review.
Read the full text of the new marijuana research bill below: